national plan for agriculture and rural development

National Agriculture and Rural Development Plan 2000-2006 _______________________________________________________________________________________

Revised version, 7th of July 2006 1

NATIONAL PLAN FOR AGRICULTURE

AND RURAL DEVELOPMENT

Over the 2000-2006 period

UNDER THE EU SPECIAL ACCESSION

PROGRAM FOR AGRICULTURE AND RURAL

DEVELOPMENT

(SAPARD)

ROMANIA

National Agriculture and Rural Development Plan 2000-2006


CONTENTS INTRODUCTION 4

THE CO-OPERATION OF THE MINISTRY OF AGRICULTURE AND

FOOD WITH THE OTHER MINISTRIES AND SOCIAL PARTNERS

INVOLVED IN THE ELABORATION, PROGRAMMING AND

APPLIANCE OF SAPARD MEASURES

10

THE COUNTRY AND THE ADMINISTRATIVE REGIONS 16

1 QUANTIFIED DESCRIPTION OF THE PRESENT SITUATION 17

1.1. DESCRIPTION OF THE CURRENT SITUATION 17

1.2. THE REGIONS 18

1.3. THE TERRITORIAL ADMINISTRATIVE STRUCTURE 19

I. DIAGNOSIS OF THE RURAL AREA 20

1. THE CONTEXT OF THE RURAL DEVELOPMENT IN ROMANIA 21 1.1 BRIEF GENERAL PRESENTATION OF THE COUNTRY 21 1.2 GENERAL DESCRIPTION OF THE RURAL AREA 21 1.3 MACROECONOMIC CONTEXT OF THE RURAL DEVELOPMENT 22

2. THE POTENTIAL OF THE AGRICULTURE AND FOOD SECTOR 25

2.1 Agriculture 25 2.1.1 NATURAL RESOURCES 25 2.1.2 HUMAN RESOURCES 34 2.1.3 THE CAPITAL 38 2.2 The Food Processing Industries 39 2.3 AGRICULTURAL SERVICES 46 2.3.1 Chemical fertilizers and pesticides 46 2.3.2 Seeds 46 2.3.3 Mechanization 47 2.3.4 Irrigation 50 2.3.5 Storage of agriculture products 52 2.3.6 Sanitary- veterinary sector 54 2.3.7 Phyto-sanitary sector 56 2.3.8 Quality control 57 2.3.9 Scientific research in agriculture and food industry 58 2.3.10 Other units in the agriculture and food industry 59 2.4 AGRICULTURE AND TRADE MARKETS 60 2.5 ECONOMIC ACTIVITY NON-RELATED TO AGRICULTURE AND

RURAL TOURISM

62

3. RURAL INFRASTRUCTURE 66 3.1 EDUCATION SERVICES 66 3.2 HEALTH SERVICES 67 3.3 TECHNICAL DWELLING INFRASTRUCTURE 67 3.4 COMMUNICATION NETWORK 72

4. FORESTRY 74 5. ENVIRONMENT PROTECTION 76

6. ADMINISTRATIVE CAPACITY 79

6.1 INSTITUTION - CONSISTENT IMPLEMENTATION OF THE

GOVERMNENT'S PROGRAM

79

6.2 GUIDELINES OF THE REFORM PROGRAMME FOR YEAR 2000 81

6.3 THE DEVELOPMENT OF THE NEW FUNCTIONS OF THE MINISTRY

OF AGRICULTURE AND FOOD

82

6.4 STATE PROGRAMMES AND ASSITANCE REGARDING RURAL

DEVELOPMENT

84

7. TENDENCIES OF AGRICULTURE AND FOOD SECTOR 107 7.1 FULFILLMENT OF THE POPULATION CONSUMER NEEDS 107



7.2 GAP ANALYSIS COMPARED TO THE EUROPEAN UNION 111 7.3 LEGISLATIVE AND INSTITUTIONAL HARMONIZATION 114

II. ANALYSIS OF STRENGTHS, WEAKNESSES, OPPORTUNITIES AND

THREATS OF ROMANIAN AGRICULTURE AND PROCESSING

INDUSTRY

117

III. STRATEGY AND PRIORITIES FOR AGRICULTURE AND RURAL

DEVELOPMENT IN ROMANIA

130

IV. MAIN CONCLUSIONS AND RECOMMENDATIONS PROPOSED BY THE

PRIOR APPRAISAL

154

V. TECHNICAL FICHES OF SAPARD MEASURES 163 MAIN DOCUMENTS NECESSARY IN ACCORDANCE WITH THE NATIONAL

LEGISLATION FOR PUBLIC INVESTMENTS FRAMEWORK

164

MEASURE 1.1. PROCESSING AND MARKETING OF AGRICULTURAL AND

FISHERY PRODUCTS

167

MEASURE 1.2. IMPROVING THE STRUCTURES FOR QUALITY,

VETERINARY, AND PLANT-HEALTH CONTROLS,

FOODSTUFF QUALITY AND CONSUMER PROTECTION

192

MEASURE 2.1 DEVELOPMENT AND IMPROVEMENT OF RURAL

INFRASTRUCTURE

203

MEASURE 3.1 INVESTMENTS IN AGRICULTURAL HOLDINGS 224 MEASURE 3.2 SETTING UP PRODUCERS GROUPS 248 MEASURE 3.3 AGRICULTURAL PRODUCTION METHODS DESIGNED TO

PROTECT THE ENVIRONMENT AND MAINTAIN THE

COUNTRYSIDE

257

MEASURE 3.4 DEVELOPMENT AND DIVERSIFICATION OF ECONOMIC

ACTIVITIES, MULTIPLE ACTIVITIES, ALTERNATIVE

INCOMES

310

MEASURE 3.5 FORESTRY 328 MEASURE 4.1 IMPROVEMENT OF THE VOCATIONAL TRAINING 349 MEASURE 4.2 TECHNICAL ASSISTANCE 357

VI. FINANCIAL ALLOCATION FOR SAPARD MEASURES 361

VII. ADMINISTRATION SYSTEM AND PROCEDURES REGARDING THE

SAPARD PROGRAME

386

1. DESIGNATION OF THE COMPETENT AUTHORITIES AND BODIES

RESPONSIBLE FOR THE SAPARD PROGRAMME

387

1.1 COMPETENT AUTHORITY 387

1.2 CERTIFYING BODY 388 1.3 MANAGING AUTHORITY 389 1.4 SAPARD AGENCY 390 1.5 MONITORING COMMITTEE 391 1.6 SAPARD AGENCY STRUCTURE 392 1.7 TECHNICAL DELEGATED SERVICES 394 2. DESCRIPTION OF THE SELECTION PROCEDURE FOR ELIGIBLE

PROJECTS

395

3. FINANCIAL MECHANISM 397 3.1 PAYMENT MECHANISM AND DECLARATION OF EXPENDITURE 397 3.2. CURRENCY AND EXCHANGE RATE 398 4. INFORMATION AND PUBLICITY 398 5. COMPLIANCE WITH COMMUNITY POLICIES 400 6. PROCEDURE FOR AMENDMENT OF THE PROGRAMME 400 VIII LEGISLATION ANNEX 401 ANNEXES 450 ROMANIAN AGRICULTURE RESOURCES AND TERITORIAL

DISPARITIES - MAPS

633



INTRODUCTION This document represents the improved version of the National Plan for Agriculture and Rural Development, which was presented to the Commission at 27th of April 2000. This document is a component part of the National Plan For Development, which is elaborated by the Agency for Regional Development in accordance to the Decision of Government no. 749/1999. The National Plan for Agriculture and Rural Development is the most important document, which will contribute to the implementation of the Community Acquis during pre-accession period and it is in accordance with: the Council Regulation (EC) 1268/1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period; Commission Regulation (EC) No.2579/1999 laying down rules for the application of Council Regulation (EC) 1268/1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period. The emphasis, in the future, in agriculture and in rural areas should follow the priorities identified for the pre-accession period such as: improvement of structures for processing and marketing of agricultural and fishery products, quality control of food, as well as veterinary and plant – health controls; improving infrastructure for rural development and agriculture; development of rural economy; development of human resources. It is essential to finance integrated rural projects, at the local administrative level (NUTS 5), that will assure the premises for new local entrepreneurial behaviour and environmentally friendly actions. The funds afforded according to EU Regulations insure step by step training of the farmers and of the processors in order to effective operate on EU market. The main aim is to obtain competitive products and to avoid negative effects, which could appear if Romania is not ready for adherence from economical, institutional and legislative point of view. Giving the fact that needs for investments in agriculture are considerable the Romanian Government has had initiated complementary actions for the SAPARD Program; among them we could mention: the recent decisions to set-up a preferential credit system for agricultural producers; coupon system; the several negotiation with international donors for getting financial support for agriculture and rural development. The law regarding the support granted to young farmers and to other categories of entitled persons was approved by the Government and submitted to the Parliament for adoption. The above mentioned law lays down the legal framework for the support granted to youth’s integration in rural area, in order to activate this area by developing programmes and projects meant to valorise natural resources and local traditions, and also by developing a new concept of agriculture, of non-agricultural activities and services. From the provisions of the present law will benefit: a)Young families where every member is under 35 years old, who want to settle down in rural area and where at least one member has a skill, which allow him to run activities of agricultural and non-agricultural nature, specific to the rural area they want to live in;



b)Young people under 35 years old and who run alone or together with several partners an association, an agricultural company or a non-agricultural trade company, c)who want to settle down in rural area; Young people under 35 years old that own an agricultural land and/or livestock farms, who want to settle down in rural area; The beneficiaries above-mentioned benefit from the following facilities: – they are put into possession with lands up to 1000 sq. m. in order to build

households and auxiliary premises; – they are put into possession with lands up to 10 ha for agriculture; – exemption from the percentage tax due to the irreversible elimination from the

agricultural circuit of the agricultural lands which are in outside built-over areas as a result of the extension of the built-up area of the localities.

The Romanian Fund for Social Development (RFSD) is a body of public interest set up by the Law 129 from the 24th of June 1998, which grants assistance to projects for poverty control at local level, stimulating participation and co-operation within communities. RFSD has for purpose to improve the life conditions of the inhabitants of poor villages and of the persons belonging to disadvantaged categories. Another goal of the RFSD is to develop initiatives and organization capacity and mutual assistance at local level, in order to participate at the decentralization process. Beneficiaries are poor rural communities and productive groups of the poor rural communities with legal status according to Law no. 129/1998 and which respect the criteria laid down by the law. The amount given by RFSD is a grant, and the World Bank initiates the programme, together with B.I.R.D and the Romanian Government. There will be financed projects regarding: – Rehabilitation of an economical infrastructure – rearrangement or mending of small warehouses in order to maintain the quality of products during the entire season and to have higher prices; mending the solariums and greenhouses for flowers and vegetables; mending the equipment of the local markets and fairs, even arrangement of markets and fairs. –Production/processing - primary processing of raw foodstuff material (milk, cheese, cream, honey, poultry, eggs, raw oil, flour, meat, beans, medicinal plant) and other than foodstuff (such as: leather, fur, down, raw wool, wood etc). These kinds of projects are necessary in order to increase the value of the above-mentioned material, to have a higher price on the market; to buy small size equipment and tools for increasing work productivity and product quality and for the members of the production groups to purchase raw material for the first technological process. – Vocational training - training courses regarding appropriate technology for foodstuff processing, as well as management training courses. – Technical and legal assistance – for processing traditional local products depending on the requests of the potential clients and for identification of new markets; supply of knowledge and information for the non-agricultural activities; legal support necessary to the setting up of co-operatives, handicraftsmen associations and small rural enterprises, non-governmental organizations. – Marketing – specialised services for packing and labeling traditional and untraditional foodstuff products; marketing of products and improvement of access on the market; organisation of transport of local products on the market of towns and other means of logistic support. For the small rural infrastructure the financing application will not exceed 75,000 $ and local contribution must cover at least 10% of the amount requested for financing from



RFSD. This contribution can consist in money and/or materials and/or labs and/or equipment. For community social services the financing application will not exceed 20,000 $, and at least 5% of the amount will be the contribution of the beneficiary. This contribution can consist in money and/or materials and/or labs and/or equipment. For income generating activities the maximum financing amount of a project cannot exceed 20,000 $ and the beneficiary must bring a contribution of at least 15% of the amount requested. This contribution can consist in money and/or materials and/or labs and/or equipment. The special programme for less-favored areas “Assistance for agricultural activities in rural area” was adopted by the DG no. 522 of the 22nd of June 2000 and has for purpose to grant financial non-reimbursable aid for the purchase of machines and equipment for agricultural productive activities or specific services. The beneficiaries of the programme are:

– small enterprises with capital integrally Romanian and most of it private, – agricultural associations constituted on the basis of Law no. 36/1991 regarding agricultural companies and other association forms in agriculture, – private entrepreneurs or family associations authorised according to the Decree-law no. 54/1190 regarding the organisation and development of economic activities on the basis of free initiative, with subsequent modifications, developing an agricultural activity or supporting agricultural activity in rural area, in a less-favoured area and who want to develop their business.

The National Agency for Regional Development will implement the programme, in co-operation with the agencies for regional development. The programme is applied to less-favored areas (declared so in accordance with the Ordinance of Urgency of the government no. 24 republished). The maximum amount non-reimbursable the beneficiaries of the programme can receive is of 1.5 billion lei, if a 25% co-financing contribution can be proved. The National Plan for Agriculture and Rural Development presents the interventions of SAPARD Program in the period 2000-2006. The strategy to be followed under the program should lead to an agriculture much better adapted to the needs of markets while at the same time respecting the environment and creating new jobs in the rural areas. In view of preparing in good conditions the National Plan for Agriculture and Rural Development, the European Union offered Romania, through Phare Program RO/ 98/IB/SPP/ 02, the possibility of initiating of a test program amounting to 2,5 million EURO; this program is under working and some of the main conclusions has had moved in the present documentation. We are aware that the National Plan for Agriculture and Rural Development is a document which may be improved and which will be updated as the national strategy regarding the economic and social cohesion is improving and as the Regulations of the European Commission, regarding the funds of pre-accession and the negotiations which will take place during this year, will be finalized. Starting with December, 1999 the Government has had adopted the decision to promote the legislative and institutional framework concerning the National Plan for Agriculture and



Rural Development; till now the Government adopted: the low regarding National Plan for Agriculture and Rural Development, which was approved in the Chamber of Deputies, also; the Governmental decision concerning restructuring of the Ministry of the Agriculture and Food and Ministry of Finance as the most important public actors for putting in practice the SAPARD Program. The process of designing the legislative and institutional framework concerning the National Plan for Agriculture and Rural Development is under development.



LIST OF ABBREVIATIONS AAFS Academy of Agricultural and Forest Sciences AEP Agency for Environment Protection AP Accession Partnership ARD Agency for Regional Development CA Competent Authority CFI County Forrest Inspection COCA County Office for Consulting in Agriculture CRC Consulting Regional Committee CS Company by Share CTIAR Chamber of Trade, Industry and Agriculture of Romania DPLA Department for Local Public Administration DS De-centralized Service EAGGF European Agricultural Guiding and Guaranteeing Fund EC European Council EEC European Economic Commission EU European Union GDAFI General Directorate for Agriculture and Food Industry GDEIPPIR General Directorate for European Integration, Programmes, Projects and

International Relations GDRDP General Directorate for Rural Development and Programmes GUMR-1903 General Union of the Manufacturers from Romania IB Implementing Body IFI International Financial Institutions IMCARD Inter-ministry Committee for Agriculture and Rural Development LCCA Local Center for Consulting in Agriculture LPSC Local Pre-selection Committee LSTU Nomenclatoire des Unites Territoriales Statistiques LTD Limited MAF Ministry of Agriculture and Food MF Ministry of Finance MFA Ministry of Foreign Affairs MFWEP Ministry of Waters, Forests and Environment Protection MIT Ministry of Industries and Trade MNE Ministry of National Education MPWLA Ministry of Public Works and Land Arrangements MWFEP Ministry of Waters, Forests and Environmental Protection MWSP Ministry of Work and Social Protection NACA National Agency for Consulting in Agriculture NAMB National Association of Millers and Bakers NARD National Agency for Regional Development NASMSE National Agency for Small and Medium Size Enterprises NAT National Authority for Tourism NBR National Bank of Romania NSC National Commission for Statistics NDLA National Direction for Land Arrangement NFC National Forecast Commission NGO Non Governmental Organisation NPAA National Program for the Adoption of the Acquis NPARD National Plan for Agriculture and Rural Development



NPD National Plan for Development NSC National Selection Committee PSD Phito-Sanitary Services Directorate RCC Regional Consulting Committee RDP Rural Development Project ROIS Regional Office for the Implementation of SAPARD Programme SAPARD Special Accession Programme for Agriculture and Rural Development SMSE Small and Medium Size Enterprises SPP Special Preparatory Programme SWOT Strengths, Weaknesses, Opportunities and Threats TC Trade Company TFI Territorial Forrest Inspection VSD Veterinary Services Directorate WB World Bank YBR Year Book Romania



THE CO-OPERATION OF THE MINISTRY OF AGRICULTURE AND FOOD

WITH THE OTHER MINISTRIES AND SOCIAL PARTNERS INVOLVED IN THE

ELABORATION, PROGRAMMING AND APPLIANCE OF SAPARD MEASURES

The co-operation between ministers was made official by organising the Inter- ministry Committee for Agriculture and Rural Development, set up as a result of the decision of the Prime Minister no.38/1999, which includes the following institutions: � The Ministry of Agriculture and Food � The Ministry of Finance � The Ministry of Industry and Trade � The Ministry of Water, Forests and Environmental Protection � The Ministry of Public Works and Land Arrangements � The Ministry for Foreign Affairs � The Ministry of National Education � The Ministry of Work and Social Protection � The National Authority for Tourism � The Department for Local Public Administration � The National Commission for Statistics � The National Agency for Small and Medium Enterprises � The Forecast National Commission � The National Agency for Regional Development The Inter- ministries Committee for Agriculture and Rural Development attributions are:

�Co-ordination of the activity for the elaboration of the National Plan for Agriculture and Rural Development, mainly focused on the development strategies and on the technical sheets of SAPARD measures. Within this frame there were established the appropriate ministerial work groups: �Periodical analysis of NPARD and monthly approval of the priorities, objectives and strategy to follow. Five meetings of this committee have been organised in year 2000. �Surveys the setting up of the operational institutional structures of the SAPARD Agency indispensable structures in carrying out the Program.

