Preliminary assessment of the first payment request of Romania

The letter of expectations for C.N.I.R includes financial and non-financial KPIs, listed on pages 15-19. Examples of such financial KPIs which assess financial performance are: “degree of realization of revenue foreseen in the budget; profitability; increase in debt collection”. Example of non-financial KPIs which assess the performance of the service provided are: “carrying out an opinion survey on customer satisfaction; reduction of number by complaints/petitions from users and third parties; de-congestion of road transport in localities by implementing environmentally friendly projects”.

The financial and non-financial indicators listed in the letter of expectations for C.N.I.R. are clearly linked to incentives and sanctions in a legally binding and enforceable manner for C.N.I.R, as reflected on page 20 of the letter. In this respect, the variable component of the members of the board's salaries (that is, three monthly fixed salaries) is linked to the level of accomplishment of the KPIs (below 20%, 20-40%, 40-60%, 60-80%, above 80%). For instance, in case of fulfilment of key performance at a level between 20 % and 40 %, no variable component is received and the fixed component of the salaries is decreased by 20%. In case of fulfilment of KPIs above 80%, the full variable and fixed components of salaries are paid to board members.

The letter of expectations for C.N.A.I.R includes financial and non-financial KPIs, listed on pages 14- 17. Examples of such financial KPIs which assess financial performance are: “degree of realization of revenue foreseen in the budget; profitability; reduction of state intervention by reducing transfers earmarked for the payment of arbitrary rulings generated by investment projects”. Examples of non-financial KPIs which assess the performance of the service provided are: “conducting an opinion survey on customer satisfaction (users of infrastructure); increase in the number of satisfied users (by reference to the data recorded in the years 2023-2025); annual reduction in the number of deficiencies reported; increase in road safety by increasing the number of road safety inspections (out of the total network managed)”.

The financial and non-financial indicators listed in the letter of expectations are clearly linked to incentives and sanctions in a legally binding and enforceable manner for C.N.A.I.R, as reflected on page 18 of the letter, with the same modalities as for C.N.I.R.

Considering the above, it can be concluded that the performance indicators included in the two letters of expectations are clearly defined, are aligned with the Boards’ mandates and KPIs and that the sanctions and incentives in case of non-compliance with the performance indicators are comprehensibly determined, which in turn allows for the assessment of the financial performance (revenue, profitability, involvement of State’s budget) and the performance of the service provided (done via user satisfaction surveys) for both companies.

3. Corporate governance standards in line with the O.E.C.D. framework (professional Boards selected through an open, competitive and transparent procedure);

This element is fulfilled by the provisions of Law no. 111/2016 for the approval of the Government Emergency Ordinance no. 109/2011 on corporate governance of public enterprises. The preambles on page 3 of Government Emergency Ordinance 109/2011 approved by the Law no. 111/2016, mention the alignment of the Government Emergency Ordinance with “the principles of corporate governance of state-owned enterprises developed by the Organisation for Economic Cooperation and Development (OECD) on the basis of the most advanced legislative and good practice standards of corporations”.

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