MARKET STUDY
The status and prospects of PUBLIC PRIVATE PARTNERSHIP In Romania

  Dear Sir, Dear Madam,

DCC MANAGEMENT currently makes a market study on the status and prospects of Public Private Partnership (PPP) projects implementation in Romania
After preliminary analysis and sampling, we consider your opinion very relevant to the research topic. We would very kindly ask you to provide us with some information from the perspective of your organization. We assure you that your answers are confidential and will only be used for research purposes.
To the extent that your organization is interested in the results of this study, we are available to you via our contact data.
Thank you in advance!

I. Defining elements for PPP     
1.Which of the following elements are characteristic for the structure of a PPP project:     
 fair and equitable sharing of risks between partners     
 a long-term approach, on the entire life cycle of the public good/ infrastructure resulted from the project      
 investment financing by the private partner     
 more efficient allocation of responsibilities between the partners under the principle: “everybody does what knows better”     
 bundling the various phases of a project under a single contract: design + construction + operation      
  2. Which of these elements represent advantages of PPP over the traditional method of tender and public financing of the infrastructure projects? Very ImportantImportantNeutralLess ImportantUnimportant
 relaxation of the public budget by financing the public infrastructure project by the private partner
 efficient allocation of project risks between the public and private partner
 long-term approach of the project in the sense of connecting the phases of design, construction and operation of infrastructure under a single contract with the private consortium
 superior economic returns through the exploitation of the private sector's Know How
 accelerated realization of the major public infrastructure projects
 attracting additional sources for the finance of public utility projects in the context of economic and financial crisis
 ensuring long-term revenues for the private partner
 superior safety for the financial sector by public sector involvement
 recovery of the construction sector in the context of the financial and economic crisis
II. General issues concerning the implementation of PPP in Romania
3.What do you think would be the main success factors for PPP projects in Romania?Very ImportantImportantNeutralLess ImportantUnimportant
 government Policy
 existing Legislation
 political Environment
 market conditions
 macro-economic stability
 quality and institutional stability
 legal system
 previous experience with PPP
 other : (please mention)      
4. Which of the following sections do you think are most interesting / appropriate for the implementation of PPP projects in Romania:Very AppropriateAppropriateMediumLess AppropriateTotally Unappropriate
 transport (road air, rail etc)
 education
 health
 prison
 energy
 environment
 other : (please mention)      
5. What should be, in your opinion, the target scale of PPP projects in Romania in terms of project value?Great ExtentMedium ExtentSmall Extent  
 projects that worth more than 50 mil euro    
 projects that worth 10 - 50 mil euro    
 even projects that worth less than10 mil de euro    
6. What should be, in your opinion, the target scale of PPP projects in Romania in terms of implementation level?     
 projects of national importance      
 projects of sub-national importance (local and regional)     
7. Do you think that PPP is a viable solution for an accelerated realization of important public infrastructure projects in Romania?     
 very great extent      
 great extent      
 medium extent      
 small extent     
 not at all     
III. Legal framework in Romania, regarding PPP      
8.What is, in your organization, the level of awareness and knowledge of legal framework that allows PPP implementation, namely, GEO34/2006 regarding the public procurement of works, concession of works contracts and services concession agreements and the new PPP Law, namely Law 178/2010 on Public Private Partnership:     
 we know the two laws in detail, incl. the differences between them and the benefits they offer and how to enforce them      
 we know some information regarding the two laws     
 we do not know the two laws in terms of the implementation possibilities for PPP projects     
 we know only GEO34/2006 from the point of view of implementation possibilities for PPP projects     
 we know only Law 178/2010 from the point of view of implementation possibilities for PPP projects     
IVPPP project financing in Romania     
9. Which is the best approach, from the economical point of view, for achieving a return on the private investment in a PPP project, in Romania Very AppropriateAppropriateMediumLess AppropriateUnappropriate
 PPP contract paid by end users and demand volume risk for the private partner in the operation phase  
 PPP contract paid from the public budget, without risk of demand volume for the private partner  
 a mix between the two  