Taking into account the specific of the sectorial policies, which has impact on rural development, it has been established the involvement degree for each Ministry in the National Plan for Agriculture and Rural Development. Measure no. 1.1 “Improvement of processing and marketing for agricultural and fisheries products” - MAF, MIT, MWFEP, NASMSE; Measure no. 1.2 “Improving the structures for quality, veterinary and plant-health controls, foodstuffs and consumer protection” - MAF, MWFEP; Measure no. 2.1 “Development and improvement of rural infrastructure” - MPWLA, MWFEP; Measure no. 2.2 “Management of water resources for agriculture” - MAF, MWFEP; Measure no. 3.1 “Investments in agricultural holdings” - MAF, MIT, MWFEP; Measure no. 3.2 “Setting up producer groups” - MAF; Measure no. 3.3 “Agricultural production methods designed to protect the environment and maintain the countryside” - MAF, MWFEP; Measure no. 3.4 “Development and diversification of economic activities, multiple activities and alternative income” - MIT, NAT, NASMSE, MAF; Measure no 3.5. “Forestry” - MWFEP, MAF, MIT;



Measure no 4.1. “Improving of the vocational training” - MAF, MNE, NASMSE, MWSP,NAT, MIT; Measure no. 4.2 “Technical assistance”. A. The institutions: The Ministry of Finance, The Ministry for Foreign Affairs, The National Commission for Statistics, The Forecast National Commission, The National Agency for Regional Development, have the role to take part in the process of grounding of some documentation, making easier the access to data and formation and supporting the carrying out of national and /or regional level actions. We also point out the participation of the members of the Inter – Ministry Committee for Agriculture and Rural Development to the following actions: � analysing and defining the approach directions of the National Plan for Agriculture

and Rural Development � establishing the necessary institutions We also point out that in the sessions of the working groups, the following institutions and bodies have actively taken part in areas within their field of activity: � National Agency for Consulting in Agriculture, together with its subordinated � County Offices � Chamber of Trade, Industry and Agriculture of Romania, together with its structures

in the territory � Competition Office � Competition Council � National Association Handicraft Cooperation � Romanian Fund for Guarantee for Rural Credit � Romanian Fund for Social Development � National Association for Rural Tourism and Ecology � National Sanitary-Veterinary Agency � Central Laboratory of Phyto-Sanitary Quarantine � Institute of Hygiene and Public Veterinary Health � Institute for Drugs Control and Biological Products for Veterinary Use � Institute of diagnosis and Animal Health � Central Laboratory for the Control of Seed Quality � State Institute for Testing and Recording of Variety � Bank of Vegetal Genetic Resources Suceava � National Agency for Improving and Reproducing in Zootechny � Institute of Cadastre and Organization of the Agricultural Territory � Land Improving Autonomous Company � Institute of Studies of Planing for Land Improvement � Romanian Waters Autonomous Company � ROMSILVA � National company for Electricity � Academy of Agricultural and Forest Sciences � Agrarian Economy Institute-Romanian Academy.



B. The participation of the representatives of civil society to the drawing up of the documentation for the National Plan for Agriculture and Rural Development ensure the following: - a large attendance and backing of objectives and priority axes of the program; - making use of the experience of the vocational organisation, especially in what regards the elaboration of projects belonging to individual agricultural producers and associations of producers; - a real diversification of investments opportunities in accordance with the existing situation in Romania and in compliance with the European Commission’s regulations; - a better identification of criteria for quantifying the indicators of output, result and impact of the projects. In the first stage the social partners were consulted on the occasion of the meetings organized at the local level and of the General Directorate for Rural Development and Programs. Among the illustrative professional organizations which were part of the co-operation it is worth mentioning: National Association of Farmers, Federation of Private Farmers, Federation of Mountain Farmers - Dorna, the “PROPACT” Free Trade Union of the Romanian Peasantry, Association of Bee Breeders, General Association of Cattle Breeders, Foundation for Rural Associations, Association “Ecologist Youth from Romania”, Union of Poultry Breeders, Association of Private Processors of Milk, “ANAMOB” National Association of Millers and Bakers, professional associations reunited in the employer union “GUMR 1903” , T.C. SERICAROM S.C., T.C. S.H.E.S. PREST – LTD and many others, which expressed their points of view concerning NPARD. Among these we mention: � the need of placing the SAPARD objectives in the rural area and only very seldom in some agri-industrial towns and suburban villages. Of these proposals results the necessity of amending the Law no. 2/1989, modified by the Law Decree 38/1990 regarding “Administrative distribution of Romania”; � the possibility to ensure co-financing (50% of the eligible cost of the project) either by promoting some credits with advantageous interests or by accepting in-kind contribution. � the completion and diversification of SPP measures so that SAPARD Programme includes all rural spectrum. Another support came from some farmers and private entrepreneurs, who, at the same time with the vulgarization of SPP Programme, made by letters improvement proposals regarding the types of projects promoted, the field of action the beneficiaries of the projects. Further to the discussions held in Brussels - The meeting of the Ministers of the candidate states - in the period 6-7 June 2000 and further to the working visit in Romania of the DG Agriculture services- in the period 3-5 July 2000 and 27-30 September 2000, it was decided the change of National Plan for Agriculture and Rural Development according to the observations received from the European Commission. On 17.07.2000 the following social partners were invited to attend the meeting at the General Directorate for Rural Development and Programs, having as topic the observations received from the European Commission: National Association of Farmers from Romania Federation of Private Farmers from Romania Romanian Patronage of Milling and Bakery Romanian Association of Heat



National Association of Millers and Bakers National Organization of Horticulturists from Romania Patronal Organization of the Industry of Edible Oil and Vegetal Fats Patronal Organization “VINROM” Patronal Organization of Milk Industry. We present herewith the observations made by the social partners who attended the above mentioned meeting:

Partner Measures Observations of the social partners

Patronal Organization of the producers of wine, soft drinks,

syrups, juices, alcoholic and non-

alcoholic beverages - VINROM

1.1 Focusing of investments 4-5 counties (Iasi, Cluj, Constanta, Brasov) in a first phase, and then some other counties to be included, so that the sector might benefit of a substantial support – the target is to set up new jobs.

There are technical conditions, but there is neither capital, nor adequate management.

In the foreign trade the wine does not hold an important share.

The processing of wastes could be eligible.

We agree that new equipment, in compliance with the U.E. norms be procured.

We agree that the payment in cash is not eligible.

The vine hybrids, cropped in Romania, have a low productivity, because they are cultivated in an extensive system. Likewise, the quality of wine is low as compared to the wines resulted from noble vine.

We sustain the priority of replacing of hybrid vine in the private sector vineyards.

We propose that the horticultural planting material and the vine planting material be eligible.

In the ownership structure of Romania the vine yard farms (70%) produce also wine.



Patronal organisation of the industry of edible oils and of plant fats ULPROD

1.1

1. Within edible oil industry there is a need to set up new capacities for some type of oil raw material. The proposed capacities are not efficient. The existent capacities can process all, types of oil raw materials. 2. It is proposed the granting of support through SAPARD for the modernizing and setting up of the edible oil units, only for big units (of a capacity of 150 tones / 24 h. processing seeds of edible oil plants. 3. It is proposed the increase of crediting system from 2 million EURO to 4 million Euro.

Association of the farmers from Romania

3.1 , 3.2 We propose to be reviewed the share of the measure “Setting up producer groups”, so as to increase this share in the budget of the program from 1.2% to 2-2.5%, by diminishing the share of “Forestry”.

We agree with the necessity of setting up of an efficient rural financial market.

We propose to further be sustained the ensuring of a quota of 50% under the form of subsidized credits because the applicants cannot ensure the quota from own financing sources.

- in the presentation of the agricultural markets the necessity of setting up and strengthening the basic institutions shall be emphasized. - it will have to be explained more clearly the need for the farmers to have access to the credits with subsidized interest. - it will have to be explained more clearly that the ensuring of food security does not have at its core the “economy of command ‘, but the existing conditions from our country and that this does not contradict the acquis communantaire.

It has to be explained that the change of the juridical status of the agri-busniesses and of the state farms will lead also to the change of the managerial structure.

It has to be revised the wording at page 117, as we don’t think that there are farmers who participate in the program, knowing too well that they will record losses.



Romanian Association of the Meat

1.1 We agree with the European Commission according to which priority for financing shall have the projects of a certain size, which could help developing modern plants of an acceptable size that might be able to complete the European producers.

Romanian Patronate from the

Milling and Bakery Industry

and of flour products - ROMPAN

1.1 We suggest that for the processing of cereals the following specific objectives be considered: �Modernization and rehabilitation of the existing capacities for storing (cereal silos, flour silos) and for the primary processing of cereals (drying, calibrating, cleaning, conditioning, milling); �New means for bulk transportation (for raw materials and for finite products; �Equipment for environmental protection (escapes of organic and mineral dust, mineral impurities, etc.); �Equipment for valorization of products resulted from storing and processing of cereals (germs, organic wastes, thrash) �Factory labs and laboratory equipment according to UE norms for the checking of raw materials, semi-processed and finite products; �Equipment, soft programs for the quantitative and qualitative monitoring and checking of reception , storing, processing and marketing of products; �Installations and equipment for producing pilled cereals (peeled barley); �Installations and equipment for producing cornflakes (by rolling / drawing and expansion); II. As the investment value necessary for the rehabilitation of the industrial mills exceeds 10 million Euro, we suggest that the maximum eligible limit to be of minim 4 million EURO and not 2 million EURO as it is provided for in the program. III. Regarding the specific eligibility criteria of the milling we suggest that the projects should refer to : Storing capacities (modernization minimum 2 thousand tones (silos technologies for wheat); milling wheat and maize minimum 30 tones / day; peeling 30 tones / day; cornflakes minimum 1 tone / day. IV. The sector of primary processing of cereals represents a priority opportunity as it disposes of a private contribution of 50% for the accomplishment of the modernization, and the number of economic agents is almost about 5,000, with good possibilities for the setting up of new jobs. V. We suggest that for the cereals processing activity the public support be of 50% of the total eligible expenditures VI. For the selection of eligible projects and for the establishment of priorities by geographic regions the patronate should be consulted.



The country and the administrative regions

ROMANIA



1. QUANTIFIED DESCRIPTION OF THE PRESENT SITUATION

1.1. Description of the current situation

Romania is situated in South-Eastern Europe at the intersection of the main European communication axis, North- South and East-West. In comparison with the other European states Romania is a medium size country (which holds the 12th place in Europe regarding the area and the 8th place regarding the population). Romania’s relief comprises three main units: the Carpathian Mountains, the Subcarpathians, hills, plateaus and plains, (including the river meadows and Danube Delta). The characteristic features of the relief units are the well-proportioned areas (31% mountains, 36% hills and plateaus, 33% plains and river meadows) and the concentric and amphitheaters-like position of the main relief units. Romania’s climate is temperate-continental of transition, with oceanic influences from West, Mediterranean from Southwest and excessive-continental from Northeast. The average annual rainfall is variable, depending of the altitude: 500 mm. in the plain areas, 700 mm. in the hill areas and 1200 mm. in the mountain areas. The administrative- territorial structure of Romania:

263 towns, out of which 84 municipal towns; 41 counties (NUTS 3) plus the capital of the country, Bucharest; 2688 communes (NUTS 5); 12751 villages

The main indicators regarding Romania in year 1999

Indicators Romania European Union

0 1 2 3

Population Mill. Inhabit. 22.5 374.6 1)

Area Km2 238 391 3,191 000 2)

Density of population Inhab./km2 95 117 1)+

Dynamic of population in 1999/1992 % 98.7 103.01

Rural population % 45.1 17.52

0-14 years % 19.4 17.0

15-64 years % 68.0 67.0

1 1997/1990 2 Only the population from the localities with demographic density under 100 inhabit./sq. km.



0 1 2 3

GDP/inhabit. (ppc) USD / inhabit. 3,964 18,075

60 years and over % 12.6 16.0

Structure of employed population (1997) % 100 100

Agriculture (1998) % 37.5 5.0

Industry, buildings % 32.0 29.4

Services % 30.5 65.6

Unemployment % 11.3 10.7

Foreign Investments (1997) USD/ inhabit. 111.4 -

Birth rate (1997) ‰ 10.5 -

Hope of life at birth (1994-1996) at both sex

Years 69.1 -

Male Years 65.3 74.0

Female Years 73.1 80.5

1.2. The regions

In order to prepare the decentralization of the central decision towards the regional structures, with same meaning as in European Union, in the present document was included a quantitative analysis of the rural area on 8 regions of development (NUTS 2). (i) The regional structures, similar to those of the EU, appeared rather late, in the year 1999 (Law 151, 1999 regarding the regional development in Romania). (ii) According to the national legislation in force the regional structures are based on the existence of a joint institutional partnership (public-private), according to which NARD is a public structure, assimilated to a ministry, and the 8 agencies for regional development are private structures. According to the legislation in force the regions were made through voluntary cooperation of the counties, without legal status, and they are not administrative-territorial units. Consequently, the flexibility of constituting and functioning of these structures, as well as the lack of practical experience in the management of some specific programs (the first regional programs were started in the autumn of the year 1999) make us proceed in this way: to keep, for a limited period of time, the process of programming and decision making at the level before the promulgation of the Law 151/1999; to involve the new regional structure in the process of programming and decision only making with an advisory role. (iii) The central public administrative structures haven’t have yet the necessary time to restructure their activity at local level, respectively at regional level, in conformity with the new regulations appeared in the field. We reckon that, in order to integrate and consolidate the new regional administrative structures in the decisional process, a period of transition of 2-3 years will be necessary.



General data regarding regional development, 1997

Number counties

Area (Sq. km.)

Population (Thou.

inhabit.)

Density (Inhabit. /sq. km.)

1. North-East 6 36,850 3,785 102.7

2. South-East 6 35,762 2,943 82.3

3. South 7 34,453 3,496 101.5

4. South- West 5 29,212 2,420 82.8

5. West 4 32,034 2,074 64.7

6. North-West 6 34,159 2,862 83.8

7. Center 6 34,100 2,661 78.0

8. Bucharest 2 1,821 2,305 1265.8

1.3. The territorial administrative structure The "judet" or county, which are similar to NUTS 3, represents the administrative units in Romania. These were established Law no.2/1968 regarding Romania’s administrative organization. Romania has by 42 county. At this territorial level, all the central public administration bodies have their decentralized services. This reality explains why the programming and financing documents in the state budget, which belong to the central public administration, have as local units of reference the counties (NUTS 3) and respectively the communes (NUTS 5).



I. DIAGNOSIS OF THE RURAL AREA

ROMANIA



1. THE CONTEXT OF RURAL DEVELOPMENT IN ROMANIA

1.1 Brief presentation of the country

The Romanian relief is spread over three major terraces, namely – the Carpathian Mountains, the Sub-Carpathian, hills and plateaux, and the plains (including the river meadows and the Danube Delta). The main characteristics of the relief units are the proportionality of areas (31% mountains, 36% hills and plateaux, 33% river meadows and plains) and the concentric disposition as amphitheatre form of the major relief terraces. The climate of Romania is temperate continental of transition, with oceanic influences from west, Mediterranean from South-West and excessive-continental from North-East. The annual average rainfalls are variable, depending on the altitude: 500 mm, in the plains, 700 mm, in hilly areas and 1,200 mm, in the mountains. 1.2 General description of the rural area

Geographical position of the rural area The rural area in Romania is made-up of the administrative area of the 2,688 communes on the country’s territory, which comprise the rural population of the country, according to the Law 2/1968 regarding the administrative and territorial organisation. The communes consist of one or several villages, with a total number of 12,751 villages in Romanian’s rural areas. Administratively, the 42 judets represent basic administrative units that are headed by administrative staff. Through Law no.151/1998, regarding regional development in Romania 8 development regions were established. For a better understanding of the diagnosis analyse of Romanian rural area, all comparisons shall be made only at regional level. It has to be mentioned that on the administrative territory of some cities and municipalities (which, according to the Law on the administrative organisation of the country’s territory is considered to be an urban area) there are another 341 localities with rural features, even named villages, but which are included, only administratively speaking, in the composition of the urban environment. The rural area is constituted by all communas in Romania, as defined in article 5 of Law no. 2/1968 on the territorial administrative organization in Romania: “the communa is the territorial administrative unit comprising rural population united by common interests and traditions. A communa is composed by one or several villages, according to economic, social, cultural, geographic and demographic conditions. The organisation of the communa ensures the economic, social, cultural and administrative development or the rural localities.” The rural area, thus defined, sums up to 212.7 thou. sq. km, representing over 89% of the country’s area. The population living on this territory is of 10.14 mill. inhabitants (on 1.01.1999) and it represents 45% of the country’s population, resulting a relative by low population density, below 48 inhabitants/sq. km. The rural area – in terms of surface and population- does not have the same share in all 8-development regions (see Annex 1).



The longest rural area is situated in the North-Eastern Region (94.0% of the surface), while the largest rural population in the South Region (55.7% of the population). A particular case is Bucharest region, where Bucharest Municipality-the capital of Romania is situated. It concentrates 88.8% of the population of the region. The rural population around the capital represents only 11.2% of the region’s population.

“The Commune” is the basic administrative unit on whose territory the rural policy is implemented. The communal authorities are the local partners of the judets and regional authorities for the attainment of the rural policy. The number of local partners varies from 267 communes in the Western Region, to 481 in the Southern region. The exception is Bucharest region, which has only 38 communes.

The average population of a commune is of 3,780 inhabitants, but there is a great variety of communes in Romania under the aspect of demographic dimension (see Annex 2).

A commune consists of several villages. There is an average of 4.7 villages/commune. More than halves of communes (55.4%) consist of 1 to 4 villages and 6.2% of communes have more than 10 villages (see Annex 3).

Villages are characterised by a great diversity in terms of inhabitants’ number. Village dimensions vary, from those with only a few inhabitants, to villages with more than 7,000-9,000 inhabitants. Villages with only a few inhabitants prevail, the average number of inhabitants/village being around 800.

