Preliminary assessment of the third payment request of Romania (2024)

preparation process and the approval of public investment documentation. These provisions constitute the conditions for the budgetary construction of multiannual significant public investment projects, in particular expenditure on significant investment projects, so as to secure financing until their completion.

• - Government Emergency Ordinance No nr.88/2013 on the adoption of certain fiscal and

budgetary measures to meet commitments agreed with international bodies, and amending and supplementing certain legislative acts, as amended, (…) Article I of Government Emergency Ordinance No. 187/2022 amends Government Emergency Ordinance No. 88/2013 on the adoption of certain fiscal and budgetary measures to meet commitments agreed with international bodies, and amending and supplementing certain legislative acts.

(…) which shall update the principles underlying the prioritisation of significant, new and on-going public investment projects in terms of financial affordability and sustainability, as well as economic and social justification; (…) Article I(12) and (19) of Government Emergency Ordinance No. 187/2022 establish that the criteria and principles for assessing and prioritising significant public investments, whether new or ongoing, are included in the Annex to the Government Emergency Ordinance, and that this Annex replaces the Annex of Government Emergency Ordinance No. 88/2013. The principles listed in the Annex to Government Emergency Ordinance No. 187/2022, on page 6 of the Official Journal No. 1271 of 29 December 2022, include “Affordability and financial sustainability” and “Economic and social justification”, among others. The existing principles have been updated by changing the point system assigned to each principle. In the case of “Affordability and financial sustainability”, this principle is now assigned a higher score (40 points, compared to 20 points in the Annex to Government

Emergency Ordinance No. 88/2013). In addition, within this principle, criteria have been further specified, for instance by adding criteria related to whether an operation and maintenance strategy has been developed. In the case of “Economic and social justification”, the maximum score for this principle has been harmonised between new and ongoing projects (35 points, compared to 40 points for new projects and 30 points for ongoing ones in the Annex to Government Emergency Ordinance No. 88/2013). In addition, within this principle, criteria linked to the project’s social justification have been given a higher score (15 points, compared to 10 points in the Annex to Government Emergency Ordinance No. 88/2013).

(…) the timing of the process of prioritisation of significant public investment shall be updated in order to be linked to the timing of the annual and multi-annual budget preparation of the budget; Article I(16) of Government Emergency Ordinance No. 187/2022 requires the Ministry of Finance to submit the results of the prioritisation of significant public investments to the Government by 31 July each year. The Chief Authorising Officers shall send to the Ministry of Finance the list of priority significant public investment projects by 15 June of each year at the latest. Therefore, the process of prioritisation of significant public investment is aligned with the timing of the annual and multi- annual budget preparation.

(…) conditions/sanctions shall be put in place for lead authorising officers who do not respect the timing and rules of the prioritisation of significant investments; Article I(16) of Government Emergency Ordinance No. 187/2022 also establishes sanctions for Chief Authorising Officers (alternatively referred to as “lead authorising officers”). Failure to comply with the provisions of paragraphs (2) and (4), which require the Chief Authorising Officers to send the Ministry of Finance the prioritisation results by 15 June of each year at the latest and to respect the results of prioritization, as approved by the Government, in the process of preparing the draft budget for the following year, results in an administrative offence and a fine between RON 10 000