Big real estate project in Bucharest CBD Romexpo stuck in Parliament

The conflict between the senior Romanian ruling party PNL and the reformist USR PLUS on a critical law aimed at smoothing the EUR 2.6-3.0 bln Romexpo real estate project in Bucharest’s central business district lingers in Parliament.

Senate president Anca Dragu (USR) reportedly asked the head of the legal expert committee, Iuliana Scantei (Liberal), to address a memorandum submitted by NEPI Rockcastle - which argues for an open tender to be organised with a view of selecting the developer for the land (some 46 ha, estimated to cost over EUR 300 mln). Scantei reportedly refused to bring the memorandum to the expert committee because it represents the views of “a party interested," G4media.ro reported.

Based on a concession contract valid by the end of 2053, the Chamber of Commerce and Industry (CCIR) asked lawmakers full ownership of the land - and the Social Democrats and Liberal MPOs have approved the request. CCIR argues that it owns rights to use the land until 2053, and any attempt to deprive it of the rights would result in EUR 300 mln compensations - under the concession contract signed in 2004.

NEPI, a real estate developer and investor, objected to CCIR’s plans to develop a mixed-use project with local developer Iulius Group.

The European Commission, in its turn, reportedly asked Romania to explain why CCIR is not treated as a firm, subject to state aid provisions.

(Photo source: Ccir.ro)