Village composition in terms of inhabitants, and communes composition in terms of villages and inhabitant number, influence significantly the degree of ensuring the population with equipment and public services. The communes with a small or dispersed number of inhabitants or with scattered villages are the most disadvantaged under the aspect of public utilities and they had the most intense decreases of population, during the last decades.

Macroeconomic context of rural development

The deep structural crisis confronting the Romanian economy is facing, represents the cumulative effects of inherited unbalances, over which was, superposed the inconsistency of economic measures reforms on the transition period.

After 1990, the consumption character of Romanian economy was accentuated, a fact that can be illustrated by the evolution of the correlation among the main components of GDP utilisation. (see Annex 4).

Relevant for the considerable narrowing of the economy’s modernisation capacity is the quite abnormal correlation between GAV dynamics and the gross formation of fixed capital (graph 1).

In a regional profile (graph 2), the general level of economic development (quantified by GDP/ inhabitant, expressed in national currency and in USD at purchasing power parity), presents a relatively high regional variability (see Annex 5 and Annex 6).

The fact that, in the period 1990-1998 the agricultural production declined yearly by no more than 15% (1992), under conditions of increased absorption of labour from non-agricultural sectors and strong diminution of intermediary input utilisation, made agriculture (and implicitly the primary sector) to be the only sector of the national economy



that recorded an increase of the gross added value (see Annex 7; graph3); on this basis, the share of primary sector in the national economy also increased (see Annex 8).

Because of a relatively persistent de-capitalisation of economic agents, the strong asymmetrical de-structuring in the agri-food economy (graph 4) has practically produced a so-called double “fracture”: on the one hand, between crop production and livestock production, within agriculture; on the other hand, between agricultural production and food industry (see Annex 9).

At the same time, the sectoral structure analysis of the gross added value (see Annex 10) reveals the fact that, practically, in every region, the primary sector share (agriculture plus forestry and fishery) is below the shares of the secondary sector (industry plus constructions), thus the ratios between GAV sectoral quotas are exclusively. These figures reflect the very low level of agricultural labour productivity, due to the poor technical endowment, to the agricultural land fragmentation, and to the lack of management in the private holdings.

As a result of regional sectoral disparities which occur both in the case of active population and in the case of GAV, there are great primary sector labour productivity imbalances. Thus, in 1995 the minimum level was registered in the North – East Region (86.7 % of national average), and the maximum in the West Region by (27.7% above the national average). It must be mentioned that in 1995 the maximal level of the work productivity registered in the primary sector was the lowest as compared to 1994 (with 41.1% over the national average) and to 1993 (with more than 29.9% over the national average).

Compared to the weight of the rural population and to demographic density, Romania’s agricultural potential is rather high. By regions, there are different levels of agricultural land endowment (see Annex 11). Thus, compared to the national average of 0.65 ha/capita (1996), the maximum land endowment/capita is to be found in the West Region (0.94 ha/inhabitant) and the minimum in the North-East Region (0.56).

Land endowment per agricultural working inhabitant is of about 4 ha, with significant regional differences, and the trend is one of slow increase.

Agricultural production has recorded very diverse specific dynamics, by sector (crop and animal raising), and by region, depending on the diversity of agricultural- climatic and soil suitability conditions, but also on the production factors utilisation.

Crop production registered a more intense growing rate, as it requires smaller material and financial efforts, in the conditions of the absence of a capital market and of advantageous credits (see Annex 12). That is why the development of associative and co-operative system is a must in order to increase of the agricultural producers the negotiating capacity.

One of the negative effects, present in Romania’s agriculture in the latest years, is the even lower use of mechanisation, land improving and irrigation, reproduction and selection systems. Relevant, in this context, are the data referring to the share of agricultural production services in agricultural production in the years 1995-97(see Annex 13, graph 5). Among the causes of this state of things are the following: lack of capital, differentiated access of agricultural producers to mechanisation facilities, de-structuring of service organisation. As a result, actions for adequate service development are necessary. Interference between the influence of resource endowment and the performances attained in their use can be found in the dynamic and the levels of partial productivity (see Annex 14) of the main factors (land, labour, etc.), whose regional unbalances reflect the diversity of



conditions where agricultural policies must be applied for the improvement of rural areas economic situation. The asymmetries intervened in the sectoral dynamics have generated significant structural mutations regarding the share of agriculture in the main economic macro indicators (see Annex 15, graph 6). The increase of the agriculture is weight in the occupied active population (by 9.3%) and in GAV (by 4.9 %) give to the Romanian transition the feature of budding beginning of a “re-agri-culturalisation”, with unfavourable impacts on social labour productivity trend (the significant decrease of agriculture share in fixed capital stock and investments is to be noticed).



2. THE POTENTIAL OF AGRI-FOOD SECTOR

2.1. AGRICULTURE

2.1.1 Natural resources Structure of the use of the arable land agricultural land compared to the total agricultural area: � 9,365 thou. Ha arable land, representing 63 % of the agricultural area (14,811 thou.

ha), of the country ; � 501 thou. Ha orchard-vineyard plantations, that is 3.4 % of total agricultural area; � 265 thou. ha represents the total area planted with vineyards, that is 1.8 % of the agricultural area; � 4,945 thou. ha. natural meadows, accounting for 33.4 % of the total agricultural

land. (Statistical date 2000)

This structure has never recorded significant modifications in the 1989-1998 period, except the reduction of orchard surfaces by 24%.

At present, agricultural lands mostly (84%) belong to the private sector and 16% to the state sector (see Annex 16). The distribution of agricultural categories of use by statistical regions is different according to relief conditions, climatic, soil and crop suitability features (see Annex 17). Generally the quality structure of agricultural lands shows that only 25% of these have a satisfactory and very satisfactory productive potential.

The high share of agricultural land places Romania on an average level in Europe. Offering information on agricultural production potential, the analysis of the ratio between agricultural land use categories and population has a special significance. In 1996 according to FAO statistics, in Romania were 0.44 ha under crops and 0.41 ha arable land per each inhabitant. Compared to neighbouring countries, Romania’s land resources are lower.

It must be mentioned that the soils are subject to a continuous degradation process. For Romania, the land reclamation problem has been and still is especially acute as agricultural land is affected by various limiting factors of the productive capacity: frequent draught, water erosion of the soil, frequent excess of water in the soils, soil compaction due to inadequate works etc. (see Annex 18). Structure of agricultural holdings In terms of the juridical status of agricultural holdings there are two sectors: private sector and state sector.

The private sector administered (in 1998) an agricultural land of 12,342 thou. ha, consisting of three types of agricultural holdings (see Annex 19).

family farms in number of about 3.9 million, where more than 3/4 of private property land (9182 thou. ha) is under crops, with an average area of 2.3 ha/farm;

family associations (as non-legal entities) in number of 7,175 with an average area of 132 ha and administering 950 thou. ha;



legal agricultural associations in number of 3,578 with an average area of 620 ha and with 2,210 thou ha. under crops. Presently, 84,9% of the agricultural land and 83,2% of the arable land is in private property. The appliance of the Land Law has been accomplished with delay, so that to date it is not still concluded the handing in of the title deeds process, as it is described in the datasheets regarding the state of the appliance of the Land Law. At 30th of June 2000 the application stage of the Land Law was as follows: of the total area that had to be appropriated (i.e. 9,420,518 ha) a percentage of 86.3% was achieved, of the total number of persons that had to be put in possession (i.e. 4,716,062) a percentage of 83.2% was achieved, and of the total number of property deeds that had to be issued (4,340,569) a percentage of 79.0% was achieved (News MAF no. 7/2000). It can be noticed that, even if during 1993-1996 the number of property deeds issued every year was between 10.16 – 19.8%, in 1996 the percentage registered was of only 2.9%. The appliance of the Land Law had positive effects, which are: �extension of the private property, �disappearance of the cooperatist structures of inefficient communist type, �diversification of organising structures �connections to the market circuit. The negative effects are: �Scattering and fragmentation of agricultural holdings, �Un-correlation of the appliance of the Land Law with the appearance of the land market; this law was promulgated with delay, in 1998 (law 54/1998 regarding legal circulation of lands), �Un-providing, at the same time with the right of ownership over the lands, of the adequate means for carrying out of agricultural works. Law 36/1991, regarding agricultural companies and other types of association in agriculture had stimulated the setting up of agricultural associations without legal status and had created a new type of primary co-operation at production level (agricultural companies with positive evolution either from the point of view of number or of the areas exploited in common. The agricultural area cultivate by the private sector increased during the 30th of June 1999-30th of June 2000 from 11,921 thousand ha to 12,140 thousand ha. A significant increase was registered in the family associations (their number increased from 6082 to 6262) and in the individual households (their number increased from 4,096,616 to 4,221,015). The number of agricultural companies with legal status decreased from 3525 to 3328. During the period of time that has been analysed it was noticed a decrease of the average areas belonging to family associations from 145 ha to 130 ha and an insignificant increase of the average area from 2.34 ha to 2.35 ha. (Internal Newsletter of MAA no. 7/2000). These data confirm the high rate of private agricultural land fragmentation, with unfavourable influences on the effective use of land resources and productive assets. The significant share (72 %) of subsistence holdings, smaller that 3 ha and the extremely low share (0.3%) of holdings larger than 10 ha. are to be noted. In the period, 1993-1998 it was noticed a slight land concentration trend in individual holdings.



There are great disparities between regions regarding the structure by size classes of individual holdings.

Of the total number of landowners, about 40-45% is not in their property proximity, many being urban inhabitants and others residing in localities different from the locality where their land is located. This claims for the fluidisation of land market and for the development of the associative system.

If in West-European countries the co-operative system is still situated upstream and downstream of agricultural production, in Romania it is mainly in the productive sector. The proprietors’ associative behaviour is generated by the low rate of technical endowment of individual holdings, low working capacity, determined by the age of land owners and the precarious health state, as well as, because of lack of management abilities.

Average area of juridical agricultural societies and family associations compared to the national average also presents great variability.

There is a very great difference between the average area (2.3 ha) of individual holdings in Romania and the average area of European Union holdings (16.6 ha) (see Annex 20). For Romania a series of structural policies targeted on two directions are to be envisaged: one addressed to the producers which chose non-agriculture activities and another addressed to people needing aid in order to exercise their agricultural occupation in profitable conditions.

The public sector is represented by the agricultural commercial companies having the state as main shareholder, companies which were managing (in 1997) a surface of 1,652 thousand ha of agricultural land. The average surface for a commercial company is 3,370 ha of agricultural land. Referring to the agricultural companies having the state as main shareholder (established according to Laws no. 15 and 31/1990), most of them did not adjust themselves to the new requirements of the market economy and due to this fact most of them have been liquidated (pigs and poultry breeding companies). Some of the companies have became private, and the companies with agricultural activity (former State Agricultural Companies – SAC) are in a difficult financial state and during this year is going to be established their way of privatisation and functioning. Crop production structure

Area under grain cereals has the highest share (66%). The rest of surfaces are under fodder crops (14%) and technical (industrial) crops (13%). Taken together, these groups account for 93% of the entire cultivated area. This reflects the poor diversification of agricultural crops, requiring measures for the enlargement of agricultural crops, especially of those incorporating a high rate of technicality. In 1998 the total GDP was 32 Billion EURO out of which the agriculture was represented 14.23%. GDP/ inhabitant was of 1,336 EURO/Inhabitant out of which GDP proceeded from agricultural sector was 202.6 EURO/inhabitant. GDP obtained from agriculture in 1998 related to the total number of population from the rural area was 448.9 EURO/Inhabitants (the average exchange rate for EURO was 11,500 lei).

In crop production there was a general reduction tendency of average productivity and total output.



Average productions are modest or very low for almost every crop, mainly because of the very low contribution of productivity-increasing production factors.

The preponderant cereal feature of the production structure is a negative aspect of Romanian agriculture. The share of area under cereals in all the regions is very high, even if these do not have agricultural soil and climatic favourable conditions for cropping the mentioned species (see Annex 21). A general analysis of the present structure of the crop production shows a series of agri-technical and economic “deficiencies”, which create intense distortions between agricultural products, supply, and demand.

Compared to European Union countries, the cereal area in Romania is relatively high, and it is explained by the fact that it can be achieved by low allocations of technical means and labour; it can also be explained by the tradition, in Romania, regarding these crops.

Yields are generally 2-3 times lower compared to developed West European countries, but close in value to those obtained in neighbouring countries.

All structural and technical aspects presented here confer Romanian agriculture an extensive, subsistence character. The cereal production flows according to the climate conditions, being also influenced by the financial resources of the agricultural producers at the time when the cultures are established (Annex 22). The surfaces planted with cereal flows for some cereals- i.e. wheat and two-row barley-because the problems, which appear during planting period: problems with autumn ploughing, not enough tractors for this operation, lack of financial means of the producers, climate conditions. In spite of all these problems, depending on the climate conditions, we point out a record cereal production in 1997 of 22.1 thousand tones at harvesting respectively of 20.1 thousand tones at quality indicators. Also year 1997 was a very good one for corn production – 12.68 million tones at harvesting respectively 11.2 millions tones at quality indicators. Special productions were obtained also for wheat in 1995 – 7,709 thousand tones and in 1997 – 7,185 thousand tones.

Analysing the cereal production, we observe that in the favourable years we obtained productions enough for the domestic consumption and with export surplus. The surfaces cultivated with wheat and barley have a decreasing trend especially because of the low price and low market request for these products. The average productions flowed according to the climate conditions. Analysing the assurance of the domestic consumption we observe that there were years when this was assured and years when imports of wheat were performed.

Sunflower production have increased continuously each year in terms of cultivated surface and total production, being higher than the prognosis. This situation is the result of a good co-operation between the oil producers and the sunflower seeds producers – rapid processing and payment in term for the seeds producers. Due to this fact, we exported sunflower oil and also sunflower seeds. During the last years, the surfaces cultivated with rape increased constantly.

The soy cultivation is hardly accepted by the producers due to the requested high technology. Sugar beet production decreased each year through reducing the cultivated surfaces and reducing the obtained productions. This situation is the result of the lack of support and co-



operation for the sugar beet producers who have no financial resources, and also the result of the slow and delayed privatisation of the sugar factories. Another cause of this situation is the fact that this activity has not been enough subsidised from the state budget.

Potato production satisfied the requests of the domestic market, at reasonable prices.

Vegetables are assured for the season period but for the extra-season periods imports are necessary. The canned vegetables industry decreased very much due to the high prices compared to the similar imported products. Wine production is in a process of transformation, process which has negative impact upon the quality – the hybrid surfaces are very large compared with the noble surfaces.

Fruit production The surfaces for fruit trees and for other species for fruit flowed according to the climate conditions. The fruit tree surface was relatively constant during 1990-1994, decreased very much in 1996 due to some orchard clearing because of the exploitation limits. We observe that most of the fruit trees exploitations are old and the planting material production decreased with 20% compared to year 1990. Planting and maintaining the orchards request a high financial effort which is not possible for the private producers except they receive advantageous credits for this type of activity. It is worth mentioning the fact that the plant production witnesses great variations on a yearly basis, both quantitatively and qualitatively.

Other crops Thanks to its pedological and climatic conditions, Romania has a special potential in various regions also for other crops, which can ensure an important source of manpower use in rural area and a source of alternative income. Tobacco In Romania there are appropriate natural conditions and a long tradition in the production of all sorts of tobacco: oriental, semi-oriental, Virginia, Burley and mass consumption.

In 1990-1999 the domestic tobacco production fluctuated, representing approximately 30-40% of the domestic need, which is approximately 40,000 tons/year for the cigarette production.

Oriental tobacco is cultivated in judets Vaslui, Galati, Tulcea, Iasi, Valcea, Gorj on small areas, with insufficiently productive lands, and the crop area for the valorisation of the family manpower is 0.3-0.3 ha.

Semi-oriental tobacco is cultivated in judets Teleorman, Giurgiu, Dambovita, Arges, and the crop areas are comprised between 0.3-0.4 ha.

Burley tobacco is cultivated in judets Mures, Alba, Cluj, Arad, Timis, Bihor, on areas comprised between 0.4-0.5 ha.

The optimal recommended area for tobacco in view of the mechanisation o these crops is 1.5-4 ha, and for ensuring the drying of tobacco at indirect fire, the cultivated area must be 1-10 ha.

