BRASOV Romania

BRASOVRomania

BRASOVHISTORY & INDUSTRY

Brasov Center of Romania, surrounded by Carpathian Mountains Old Saxon Citadel and main commercial center of Romania in the 12-18 centuries

285000 inhabitants Multicultural and multiethnic city (8 % Hungarians, 2.5 % Germans, 89 % Romanins) A very active and involved community

Brasov

Main tourist center of Romania: Poiana Brasov winter sports resort, Tampa natural reservation park, natural landscape and resources 25 km around, Bran Castle 12 km from Brasov, Peles Castle at 50 km

University Center – Forestry Engineering Faculty (the only one in Romania), Faculties of Mechanics, Electro-techniques, Electronics, New Faculties: Tourist Industry, Economics and Business Administration, Social Sciences, Environment and Energy efficiency Engineering, Industrial design

• Very important industrial center during communist period: tractors, ball-bearings, trucks, machine-tools, car spare parts, rubber parts for machines and equipment, electric engines for industry, oil and sub-products refinery, army equipment and copper products

• Textiles, food industry, agriculture (potatoes), tourist industry, services

• Brasov can be a pioneer for Romania in using the investment development funds, a pilot city for Jessica implementation in the newest member states

Brasov – History & Industry


Industry collapsed in three years after the popular revolution of 1989

Reconversion to new industries and new economic development directions was slow and hesitant because:

• Lack of expertise on: • Market economy• Competition ethics and rules • Capital investment planning and management• Private entrepreneurship• Financial management


Lack of experience on:• Strategic planning • Regional and integrated development • International cooperation and partnerships • Capital investment and support financial instruments

Lack of culture on:• Community development based on transparency,

accountability and public participation• Vertical and horizontal cooperation between the

governance layers• Devolution of power from central to local/regional

Brasov – History & IndustryBrown fields regeneration and/reconversion to new

functions became an issue

• Tractorul Coresi Economic Development Area

• Hidromecanica Hypermarket in the new Civic Center

• Metrom Logistic Park and recreation facilities

• Refinery residential area


Tractorul Coresi Economic Development Area

• TRACTORUL – Coresi regeneration project-144 hao Proposed funding: private funds & public / local

budget

Brasov - Industry

A BUSINESS DISTRICT in the south contains

a new business park, expo and congress hotel

incorporating the former entrance building

and hangar.

A NORTH-SOUTH PEDESTRIAN ROUTE will link the existing Tractorul Park with the retail and leisure destinations at the north, whilst linking a series of new squares.

A NEW CIVIC SQUARE at the heart of the quarter creates the link between business and residential zones with public service offices and a community building.

RESIDENTIAL DISTRICTS are banded across the middle of the quarter, buffered by linear buildings and the green park from roads and neighboring plots.

• LINEAR OFFICE BLOCKS form the urban edges of several zones and ensure a variety of office space provision and location around the development.

Brasov - Industry• HIGHSTREET RETAIL is located at the ground floor of the residential districts either side of

the pedestrian axis, leading up to the North Square.

THE SHOPPING CENTRE & RETAIL PARK are placed at the North Square where the central pedestrian axis meets the new East-West connection road.

THE NEW PARK INCORPORATES A LEISURE FACILITY and buffers the residential zones to the undeveloped neighboring areas.

TWO NEW EAST-WEST VEHICULAR CONNECTIONS will link the development into the existing road network.

A HEALTHCARE RESEARCH FACILITY or similar use will be prominently places at the eastern gateway and signal the new quarter.

• LIGHT INDUSTRIAL functions are placed on 25ha in the north-east of the site, well connected to the existing service road and future Eastern Access

More on:

www.coresibrasov.ro

Brasov – History & Industry• Hidromecanica Hypermarket in the new

Civic Center• HIDROMECANICA regeneration project- 4 ha• Proposed funding: private funds & public / local

budget

Brasov - Industry

• Service area: restaurant, conference & exhibition facility, business center, hotel, etc.• Mall, Clubs, Cinema City• Parking lots • Parks & recreation• Banks, Offices• Retail


