February 2004
Romania participates in NABUCCO project
Romania participates in NABUCCO project
Starting 2010 Romania will have a new alternative source for getting methane as a result of the finalization of the NABUCCO project regarding the creating of a new pipe for transporting methane from the area of the Caspian Sea and Central Asia to countries in Central and Eastern Europe.
The committee for coordinating of the NABUCCO project met last week in Bucharest to discuss about selecting the consultant who will set up the technical documentation of the project.
"We had the seventh meeting of the committee coordinating the project. It was focused on the choice of the consultant who makes the technical documentation. I hope that on February 25 we sign the contract with this consultant in Vienna. Another topic of the meeting was the creation of the joint company which would coordinate the unfolding of the project", the general director of Transgaz Gabriel Coconea said and he pointed out that this study must be finalized by September 30 2004.
As many as five companies participate in the carrying out of the NABUCCO project: Botas (Turkey), Bulgargaz (Bulgaria), Transgaz(Romania), Mol (Hungary), OMV (Austria). "The project received on December 22, 2003 non- repayable financing from the European Union through the European Bank for Investments to make a feasibility study which costs 3.3 million dollars", said Iulian Iancu -the State Secretary from the Ministry of Economy and Commerce. He added that the NABUCCO project will represent a new alternative source for supplying methane to Romania for a lower price.
The network of pipes for transporting methane will have a length of 34,000 km and a capacity of transport of 30 billion c.m./year.
The total investments for carrying out this project amount to 4.4 bn dollars and the project will be finalized according to estimations in 2010-2012.
The pipe will transport methane from the Caspian Sea, from Iran and from Adjerbadjan, Turkmenistan and Kazakhstan, countries which cannot use the Russian system for gas transport.
According to data from the Ministry of Economy and Commerce, during the past three years the demand of methane went up by over 6 percent in Europe and in Romania it went up with 17.8% annually. If in 2002 the methane consumption from Romania reached 16.3 billion c.m., in 2003 it reached 18 million c.m., and one third of this quantity was imported. "Imported methane will reach 10-11 billion c.m and the consumption will go up to 20-21 billion c.m. Usage of imported methane will grow from 45 percent to 70% in 2020. Under these circumstances it is very important to consider alternative sources to get the methane supply", Iulian Iancu said.
(source: Romanian Business Journal)
Development attracts investments
Economic growth obviously implies the attraction of foreign investments. In the past four years, Romania has also registered a higher economic growth than in the previous years, that is a 5% growth at an average but it has also attracted an ever higher volume of foreign direct investments (FDI). In 2003, the FDI have exceeded $1,3 billions, being by 24% higher than in 2002, and the growing tendency has been maintained.
This year, a significant growth of the foreign investments is expected as well, partly through the wide scope privatizations which will be finalized (PETROM, Distrigaz, B.C.R.) and on the other hand, owing to the growing interest expressed by the investments funds in the Romanian market.
All the assessment agencies have increased Romania's rating, demonstrating a long lasting economic development and a stable business environment which has been reached, all these conditions being mandatorily fulfilled to attract the investors.
A recent study published by the Center of International Studies and Researches (C.E.R.I.) in Paris has pointed to the fact that the average rate of economic growth in Central and Eastern Europe, Romania included, was in 2002, by 2% higher than that of the euro zone. The analysis has pointed to the fact that one of the factors which has supported the E.E.C. countries was represented by exports but also by the domestic demand. In general, the economic policies, both the budgetary and the monetary ones practiced in the states which accede to the European Union were "more adequate than in the past and have exerted a positive counter-cyclic effect."
Another study published by Vienna Institute for International Economic Studies (W.I.I.W.) and by Bank Austria Creditanstalt, has evinced the superior economic growth of the Southeast European countries, the opportunities provided by these markets to the investors, the strong inflow of direct investments through further privatization. As far as the year 2003 is concerned, Romania attracted 1,1 billion euro FDI, the latter being the largest value registered among the countries located in this particular region. The study has pointed to the fact that Romania and Bulgaria benefit from the opportunity of becoming more attractive for the foreign investors in the forthcoming period.
Owing to the progress registered in the process of integration in the European structures and of the advantages represented by the low production costs, our country will be one of the prevailing destinations of the foreign investments, W.I.I.W. study has pointed out. The FDI volume attracted by our country so far is, however, quite small as compared to the size and potential of Romania, a situation also explained by the hesitating policy conducted during the transition period and the privatization process which has been delayed.
A study worked out by the British publication "The Economist" pertaining to the economic impact for the Central and East European countries which accede to the European Union, has evinced the fact that the level of the foreign direct investments "will not considerably increase after the accession but their nature will change owing to the finalization of the privatization process."
The Government of Romania is aware of the fact that only through the continuation of the reform and the finalization of the privatization process it could attract ever more foreign investments. Even in an electoral year, the restructuring of the inefficient sectors could lead to concrete steps in diminishing the gaps between the economy of Romania and that of the E.U. member states.
(source: Romanian Business Journal)
Romania - the future location of the Oracle Support Services Center for Europe, Middle East and Africa
"It is a very important moment for the development of the IT market in Romania, a validation of the path we have chosen to take until now. It's not a small detail that an international corporation decides to extend its activity to such a degree in Romania and I would like this fact to become a rule in the future, to be able to say "it happens in Romania". On the other hand, it quantifies the interest for the Romanian market, a place where does not apply the concept of "selling and leaving", but the one of "building", of "developing". The several hundreds of experts which will work for Oracle in Romania will offer assistance to one third of the clients of the company, and we consider this an important test of reliability and competence." declared on 17th of February, the Minister of Communications and Information Technology, Dan Nica, during the official opening of Oracle Services and Technology Centers in Romania.