The tobacco crop of high quality varieties represents a real alternative for diversifying agricultural crops in the poorer regions, where the soil quality is reduced, and it can also cover in a higher degree the need of raw material for the Romanian tobacco industry. Flax and fibre hemp Until 1990 in Romania, more than 70,000 ha were cultivated with flax and over 50,000 ha were cultivated with hemp for fibre. Therefore, the need of the



Romanian textile industry was covered in a higher degree and at the same time, it was a source of raw material for handicraft in rural area. Areas cultivated with flax and hemp for fibre decreased every year, climaxing in 1999, when the decrease was 98% for flax and 95% for hemp. Romania has favourable conditions from pedological and climatic point of view, and from the point of view of the quality there were homologated flax varieties with an average fibre content of 22-24% and a flax bundle output of 23-26%, and there were also created varieties of knapweed and monoecious hemp with a fibre content of 20-21% and a hemp bundle comprised between 41-48%. Areas favourable to flax for fibre are in most of the inter-mountain and sub-mountain depressions, in Eastern, Meridional and Western Carpathes, i.e. in judets Maramures, Suceava, Neamt, Bacau, Bistrita Nasaud, Harghita, Covasna, Brasov, Prahova, Sibiu, Mures, Cluj, Satu Mare and Bihor. In these areas there are processing capacities for approximately 5,000 tons fibre/year, which can become operational after an overhauling and which belong to trade companies. The most favourable crop areas are in Banat Plain (judets Timis and Arad), Crisana Plain (judets Bihor, Satu Mare and partially Salaj), Somes Meadow (judets Bistrita, Cluj), the meadows of the inferior stream of Mures and Tarnava rivers (partially in judets Mures, Alba, Hunedoara), Siret Plain (in the south of Suceava judet and in the east of Neamt and Bacau judets), as well as certain hill areas with fertile soils in the south of Meridional Carpathes. The processing capacities of hemp stems of approximately 6,500 tons fibre hemp/year are in judets: Arad, Bistrita, Bihor, Mures, Satu Mare and Suceava. The minimal areas recommended to be cultivated, depending on the degree of endowment with harvesting machines, are of 30-50 ha. Oil flax During 1990-1999 the area cultivated with oil flax decreased from 49,900 hectares (1990) to 3,500 hectares (1998), because of the lack of funds for setting up the crop by individual producers and associations, the lack of harvesting machines, and also because of the dysfunction encountered in the taking over of the seed production from the producers by the oil factories, the importers of varnish and dyes based of synthetic components. There were created varieties of strong varieties, adjusted to the climatic conditions, with production of 1,800-2,000 kg/ha, and at the same time oil flax is a good preliminary crop to the wheat crop (because it liberates the land early and it cleans the land of weeds). Oil flax is cultivated in the crop areas in Walachia, Moldavia, Oltenia, Banat and Dobrudja. The judets with significant potential for flax oil crops are: Constanta, Tulcea, Calarasi, Ialomita, Teleorman, Giurgiu, Olt, Dolj, Dambovita, Arges, Timis, Arad, Iasi, Galati. There have been registered Romanian oil flax varieties: Geria, Iulia, Raluca, Lirina, Floriana, Gentiana, with seeds from the superior links, as well as newly registered varieties: Alexin, Janin, Oliana, Florinda, for which the process of seed multiplication can be developed (if requested) and which are recommended to all counties cultivating oil flax. The optimal areas recommended in order to bring profit can be between 1 ha/individual producer and 100 ha/association, farm. Livestock production structure Compared to 1989, a considerable reduction of animal livestock has been registered: by 48% for bovine, 44% for poultry, 36% for pigs and by 27% for sheep. Only the number of horses recorded an increase by 23%. The reduction manifested also for breeding stocks, which is an extremely alarming trend. The decrease under the existing level, which represents a technological minimum, can impair the animal breeding genetic fund.



In livestock production, the results in the period 1989-1998 indicate quite an oscillating evolution differentiated from one product to another and sometimes from one year to another.

The average yields in livestock sector are far from the technical and technological progress recorded in the West- European countries (see Annex 23). Compared to EU countries, for almost every species and animal category, the average yield. Between Romania and European Union countries, there are significant disparities, which indicate the necessity of radical measures in the field of genetic breeding and livestock feeding. If the average yields obtained in EU countries preserved the genetic and technological rhythm, we cannot say the same thing about Romania.

The evolutions of cattle effective and of the output of these species are shown in the datasheets and graphs to follow. From the existing statistic data it comes out that between 1990 – 1994 these decreases or highly influenced by the demantling of the production agricultural co-operatives (named PAC) units and also by the massive cattle slaughtering of the cattle belonging to these units, without taking measures for holding this slaughtering. The farmers be not take over the cattle from these units because did not have either necessary accommodation or the fodder.

In other cause of the cattle number plummeting was represented by the dramatic state of animal health at the end of 1999 – the majority of animals were tarred, unproductive, suffering of the tuberculosis or leucosis. In these sector (PAC) were recorded among the lowest milk and meat yields of Europe (under 1,800 litres cow’s milk), but many units had productions under 1.800 litres cow’s milk (Annex 24). The slaughtering that was done represented necessity slaughtering in a percentage of more than 60%, and weights under 250 kg/head.

After 1989 the numbers of cows and heifers were kept at an acceptable level which linked with an adequate breeding practices in the private led to the increase of average yield exceeding that obtained in the PAC units.

This situation led to rather good insurance, in the latest years, of the domestic needs of milk and milk product. The development of the cattle sector will be achieved through increasing the average milk yields and average weight at slaughtering, these being performed in small and medium size specialised farms (Annex 25).

The causes that determined the decrease of hog numbers were due especially to the problems that the huge complexes for pig raising fattening had faced. As these complexes belong to the State, the delivery prices or not liberalised for many years; the prices were kept at levels under the production expenditure (financially unsupported) (Annex 26).

The units were thus, decapitalised and this situation led to bankruptcy in many cases. The lack of adaptation to the requirements of the market economy determined that, in competition with the prices of meat obtained in the private sector and with the meat import at prices which were subsidised in the countries of origin finally to arrive in a situation of in a efficiency in the majority production units. After 1996 it's started the privatisation or the liquidation of the units for pig raising and fattening.

The activity of pig raising and fattening in huge industrial units supposes the existence of an outlet, of a competitive management finding out of viable economic solutions apt to complete the pig raising in individual holdings. The industrial complexes of pig raising and fattening have to become suppliers and of piglets for fattening by the individual farmers and by the small and medium size farms. These complexes, having to face problems related



to pollution, repairmen of equipment and of the shelters and again having an oversized administrative structure big supplying costs and financial problems, will hardly become competitive in the conditions in which they make use of wage labour, without major investments.

The evolution of sheep and goat numbers, in the period under analysis, has permanently shown downward trend, but the dramatic decrease look place until 1994 (Annex27). The decrease of sheep numbers were in the first years of this decade had the same cause as for cattle. The slaughtering and the exports of live sheep, without any restriction, were the causes that led to this situation. The private sector maintained the animal numbers, especially for milk and meat production. In what concerns the wool production, it is to be mentioned that it was not entirely traded and the prices obtained are not satisfactory for the sheep breeders.

Evolution of poultry numbers and poultry production in the latest ten years falls within a dramatic decrease of poultry numbers until 1996, a trend that went on after 1997 as well, but after that date measures for liquidating the inefficient units have been taken. In the latest period we are witnessing an improvement of the situation which is also due to the improvement of the market request for poultry products (Annex28). The decrease of poultry numbers took place in industrial complexes, the main cause being the lack of compliance to the market requirements, the bad management, delayed privatisation, maintenance of prices at the order of authorities, the decapitalisation of the units, increase of costs of liberalised in-puts, the import of poultry products at prices lower than those obtained in the complexes. Since 1997, the privatisation of poultry complexes has started, accompanied by the liquidation of those with great losses. After 1997-1998 we can see a trend of maintaining the number of laying poultry at the same level and, as well, an increase of the private sector share from 83.3% in 1999 to 97.4% in 2001.

Poultry number Thou heads

1999 2000 2001

Total Of which mainly

private share

Total Of which mainly private

share

Total Of which mainly private share

Poultry 69,480 57,853 69,143 64,738 70,076 68,284

Out of which adult laying poultry

37,272 33,775 38,497 36,870 40,760 39,581

“Romanian Statistical Yearbook 2001”

In what regards the annual egg production, this one also remains at the same level as in 1999.



Thou pieces

1999 2000 2001




Eggs 5,668 5,282 5,711 5,445 6,001 5,901

Out of which hen eggs

5,323 4,938 5,257 4,990 5,524 5,424

“Romanian Statistical Yearbook 2001”

Before concluding ASAL Agreement with World Bank in 1997, there were 56 commercial companies for poultry, coming both from ex-IAS and ex-AEI. Eggs’ sorting was done manually and the storage and stoking spaces were not generally air-conditioned within these companies. Presently, traded eggs’ quality is affected mostly by the lack of sorting and of adequate storing spaces (refrigerating spaces). Analysing the situation for all animal species, according to the way in which the reduction of animal numbers took place after 1991, it seems that this reduction was so intended in order to come out to a shortage of foodstuffs in order to show that the private ownership is not compatible in Romania. It seems that this was also true when the Land law was applied without the insurance of mechanical means for carrying out of the farming activity. On those occasions, it was nurtured the belief that the private sector will not be able to ensure the food supply for the food security of the population and that the new structures would be restored again.



2.1.2 Human resources

Social-demographic features of the rural area

On the territory defined as rural area we can find a rural population amounting up to 10.14 mill. inhabitants (in 1999). In the last 30 years (after 1966) the rural population decreased by 16%. In the same period, the urban population increased by about 70%. The population decrease did not have the same intensity in the entire rural area. In the Western half of the country, the trend of population decrease was almost generalised, because here it was recorded the greatest reductions in the country, to less than 50% of the 1966 population. The causes of the demographic decrease were different: both the migration to neighbourhood towns, or emigration of inhabitants of German origin and the demographic behaviour characterised by a very low birth rate. Most of the areas that recorded demographic increases are concentrated mainly in the mountain regions. The first 7 years of this decade also witnessed the decreasing trend of rural population (by 2.7%), in the conditions when the population number of the entire country decreased. In the period 1992-1997, the rural population decreased by almost 280 thou. persons, that is a decrease from 10.418 thou. inhabitants in the year 1992 to 10.141 thou. in the year 1997 (see Annex 29). Factors of Rural Population Decrease in the period 1991-1997

1991 1997

Thou. persons

‰ Thou. persons

‰

Rural-urban migration balance -106 -10.6 13 +1.2

Natural move balance - 11 - 1.0 -47 - 3.5

Total decrease of rural population in the period 1991-1997

-117 -11.6 -34 -2.3

Source: National Commission for Statistics” Romania’s Statistical Yearbook”, 1992,1998

In the last 2 years (1998 and 1999), Romania encountered the reappearance of the demographic growth phenomenon and the stopping of the decline in areas where rural population had been decreasing for a long time. The cause that contributed to the increase tendency was mainly the migratory movement towards urban and even the increase of migration towards rural. In the period 1991-1997, the number of persons which left the urban and settled in the rural area increased by 3 times. After 1995, the balance became positive in favour of the rural.



Evolution of migratory flows between urban and rural, with residence change

-To 1,000 inhabitants-

1991 1992 1993 1994 1995 1996 1997

From rural to urban

10.7 9.4 6.9 6.6 5.9 5.9 5.6

From urban to rural

2.5 3.8 3.4 4.7 5.8 6.7 7.9

Rural balance -8.2 -5.6 -3.5 -1.9 -0.1 +0.8 +2.3

Source: National Commission for Statistics ”Romanian Statistic Yearbook”, 1998;

Generally, it is about a return of initially migrated rural population, a return which is not due to the increase of rural quality life, but is the consequence of the difficulties encountered by the unemployed persons in the urban areas as a result of the restructuring of the urban economy. The age group of 25-39 years prevails among the persons who migrate to rural areas and this contributes to the increase and the regeneration of human resources in the rural area, constituting an opportunity for the development of the rural economy. It is a demo-economic category quite easy to mould in the entrepreneurial spirit and to be targeted to the non-agricultural activities that have to be developed in the rural areas. The density of population in rural areas is generally low, the average level being, in 1997, of 47.7 inhabitants/sq. km; 10 times lower than the average urban population density (484.8 inhabitants/sq. km). There are, however, great disparities between the population distribution in the rural territory of the counties. Largely, the relief forms influence the population density. Density is very low in the communes situated within the perimeter of the Carpathian Mountains, as well as in Dobrogea (below 50 or even below 30 inhabitants/sq.km). In the Danube Delta and in some mountain areas there are less than 8 inhabitants/sq.km; these areas are characterised by a low number of villages. The counties with the scarcest population are Caras-Severin (20.7 inhab./sq.km) – a mountain county with severe problems of depopulation as a result of a very low birth rate- and Tulcea (17.4 inhab./sq.km) – with geographical special conditions, due to the Danube Delta on almost a third of the county’s territory. Consequently, the density criterion is not sufficiently relevant for pointing out the difficulties that the territory faces. The structure by gender of the rural territory is relatively well balanced the number of women being almost equal to that of men – 5.03 mill. being men (49.6%) and 5.10 mill. being women (50.4%). In 11 counties, situated in the regions where the migration processes were the most intense in the last 10-20 years - (Bacau, Iasi, Vaslui, Braila, Constanta, Galati, Alba, Bistrita-Nasaud, Covasna - Annex 30). – the number of men is higher than the number of women. The migration trend acted more intensely within the young women than within men, and, as a result, a significant lack of female population is recorded for the 20-39 years old age



group. The departure of these young women from villages is due to the lack of employment opportunities for women and the lack of services and facilities specific for this age-category. This imbalance by gender, especially for young age categories, when families get consolidated, can lead to social non-functionality of communities and can generate problems linked to population reproduction, directly contributing to the demographic decline. The structure of rural population by age has as features a relative unbalance, the accentuated process of demographic ageing being obvious (see Annex 31). Rural population average age is high (about 38 years) and continues to increase.

Population that turned 50 is in great number: 1 of 3 persons in the rural areas fits in this age category, as compared to 1 of 5 in the urban. The ageing process appeared as a result of adults' decrease, of the massive migration in the last three decades, and it was accentuated in the last 8-9 years because of the decrease of births rate. There is a positive aspect in the age structure, with a provisional manifestation. The large number of 15-29 years old people, who did not migrate from villages after 1990, entered in the labour resources category, contributing to the significant regeneration of the rural labour force. The ratio between the 15-29 years age segment and the 30-44 years old determine the size order of this phenomenon existing age segment (1.64: 1 in rural compared to only 1.15: 1 in the urban). Consequently, the rural disposes at present, in most regions, of a relatively large group of very young labour resources, which can be qualified and managerially trained in new economic fields. In the entire northeastern region, the presence of the young people is very numerous (two times more than the 30-44 years old. population) and they can regenerate the aged demo-economic potential, which appeared because of migration during the last decades. The young people represent, still, a pressure on labour market and they need the creation of new employment opportunities. In these regions, special development and diversification measures are necessary, because trey can train the young people in fields that turn to a better account the local resources. In the Western region, the regeneration process of the labour force in mostly non-existent, and some parts of Arad, Caras-Severin, Hunedoara counties need special measures for attracting young people in the rural areas. The demographic ageing process is differentiated in the territory (see Annex 32). The share of rural population participating in economic activity is higher than 57% (year 1997), whilst the urban population’s participation rate was only 47%. The average participation rate of Romania’s population was 52.2% (according to BIT methodology) (see Annex 33.). The high rural activity rate is the result of agriculture’s position as the prevailing economic branch, with a low technical endowment rate. Active life begins early, almost 2/3 of the population younger than 25 years old. being already active (as compared to only 1/3 in urban) (see Annex 34.).The low level of agriculture income and the absence of other non-agricultural activities did not stimulate young people to stay in rural, thus the old people have to work the fields by themselves. That is why a great part of the inhabitant prolongs the active life to advanced ages -almost 3/4 of the 50-64 years old. inhabitants are still active, and at the age of 65 years old., half of inhabitants are still active. Thus, on labour



market there are large numbers of very young people but also a high number of old persons. It is the case of farmers who have to work in their family farms because there are no other family members to take over the activity. The highest participation rate is registered in North-East and South-West Regions due to the high ageing rate and to agriculture predominance. The comparison between the demographic dependency ratio and the economic dependency ratio (see Annex 34) points out once more that many old people who turned 65 are still active. This state of fact is an impediment to agriculture development, it preserves the practice of a traditional and ineffective agriculture. The regions disposing of numerous contingents of youth under 35years old are those with a higher level of economical development (North-West, Centre and Bucharest) and Moldova region with high birth rate (see Annex 35). The rural population activity rate is quite different between different Regions of the country (see Annex 36). In the country’s economy, agriculture represented, in 1997, the main branch in terms of population employment- 36.8% (see Annex 37). In most regions, agriculture and forestry dominate the entire regional economy. Only in three regions -West, Centre and Bucharest- agriculture’s share is lower than the industry and construction shares (see Annex 38). In the rural area, agriculture as economic activity prevails undoubtedly, employing almost 70% of the labour force. Even in urban, agriculture accounts for several percentage points of the labour force (see Annex 39). In the last years, the rural economic structure remained almost unchanged, only the services increased slowly, as share, from the employment point of view. Among country’s regions there are differences regarding the place agriculture holds in

the rural economy.

The greatest part of the population employed in agriculture (Annex 40) activates within their own households: 46.6% of farmers are self-employed persons, representing the heads of their own family farm. The unpaid family workers represent another part almost as great as this – 43.8% of the farmers. It can be said that agriculture is practised almost entirely (by 90.4% of farmers) in the family farms (households), together with the family members. The self-employed workers (the farm heads) are mostly old people, more than 2/3 of them over 50, and 1/3 over 65 (see Annex 41). Among family members that contribute to household agricultural activities the segment of people younger than 25 years old constitutes a great share. They account for more than 1/ 4 of the total family workers (Annex 42). The most numerous contingents of young people under 25, who are still working in their parent’s farm (or their relatives’) can be found in the North-East and South-East Regions, this category comprising 31-34% of all family workers. Although at present there is a relative significant segment of young people in rural area, this young segment has only partly the owner quality, so that old people are the owners and heads of the holdings.



This situation requires the creation of an adequate framework able to stimulate the transfer of agricultural farm management from old persons to young ones, by setting up of systems to ensure alternative incomes. The number of unemployed people in Romania was estimated at 820 thousand persons in 1998 -1st term (according to National Statistical Commission by AMIGO inquiries), of which 458 thousand –men (55.9%) and 362 thousand women (44.1%) Out of total unemployment, 550 thou. persons were in the urban area (67%) and 270thousand were in the rural area (33%). The unemployment rate (BIM) at country level was 7.4%. The unemployment rate in the rural was of only 5.0%, 2 times lower than in the urban, 9.6%(Annex 43) 2.1.3 The capital

Production means The Law no. 219/1998 regarding the status of location and the Ordinance of Urgency of the Government no. 198/1999 regarding the privatisation of commercial societies which administrate agricultural lands or lands that are permanently covered by water are meant be ensure the restructuring and privatisation of the state sector in agriculture. The analysis of the commercial companies involved in agriculture and food processing industry privatisation and liquidation, and also the analysis of the shareholders structure demonstrate the fact that the commercial companies which administrate agricultural lands or lands under permanent water surfaces have the lowest privatisation grade. Once the Ordinance of Urgency of the Government no. 198/1999 was approved, regarding trade companies which administer agricultural lands or lands permanently covered by water, the implementation of the privatisation process was able to begin in actual fact in the entire foodstuff sector. An important point of the above-mentioned ordinance is the fact that settles the leasing of agricultural lands and the leasing of lands permanently covered by water, including the leasing of goods, activities, and services accessory to those goods belonging to the private domain of the State. The maximal leasing duration of these goods can reach 49 years. This normative document also contains regulations regarding privatisation of agricultural companies as well as the list of trade companies, which have agricultural lands and are about to be privatised. Based on the Ordinance of Urgency of the Government no. 198/1999 until now there have been concluded 29 privatisation contracts.

