COMMISSION IMPLEMENTING DECISION on the authorisation of the disbursement of the third instalment of the non-repayable support and the third instalment of the loan support for Romania

nstrates that the Government Decision approving the Urban Policy - National Integrated Urban Development Strategy for resilient, green, inclusive and competitive cities 2022-2035 entered into force. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (47) Milestone 310 provides for the entry into force of the legislative act amending the Administrative Code to allow for the establishment of administrative consortia in functional rural areas. The Council Implementing Decision required the entry into force of the legislative act amending the Administrative Code and establishing of administrative consortia. To secure compliance with the milestone requirements, EN 12 EN  Romania enacted two laws: Law No. 375/2022 amending GEO No. 57/2019 amending and supplementing Emergency Government Ordinance No 57/2019 on the Administrative Code which was published in the Official Journal, part I, No. 1255 on 27 December 2022 and entered into force on 30 December 2022, as established by Article 12(1) of Law No. 24/2000 on the rules of legislative technique for the drafting of legislative acts; Law No. 387 /2023 amending and supplementing Emergency Government Ordinance No 57/2019 on the Administrative Code and supplementing Law No 273/2006 on local public finances was published in the Official Journal, part I, No. 1120 on 12 December 2023 and entered into force on 15 December 2023, as established by Article 12(1) of Law No. 24/2000 on the rules of legislative technique for the drafting of legislative acts. Whilst this constitutes a minimal formal deviation from the requirement of the Council Implementing Decision, Romania enacted the two amendments to secure compliance with all the milestone requirements. As of this, this minimal deviation does not affect the progress towards achieving the reform that milestone 310 represents. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. Furthermore, the Council Implementing Decision states that “the changes to the Administrative Code shall establish administrative consortia in functional rural areas”. The description of the related measure in the Council Implementing Decision however states that “amendments to the Administrative Code shall allow for the establishment of administrative consortia in functional rural area”. In this regard, Romania’s recovery and resilience plan provided that “the amendment to the Administrative Code aims to regulate the legal regime for the organisation and functioning of administrative consortia in functional rural areas”. In light of the purposive interpretation of this requirement from the Council Implementing Decision, it is interpreted that this requirement calls for the entry into force of the legal provisions enabling the establishment of administrative consortia in functional rural areas. Article 89(8^2) of Law No. 387/2023 provides that administrative consortia, as inter-community development associations made up of two or more neighbouring administrative and territorial units which have on their territory at least one rural administrative unit, can be established. As such the amendments to the Administrative Code allow for the establishment of administrative consortia. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. Moreover, the Council Implementing Decision also required the administrative consortia in functional rural areas to be “defined according to the Degree of Urbanisation (DEGURBA) methodology”, i.e. in thinly populated areas where more than 50% of the population lives in rural grid cells. Article 89(8^3) of Law No. 387/2023 defines the functional criteria to delimit the territory of an administrative consortia, “by neighbouring administrative territorial units covering rural geographical areas with potential for agricultural, economic, social, cultural, traditional, environmental, infrastructure, digitalisation or access to public services and/or facing similar challenges and opportunities for their development”. Whilst this constitutes a minimal substantive deviation from the requirement of the Council Implementing Decision, the focus of the administrative consortia remains on neighbouring administrative territorial units covering rural geographical area. As of this, this minimal deviation does not change the nature of the measure and does not affect the progress towards achieving the reform that milestone 310 represents. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. Lastly, the Council Implementing Decision states that the legislative changes shall set up a body corresponding to “each administrative consortia that shall perform activities specific for more local public authorities”. Romania’s recovery and resilience plan provided for “the establishment of an entity for each administrative EN 13 EN  consortium that will carry out specific activities on behalf of several local public authorities and which will contribute to the implementation of the strategic objectives of the local public administration authorities involved”. In light of the purposive interpretation of this requirement from the Council Implementing Decision, it is interpreted that this requirement calls for the entry into force of the legislative changes for setting out a body corresponding to each administrative consortia that shall perform activities on behalf of more local public authorities. Article I.3 of Law No. 387/2023 provides that, similar to an intercommunal association, the administrative consortia are run by a “General assembly” which is composed of the representatives of each administrative territorial unit, and “council of directors” which is the executive body of the association. Based on the mandate received from the “General assembly” the council of directors can take over “local council” responsibilities, such as tasks relating to the administrative-territorial unit, organisation and operation of the mayor’s office, companies and autonomous authorities of local interest, and inter alia, tasks relating to the economic, social and environmental development of the locality. Such tasks allow the council of directors to implement the strategic objectives of public authorities involved and to perform activities on behalf of more local public authorities. