about us | newsletter | contact | archive | members area
Mircea Turdea, Farmec
The cosmetics industry is an extremely dynamic field and requires active players»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

New law on ports administration would be very damaging for Romanian state budget, Fondul Proprietatea says

Fondul Proprietatea is concerned by the renewed steps to approve the draft law amending the Government Ordinance on ports administration, which was re-examined and approved through an emergency procedure by the Senate on 15 May, despite being declared unconstitutional in its entirety by the Constitutional Court on 28 February 2017.

2017-06-20 15:01:41 - From the Print Edition

If implemented, the law would be very damaging for all of Romania′s port administrations and the Romanian state budget, leading to tens of millions of Euro in lost revenues for Constanta Port alone, the Fund says.

According to provisions in the draft law, the level of rent for a port′s land and infrastructure leased to operators who refuse to sign rental contracts should be fixed for a ten-year period at the level currently paid based on contracts for the so-called utilization of ports domain (UDP), which for example in Constanta Port varies between 0.22 RON and 0.36 RON per square meter per month.

Most of these contracts were concluded some ten -15 years ago, without any public tender, in non-transparent circumstances and the rents have remained largely unchanged ever since. By comparison, land available for logistic and industrial purposes in areas with significantly less attractive access to infrastructure around major cities in Romania are rented at levels several times those to be paid in Constanta Port if the law entered into force, a press release shows.

"Freezing the rents at the current minimum levels for the next ten years will result in lost revenues of tens of millions of Euro for Constanta Port alone, while also representing a dangerous precedent where a law is directly setting prices in contracts between two legal entities," said Greg Konieczny, Fondul Proprietatea CEO and Portfolio Manager. "This money could be put to better use through investments in Romania′s ports rather than creating unfair benefits for private operators."

Fondul Proprietatea also claimed that this law will lead to a slowdown in the development of the ports.
"This is because many of the current operators - who do not have the willingness or financial strength to invest in new facilities or refurbish the existing ones - will have less incentive to give up the land they currently occupy at very low rents in very attractive areas of the ports to other operators with the means to develop them faster."

Moreover, in the form declared unconstitutional by the Constitutional Court, the law establishes a Supervisory Body, set up under the authority of the Competition Council, which would be responsible for approving all tariffs charged by Romania′s ports and resolve all disputes between port administrations and port operators, according to the same source.
Fondul Proprietatea requires the Chamber of Deputies to reject the law, considering the negative impact it will have on the Romanian state budget and assets and its consequences on port administrations who would be denied the right to charge rents and other tariffs according to free market rules.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  3836 Views
Daily Info
Socar has opened the second filling station in Brasov and reaches a total of 39 stations

Socar has opened its 39th filling station in Romania. This is the second filling station to be launched under Socar brand in Brasov city, one of the Romanian tourism centers. ...

Hornbach opens an online store with over 27,000 products in Romania

Hornbach officially launches their online store in Romania, where customers can choose from over 27,000 products.

PM-designate Dancila: "It's important to implement governing programme"

Prime Minister-designate Viorica Dancila stated that it's important to put into practice the governing programme, but also 2018- the Centennial Year and prepare to take over t...

Colliers Romania appoints Laurentiu Lazar as new managing partner

Laurentiu Lazar will take over as the new managing partner of the real estate consultancy company Colliers International Romania, effective as of March. Ilinca Paun, the curre...

Skanska Romania appoints Aurelia Luca as new managing director

Skanska Property Romania, the local division of one of the largest real estate developers, announces changes at the top of management in Romania. Marcin Lapinski, Managing Dir...

 
 
   
advertising

advertising

advertising

advertising

advertising

More on News
Mihai Tudose announces his resignation as prime minister

Mihai Tudose announced on Monday evening, at the end of the Social Democrat Party (PSD) National Executive Committee (CExN) meeting, that he resigns as prime minister of Ro...

Contract for the purchase of 227 Piranha V armored personnel carriers, signed in presence of PM Tudose

The contract for the purchase of 227 Piranha V armored personnel carriers was signed on Friday in the presence of Prime Minister Mihai Tudose, Deputy Prime Minister Marcel ...

Iohannis: Justice independence, public positions' integrity are constitutional values not to be negotiated

Promoting the rule of law and Justice independence, fighting against corruption, ensuring integrity in public positions and dignities are constitutional values that cannot ...

PM-designate Dancila: "It's important to implement governing programme"

Prime Minister-designate Viorica Dancila stated that it's important to put into practice the governing programme, but also 2018- the Centennial Year and prepare to take ove...

Romania plays in the big league, says Deloitte survey

On the backdrop of a stable economic context in the region and with growing macroeconomic indicators, Romania has won the deal doers' trust now becoming a core market for p...

Ministry of Public Finances set to issue Euro-bonds worth 8 billion Euro in the next two years

The Ministry of Public Finances (MFP) contemplates issuing Euro-bonds worth approximately 8 billion Euro (equivalent) over 2018-2019, in the context of the implementation o...

Garanti Bank expects a four per cent GDP growth rate in 2018

Garanti Bank estimates that the growth rate of the gross domestic product (GDP) could reduce speed in 2018, to four per cent, from 6.5 per cent in 2017, mainly due to a slo...