The privatisation process

Specification No. Privatised In process of legal clearance

In process of administrative clearance

Agriculture, of which: 2970 1887 196 18

Agricultural TC (IAS) 547 20 51 2

Poultry 56 16 24 6

Suina 54 17 26 0

Services in agriculture 1813 1609 45 2

Cereal trade 71 46 4 0

Other activities 429 179 46 8

From the summary analyses of the development of the privatisation process it comes out the fact that although agriculture is the sector with the highest privatisation degree, lagging



behind in the privatisation and restructuring of pigs and poultry complexes, of the services destined to agriculture, as well as, the delay in clarifying situation of the former state farms has led to grate disturbances in the agricultural management, in the valorisation of the agricultural output and in ensuring with inputs in due time. Financial capital

ASAL Programme (Agriculture Sector Adjustment Loan) - 350 mill. USD

The main loan granted to Romania is that granted through the ASAL Programme, meant for the rehabilitation of the agricultural sector. The first share, the equivalent of 200 mill. USD has been granted on the 2nd September 1997. The second share, of 150 mill. USD it is expected to be granted until 31st the end of 2000. In order to benefit from this loan, Romania has to comply with a series of conditions agreed within ASAL Program. Most of them have been fulfilled, but there were some delays regarding the privatisation program, the agri-food trade regime, the legislation, and the land market. The objectives of ASAL programme are: promotion of measures meant for supporting the transition to the market economy and the more effective use of the resources; the privatisation of a great share of agricultural production capacity; price liberalisation and the creation of possibilities of investments in the private sector, production and trade in compliance with the comparative advantage of Romania. 2.2. THE FOOD PROCESSING INDUSTRY The production of foodstuff goods has a significant development potential ensured, mainly, by the variety of raw materials of vegetal and animal origin, by the production capacities installed and by the existing human resources. At the level of 1998, the total export of agri-industrial products (FOB) was about 6,408.9 Million EURO and total import (CIF) about 9,189 million EURO. The balance of commercial scales was negative recording a value of -2,780.1 mil EURO. The same situation is recovered also in the case of food industry, which total export (FOB) was about 340.3 million EURO and the total import (CIF) was about 786 million EURO. The food industry recorded a negative balance of -445.7 million EURO (the average exchange rate for EURO was 11,500 lei) The activity in the food industry is organised in 10 main sub-sectors, and after 1990, it experienced a considerable increase of the number of economic agents, especially private ones. Thus, at the end of the second quarter of year 2000 30,600 economic agents were registered, with 40,586-production license. At the level of 1998 the total GDP was 32.02 Billion EURO. In 1997 food industry was represented 9.36% of the total GAV, 27.9% of total GAV performed in industry and 33.46% of total GAV performed in processing industry. In 1997 from the total number of employees of the industry (2,443 thou. persons) -83 % worked in the processing industry (2,032 thou. persons) and out of which in the food industry worked (213 thou. persons): �10.48 % of the total number of employees of the processing industry; �8.71 % of the total number of employees of industry. Simultaneously with trade companies in the field of foodstuff industry, there are still operational 42 slaughterhouses in the units for pig breeding and fattening and 53



slaughterhouses in the poultry units that are in the process of restructuring. Also, in the trade agricultural companies with a majority of State capital (former IAS) there are capacities for production, conditioning, antiquation, and bottling of wines, for champagne production, brandy, plum brandy, cheese and dairy products. It must be noticed that very few foodstuff capacities were able to benefit, during 1993-1998, from the funds for modernisation granted by the State Property Fund. Production capacities existing in foodstuff industry inclusive agro-industry sector of agricultural state companies.

INDUSTRY MU TOTAL PRIVATE SECTOR

STATE SECTOR

Meat and refrigerated: slaughter houses bovines slaughter houses swine slaughter houses fowls refrigerators units for meat products units for meat carving cans and semi-canned food

Thousand tons alive Thousand tons alive Thousand tons alive Thousand tons Thousand tons Thousand tons Thousand tons

810.4 1,583.3 239.9 273.8 674.9 1,370.7 70.0

424.5 795.0 48.1 68.8 462.9 866.4 15.5

385.9 788.3 191.8 205.0 212.0 504.3 54.5

Milk: consumption milk fresh dairy products various kinds of cheese

Thousand hl Thousand tons Thousand tons

8,905.0 4,423.0 175.0

5,772.0 2,538.0 109.0

3,133.0 1,855.0 66.0

Fish Thousand tons 38.2 11.3 26.9

Cereals: wheat grist corn grist

Thousand tons Thousand tons

6,838.0 2,539.2

5,453.6 2,320.8

1,384.2 218.4

Fruits and vegetables: vegetable tins fruit tins tomato sauce juices and nectars

Thousand tons Thousand tons Thousand hl Thousand hl

169.2 84.4 52.7 14,267

34.1 16.9 5.3 11,238

135.1 67.5 47.4 3,029

Edible oils: rough oil refineries bottled oil

Thousand tons Thousand tons Thousand tons

850.2 481.9 390.3

713.2 335.6 286.5

137.0 146.3 103.8

Sugar: - sugar (thousand tons/ sugar beet roots/day)

Thousand tons

69.0

28.2

40.8

Wine (high quality varieties + hybrids)

Thousand hl 6,050 4,840 1,210

At the moment there are no statistics regarding the wear degree of production capacities of foodstuff industry, because after 1990 over 65% of these capacities became private property, therefore it was not compulsory any more to report the situation of their repayment or endowment with new technology. Most of the capacities still owned by the state date from the period 1975-1980.



After 1990, it was the share of economic agents experienced a continuous increase; therefore, these ones have a significant percentage of the production in some sub-sectors of the foodstuff industry. In the oil industry, the share of economic agents is 94%, in the industry of milling and bakery the share is 90%, in the milk industry the share is 66%, in the meat and meat products industry the share is 38%, in the fruits and vegetables processing industry the share is 23%, in the winery the share is 71%, in the sugar industry the share is 58% and in the fish industry the share is 25% etc. The privatisation process of the trade companies in foodstuff industry was more alert than the process of the agricultural trade companies. 1997 was decisive for Romanian foodstuff industry. It was then that was created an authentic environment of competition and adjustment of the legislation regarding the functioning of these industries in market and competition conditions, especially by adopting creation regulations on foodstuff products import and accession to ECFAC. Overall, the production obtained in 1997 follows the descendent trend specific to the last years (Annexe 44). The main causes that determined this phenomenon are: Decrease of the offer of raw materials for certain groups of foodstuff products, such as: refined sugar, vegetable cans, fruit cans, tomato sauce, meat and meat products, fish and fish products; Entrance on the Romanian market of imported products, which are in competition with the domestic products – sugar, pastes, refined oil, tomato sauce, powder milk, fruit ad vegetable cans, cheese, meat products – taking into account that there was an average reduction of 50% of the custom duty for the imported of foodstuff products as well as the slow rhythm in the processes of systemic and structural adjustment of trade companies in the state sector ; Liberalisation of prices and total elimination of consumption subventions for bread and bakery products, consumption milk and fresh dairy products, butter, powder milk, pork and poultry carved meat - all this leading to the decease of solvent demand.

State of privatisation in the food industry sector without agri-industry sector of

agricultural state companies

Privatised (cumulative figures) Total companies existent on 31st August 1999

Total privatised Companies at 31/12/99

31.12. '96

31.12.’ 97

31.12. '98

31.8.’ 99

TOTAL 807 144 181 206 266

Meat industry 69 12 15 16 26

Milk industry 108 23 24 26 35

Fish industry 11 1 1 1 8

Milling and bakery industry

229 45 55 58 71

Sugar and sweet products industry

55 7 11 16 21

Edible oil industry 52 10 12 15 15

Canning industry 17 1 2 6 8

Wine making industry

78 6 13 17 42

Beer produced industry

148 30 38 40 40

Industry for services rendering

40 9 10 11 10



By sub-branches the structure of Romanian food industry in 1997 was as follows: Meat industry It represents 14% of the volume of foodstuff industry. The number of economic agents developing their activities in this field increased permanently. At present, their number is of approximately 4,000. Over 71% of the production is achieved in the private sector, while in the state sector the production experienced a substantial decrease. The production obtained in 1998 was of 526 tons, the degree of use of the capacity was of 20% for the slaughter houses (526 thousand tons at a capacity of 2,634 thousand tons), 17% for meat products (116 thousand tons as compared to 675 thousand tons) and 17% for meat cans and semi-canned (13 thousand tons as compared to 70 thousand tons). The production capacities of the trade companies with state capital are 20-25 years old and they are endowed mainly with domestic equipment, with low technical ness and liability. This led to low outputs high costs and non-competitive products. Milk industry The number of economic agents developing their activities in this field increased. At present their number is of 580. The physical production obtained in 1998 was milk for consumption –3058 thousand hl., fresh dairy products –747 thousand hl., butter –6500 tons, cheese – 35800 tons, powder milk 6981 tons. This production expressed in milk raw material represents almost 9.0 mil. hl as compared to capacity installed of 22.0 mil. hl. of milk (41%). Regarding the activity of endowment with new technologies and investments in milk industry, these ones increased with 13% as compared to 1996, mainly by endowing with: lines for ice-cream manufacturing by extrusion of, lines for freezing and packing of ice-cream; equipment for pasteurisation and bottling of milk; machines and equipment for manufacturing of fresh and fermented cheese and for packing the cheese in vacuum packages. Milling and bakery industry The number of economic agents that produce milling, bakery, and farinaceous products increased every year. At present, there are almost 5,000 economic agents, out of which there are 75 with tradition and large capacity and over 4,900 small companies with private capital. The physical production obtained in 1998: wheat and corn grist – 3668 thousand tons; bakery – 2410 thousand tons; pastes – 47 thousand tons; biscuits – 68 thousand tons. The production capacities of this activity sector are used as follows: wheat and corn grist – 40%; bakery – 53%; pastes – 43%; biscuits – 34%. Endowment with new technology ad investments in this field experienced an increase as compared to 1996 with 13% in the milling and bakery field and with 7% in the pastes and biscuits production. This technology consisted mainly in endowment with intensive equipment for pealing and milling of cereals, equipment to eliminate the dust noxas in the mills, technological



automatic lines for pastes and biscuits production and equipment for marking and packing the finite products. Oil industry This sector experienced an ascendant evolution, mainly due to a constant increase of sunflower production and of a constant demand of raw sunflower oil on the external market, of 100 thousand tons per year. In oil industry, the number of trade companies increased. Now there are 548 production units, out of which 17 units have a large capacity and process over 90% of the raw material. The use degree of the production capacity during 1998 was 61.5%. In 1997, the endowment with new technology and investments in oil industry were of 48 billion lei and consisted mainly in endowment with new technology for the extraction operations, extraction of lecithin and refining, as well as in purchase of technologies and equipment for emulsifier production with high degree of monoglyceride, and equipment for plantoil manufacturing. Sugar industry Till 1989 in this field there were 33 units with a nominal processing capacity of 83 thousand tons beet/24 hours. In 1999 the effective industrialisation capacity decreased to 69 thousand tons/24 hours. At present only 19 sugar factories are operational, representing a capacity of 50 thousand tons/24 hours. The sugar production obtained from beet experienced an descendant trend. This production represented in 1998 only 61% (189.3 thousand tons refined sugar) of the production of 1989 and 77% of the production of 1996, ensuring Romania’s consumption need only in proportion of 45-50%. In 1998 the average coefficient of use of the production capacities was of 49%, exceeding 70% only in two companies. The actions of endowment with new technology ad investments in sugar and sugar products industry had an ascendant dynamic in 1997 as compared to the precedent year and they were oriented mainly towards: endowment with equipment and machines for the industrialisation of sugar beet and for the chocolate, sugar products and sections and confectioneries. Wine industry The wine production experienced a process of general mutations, especially a process of change of property structure of the wine growing plantations. The total wine production obtained in 1998 represented 5,002 thousand hl, out of which: "Vitis vinifera" = 2,602 thousand hl, representing 52%; Hybrid varieties = 2,400 thousand hl, representing 48% The average use degree of the production capacity in1998 was 86%. In the winemaking sector the technical endowment in generally outdate both physically and technologically, remaining at the level of 1960-1970. The lack of adequate technology in certain stages of the technological flow led sometimes to some non-competitive white wines.



Fruits and vegetables industry In this domain, operate a number of 95 commercial companies with a yearly processing capacity of 306 thousand tons (including juices and nectars). The main objectives on medium term are the followings: � to ensure a production of canned fruits and vegetables and half processed product,

juices and nectars of fruits and vegetables at the level of consumption need � to improve the quality and range and diversification of the assortment range of

semi-processed products, cans, juices and nectars of fruits and complete valorisation of natural soil capacity and climatic conditions

The output in 1998 as compared to 1996 records a decrease as follows: � by 35% in the case of canned vegetables � by 29% in the case of tomato paste. The average coefficient of production capacity use was in 1998 of about 17.5%, which was determined, especially, by the low level of vegetable output, especially tomatoes. Until 1998 the rehabilitation actions and the investments in this sector were directed mainly towards developing the soft drinks sub-sector, but almost non-existing in the sector of fruit and vegetable processing. Fishery and aquaculture The total area of Romania’s inner waters is estimated at 730,000 ha representing about 3% of the total country area. There are 100,000 ha fishing production facilities (ponds) and 99,000 ha storing lakes, organised as fishing farms. In the present, the fishing in Romania has a specific technology having a low intensity character. The fish production capacities of many farms is based, largely, on the natural productivity of fishing basins, due to their emplacement, being comprised between 100 – 300 kg/ha. The use of feed, organic, and chemical fertilisers increased the production up to 3,000 kg/ha. To date the average of fishing production at country level is of 500 kg/ha. In the present there are about 300 fishing farms in which aqua-culture is practised, the most of these (95%) applying the technology of fish breeding, and 5% (respectively 15 farms are practising the aqua-culture of other aquatic animals (scallops, frogs, crawfish etc.). Aquaculture is practised only in the private sector and it will be developed especially due to the market requests. The main species in production are: common carp, silver carp, grass carp, gold fish, big-head carp and trout which together represent about 90 % of the total output. There is an increased for the introduction in production of some species with a high economic value such as European pikeperch, sturgeons, crayfish, frogs, bivalves etc The production obtained in the fishing sector witnessed a decrease especially after 1988 (74,764 tons) with production figures decreasing yearly by about 10 – 15 thousand tons. In the period 1994 – 1998 the production decreased from 24 thousand tons to 14 thousand tons in 1997, in 1998 the production was a little on the increase, at an output of 16 thousand tons, out of which approximately 3 thousand tons were obtained in joint fish farms by breeding miscellaneous aquatic species, besides fish species. The degree of utilisation of the processing capacities from the processing industry of fish do not exceed 70 %, at the level of 1998, in great part because these are moral and physique wear, as well as because they do not ensure raw material needed for processing.



The processing capacities are 100 % private and ensure the taking over, conditioning, processing of fish and of other aquatic species. These capacities represent more than 180 units, ensuring the processing of about 80,000 tons /year raw material. Once the Law no. 219/1999 on granting system was approved, and when the Ordinance of urgency of the Government on privatisation was approved, the units which administer agricultural lands or lands permanently covered by water have the right to own the land or have the right to use the land and the specific buildings of the fishery farms for a long period of time. Because of the low rate of reinvested profit, and low rate of investment recovering, the aqua-culture of Romania did not benefit of Romanian or foreign capital contribution, apt to consolidate and develop this sector to the market requirement. The accreditation of commercial companies for obtaining food product

manufacturing licences: Companies’ accreditation is a new activity and was started in 1996. The activity increased in the second half of 1997 as the controls of took effect. The control procedure has been intensified in the last quarter of 1997, at a national level. The controls were applied to manufactured product quality, meeting hygiene requirements, observing legislation in the manufacturing chain concerning labelling, packing, storage, transport and marketing of food products. 1. Companies requiring manufacturing Licenses 5,489 2. Manufacturing licenses required by the commercial companies 7,596 3. Manufacturing licenses given from 1996 stock 8,881 4. Number of controlled and sanctioned firms in 1997 332 5. Value of the applied sanctions 468 millions lei The standardisation process There are two main directions in the standardisation process: � monthly participation in the Technical Committees of the Romanian Institute of

Standardisation; specialists assigned by means of Minister’s orders assisted in working out commercial rules and standards and their harmonisation with E.U. legislation;

� Analysis of product standards and their implementation standards for every sub-branch of the food industry. The following professional standards have been analysed and implemented:

Elaboration of professional standards

Area Total number standards

already elaborated

1. Meat industry 2. Milk industry 3. Milling and bakeries products industry 4. Sugar industry 5. Oil industry 6. Tinned vegetables and fruit industry 7. Fish industry and fish processing 8. Wine, distilled products, cognac industry 9. Brewery, alcoholic drinks industry 10. Starch, glucose, bakeries products industry 11. Tobacco industry TOTAL

31 24 18 27 22 31 20 5 6 19 21

224



This is a permanent activity. The Technical Committees for Professional Standards have monthly meetings to analyse the standard projects, to modify the existing professional standards, and to approve the discussed projects. Specialists have attended international seminars in Romania and abroad, and various international meetings of FAO, Codex Alimentarius, etc. In this respect they have assisted the Romanian position regarding agricultural and food manufacturing, market development and contributed to the implementation of rules in this field. These activities were assisted by: All these are aiming at: � Raising the standard of laboratory techniques and introducing modern technologies

in the food industry - ONUDI; � introducing modern systems of quality control in Romania - FAO; � standards development, utilisation - USDA � Phare – conducting project proposals; � study of milk marketing channels in France and EU associated countries

(International Salon - France); � attendance of UNCTAD conference - vertical diversification of food industry in the

developing countries (UNO-FAO); � discussions of the rules of Codex Alimentarius-Brussels, Budapest,Geneva FAO) 2.3. AGRICULTURAL SERVICES

During the analysed period, the vegetal sector benefited by small amount of chemical fertilisers, pesticides, irrigation, and proper services as it results from the statistical data. 2.3.1 Chemical fertilisers and pesticides

Fertilisers For Romania’s agriculture, the chemical fertiliser consumption represents rather a wish than a real fact. In 1998, the average chemical fertilisers’ quantity was 36 kg per hectare. This was about 4 times lower than in 1989. But there are some differences between regions regarding the actual fertiliser consumption (see Annex 45). The amount of chemical fertilise used in 1998 was of 384,000 tons (out of which 83 % were nitrogenous fertilisers 15 % phosphates, 2% potassium fertilisers). Compared to European Union countries, chemical fertiliser quantity used in Romania is 4 times lower. Pesticides In Romania, the pesticide consumption has decreased significantly in the recent years (see Annex 46). The losses occurred because of the non-use of chemical means for controlling the pests and the diseases represent about 1/3 of the output. The steep rise of pesticides price rise narrowed even more the purchasing possibility of these inputs by the farmers. 2.3.2 Seeds

In current agricultural practice there is not much emphasise on the role of quality biological material for obtaining high yields. Seed production, control, certification and marketing are performed in accordance with Law 75/1995 changed and completed by Law 57/1997 and Law 131/1997. In recent years, the certified seed consumption trend fell drastically. Though in this sector some financial facilities were provided, 50% of private farmers use non-certified and degenerated seeds (see Annex 47).



