BRASOV
Romania
BRASOV
HISTORY & 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
Brasov – History & Industry
• 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
Brasov – History & Industry
Lack of experience on:
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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 & Industry
Brown fields regeneration and/reconversion to new
functions became an issue
• Tractorul
Area
Coresi Economic Development
• Hidromecanica
Civic Center
• Metrom
facilities
• Refinery
Hypermarket in the new
Logistic Park and recreation
residential area
Brasov – History & Industry
Tractorul
Area
Coresi Economic Development
• TRACTORUL – Coresi regeneration project144 ha
o 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.
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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
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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.
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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
Civic Center
Hypermarket in the new
• 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
Brasov – History & Industry
• Metrom
facilities
Logistic Park and recreation
• METROM logistic and recreation park
regeneration project- 85 ha
o Proposed funding: private funds & public / local budget
Brasov - Industry
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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 ha
o Proposed funding: private funds & public /
local budget
Brasov – History & Industry
Brownfield financing opportunities
Regional 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
Brasov – History & Industry
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
Brasov – History & Industry
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 !
Brasov – History & Industry
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
Brasov – History & Industry
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 information
5. Contribute with local and organizational expertise to select projects
to be financed by UDF
6. 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
Brasov – History & Industry
What we have: Integrated projects
Integrated Urban Development Plan for Brasov
o Metropolitan Public transportation system
o Metropolitan Parking System
o Metropolitan Green Belt
o Metropolitan bicycle belt
o Metropolitan historical and heritage trail
Brasov – History & Industry
What 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
Brasov – History & Industry
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 & Industry
What 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
Brasov – History & Industry
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
Brasov – History & Industry
Discrepancies
Urban 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 %
Brasov – History & Industry
What we CAN DO
What EU CAN DO
(national solutions)
(European 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
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.
CONCLUSIONS
STRATEGIC 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.com
Phone: 0040-731-302374
Fax: 0040-268-415033