"Romania is a high priority investment area for Oracle, and we are impressed by the high caliber of expertise and skills available here today." said Sergio Giacoletto, Executive Vice President Oracle Corporation EMEA.
Giacolleto stated that the decision of opening the these centers in Romania was based on a research study, which involved different European states, and our country had as strong points the number of specialists, the location, the experience in the software development and also the IT tradition.
The Oracle Services and Technology Centers in Romania will be the corporation's activity core at global level and will offer assistance to the clients all over Europe, Middle East and Africa, as another two in worldwide, located in USA and India. These centers will offer large
employment opportunities to several hundreds young Romanian specialists to build careers at the highest professional standards within a global corporation.
In recognition of Romania's growing importance for Oracle in its geo-economic development, Romania has been included as a business area in the Oracle EU Enlargement Countries Organization, together with the 10 countries that will join the EU in 2004.
Oracle Romania stood up at regional level due to the high competence of the technical support team, ranking the first place in a classification regarding the costumer solving problems efficiency. In this context, Oracle intends to continue with its main development directions in the area, focusing on the know-how transfer, investments in education and the use of Romanian specialist technology skills.
Three Oracle Services and Technology Centers are to be opened in the first stage: Partner Resource Network (PRN), Global Support Services (GSS), and Application Consultants' Team (ACT). Partner Resource Network (PRN) - a department specialized in providing resource administration and support to Oracle partners all over Europe. Global Support Services (GSS) - is going to be represented by a software and technical support department
designed for the Oracle solutions users world-wide. Application Consultants' Team (ACT) - will take part in the expertise and implementation projects in telecommunications companies in the EMEA area, offering support at clients' locations and assisting local teams in the ongoing of specific activities.
At the official launch of the Oracle Global Services and Technology Centers in Romania were present Mircea Geoana - Minister of Foreign Affairs, Sergio Giacoletto, Executive Vice President Oracle Corporation for Europe, Middle East and Africa and Alfonso Di Ianni, Senior Vice President European Union Enlargement Region, Oracle Corporation.
(source: Ministry of Communications and Information Technology)
OECD and U.S. Ex-Im Bank upgrade country rating
U.S. Ex-Im Bank and the Organisation for Economic Cooperation and Development (OECD) upgraded the country rating for Romania from level 5 to level 4, following Romania's economic development and consolidation, Jonathan L. Marks, commercial attaché with the U.S. Embassy to Romania, declared early this month.
This means a significant drop in exposure charges and financing costs, Marks said.
According to the U.S. official, the possibility of loans without direct state guarantee is being considered. He cited as an example a project of Romanian National Grid Transelectrica and U.S. General Electric. The completion of the project, which is estimated at some 22 million dollars, will be carried out by Transelectrica, through a long-term loan, without governmental or bank guarantee, while General Electric has secured financing from U.S. Ex-Im Bank. Jonathan L. Marks pointed out that was valid solely for companies having very good loan and credit evolution, the financial situation of the company applying for the loan also being taken into account
The US official attended the signing ceremony of a cooperation agreement between Transelectrica and General Electric for the upgrading of the protection and control systems of 11 Transelectrica power stations.
(source: Romanian Business Journal)
Over USD 200 M in revenues for Honeywell in Romania last year
Around 1pc of the total revenue of USD 23 billion, realized worldwide by Honeywell is the result of the company's activities in Romania. We can say that our turbocharger facility here in Romania is nr.1 in quality at the group's level, David M. Cote, Chairman and CEO of the company yesterday stated in Bucharest.
The parts and subassemblies produced in the plant are used for: Audi, BMW, Fiat, Ford, Honda, Opel, Renault, Rover, Saab, Seat, Vauxhall, Volskwagen application.
Operating since June 1998 the plant in Romania has been established with the objective of giving increased flexibility and production speed in turbocharger manufacturing and to better meet the increasing demand for turbocharger engines in Europe. The initial investment in Romania exceeds 5.5 million dollars.
Staffing at the new facility increased from 170 employees in June 1998 to 370 people in October 2001 and around 440 people in the present days.
After Honeywell merger with AlliedSignal, the plant changed its name to Honeywell Garrett SRL. The assembly process in Bucharest Romania had begun in February 2000.
The company is also a very important provider for big Romanian companies like Petrom (large central control rooms for refineries), Termoelectrica, Tarom and Carpatair, as Gheorghe Tucu, Honeywell Process Solutions Sales Manager explained.
"We estimate that in the next three years the plant in Romania will reach the performance of our plants in Italy and France," Cote added.
Honeywell is a diversified technology and manufacturing leader based in USA that employs around 100,000 employees in nearly 100 countries around the world.
The company serves customers worldwide with aerospace products and services, control technologies for buildings, homes and industry, automotive products, turbochargers, specialty chemicals, fibers and electronic and advanced materials. The company is made up of four Strategic Business Units - Aerospace, Automation & Control Solutions, Specialty Materials and Transportation & Power Systems.
Honeywell is a leading global supplier of aircraft engines, avionics and related products and services for commercial airlines, business and regional aircraft. The company delivers total life-cycle solutions that include product upgrades, retrofits and repairs.
(source: Nine O’Clock)