• Metrom Logistic Park and recreation facilities

• METROM logistic and recreation park regeneration project- 85 ha

o Proposed funding: private funds & public / local budget

Brasov - Industry

• METROM INDUSTRIAL PARK Business Centre

• Land owned by MIP: 2,5 ha

• Infrastructure available : water, sewer, gas, electric power 380v

• Total built area: 10.500 sqm

• Target results: 400 jobs, 53 businesses to be located in the area

• Total costs: 5.3 Mil. Euro

• Period: 32 months

More on:

www. mipbrasov.ro

Brasov – History & Industry• Refinery residential area • OLD REFINERY regeneration project-18 hao Proposed funding: private funds & public / local

budget


Brownfield financing opportunitiesRegional Operational Program Axis 4 – Support the local and regional business environment Domain 4.2 – Rehabilitation of polluted industrial sites/brown fields and preparation for new functions•Phase 1> Decontamination (allocation 98 %)•Phase 2>Create the infrastructure in support of business environment (allocation 50 %, under State Aid scheme)Financing: 235,4 Million Euro from which 200,1 Million Euro from ERDF


Conditions•Both Phase 1 (98 % allocation) and Phase 2 (50 % allocation state aid) are compulsory•The local government is the applicant •The local government has to be the owner of the Brownfield (property, concession, administration)•The partner should be a structure supporting business development

NOT Feasible because:•Very few local governments own brown fields •Partnerships in the past had week results/collapsed due to the lack of confidence and of expertise•Impossible for the local government to cover 50 % of the financing for the second phase from local budget


CONCLUSION:• The government proposed to transfer the money from

axis 4.2 to other axes!!! EU said it is not appropriate• Brown fields remain brown !!!• Local governments sell brown fields for low prices to

get rid of them and push them on the market in order to become profitable!!!

• PROBLEM NOT SOLVED ! Just PENDING !


What we have• 7 growth poles in Romania: Brasov, Cluj, Constanta, Craiova, Iasi,

Ploiesti, Timisoara• 7 Integrated Development Plans: one per each growth pole• A total allocation of 695,58 mil Euro, from which the ERDF contribution is

591,24 mil Euro• The integrated and individual projects financed through the Regional

Operational Program• Formal regional structure: 7 development regions + Bucharest area = 8

development regions established on geographical and political criteria (Law 315/2004).

• Documents: National Strategic Development Plan 2007-2013, Regional Strategic Development Plans

• (Too) many governance layers: local, county, region, central• Unbalanced power and responsibilities between governance layers• Very active and informed population, open to the participative process


What we have:BRASOV Urbact Local Support Group

1. Aware of the principles and criteria to create and operate the urban development funds (UDF) in Brasov metropolitan area

2. Identified the integrated urban development projects for Brasov metropolitan area

3. Participate to the activities of Jessica for Cities project 4. Free access to URBACT information5. Contribute with local and organizational expertise to select projects

to be financed by UDF6. Support the promotion of the financial instrument to the national

government (lobby to create the UDF and use them for urban sustainable development)

• Urbact Local Support Group Brasov


What we have: Integrated projectsIntegrated Urban Development Plan for Brasovo Metropolitan Public transportation systemo Metropolitan Parking Systemo Metropolitan Green Belto Metropolitan bicycle belto Metropolitan historical and heritage trail

Brasov – History & IndustryWhat we have Local governments • Very limited experience in producing sound urban development projects

for their communities• There is no real culture of partnership and no mutual confidence between

the public authorities, private sector and banks• Consultation and cooperation with private sector and civil society is more

often only ,,for façade”• Are not familiar with managing and budgeting on projects

Managing Authorities • Not willing to devolving authority and cooperate effectively with the local

governments• Want to keep control of the money allocation to the central level, no

interest to transfer responsibility to the local level• Poor communication and cooperation with the Authority for Structural

Funds Coordination• Reluctant to put structural funds money into financial structures

supporting sustainable integrated development


What we have Urban planners • Waiting to be involved in a real consultation process

concerning the community projects and available to provide their expertise and advise

• Have initiatives at the local level and promote procedures and rules at the national level through their associative structure, Order of Architects and Association of Chief Architects form local governments