2.3.3 Mechanisation

Tractor and agricultural machinery fleet experienced a continuous increase for all types of machinery, except for combine harvesters, which in 1998 represented only 85% of the 1989 endowment (see Annex 48). The depreciation and obsoleteness of these aggravate the structural deficit, generated by the insufficient number of machinery (see Annex 49). Thus, for the entire agriculture, 50% of the existing tractors have a service life of more than 8 years and 60% of the combine harvesters are more than 10 year old. Mechanical endowment level currently existing in Romania cannot provide the performing of mechanisation works in the optimum periods stipulated by crop technologies. The mechanisation potential is very low (see Annex 50). It is well known that in Romania the delay in performing the mechanisation works, both for winter and spring crops, results in harvest losses.



The charge of harvester combine

Regions

Area put to grain crops (ha) Harvester combine Charge

Total agriculture

Out of which Total agriculture


Out of which

Private State sector



North – East South – East South–Muntenia South–West West North– West Centre Bucharest – Ilfov

298,639 561,935 685,696 420,421 383,474 323,248 278,634 32,710

258,892 387,396 519,598 359,224 319,690 305,971 257,813 22,913

39,747 174,539 166,098 61,197 63,784 17,277 20,821 9,777

3,478 3,515 5,783 4,765 4,061 4,560 3,459 211

3,175 2,919 5,022 4,359 3,477 4,254 3,273 180

303 596 761 406 584 306 186 31

86 160 119 88 94 71 81 155

82 133 103 82 92 72 79 182

131 293 218 151 109 56 112 315

Total 2,984,757 2,431,517 553,240 29,832 26,659 3,173 100 91 174

The tractors charge

Regions

Arable area (ha) Tractors Charge

Total agriculture



Out of which



Private

State sector

North – East South – East South– Muntenia South–West-Oltenia West North – West Centre Bucuresti – Ilfov

1,355,006 1,810.019 1,961,255 1,241,899 1,092,875 1,010,037 763,831 109,728

1,256,617 1,357,277 1,528,208 1,060,354 884,411 965,854 691,716 86,356

98,389 452,742 433,047 181,545 208,464 44,183 72,115 23,372

17,720 22,544 29,931 21,267 24,460 24,452 21,452 2,000

15,466 17,259 25,141 18,219 22,338 22,324 19,675 1,707

2,254 5,285 4,790 3,048 2,122 2,128 1,777 293

76 80 66 58 45 41 36 55

81 79 61 58 40 43 35 51

44 86 90 60 98 21 41 80

Total 9,344,650 7,830,793 1,513,857

163,826 142,129

21,697 57 55 70

Romania’s agriculture encounters difficulties in the increase of the mechanisation rate of the technological processes because of the structure of agricultural machinery domestic offer, which is not fit to the size of agricultural holdings; these difficulties are also due to the financial difficulties (related to the cost of machinery, to the acquisition possibilities). There are a number of 1,813 service companies for agriculture, which are offering the whole range of mechanical and transportation services. There were 470 mechanisation companies in 1989 and at the present, a great part of them is in an advanced privatisation process. In this sector, the privatisation process delay during the period of 1992-1996 determined a high depreciation of the tractor and agricultural equipment, and because these



have not been replaced with new ones, there is now a high wear of the existent mechanical equipment’s. The existing level of endowment in agriculture is not able to ensure the mechanical works in the best periods envisaged by the technologies for plantation. The structural deficiency generated by the insufficient equipment is stressed by the physical wear and outdated state of these ones. A replacement rate of the fleet of tractors and agricultural machinery it is estimated, keeping into account the planed lifetime of use and the working capacity of the equipment, as following: Planned lifetime utilisation and estimated replacement degree for the agricultural

machines existing on 31st December 1997

Crt. No.

Tractors and agricultural machines

Plant utilisation lifetime

Necessary replacement degree (% from total existent inventory)

Total State Private

1. 2. 3. 4. 5.

Tractors Combine harvesters Ploughs Harrows Drilling machines

8 12 7 7 10

65 55 60 58 42

94 64 94 91 63

38 18 23 19 0

The number of tractors in 1997 increased 1.27 times (from 129 thousand pieces at about 164 thousand pieces) of which the private sector owns 61.5%. Although the number of combines decreased, the productivity increased and the private sector owns 63.2% of it. The numbers of plough disc harrows sow machines and agricultural trailers raised 1.5 times and most of these are owed by the private sector. In spite of the positive aspects, the charge per tractor is 60 ha compared to the European average of 12.7 ha per tractor. 67% of the existent tractors are older than 8 years fact, which creates a difficult situation for the sector. The combines for straw cereals and corn are charged with 175 ha/combine, value which is double than the European average (79 ha/combine). The producing and trade companies for seeds SEMROM AND UNISEM have been privatised and organised with delay. Due to this fact have appeared negative effects upon the production because the use of high biological value seeds has not been promoted efficiently among the producers.

2.3. 4. Irrigation Romania invested a huge capital in equipping with irrigation facilities an area of 3.1 million ha, out of which 2.9 million ha was arable land. Thus, the area equipped with irrigation facilities represents 31% of total arable land. Over-sizing of land reclamation systems resulted in the incapacity of operating the area equipped with irrigation facilities, under economic conditions. The operating rate of irrigation facilities is extremely low (8 – 25%).



By regions, the largest irrigated areas can be found in the South- East, South and South – West Regions, regions where the agricultural activity is prevailing. Romania has an important land area equipped with irrigation facilities, ranking among the European countries with the largest area equipped with irrigation facilities, but due to the high degree of under-operating of these facilities the effect of the irrigation is not felt in an increased yield. The irrigated area in 1998 war the following: Maize: 49,156 ha Sunflower: 18,594 ha Soya beans: 38,693 ha Sugar beet: 4,562 ha Potatoes: 3,187 ha Vegetables: 23,098 ha The land reclamation works constitute a public use matter of national interest and they are financed either from the state budget or from other sources; Thus, the Ordinance of Urgency No. 23/2000 reorganised the Autonomous Land Reclamation Administration into the National Land Reclamation Company (NLRC) – stock company, as a trade company on national interest stocks, with state capital, the only manager of the land reclamation system. In article 4 of the Ordinance of Urgency 23/2000 regarding the setting up of the National “Land Reclamation” Company – SC by restructuring the Autonomous Land Reclamation Administration, it is laid down that the Ministry of Agriculture and Food, on behalf of the State, is granting to the National “Land Reclamation” Company – SC for a period of 49 years the goods belonging to the public domain of the State. These goods consist in irrigation works set up by water catches, basic pumping stations, including the reversible ones, re-pumping stations, canals and water supplying and distribution pipes from the irrigation up to the pumping and under pressurised stations, main collecting canals for the gravitational and pumping drainage works, including their due pumping stations, works for soil erosion control, dams and protection dykes against the Danube floods and on the own internal rivers. The due level is 0.2% of the value of the goods that are subject to the granting contract. In the Ordinance of Urgency 23/2000, article 4, paragraph (2), it is also laid down that the works in the irrigation and rice fields rehabilitations, set up by pumping and under pressurised stations, internal irrigation networks of pipes and canals, draining and drainage works set up by pumping station, inferior canals, drainpipes and drainage collectors, that do not belong to the public domain, will be administrated by the National “Land Reclamation” Company – SC until they are transferred, if requested so and free of charge, to the water users’ associations, according to the law, in 5 years time at the most according as they set up. In article 1 of the Ordinance of Urgency 147/1999, regarding the setting up of the water users’ associations for irrigations, it is laid down that this legislative document settles down the setting up and functioning of the water users’ associations for irrigation (WUAI), as legal persons without lucrative purpose, and it is also stipulated the right and obligations of these associations and of their members. Article 2 lays down that, in order to exploit and maintain the irrigation networks on their own interest, but also in terms of public interest, the physical and legal persons who are



owners, or holders of other real wrights, or those who use agricultural lands, can associate and set up an association in accordance with the provisions of the present Ordinance of Urgency. At the same time, the Ordinance of the Government 147/1999 also lays down that the beneficiaries of the activities carried out by the WUAI are exclusively the member of the associations that are owners, or holders of other real rights, or those who use agricultural lands. The surplus between incomes and costs resulted at the end of the financial year is to be reinvested. From the point of view of the setting up of the private property it is stipulated that, in accordance with the provisions of Law 213/1998, on public property and its legal status, an association can earn the ownership right over an irrigation infrastructure. This irrigation infrastructure consists in underground pipelines for transport and distribution, the water pumping under pressurized stations, together with the endowment and the due land, which are located on the land of the association, as well as other goods, as a result of their transfer from the public domain to the private domain of the state. The Romanian Government reanalyzed the needs of the national irrigation and drainage sector, with the financial assistance that consisted in a loan granted by the World Bank, as well as with the technical support of the assistants Binnie & Partners and Hunting technical services Ltd. and ISPIF. The main objective of the study is to present to the Ministry of Agriculture and Food an investment strategy for rehabilitating and modernizing the irrigation and drainage sector. It took 2 years for the elaboration of this study and the deadline was in July 1994. There were three stages undertaken for the elaboration of this study: Stage A: this stage contained a beginning report where documents and data referring to drainage and irrigation were revised, as well as 12 representative schemes that had been selected for the study in the framework of stage B; Stage B: the 12 selected representative schemes were analysed in order to be rehabilitated and modernised. The results were extrapolated to the 104 existing schemes (2.93 million ha) in Romania. The report was prepared for the purpose of establishing the economic, technical and financial viability of the irrigation and drainage systems in Romania. Stage C: an investments program was elaborated, as well as a priority development program for a period of 10 years. The assistants drew up the following reports: Irrigation and drainage studies in Romania - Beginning report Irrigation and drainage studies in Romania - Representative working schemes: �Calafat-Bailesti �Dabuleni-Potelu-Corabia �Stoenesti-Visini �Giurgiu-Razmiresti, zone B �Titu-Ogrezeni �Borcea deSus �Mostistea I sistem I �Galatui-Calarasi �Terasa Brailei �Valea Carasu-Canal Negru Voda �Trifesti-Sculeni �Terasa Nicoresti-Tecucui Taking into account he above-mentioned, the needs are the following:



rehabilitation and upgrading the irrigation infrastructure in 10 years time for approx. 1.36 thou. ha., that are viable on long term, as well as adapting of irrigation capacities to the available water resources in the targeted regions. It is a known fact that Romania's territory is characterised by a large diversity of relief factors lithological soil, hydrography and also by irregularities of climate, especially the change from long period of draught to periods of humidity excess, on the same lands. The main problems that face the inhabitants of the rural areas in the management of water resources, are represented by situations of extreme climatic elements that affect both the intra-village lands and the lands outside the villages and the water resource pollution, induced by agricultural activities. At the same level of entire country they are frequently affected by humidity excess about 5.5 million ha of agricultural land, out of which until the end of 1998 there were made drainage works on an area of about 3.2 million ha. On about 215,000 ha to drainage channels network it was added also a network of deep ground drainage. 2.3.5. Storage of agricultural products Romania has a storage capacity of cereals and of grain oil seeds of over 10 mil. tones. These capacities, which until 1994 belonged to the Autonomous Company “Romcereal” were transformed into trade companies in two successive stages, by setting up 41 trade companies of the “Comcereal” kind and afterwards, by setting up 29 more trade companies “Comcereal”. Most of these capacities have access to roads, railroads, rivers, and sea. Taking into account that the trade companies for cereal storage

-Have been set up quite late and are still in the process of privatisation -The maintenance of the fix funds they have represent important amounts of money because they are almost entirely outdated physically and technologically

-The agricultural companies are being de-capitalised -The entire system is not performing.

Taking into account the high costs in the private sector, no initiative existed for building new storage and conditioning places. These storage places are presented in the table below:



The situation of storage cereals – 1994

Storing capacities -in grains

(tones)

Number of silos

Of which

Cr.

no.

Counties

Total In silos In stores

No.

localities

Total

RN* River

1 Alba 119,000 33,500 85,500 1 1 1 -

2 Arad 317,920 129,300 188,620 4 4 4 -

3 Arges 244,900 118,200 126,700 3 4 4 -

4 Bacau 224,990 66,000 158,990 2 2 2 -

5 Bihor 223,600 65,000 158,600 2 2 2 -

6 Bistrita Nasaud

64,700 - 64,700 - - - -

7 Botosani 276,100 67,800 208,308 2 2 2 -

8 Brasov 138,010 44,160 93,850 1 1 1 -

9 Braila 429,080 218,250 210,830 6 8 7 1

10 Buzau 316,450 152,500 163,950 4 6 6 -

11 Caras Severin

50,120 - 50,120 - - - -

12 Calarasi 60,.745 356,060 246,685 11 13 12 1

13 Cluj 191,500 51,300 140,200 2 2 2 -

14 Constanta 744,630 395,900 348,730 10 12 11 -

15 Covasna 146,300 15,500 130,800 2 2 2 -

16 Dambovita 215,400 133,000 82,400 3 3 3 -

17 Dolj 492,980 200,200 292,780 7 8 8 -

18 Galati 383,000 151,000 232,000 5 6 5 1

19 Giurgiu 198,400 87,080 111,320 3 3 2 1

20 Gorj 54,412 - 54,412 - - - -

21 Harghita 105,300 26,700 78,600 3 3 3

22 Hunedoara 183,780 - 183,780 - - - -

23 Ialomita 593,400 363,240 230,160 9 12 12

24 Iasi 296,230 63,780 232,450 2 2 2

25 Maramures 39,295 - 39,295 - - - -

26 Mehedinti 178,440 45,200 133,240 1 1 - 1

27 Mures 175,540 45,000 131,540 1 1 1 -

28 Neamt 162,900 77,600 85,300 2 2 2 -

29 Olt 424,260 272,800 151,460 6 9 8 1

30 Prahova 216,600 34,000 182,600 1 1 1 -

31 Satu Mare 180,835 60,850 119,985 1 2 2 -

32 Salaj 60,200 - 60,200 - - - -

33 Sibiu 121,700 33,000 88,700 1 1 1

34 Suceava 105,750 - 105,700 - - - -

35 Teleorman 589,388 364,800 224,588 10 14 12 2

36 Timis 551,400 293,300 258,100 7 8 8 -

37 Tulcea 323,650 149,400 174,250 3 4 4 -

38 Vaslui 256,560 73,100 183,460 2 2 2 -

39 Valcea 71,600 - 71,600 - - - -

40 Vrancea 131,000 63,000 68,000 2 2 2 -

41 Bucuresti 159,700 84,300 75,400 2 3 3 -

42 Total 10,362,765 4,334,820 6,027,945 121 146 143 8

* RN- accesses to the railway network



The restructuring and the privatisation of the sector for service rendering for agriculture have not been sufficiently backed with investments for the modernisation and endowment thereof. 2.3.6 Sanitary - veterinary sector In Romania, the multifunctional laboratories represent the main tool of checking and certification of the soundness of products and a way of continuous stimulation of raising their quality. This comprises mainly sanitary, veterinary state laboratories, specialised in the control of health and prophylactics of animal diseases, the control of soundness of products of animal origin and of the feed, the control of medicines and of products of veterinary use, together with the checking and security for the halting the introduction in the country of diseases to animals, through the sanitary, veterinary control. - According to the new legal provisions that were issued recently, part of these activities are taken over by concession of clinics and private veterinary laboratories from the state veterinary authority. - Concerning the obligation of control and monitoring the residual substances from the composition of the products of animal origin and from the medicines of veterinary use we have to specify that the present endowment with equipment and technologies is outdated. In the same precarious situation are also the activities of diagnosis, surveillance and struggle against the diseases to animals. In Romania: to set up the functions and supervise all the sanitary services, irrespective or whether they represent state authority, the sanitary services of other ministries or research institutes, commercial or private companies. For good management of the state sanitary veterinary network, the Sanitary Veterinary Agency collaborated with the General Directorates of the Ministry of Agriculture and Food, the Ministry of Health and other ministries, the Office for Consumer Protection, central institutions and local administrations. The Sanitary Veterinary Agency has been concerned in organising the whole sanitary veterinary activity according to the law, in order to keep Romanian territory free of major epizootic diseases and to secure public health by: preventing disease transmission from animals to human beings, controlling products of animal origin and other materials and products which are subject to sanitary veterinary animal control. Abroad - by agreements and negotiations, it set up the sanitary veterinary conditions necessary for the trade of live animals, animal origin products, forages and other products and raw materials subject to the sanitary veterinary control. It represented Romania’s interests in the relationships to international organisations. Applying the measures included in the Programme of Monitoring the Sanitary Veterinary strategic actions and animal disease control, Romania continued to keep its territory free of foot-and-mouth disease and other severe epizootic diseases, while in many European and neighbouring countries there are severe diseases having social and economic implications. This status allowed uninterrupted trade of animals and animal origin products according to the conditions of trade agreements and according to the conventions of international organisation requirements. To eliminate the risk of Cattle Spongiform Encephalopathy entering our country, the Sanitary Veterinary National Agency based on W.O.T. - SPS regulations and OIE recommendations, carried out sanitary veterinary regulations which banned the import of