10. Do you know the conditions under which a financial institution can finance projects of public interest within a PPP, and the guarantees that should be offered by the public partner in this context?     
 yes     
 no     
11. Do you consider it desirable to establish a compatibility between PPP and EU grants, regarding the possibility of co-financing the PPP projects with EU non-reimbursable funds?      
 yes     
 no     
12. What do you consider to be the main advantages brought by the implementation of EU funds in PPP projects?      
 superior attractiveness of PPP projects by lowering investment costs      
 capital contribution to cover the needs of larger scale projects, making them possible     
 supporting social investments that would not otherwise generate significant revenues (enough) to be attractive for a private investor      
 professional project management and superior implementation capacity of projects that use European funds     
 private financing leads to increase of national contribution at each project financed also from European sources      
 private PPP financing brings a better valorization of the EU funds      
 other :      
13. Which are, from your point of view, the fields in which is possible currently, a compatibility between EU funds and PPP projects in Romania: Very AppropriateAppropriate Less Appropriate   
 transport (road, air, rail etc)    
 education    
 health    
 energy    
 environment    
 tourism    
 prisons    
 other :      
VRisk allocation in PPP projects     
14. Which of the following categories of risks can be basically accepted and taken over by the private partner? Great ExtentMedium ExtentSmall Extent  
 risks related to the site location (land availability, obtaining approvals, cleaning and viability, cultural heritage)    
 design and construction risks, subsequent changes in construction    
 risk that the demand for the use of the public good to be less than forecasted    
 risks regarding the environment;    
 financing risks (interest rates change during the investment, the inability of financier, financing unavailable, etc.);    
 operational risk, risk of ensuring the performance level (operation, old or inadequate technical solutions, maintenance and repair, change of public partner requirements’ outside contractual limits, inflation)    
 legal framework changes and political risks    
 obsolescence risk and need for modernization (equipment depreciation)    
 other project-specific risks, such as delaying the project acceptance, project profitability higher than initial forecasts    
 i do not know the risks listed are general, a relevant allocation can be determined based on a detailed risk matrices    
VI Awareness, involvement and readiness for PPP in Romania     
15. Do you know any suitable projects, in different sectors/ areas of activity, and/or already planned for implementation within a PPP model in the medium and long-term future (max. 3-5 years):      
 yes : (example)     
 no      
16. Your organization has been or is involved in planning, and/or running of PPP projects in Romania or other country?      
 yes,in Romania : (example)     
 yes,other country : (example)     
 no      
17. Do you consider your organization prepared to get involved in the planning, acquisition and implementation of a PPP project?Very Large ExtentLarge ExtentSmall ExtentVery Small ExtentNot At All
 for the planning and preparing of a participation in PPP project
 for the tender phase of a PPP project
 for bringing the private finance of the project
 for the execution phase: Design/ Build
 for the Maintenance and Operation phase
18. In your opinion, which is the best time allocation for planning and preparing a PPP project, until the moment of project acquisition and contract signing with public partner?      
 1-3 months      
 3-6 months      
 6-12 months      
 more than 12 months      
19. Which are, in your perspective, the costs involved by preparing and acquiring a PPP project in Romania?     
 less than 15.000 euro      
 15.000 euro - 50.000 euro      
 50.000 euro - 100.000 euro      
 100.000 euro - 250.000 euro      
 more than 250.000 euro      
20. Is your organization interested to be involved, incl. financially, in the planning and participation to PPP projects?      
 very interested     
 interested      
 indifferent      
 very little interested     
 not at all interested      
VII Data on your organization      
21. Which is the annual turnover of your organization:     
 less than 10 mil euro      
 10 mil - 50 mil euro      
 more than 50 mil euro      
22. Which is the field of activity of your organization?      
 financial/banking      
 construction     
 technical consultancy/ architects      
  management/financial consultancy     
 legal consultancy/ Lawyer     
 public administration     
 ONG / associations     
 embassy, economic mission     
 Chamber of Commerce and Industry     
 university/ academic     
 Others :      
23. Under which form of capital is your organization present on the Romanian market?      
 romanian capital      
 mix capital      
 foreign capital      
 the organization is not present on Romanian market but is interested in this market      
Name      
Function      
Email      
Company