Romania expects to complete the Recovery and Resilience Facility (RRF) with absorption rates of over 90% for grants (92.7%) and over 95% for loans, according to acting prime minister Ilie Bolojan and acting investment and European Projects minister Dragoș Pîslaru, who held a joint press conference on the topic on September 1.

Romania still has to file the sixth payment request.

The rates are calculated, however, on a total volume of just over EUR 20 billion, including EUR 13.6 billion in grants, down from an initial envelope of EUR 29.2 billion (EUR 14.2 billion in grants). Notably, the significant reduction in the overall envelope consisted mainly of reduced loan financing, while the reduction in grants was relatively moderate.

The 6.3% of grants that Romania stands to lose are linked to the failed Wage Law for the budgetary sector (EUR 770 million) and the continued operation of a couple of coal-fired power plants, particularly in the context of the tight energy market at present (up to EUR 100 million). The latter reversed commitments already made by Romania under the decarbonisation milestones.

Minister Pîslaru assured that the investments financed from the grants allocated by the EC to the reforms pursued have been completed and that no money will be lost in this regard, Economica.net reported. The EC had previously agreed to shift financing among projects towards more mature ones in order to avoid the risk of losing funds.

Minister Pîslaru stressed that, in terms of completing investment projects and reforms, two-thirds of the RRF/PNRR milestones were completed during the government led by Ilie Bolojan. He stressed that the governments in office from 2021 to 2025 had neither implemented the necessary reforms nor started or completed some of the investments.

He argued that the PNRR problems were not generated by Brussels, but by the way the programme was managed in Romania.

Acting PM Ilie Bolojan outlined the main achievements financed from the RRF:

Moldova Motorway – EUR 1.5 billion for the Focșani-Bacău section.

The “Renovation Wave” – EUR 1.8 billion for the energy renovation of tens of thousands of residential and public buildings.

The Government Cloud – over EUR 300 million, with more than 30 public institutions connected and using it.

Renewable energy – over EUR 450 million for almost 1,000 MW of renewable capacity.

Education – modern equipment for tens of thousands of classrooms and laboratories, financed with EUR 600 million.

Support for vulnerable students – over EUR 450 million in aid targeting more than 2,000 schools where the risk of school dropout is high.

Digitalisation of universities – EUR 230 million.

Water and sewage networks – over EUR 55 million.

Afforestation – EUR 300 million.

Healthcare – eight regional hospitals and 1,200 ambulances purchased.

Neonatal healthcare – 25 neonatal intensive care units.

Primary healthcare – more than 2,000 family doctors’ offices modernised.

Housing – 885 housing units for young people from marginalised communities.

iulian@romania-insider.com

(Photo source: Ruletkka/Dreamstime.com)