Regional Operational Programme (ROP), National Rural Development Programme (PNDR), Operational Programme Competitiveness (POC), Large Infrastructure Operational Programme (POIM), European Structural and Investment Funds, cross-border and interregional cooperation programmes are just some of the instruments through which companies developing or leasing industrial facilities and warehouses can benefit from non-reimbursable European funding for this type of investment. In addition, there are a number of state aid instruments and schemes through which investors can benefit from tax incentives and state funding to build and operate industrial facilities and warehouses.
Types of European funding for industrial facilities
The Regional Operational Programme (ROP) aims to promote smart, sustainable and inclusive growth across all regions of Romania, contributing to improved living and working conditions in these areas. The programme seeks to address Romania’s main development challenges, namely regional competitiveness, sustainable urban development, the low-carbon economy and economic and social infrastructure at regional and local level.
The programme focuses on several funding priorities, including support for micro-enterprises to stimulate their growth and development, as well as support for SMEs.
In this context, micro-enterprises can obtain funding for investments in tangible assets, including the construction, expansion or modernization of industrial facilities and production spaces. Funding can also be used for the acquisition of equipment and machinery required to carry out business activities.
SMEs benefiting from European funding through this instrument must have between 10 and 250 employees and an annual turnover not exceeding EUR 50 million or an annual balance sheet total not exceeding EUR 43 million. Funding is intended to modernize and expand production infrastructure through the construction, modernization or expansion of existing production capacities. These investments help increase production capacity, improve efficiency and reduce operating costs.
Several stages need to be completed in order to access funding through these priority axes.
The most important is identifying needs and opportunities, namely assessing the investment requirements and determining eligible projects.
Once these elements have been established, beneficiaries must prepare the necessary documentation, including the business plan, feasibility study and other supporting documents.
The application and project are submitted to the responsible managing authority, which evaluates the projects according to the established criteria. Once funding has been approved, beneficiaries can begin implementing the project, in compliance with the established deadlines and conditions.
State aid for supporting investments
Companies leasing or developing industrial facilities may also benefit from non-reimbursable funding of at least EUR 1 million for investments with a major economic impact.
Non-reimbursable funding can cover up to 50% of the total investment, depending on the region. Thus, companies in the Bucharest Region can obtain state aid of up to EUR 7.5 million, those in the West Region and Ilfov can receive up to EUR 26.25 million, while the maximum amount in the other regions is EUR 37.5 million.
APPLICANT ELIGIBILITY
Companies that cumulatively meet the following eligibility criteria as of the date of registration of the application for a financing agreement may benefit from state aid under the scheme:
a) they are registered as a commercial company;
b) they are making an initial investment in Romania in one of the sectors provided for by the legislation;
c) they do not fall into the category of “companies in difficulty”;
d) they are not subject to enforcement proceedings, insolvency, bankruptcy, judicial reorganization, dissolution, operational closure, liquidation or temporary suspension of activity;
e) they are not subject to decisions ordering the recovery of state aid or, where such decisions have been issued, they have been executed in accordance with the legislation in force;
f) they have not benefited from other regional state aid for eligible costs related to wage costs under the same single investment project;
g) they have not relocated to the unit where the initial investment for which the aid is requested will take place during the two years preceding the registration of the application for a financing agreement and, at the time of registration, they undertake not to do so for a period of up to two years after completion of the initial investment for which the aid is requested.
Existing companies may benefit from state aid under the scheme if, at the date of registration of the application for a financing agreement, they have a return on sales greater than zero in one of the last three completed financial years and positive equity in the last completed financial year.
Newly established companies may benefit from state aid under the scheme if, at the date of registration of the application for a financing agreement:
a) they have subscribed and paid-up share capital, in accordance with the law, amounting to at least RON 100,000;
b) they do not belong to shareholders who own or have owned another company during the two years preceding the date of registration of the application for a financing agreement, carrying out or having carried out the activity for which funding is requested.
ELIGIBLE EXPENDITURE
Eligible expenditure includes costs excluding VAT related to the creation or acquisition, as applicable, of tangible and intangible assets, as well as expenses related to the leasing of buildings associated with the initial investment.
Tangible and intangible assets must be used exclusively by the state aid beneficiary company to achieve the objectives of the investment for which funding was requested, be included among the assets of the state aid beneficiary company and remain associated with the investment for which funding was granted for a minimum period of 5 years following completion of the investment, and be acquired under market conditions.
Intangible assets must be purchased from third parties that have no connection with the buyer.
In the case of leasing buildings associated with the initial investment, the lease agreement must be valid for at least 5 years from the date of completion of the investment, while the maximum eligible rent may not exceed RON 22/sq. m/month, equivalent to approximately EUR 5/sq. m/month.
To be considered eligible, costs related to intangible assets may not exceed 50% of the total eligible investment costs.