animal species receptive to this disease and their products coming from the countries where there is spongiform Encephalopathy and sheep mange (scrapie). To the same purpose, extensive measures for animal disease monitoring, prophilaxy and

control were taken by the staff working in the state and private veterinary network, through monitoring and periodical disease controls (2,335,352 clinical inspections and 164,168.2 laboratory ones); 512,373 prophylactic vaccinations; 92,637 treatments; 42000 analysed samples to test drinking water quality and the forage sanitation; disinfecting 32,030 units having 21,190.0 thou sq. meters, disinfecting in 13,278 units having 25,695.0 thou sq.m., anti-rodant measures on 13,190.0 units having 51,299 thou sq.m.; 18800 cases of general prophilaxy and quarantine; the biotop controls on 6,740 ha of grasslands; 28,276 knackery inspections, animal cemeteries and drained wells; 19.1 homeless dogs were sterilised either biologically or surgically, 4500 samples of residual waters were analysed in the laboratory. Another main goal of the veterinary staff consisted of the measures taken to secure public

health by sanitary veterinary control of the animal origin products. Inspectors were made of some 614.8 thou tons of meat and venison; 204.6 thou tons of processed meat; 32.6 thou tons of tinned products; 9.5 thou tons of semi-tinned meat; 36.5 thou tons of fish and fish products; 7900 thou hl of milk; 235.6 thou tons of dairy products; 1,650.110 thou pieces eggs; 1,014.0 thou tons forage and forage additives, and 86.0 thou tons of other product which could influence the public health. Some 19600 tests and analyses were conducted to for diseases which can be transmitted from animals to human beings, by eating food of animal origin including: trichinosis, cisticercosis, echinococosis, histerosis and salmonella; 91.5 thou analysed samples concerning the toxic residues such as: organ chlorate and organophosphoric pesticides, heavy metals and arsenic, alfatoxins, hormones, etc., as well as 156.4 thou samples to check out the hygienic conditions and hygienic work efficiency. Sanitary Veterinary Assistance There were 2,959 sanitary veterinary offices in villages and towns, and 16 state sanitary veterinary clinics provided consultations, clinical investigations, surgical operations; curative treatments, as well as examinations for the transport of animals, animal origin products and other goods. The sanitary veterinary service collects fees for various actions, works, and laboratory analyses performed and an income of, for example US$ 6.8 million, which is entirely given to the state budget (represented an increase with 50% of the amounts stipulated by the State budget Law), in 1997. The sanitary veterinary activity showed some deficiencies concerning the compulsory immune-prophylactic and other necessary measures in the control of animal diseases. The sanitary veterinary deficiencies were the result of subjective and objective causes, such as: difficulties in providing the budgetary funds for material costs, veterinary equipment, devices, medicines, disinfectants, vaccines, and other veterinary products, as well as the lack of compensations for animal breeders in the case of certain disease eradication measures. The services was only assigned 50% of this - the Chapter of Material Costs compared to USD 8.3 million, necessary from the budgetary credits, following the restrictions following the budgetary austerity. The sanitary veterinary control of imports, exports and animal transits, animal origin products, forage and other actions of the sanitary veterinary police According to Government policy concerning restructuring and decentralisation, the Sanitary Veterinary National Agency initiated and worked out the Government Decision no.480/1997, by which the approvals for the animal export have been decentralised from central level to the county sanitary veterinary Directorates. The sanitary veterinary conditions according to the law, being set up further on by Central Administration. By MAF Ord. no. 68/1997, there were updated the sanitary veterinary conditions regarding the



import of animal origin products. The sanitary veterinary control was also based on international agreements concluded with other states. During July - August 1997, communitary experts looked at animal health issues and public health in order to agree on the list of Romanian units exporting milk and dairy products in E.U. The conclusions sent by the European Commission to the Romanian Mission at the EU through the letter no.3139.16.12.1997 certified that the verified units have been approved to make exports in the EC, subject to the necessity of carrying out certain rectification and clarifications from the Romanian authority side (animal identification and registration, farm recording, milk microbiological quality). The state control of the veterinary drugs and other veterinary products, it is carried out, according to sanitary law and G.D.no.390/1997 taking into account the following goals: improving the quality of veterinary products, the control of manufactures of medicines during the production cycle, the territorial control of the veterinary product storage, trade, laboratory and clinical tests of domestic and imported products, certification and control methods of product quality. The goals of the sanitary veterinary police to control the territorial application of the sanitary veterinary Law and regulations; to investigate 6,427 territorial offices; 192 IPSVF; 8,054 animal farms; 105,014 units of manufacturing animal products as well as storing, processing and marketing; 19,270 fairs and food markets. Following the non-observance of functional conditions, 2,624 institutions were closed and were given funds of 8.2 billion lei amount according to the G.D. no.794/1993. In order to ensure the food security and to protect public health, animal products valued at 44.5 billion lei were taken out of public consumption and confiscated. 2.3.7 Phyto-sanitary sector

The phyto-sanitary control for plants and plant products imported and exported and the quality control of the pesticides are made by laboratory analysis and examinations within the multifunctional laboratories from the Central Laboratory of Phyto-sanitary Quarantine. Specialist personnel, who undertake their attributions within the Central Laboratory of Phyto-sanitary Quarantine, make the phyto-sanitary control. In addition to prevent the introduction in the country and spread in the territory of the most dangerous organisms to plants, it is necessary to set up phyto-sanitary information system for rapid communication between the County Phyto-sanitary Directorates, the Inspectorates of customs phyto-sanitary quarantine, the Central Laboratory of Phyto-sanitary Quarantine and the Phyto-sanitary National Agency and vice-versa. On the basis of the controls accomplished in the crops we establish the area of spreading of the diseases and of the pests in the territory of the country, the evaluation of the degree of the harm and we establish also what treatment must be applied, taking into consideration the protection of the environment through specific measures The phyto-sanitary control is carried out for all the plants and plant products which are imported, exported or transit the territory of Romania in view of preventing the introduction and spreading on the territory of the country of the harmful quarantine organisms and for respecting at export of phyto-sanitary contracting clauses of the importing countries. As a follow up of the phyto-sanitary control it is allowed the entrance in the country only of the plant material for propagation, which is accompanied by documents of authenticity and quality ensuring thus the basis of quality outputs.



The improvement of the phyto-sanitary control activity leads to the increase of the production performances of plants by assuring a normal soundness through founding out and prevention of appearance and spread of harmful organisms. 2.3.8 Quality control

The assurance of quality as an exponent of the social and economic evolution could be achieved by aligned the Romanian legislation to those of the E.U., according to the Acquis communitaire. The necessity of financing the measure “Improvement of the structures for the veterinary and phyto-sanitary quality control to ensure the quality of the food products and the consumers’ protection”, follows from the next reasons: The significant rise of the animal effective in the private sector (private agricultural holdings and private commercial societies) overcome 80% from the total. The appearance of large number economic agents with various preoccupations in agriculture, which involves the improving of control regarding the three following domains: �Sanitary-veterinary; �Health control; �Foodstuff and consumer protection. From here has appeared the necessity of the extending the control and in granting of assistance to this large number of economic agents, as well as the necessity of their endowment with own laboratories. The situation in the sector of the food products quality: The control of food products quality, starting with the taking over of raw material of half processed products, on the production flow and of the finite products at delivery according to the provisions stipulated in the standards, technical specifications and technical regulations harmonised with the legal provisions of EU in the specific field, determines constant quality, an improvement quality of food products, thus the increase of possibility, to compete on the market and the increase of their value on the domestic market, and the winning of some foreign markets. The quality control of food products may be performed in factory own laboratories or in specialised labs authorised or certified. The control of qualitative parameters, the checking of the inscription of main parameters on the label, conformity of analysis results with the data mentioned on the label and established in the technical specification or products standard, all these are carried out by a personnel specially trained for the laboratory activity who undertake their attributions within the laboratories owned by the economic agents or in the recognized specific laboratories authorised or certified. The checking of the observance of food legislation, of wholesome and security of foods, the checking of the observance of market correct practices in the case of trade with food products, all these are performed by competent bodies appointed by the Ministry of Agriculture and Food, by the Ministry of Health, by the Office of the Protection of the Consumer.



From the situation presented above it has come out the strong necessity of investments in the activity of surveying the state of animal health, in the activity of surveying the phito-sanitary situation, as well as in the activity of checking food product quality. 2.3.9. Scientific research in agriculture and food industry

The scientific research reform programme in agriculture and food industry initiated by the Academy of Agriculture and Forestry, co-ordinated by MAF is aiming at content reorganisation of the research and marketing, extension and technological transfer of the research results to the major segment of the private farmers. Another major goal is the institutional reorganisation to meet the current requirements of the agricultural ownership new structure. The fulfilment of this objective will significantly contribute to solve one of the Romanian basic issues - namely to increase living standards and the security of food supply. � Development of sustainable agriculture, increasing the efficiency of small and

medium sized agricultural producers by the rational utilisation of the resources,

working capital and appropriate equipment. The objective is to contribute to sustainable agriculture at the county level, to provide for optimal development now and in the future, by preserving natural resource capital. The objective is constrained by the necessity to support family farm associations, small and medium sized food industry companies that currently lack capital and equipment, by appropriate research results. It is also aimed at economic improvement of the areas lacking agricultural potential, by implementing certain systems of agricultural production, enhancing food quality and product marketability so as to improve the availability of financial resources, necessary for self-development. � Protection and improvement of the agricultural natural resources, plant and animal

health and sanitation of vegetable and animal products. The research is focused on the need to preserve and improve soil and water since they are essential elements for a sustainable agricultural and food industry. Programmes will cover the prevention and control of pests of all kinds, measures to deal with extreme weather conditions, with a view to avoiding or reducing negative environmental and economic effects. These programmes will also take account of the need to enhance the competitiveness of the food sector in Romania, the need to harmonise product standards with those in the EU and to raise Romanian living standards. � Developing knowledge and promoting systemic concepts in agriculture by inserting

a multi-sectorial and multidisciplinary research approach in specific fields with

good prospects for technological and scientific advancement. This objective starts from the premise that at the current stage of scientific development, with specialisation reflected in the setting up research institutions with narrow ranges of interest, it is absolutely necessary to develop interdisciplinary collaboration within the agricultural and food industry research. A balanced approach is also required between research in this field, fundamental sciences (mathematics, physics, chemistry, biology, ecology, sociology etc.) and applied science (heavy duty equipment, electro-technique, light industry, chemical industry, irrigation, constructions) related to the upstream and downstream activities in the food chain (health, marketing, social science, environmental science etc.). � Developing, marketing and extension of the agricultural research results The implementation of research results by users, is, of course a major requirement in all sciences. In agricultural science the large number and low economic strength and wide territorial distribution of farmers make this different. Research dissemination has thus



taken a central place in the research programme “Food-Agriculture”. Each research programme specifies its approach to these issues, according to specific objective. There are current actions like publicity, standards, working instructions, public information and specific actions too, such as: selected seed and breeder production, demonstration plots, pilot farms, pilot areas having land improvement facilities, technical advice (pedological and agrochemical studies, land improvement facility utilisation, seed certification, warning against probable weather damaging phenomena and specific disease developments or other risk elements, reproduction services - embryo transfer and artificial insemination - breeding assistance, veterinary services, etc.). Dissemination will involve close co-operation between the managers of consultancy, education, extension services, which are to be set up (developed) within the MAF and its territorial units. These new goals of the agricultural and food industry research-development programme are an integral part of the AGRAL programme. Their achievement will provide the necessary basis for quickly building up a modern sustainable agriculture. MAF aims that beginning with 2000 to promote, in the framework of bilateral relations, the types of projects proposed in National Plan for Agriculture and Rural Development. Expected impact:

-increasing the number of the promoted projects for the development and strengthening of the National Plan for Agriculture and Rural Development main objectives; -re-guidance and focusing of the bilateral relations, especially with Member States, on the mutual interest objectives; -Increasing the domestic, public and/or private, co-financing capacity.

2.3.10 Other units from agriculture and food industry

Referring to the former independent administrations, these were re-structured and organised after a long period, with negative consequences both for the economical units and for agricultural production. The present stage of the former independent administrations is as follows: � Independent Administration of Tobacco has been transformed in the National

Company “ Romanian Tobacco”, at 23 of June 1999 has been signed the privatisation contract for it according to the stipulation of Law no. 99/1999.

� Independent Administration of “ Superior breed horses” Bucharest has been transformed in National Company “ Superior breed horses” according to the Government Decision no. 673/1998. It has been organised the bidding for choosing the consultant for privatisation.

� Independent Administration “Pasteur National Institute for Veterinary Medicine” Bucharest has been transformed in National Company “Pasteur Institute” SA. It has been organised the bidding for choosing the consultant for privatisation.

� Independent Administration “ Mountain Research Institute” Cristian Sibiu judet has been transformed in Commercial Company “CEDER” SA according Government Decision no. 636/1998. This was divided in National Company “ Mountain research and Rural Development” Sibiu and in two other commercial companies which are to be privatised.

� Independent Administration” Research and Development Institute for Garden Products Capitalisation” Bucharest. According to Government Decision no. 620/1998 it has been transformed and re-organised in Research, Development and



Garden Products Marketing Institute “HORTING” SA –public institution, and in Commercial Company “BERSER” SA that is to be privatised.

� The Land Improvement Autonomous Administration was reorganised as Land Improvement National Company by share. According to the Ordinance of Urgency of the Government no. 23/ 30th March 2000.

� National Independent Administration for Agricultural Products Bucharest (NAIAAPB) According to Government Decision no. 830/1998 it has been approved the establishment of the National Company for Agricultural Products SA Bucharest by re-organising the NIAAPB.

Because of a brief analysis of the privatisation, process we may observe that agriculture is the sector with the highest grade of privatisation but there are delays in pigs and poultry enterprises privatisation and also in agricultural services enterprises privatisation. These delays have induced important negative disturbances to the agricultural management, to the products marketing activity and to input achieving activity. 2.4. AGRICULTURAL AND TRADE MARKETS The market is a more or less abstract meeting place, between the sellers’ offer and the buyers’ demand, these having the tendency to be balanced at a certain point. The offer is the manifesting form of the producers and the demand represents the human needs, accompanied by the capacity of the people to buy the offered goods. The agricultural markets have a very important role in the economy of a country. The interest of the agricultural producers is that their goods be valorised, namely to be traded. Obviously, this interest is determined, first of all, by the recovery of the production costs and than, by that, of obtaining a gain (capital-cash), in order to continue the activity in production processes, which are to be enough regulated (in the most cases successive, annual). The commercial means of agricultural goods by the farmers are the following: sales directly to the consumers, sales on the market through auction, sales to wholesalers or processors, sales to co-operatives, contracting sales with the processing industry. The market of the food products in Romania has been powerfully influenced by: � A sever reduction in the latest years of the buying power of the population; � Lack of PAC Regulations in the Romanian legislation; � Lack of regulations regarding the stability of the protection systems at the border,

financing or intervention prices mechanisms or threshold prices; � Powerful influence of the energy inputs or of the volume of fees or taxes � Lack of market information or of products selling through commodity exchange ; � High farming and trade costs make almost all the food products in-efficient to

export; � Low quality or in-competitive packing system make the balance of the foreign trade

with food products in favour of imports with such products; � In rather many sub-brunches the market is oriented strictly locally: the bakery

products, bread, slaughtering, the production of fresh diary products, etc. while the highly processed products witness a low selling speed because of the high price of these, as compared to the population incomes (cheese, highly processed meat products, cans).

Although in Romania some markets are divided between the domestic producers (for example the markets of oil, margarine, beer, soft drinks, wine), for the other daily foods the



existence of many local producers without great financial power, has not created a competition climate for offering of products at an accepted price. That is why at the same time with the diminishing of custom duties, the import of food products has increased in the latest years and it exerted a powerful pressure on the domestic market. It is the case of importing food products from the countries whose agricultural production is sustained by the state (see Hungary), to which it is added the massive import of products at a lower price than that declared at the custom house, which make an unfair competition to the domestic products. The en-gross storing systems are not so developed (flour, cheese, cans, wines, fruit, vegetables) the stocks being in fact formed at the producers, influencing powerfully the future price of the respective products and the mechanisms of offer-buying through commodity exchanges is very reduced. The internal demand, as well as the accessibility degree of food products has been on the decrease from year to year, because of the drastic reduction of the buying power of the population (the buying power has been seriously influenced because the population incomes in 1999 were not updated, and also because of the massive increase of compulsory services prices), thus diminishing greatly the sums destined to food in the expenditures of the consumers. In what regards the foreign demand, this is unknown to rather many producers, who do not have information about markets, about market prices or export prices, as the establishments specialised for export, which existed before 1999 collapsed or have significantly diminished their activity. The local competition does not involve at the same time the increase of the competitively, because the producers sell the goods at the same price and the market quota of the great majority of operators being, however, reduced. The major influence of fees and taxes paid, the influence of subsidies for storing, of price regulations, quotas, etc. by the state has determined that the market of food products be oriented primarily towards the local consumption and not towards the external offer. The external offer has been one sided, with very few products (unrefined sunflower oil) without any support of food exports, as it happens in the EU or even in the other CEFTA Member States. The attempts to elaborate market regulations for supporting the domestic production stroke against the refuse of the IMF, of accepting the Law on Market, which seriously influenced the production and trade of quality products. In order to achieve a balance on the foodstuffs market it was resorted imports or exports of product, according to the market requirements. In order to have a charted global image of the factors influencing the agri-food markets we present the following table:



Imports and exports of food products during 1.01.1999 – 31.12.1999 with EU and

other countries Crt.no.