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (48) Milestone 317 provides for the signature of funding contracts to build housing for young people coming from vulnerable communities and groups, and for health and education professionals in urban and rural areas. Romania provided a list of 233 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample meets the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (49) Milestone 320 provides for the signature of contracts for the moderate renovation of public buildings intended for the provision of public services to citizens at the local level. Romania provided a list of 2 060 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample meets the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (50) Milestone 323 provides for the signature of contracts for the development/updating of spatial planning, urban planning and sustainable urban mobility plans documentation. Romania provided a list of 465 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample meets the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (51) Milestone 328 provides for the entry into force of the legislative framework including a clear description of the financing mechanism to support the development of the network of Destination Management Organisations (DMOs) and a clear governance model through a Government Emergency Ordinance. Romania provided evidence demonstrating that the Government Emergency Ordinance entered into force, and that it contains provisions describing the financing mechanism to support the development of the network of DMOs and a clear governance model. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. EN 14 EN  (52) Milestone 332 provides for the signature of the contracts for the promotion of 12 thematic tourist routes in disadvantaged, rural areas of Romania. The evidence provided by Romania demonstrates the signature of a single service contract for the promotion of the 12 cultural routes. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (53) Milestone 340 provides for the publication of a comprehensive study on the territorial distribution of national cycling routes. The evidence provided by Romania demonstrates that the study identifying the territorial distribution of the cycling routes was published and that the procurement process to put in place the cycling routes, based on the results of the study, was also launched, in line with the Council Implementing Decision. The Council Implementing Decision also states, in the description of milestone 342, that the signature of financing contracts for the construction of 2 404km of new cycling routes shall follow an open and competitive tender process. On 29 November 2022, the Ministry for Development, Public Works and Administration published a financing scheme launching the competitive call for projects for putting into place the cycling routes. The scheme establishes the eligibility criteria and conditions for awarding the projects to the local authorities (page 59 of the scheme), and it is based on the results of the comprehensive study on the territorial distribution of national cycling routes (point 1.2. of the scheme). In light of the contextual interpretation of this requirement from the Council Implementing Decision, it is interpreted that the launch of the procurement process for the purpose of fulfilling milestone 340 constitutes a preparatory step for the fulfilment of subsequent milestone 342, which requires the signature of financing contracts for the construction of 2 404km of new cycling routes. Consequently, the selection conducted by the Ministry to select local authorities with which the financing contracts have been concluded constitutes the launch of the procurement process, as required by milestone 340. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (54) Milestone 341 provides for the development and publication of the eVelo National Platform (a website for the national cycling routes), and a thematic smartphone application. It builds upon the findings of the in-depth study, conducted under milestone 340, to identify the locations for constructing cycling routes and determine their territorial distribution. The evidence provided by Romania demonstrates the completion and operational status of the eVelo National Platform and thematic smartphone application named “Velo Romania”, which incorporate findings from a study establishing the territorial distribution of cycle tourism pathways. The Council Implementing Decision states that the implementation of this Investment C11.I3 shall include the development of a National eVelo Platform with an integrated digital application for all cycle tourism routes. The Council Implementing Decision also mandates the development of 2 404km of new national cycling routes across Romania as part of investment C11.I4 (Implementation of 2 404km of cycling routes). In light of the contextual interpretation of the requirement that the digital application is intended for all cycle tourism routes, the 2 404km of cycling routes that are to be constructed as part of C11.I4, are to be considered as “all cycle tourism routes” under C11.I3. Considering the results of the study (pages 20-22 of the study) published for the purpose of fulfilling milestone 340, all the 2 404 km of cycle routes (some of them yet to be constructed under Investment 4) are already uploaded and integrated on the platform/application (as evidenced by accessing the dedicated website (evidence ii)). Necessary adjustment to the exact location of the cycle routes will be done once its EN 15 EN  construction is finalized. On this basis, it is considered that this constitutive element of the milestone 341 is satisfactorily fulfilled. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (55) Milestone 342 provides for the signature of contracts in view of building new cycling routes. The Commission considers that there is a clerical error in the text of the Council Implementing Decision as regards the description of milestone 342 and has undertaken the assessment on a revised basis. In such description, it is stated that following the completion of the tendering process, the works shall start on the 2 404km of cycling routes. When the recovery and resilience plan of Romania was revised, Romania requested the revision of the milestone to clarify that the contracts to be signed are financing contracts aiming at setting the financing conditions of the investment between the Ministry and the project’s owners. In its request for a revision, Romania explained that according to the national legislation, and in particular Article 5 of Government Decision No. 907/2016 on the drafting stages and the framework content of the technical and economic documents relating to the objectives/investment projects financed by public funds, the signature of a financing contract is to be followed by several steps and notably the realisation of a feasibility study, request for administrative authorisations and signature of implementation contracts. In this respect, the start of the execution works cannot be expected at the time the financing contracts are signed or closely thereafter. Based on this reasoning, Romania asked to remove the requirement stating that following the completion of the tendering process, the works shall start on the 2 404km of cycling routes. While the Commission agreed with the request, it failed to remove it from the Council Implementing Decision adopted on 5 December 2023. Against this background, the justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (56) Milestone 344 provides for the entry into force of the law on the funding system for the cultural sector. The evidence provided by Romania demonstrates the entry into force of the law setting out a stable financing mechanism from the state budget for the cultural sector. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (57) Milestone 351 provides for the entry into force of the Minister