ANNEX to the COUNCIL IMPLEMENTING DECISION amending Implementing Decision of 29 October 2021 on the approval of the assessment of the recovery and resilience plan for Romania

Council of the European Union Brussels, 11 November 2025 (OR. en) 14452/25 ADD 1 ECOFIN 1415 UEM 517 FIN 1250 ECB EIB NOTE From: General Secretariat of the Council To: Delegations Subject: ANNEX to the COUNCIL IMPLEMENTING DECISION amending Implementing Decision of 29 October 2021 on the approval of the assessment of the recovery and resilience plan for Romania 14452/25 ADD 1 1 ECOFIN 1A EN  ANNEX 1. SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN 1.1. DESCRIPTION OF REFORMS AND INVESTMENTS A. COMPONENT 1: WATER MANAGEMENT The objective of the component is to ensure sustainable water provision for a safe future of people, the environment and the economy. In particular, the component aims to: (1) increase public access, especially in rural areas, to public water and sanitation services in line with the requirements of European Union legislation and make it accessible to all social groups; (2) increase the safety of existing accumulations; (3) strengthen administrative and response capacity of National Water Administration (ANAR) in emergency situations in particular linked to water management infrastructure. The component is comprised of two reforms and five investments, out of which one is financed throughnon-repayable financial support. The measures included in the component are expected to address some challenges highlighted by the country-specific recommendation to focus investment on the green and digital transition, in particular on environmental infrastructure among others (country-specific recommendation 4, 2019 and country-specific recommendation 3, 2020). It is expected that no measure in this component does significant harm to environmental objectives. A.1. DESCRIPTION OF THE REFORMS AND INVESTMENTS FOR NON-REPAYABLE FINANCIAL SUPPORT Investment 6. Delivery of the water cadastre The objective of the investment is to contribute to the rapid delimitation of watercourses, and in particular minor watercourses. The investment consists in the delivery of the water cadastre. 14452/25 ADD 1 2 ECOFIN 1A EN  A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Quantitative Indicative timeline indicators for completion Related Measure Qualitative (for targets) Seq. Milestone/ Description of each (Reform or Name indicators Num. Target Unit milestone and target Investment) (for milestones) of Baseline Goal Quarter Year measure 19 Investment 6. Milestone Water Water cadastre Q4 2025 Work completion reception Delivery of the cadastre delivered certificate for the water water cadastre delivered cadastre delivered, which includes: - Digital Terrain Model (DTM)/Digital Surface Model (DSM) at national level, based on satellite information; - software development for determination of river bed modification (erosion sedimentation process), gravel extraction monitoring and land slide potential in the areas of dam-lake ensemble; -semi-automatic digitisation and delineation of minor river beds based on DTM/DSM ortho-photo and satellite imagery. 14452/25 ADD 1 3 ECOFIN 1A EN A.3. DESCRIPTION OF THE REFORMS AND INVESTMENTS FOR THE LOAN Reform 1. Strengthening the regulatory framework for the sustainable management of the water and wastewater sector and accelerating public access to quality services under European directives The objective of this reform is to improve the capacity of regional water and waste water infrastructure operators, and to improve the quality and efficiency of cooperation between them and local authorities/inter-community development associations (IDAs), water and waste water infrastructure owners. To attain this, a number of legislative and regulatory changes shall be made: 1) Amendments to the Law No 241/2006 on water supply and sewerage shall be made to enable the following: - Approval of the tariff strategy of the regional water and sewerage operator by the general meeting of the Intercommunal Development Associations (IDAs), based on the special mandate received from the local administrative units. Through this change, the time needed for the approval of the tariff strategy shall be reduced significantly which shall enable the extension of the water and wastewater service infrastructure. - Oblige local public administration authorities to keep records of natural and legal persons that do not discharge waste water into the public sewerage network and send the list of such persons to the National Environmental Guard annually. - Oblige users to connect to existing public sewerage systems if they do not have an appropriate individual collection and treatment system. - Allow to organise, where appropriate, the provision of the water service only, on the condition that the collection of wastewater is done through individual collection and treatment systems that shall ensure the same level of environmental protection as centralised collection and treatment systems. - Ensure the exceptional nature of adequate individual systems in the sense that these systems address situations where centralised systems are not technically and economically feasible. - Prohibit the direct discharge of untreated wastewater from appropriate individual systems into the environment. - Develop criteria for authorization, construction, registration/record, operation and maintenance of appropriate individual systems. The implementation of the above mentioned reform shall be completed by 31 December 2021. 2) Entry into force of the law approving the national programme First Connection to Water and Sanitation, which shall support families and single people on low incomes (who have average monthly net cash incomes below the gross national minimum wage guaranteed per family member) to pay the costs incurred for connection to the water supply and sewerage system. The implementation of the reform shall be completed by 31 March 2022. 3) Signature of implementation agreements between the Environmental Fund Administration and the local authorities participating in the First Connection to Water and Sanitation Programme. The agreements shall be completed by 31 December 2022. 14452/25 ADD 1 4 ECOFIN 1A EN Reform. 2 Reconfiguration of the current economic mechanism of the National Water Administration (ANAR) in order to ensure the modernisation and maintenance of the national water management system The objective of the reform is the modernisation and maintenance of the national water management system and a better cost management at ANAR level. This measure consists in the entry into force of legislative amendments to regulate the new economic mechanism for water resources in Romania. Investment 1. Construction of water networks and sewerage systems in agglomerations of more than 2 000 population equivalent The objective of this investment is to increase public access to water and sanitation services. This measure consists in constructing water networks and wastewater collection systems in municipalities of more than 2 000 population equivalent. Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent The objective of the investment is to increase public access to water and sanitation services. This measure consists in constructing sewage network and individual or other appropriate systems for wastewater collection in agglomerations below 2 000 population equivalent. Investment 4. Rehabilitation of existing accumulations that require emergency interventions for safe operation The objective of this investment is the rehabilitation of existing accumulations in order to restore and maintain their capacity to prevent flooding. This measure consists in repairing and refurbishing one damaged dam, Lesu, and one flood prevention polder, Salard, on existing flood defence lines. Investment 5. Appropriate endowment of river basin administrations for flood monitoring, prevention and emergency response The objective of the investment is to equip ANAR/basin administrations with machinery and equipment for intervention to mitigate impacts of extreme weather events. This measure consists in purchansing and equipping River Basin Administrations with machinery and equipment which may include, but is not limited to: machinery for rough terrain access and intervention, amphibious access and transport of mobile sand bags/dikes in hard-to-reach areas, drones, geo-electro resistive/geo radar technologies of dyke bodies. 14452/25 ADD 1 5 ECOFIN 1A EN  A.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan Quantitative Indicative indicators timeline Related Measure Qualitative (for targets) for completion Seq. Milestone/ Description of each (Reform or Name indicators Num. Target Unit milestone and target Investment) (for milestones) of Baseline Goal Quarter Year measure 1 Reform 1. Milestone Entry into Provision in the Q4 2021 Entry into force of the Strengthening the force of the law indicating amendments to the Law regulatory amendments the entry into No 241/2006 on water framework for the to the Law force of the law supply and sewerage sustainable No 241/2006 which shall: management of the on water - Enable approval of the water and supply and tariff strategy of the wastewater sector sewerage regional water and and accelerating sewerage operator by the public access to general meeting of the quality services Intercommunal under European Development directives Associations (IDAs), on the basis of the special mandate received from the local administrative units. Through this change, the time needed for the approval of the tariff strategy shall be