• Open to cooperation with private and public investors• Wait for local government to produce comprehensive,

concrete and applicable development projects for the communities

Brasov – History & IndustryWhat we have Private investors/entrepreneurs • There is no real culture of partnership and mutual confidence between the

public authorities, private sector and banks• Public-private partnerships are known but not a very popular practice, due

to the past failures • Consultation and cooperation with local government is more often

only ,,for façade”• Wait for local government to produce comprehensive, concrete and

applicable development projects for the communities

Banks • Private banks have very limited experience in supporting development

projects for communities (only SME development credits in operation)• Not very familiar with the public finance process• Operate with highest interest rate in Europe (6,7% mortgage and 9,8%

consume credits)• Very limited experience and not much enthusiasm in working with local

governments


What we do NOT have• Real regional structure created primarily on regional social,

economic and demographic needs and opportunities and then on geographic structure

• Real strategic planning on regions and then on the national level

• Devolution of decision making and implementation responsibilities to the regional level

• Real cooperation and interaction between the regions• Effective and efficient cooperation between the central and

local authorities• Politicians encouraging the public participation and citizen

real involvement in the community and regional planning and development


DiscrepanciesUrban planning• GUPs created in 2001 have been enlarged by force with ZUPs with little

consideration to the urban sprawl prevention and environment protection (mix of residential with industrial no green areas)

• No discipline in enforcing the GUP regulations and poor control of community development

• One-stop-shops for building permits created by law in 2001 have been abolished in 2009

Economic burden• A company has to pay 113 taxes and fees/year taking 200 hours for the

procedures• NO Anti-crisis National Plan in place • National economy contracted 38 % in 2010• Structural funds absorption rate : 6 %

• Politicians encouraging the public participation and citizen real involvement in the community and regional planning and development


What we CAN DO (national solutions)

Strategic planning• Elaborate sound development policies• Consult citizens• Set up implementation plans for the policies• Develop concrete projects under the implementation plans

Create simple and effective laws and procedures to lowering and preventing the risk of corruption

Effective enforcement of the public sector transparency and accountability laws

What EU CAN DO (European solutions)

Guideline development package for convergent countries

Strategic planning• Metropolitan management• Urban-rural connection and integrated planning and management• Integrated development (principles , procedures and best practices)

Economic schemes• Anti-crisis package (principles, economic mechanisms and financial tools)• Budgeting on programs• Financial management of projects using structural and alternative funds as UDFs, etc.

CONCLUSIONS

MULTI-LEVEL APPROACH• More than necessary• Rarely feasible (gaps between governance

levels mainly on vertical scale)• Never sufficient

• Co-productive approach is good, as it could be

more flexible and more result oriented.

CONCLUSIONSSTRATEGIC PLANNING• Necessary (desperately) & Very useful• Enables efficiency and effectiveness of the governance

HOW TO ENFORCE IT?• Making it really participative: encourage, organize, value and

promote the stakeholders contributions• Produce a simple and operational matrix structure (horizontal

and vertical structures of governance to be the knots)• Use the expertise and experience of actors through an

organized process• Networking (at the local, regional and European levels, by

sharing and using the best practice system)

CONCLUSIONS

CONSTRAINTS to use integrated or co-productive app.• Top-down approach : top (government, Ministries) have a

very general, vague, descriptive approach, not result oriented; little consideration to the very active changes happening to the local level (do not collect, process and use the local inputs)

• Fear to make participative the integrated approach (politicians avoid citizens, experts avoid civil society, politicians neglect experts etc.)

• Lack of culture to supporting and managing the integrated approach (low level of understanding, of expertise, of competencies, of enthusiasm and of authority/power of decision)

CONCLUSIONS

RESULTS• Guide to integrated and multi-level approach (simple,

specific, clear, easy to implement)• Elaborate and promote the Code of ethics for integrated

approach • Best practice sharing and promotion (standard pattern

for best practice presentation)• International support teams or task forces to coach,

assist, supervise the integrated programs/ projects/ initiatives

• An EU Info Point (office and site) on integrated programs/projects/initiatives

Thank you for attention and patience !

Contact:Kristina CREOSTEANU

kcreosteanu@ yahoo.comPhone: 0040-731-302374

Fax: 0040-268-415033

BRASOV Romania

Documents

Transcript of BRASOV Romania