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Romania: Bill on Public-Private Partnerships Passed

(May 12, 2010) The Romanian Senate adopted a bill on public-private partnerships on May 5, 2010. The legislation, passed by a unanimous vote, seeks to streamline procedures by “regulating the design, financing, construction, operation, rehabilitation, development and transfer of any asset brought into being under a public-private partnership,” according to one of the bill's sponsors. (Romanian Senate Adopts Simplified Public-Private Partnership Mechanisms, AGERPRES (Bucharest), May 5, 2010, World News Connection online subscription database, NewsEdge Document No.201005051477.1_379d002ecd273fe6.) The act designates authorities at both the central and local levels and establishes a mechanism to help attract investments in a broad range of sectors, including “education, culture, infrastructure, justice and defence.” (Id.)

Under the new legislation, there are five types of partnerships, through which “the investor can commit to designing and building an asset with the possibility of charging fees so as to cover the maintenance costs and also collect a reasonable profit,” or lease an asset in lease with a view to providing lucrative services. (Id.) The partnerships may be undertaken for a maximum period of 49 years. The act also allows for the conclusion of other types of contractual relationships, in accordance with the law. (Id.; Propunere legislativă privind parteneriatele încheiate între sectoarele public şi privat L184/2010, May 5, 2010, available at Romanian Senate website,