Denomination M.U. E.U. Other states

import export import export

1. Live animals heads 760 471,394 11,192 833,828

2. Meat & offal To. 7,981 165 17,665 4,076

3. Fish & fish products To. 13,860 1,194 12,422 215

4. Milk &dairy products To. 8,095 833 10,291 743

5 Potatoes To. 2,147 2 6,291 5,459

6. Fresh & canned vegetables

To. 7,462 7,673 49,292 17,325

7. Fresh & canned fruits To. 50,547 13,123 113,870 6,161

8. Cereals To. 23,389 60,294 141,523 963,653

9. Wine Hl. 1,371 158,730 49,301 101,773

10. Edible oils To. 12,393 13,414 10,353 94,492

11. Sugar & sugar products To. 68,520 495 276,564 1,147

Situation of contingents established with European Union by the Romania:

Contingent (tones) Exports achievements (tones)

Crt. No.

Denomination

1998 1999 1998 1999

1. Live sheep and mutton 2,505 2,690 4,561 5,768

2. Poultry 1,495 1,560 841 700

3. Dairy products 1,859 1,800 137 609

4. Natural honey 190 190 5,364 6,915

6. Wheat 23,000 24,000 35,951 38,223

7. Sun flower oil 4,370 4,560 3,590 13,360

8. Concentrated apple juice 2,185 2,280 3,265 1,995 9. Wine* 168,880 178,880 269,844 204,932

* UM- hl

The domestic market of agri-food products has permanently been supplied at international standards in the present being no deficit for any products. 2.5. ECONOMIC ACTIVITY NON-RELATED TO AGRICULTURE AND

TOURISM Besides agriculture, which is the main economic activity there are a lot of other non farming economic activities taking place in the rural area, on specific domains or on small areas (see Annex 56). Excepting the extractive and energy industry, non-agricultural activities take place in small and medium size enterprises. Of the total SMEs, only 17% operated in the rural area (in 1997). The structure by types of activity carried out is directly correlated with:

�Types of available resources at local level; �Vocational traditions.

For example, in the counties Covasna, Harghita, Maramures wood processing has prevalence. In the counties Arad, Neamt si Satu Mare light industry has developed. In the counties Alba, Bistrita Nasaud and Sibiu were food industry has developed. An exception is represented by the trade activities that are spread on the entire territory of the country.



The highest SMEs number is concentrated in the rural area in Region 3-South (21% of the total SMEs). The number of handicraft and services units decreased compared to 1989. Thus, in 1997, these units accounted for 46.2% of the total in the year 1989 (see Annex 52, Annex 53 and Annex 54). It is to be mentioned the fact that in the rural area, as compared to the urban area, the number of private entrepreneurs is smaller, but there is an evident tendency of increasing the number of these (by 2.8% / year). Structure of private entrepreneurs:

Total out of which, in the rural area

1995 1996 1995 1996

Family associations 54,508 65,289 24,420 29,054

Natural persons 281,700 213,241 72,960 71,009

Private entrepreneurs, total

336,208

278,530

97,380

100,063

From the point of view of gross incomes gained by the private entrepreneurs from the rural area, we mentioned that they obtain only about 17% from the total volume. Structure of gross incomes

- % -

Urban Rural Total

Family associations 76.5 23.5 100

- in production 55.5 44.5 100

- in services 77.8 22.2 100

Natural persons 89.0 11.0 100

- in production 53.4 46.6 100

- in services 90.2 9.8 100

Private entrepreneurs, total 83.2 16.8 100

A part from the causes that produced the results mentioned above are comprise in the study “Obstacles to the Developing of Sector of Small and Medium Sized Enterprises”, made in 1997 by the Foundation “Romanian Centre of Small and Medium Sized Enterprises” and by the Chamber of Commerce and Industry of Romania. Pursuant the analyses of the questioners applied in the case of 2,000 private industries of various sizes – very small (1-9 employees), small (10-49 employees) and medium sized (50-249 employees), there came out the following:



(i) Obstacles related to supply (% of interviewed persons)

Price Lack of financement on short term Quality of specialised work Management

47 31 25 21

(ii) Obstacles related to the trade activity (% of interviewed persons)

Insufficient or non-stable demand on the market Small available funds for publicity Quality of labour

86 60 55

(iii) Legal problems, which the entrepreneurs are facing - Aspect (% of interviewed persons)

Way of VAT calculation Calculation and payment of tax on profit Vague legal framework, with many changes

65 85 37

In the mountain and hill areas mainly, there have been developing number of occupations, relatively different, but practically springing one from the other, and which can be grouped like this: a) occupation dealing with acquiring (bee- keeping, sericulture, hunting and fishing; b) dealing with production (agriculture, shepherding, mining); c) dealing with processing (handicrafts, small industries). These occupations represented for centuries the basic traditional occupations of the inhabitants of the Northern Carpathian Curvature, the vocations, being handed down from generation to generation. Part of these vocation and handicrafts acquired in time special cultural significance, taking into account the ethnographic and native heritage, which characterises the Romanian rural area, and thus some of these vocations changed into a small handicraft industry. In this way, there was developed pottery weaving, wood processing, metal processing etc. Nowadays, because of a lack of real support granted to this sector, the share of the artisan masters and of handicraft workers has plummeted. In some areas, there were developed a number of occupations, through which there are produced building materials, such as: bricks and burning of bricks, tile making, gutter tile, lime kiln, shingle making, terracotta, etc. After 1990, together with the enhancement of building private dwellings in the rural area, these activities were vivified, but though the need of such building materials is grate, there are not ensured still the possibility of entirely covering these needs on local level. The most severe problems that the handicraft and vocational activities are facing, is represented on the one hand by the lack of funds for the modernisation of production, and on the other hand, the lack of young apprentices, which might learn and take over the handicraft. To date, there isn’t a real support granted to the young people from the rural area, for learning and developing traditional handicraft and vocations and their establishment in the rural area.



Another problem, that the Romanian rural area is facing is represented by the weak presence in the rural of the services for population such as maintenance and repairing of home appliances, radio and TV manning, hygiene services, dress making, dying, chemical cleaning etc. The development of several networks of services for population in the rural area would create the prospect of increasing the labour occupation degree in general and especially of the women. Rural Tourism

The rural area disposes of reach tourist potential to be found both in mountain and hilly areas, and in the Black Sea Coast and Danube Delta zone. Besides the natural and historical monuments, the tourist interest is also roused by the valuable resources in the field of biodiversity: 3600 species of Gymnosperm and Angiosperm plants of the Romanian flora, that represents 40% of Europe flora and those 33,802 species of Romanian fund. From this point of view, Romania can represent an important of the ecological tourism. The entire territory of the country presents an interest from the point of view of ethnographic and folklore heritage, each rural zone having its own traditional customs. That is why the action of attracting Romanian villages that dispose of tourism and cultural-spiritual potential in the internal and foreign tourism networks, is a progress experienced by many counties in Romania. Thus, there appeared NGOs, which deal with this kind of activities such as: National Agency for Rural Ecological and Cultural Tourism, Romanian Federation for Mountain and Rural Development etc. The NGOs in the rural environment contribute to the development and promotion of rural tourism through: training courses and the workshops, as well as training in delivering of tourism services. For the present, in Romania there are 4,000 tourist boarding houses and agro-tourist boarding houses, a number of 1965, being included in various structures, among which NARECT network is the most known. It is to be mentioned that a number of 1267 of this units are certified and meet the legal conditions while the remaining units require modernisation in order to meet the necessary standards. The total capacity of accommodation of certified tourist unit is of 4,612 rooms i.e. 9,637 accommodating places. Out of these, a number of 948 units are tourist boarding houses with a capacity of 3,731 rooms and 7,836 accommodating places and 319 are agro-tourist boarding houses with a capacity of 881 rooms, respectively 1,801 accommodating places. The geographical distribution of these tourist units in the territory is generally, in agreement with the tourist zones of the country:

�Brasov county: 156 tourist units (12.31% of the certified units); �Harghita county: 151 tourist units (11.91% of the certified units); �Sibiu county: 118 tourist units (9.31% of the certified units); �Maramures county: 90tourist units (7.1% of the certified units); �Suceava county: 78 tourist units (6.15% of the certified units).

It is worth mentioning that Romania has a high tourist potential, unfortunately unused.



3. RURAL INFRASTRUCTURE

3.1. EDUCATION SERVICES The material endowment in the rural education system, expressed in quantitative terms, does not seem favourable. The number of the educational units or the number of classrooms compared to the number of inhabitants, and especially to the number of pupils have became even over sized in many areas, because of the decrease of the youth number (see Annex 55.) Only the analysis in qualitative terms would point out the serious aspects of the education services and the gap between rural and urban services in this field. In most of the communes (about 90%), the educational process is done mostly until the gymnasium school level (in some cases, only until the primary level). High school and post high school institutions are very few in numbers in the rural area. They can be found only in some communes (2-7) in every county. Thus, in only 173 communes (6.5%) the educational process is realised from kindergarten to high school or post high school level. The greatest parts of the school units in communes are in a precarious material shape and they lack or are poor in didactic material endowments. Rural life conditions are not attractive for the teaching personnel, thus in many low developed areas the qualified teaching personnel leave the rural and personnel with inadequate training replace them. The current statistical information system does not show these poor qualitative aspects of the rural education. Most of rural population (3/4 of the total) has an education, which is limited to primary education of gymnasium education at most (representing the maximum level of compulsory education): a third of the population (33.1%) only attended the primary level schools another third (33.7%) attended gymnasium courses too. A significant proportion of the inhabitants (7.4%) has not attended any education (see Annex 56) Only 1 of 100 village inhabitants graduated a higher education institution. Most of the graduates of higher education institutions live in cities. Only 10% of these chose to live in the rural area. The effects of this situation are multiple: economic activities are not diversified, the agriculture is non-efficient, (it does not make use of modern technique and technologies), and the hygiene-sanitary situation of the dwelling is low, mortality rate is high. Agricultural education holds a very low share in the Romanian educational system. Agricultural profile graduates at all levels of education represent a very low share in the total of graduates, much under-sized compared to the importance of agriculture for Romania’s economy (see Annex 57). For increasing in the future the vocational training degree and for achieving the continuous adult training in the field of agriculture, mountain and food industry, a number of educational institutions will be authorised as suppliers of this kind of services, according to the Ordinance of Government no. 102/27.08.1998 regarding continuous vocational training through the educational system (see Annex 58 and Annex 59).



3.2. HEALTH CARE SERVICES

Rural area benefits from the sanitary and medical assistance at a level much below than ensured in urban areas. In most of the communes only the primary sanitary/medical services are ensured. For special services, the inhabitants in the rural have to ask usually to medical units in towns and municipalities. The quality of the medical act in the rural is relatively low, mainly because of weak endowment with buildings and with medical devices, which is mostly old or even non-existent. The degree of ensuring with medical care services by the qualified personnel is generally low; the number of doctors being relatively small compared to the number of inhabitants. There are about 1,417 inhabitants to 1 doctor, as compared to an average of 378 inhabitants/ 1 doctor in the urban area. There are only 322 communes (12% of the total) where the presence of doctors is satisfactory compared to the number of inhabitants (being 1 doctor for 600 inhabitants, especially in city-neighbouring areas). But there are 148 communes (6%) where there is no doctor, and in 378 communes (14%) were a doctor has to service more than 3500 inhabitants. The largest areas non ensured with medical services, or where there are no doctors, are in the Eastern part of the country: in the counties of the North-Eastern Region (Botosani, Vaslui and partially in the Eastern part of Bacau county) and in the South-East (in the mountain area of Vrancea and Buzau counties, in the central part of Dobrogea and especially in the Danube Delta). Because of the poor quality of medical assistance, a rural inhabitant has a life expectation by 2 years lower than an urban inhabitant does. The infantile mortality rate reaches very high levels in the rural, exceeding by 35% the level in the urban. The present level of infant mortality is however, the result of a continuous decrease of its intensity; thus, the present average rate of infant mortality represents only a half of the 1970-year. In 1990, the level of infant mortality reached still 29.7‰, afterwards decreasing to 25.0 ‰ in 1997. There are still extended areas where infant deaths continue to exceed the number of 27-30 for 1,000 of new-borns. There are often cases when there are more than 40 deaths/1000 live births. Almost the entire rural area in the North-Eastern Region and the Dobrogea Region in South-East Region witness very high infantile mortality rate, of over 27‰. Again, in the plain area in the South of the Country, belonging to the South and South-West Regions, the communes where the infantile mortality exceeds the mentioned levels are in great number.

3.3. TECHNICAL DWELLING INFRASTRUCTURE An important component of developing the rural resources, with a direct impact over the civilisation degree of the rural localities is the physical infrastructure. In this section we shall present information regarding the following elements of the physical infrastructure in the rural environment: housing resources, infrastructure of the communication means and of the public utility networks of local interest, stressing the differences that exist on the regional level.

Housing resources in the rural area Within the rural localities, the population can make use of a fund of almost 3.7 million dwelling places. This represented, at the end of 1997, 46.9% of the total dwelling places of



Romania. In the latest years a favourable evolution, both numerical and qualitative of the rural housing fund took place. In the period 1991-1997, the number of dwelling places in the rural environment, as well as, the number of the rooms to dwell in, and the habitable area (of the rooms for dwelling in) recorded an increase (exceeding the increase recorded on the whole country or that in the urban environment). As a consequence of this evolution it was also improved the level of the coefficient that characterise the building features of the living fund. In this period it has also increased the average number of rooms/ house and the average habitable area/ dwelling. The main factor that determined the improvement of the dwelling conditions of the rural population was: the increase of the dwelling fund on the account of new buildings made in this period. During 1992-1997, there were built 105,302 new dwelling places, representing 55.6% of the total dwellings built in Romania, and respectively 10.3% new dwellings/ 1,000 inhabitants.

Dynamics of the housing fund in the rural environment in the period 1991-1997

Indicators 1991 1994 1996 1997

Number of dwellings – thou. 3,583 3,618 3,656 3,673

Number of rooms for dwelling–thou.

9,170 9,296 9,422 9,485

Habitable area – thou. sq. m. 119,853 121,823 123,880 124,925

Dwellings/ 1,000 inhabitants 344 353 360 362

Rooms for dwelling/ dwelling place 2.56 2.57 2.58 2.58

Habitable area/ dwelling – sq.m. 33.5 33.7 33.9 34.0

Habitable area/ inhabitant – sq.m. 11.5 11.9 12.1 12.3

At the end of the year

It is also to be remarked that the ration between the number of new dwellings and the total housing fund was higher in the villages with more than 5,000 inhabitants, and respectively lower in the villages with the population number below 2,000. As a characteristic of the housing fund in the rural environment is can be mentioned the fact that the size of the rural dwelling according to the habitable area is the same as in the urban, only that in the rural environment this is made up, on average, of a larger number of rooms and this ensures somewhat better dwelling conditions for the persons living in the rural environment. The ownership represents another specific feature of the territorial differences of the housing fund in the rural environment over the dwellings. The rural environment, unlike the urban, is characterised by the quasi-total share of private ownership, -especially of the population-and the non-significant share of the public ownership. At the end of 1997, a share of 97.4% of the dwellings situated in the rural environment was in private property. The building characteristics of the dwellings that ensure an increased comfort to the dwelling are, nevertheless, determined by the existence in the dwelling of main facilities



(kitchen, bathroom, WC with water), respectively public utility installation (supply of drinkable water, sewerage, electric power and even central heating or heating by stoves with natural gas). The latest available data, those of the January 1992 census – show, however, unsatisfactorily degree of endowment of rural dwellings with facilities and installations. Thus, ad the beginning of 1992 out of the total number of rural dwellings, 81.8% had kitchens (rooms with exclusive destination for cooking) only 8% of these had bathrooms (with shower or without shower) and only 5.8% of these had WC with water (and the respective sewerage installation). In what concerns the endowment of dwellings with main public utility installations, 11.4% of dwellings had water supply network (public or private own system), 10% of these had sewerage installation and only 4.4% had assured heating through a central heating system or heating by stoves with natural gas. From the dwellings situated in the rural environment 93.6% had electric installations in 1992. In the latest years, since 1992 until 1997, there was an increase of the number of dwellings endowed with water supply installations, sewerage installations or installations for heating through the network of natural gas distribution. But this increase was not a significant one, because it did not change the situation recorded in 1992, namely that the rural dwellings were far behind the comfort conditions ensured in the urban environment.

The situation of the public utility endowments

Any characterisation of the living environment of the rural population cannot ignore the degree of endowment of the rural dwellings with main facilities: drinkable water, waste water sewerage, distributions of natural gas for heating and cooking, electric power consumption, etc. Under this aspect, the rural environment of Romania is still lagging behind, presenting an evident disparity as compared to the facilities existing in the urban environment. In spite of the preoccupations, in the latest years, for improving the public utility situation of the rural environment with greater volume of public utility services, due to some insufficient investment efforts, the endowments in the rural environment is, however, at an unsatisfactory level. Network and distribution of potable water At the end of 1997, the network of drinkable water in the rural environment had a length of only 13,550 km., representing less than 2/5 (38.4%) from the total length of the national network. The length of the network of drinkable water increased in the latest two years by only 1,366.2 km., namely by 11.2% of the total length of this network. In the total volume of drinkable water distributed to the consumers in the rural environment, the home consumption represents almost 78.8% (4/5) but this consumption represented only 11.1% of the total drinkable water home consumption at the national level ensured through public water networks. The public network for the distribution of drinkable water existed at the end of 1997, in only 1,287 communes (out of the total number of 2,686 communes in the country), respectively in a number of 2,541 villages – less than 19.4% of the total number of localities in Romania. The total capacity of the installations for drinkable water in the rural environment was in 1997 of 835.4 cubic metres/ day, representing 8.1% of the total available capacity. It must be stressed the fact that not all the households in the rural area



which had at their disposal the public network of drinkable water distribution benefited of these services (which are, however, necessary for a decent living). It is also to be mentioned that within those 1287 communes which had a network of water distribution, which however did not include all the villages that are part of them, live less than 1/4 of the rural population of the country. These findings are confirmed also by the situation recorded at the latest census (January 1992) when only 11.7% of the rural households were provided with installations of water supply (from the public network or from own private system). As it shows in the table below, a bigger length of this network exists in the large communes of more than 5,000 inhabitants while the communes of less than 2,000 inhabitants were scarce in this regard. Ranking of communes according to size and length of potable water network, - End of

1997

Total Simple length of water distribution, km.

Size of communas and

number of inhabitants

Without

network

Under

2 km.

2-9.9

km

10-19.9

km

20-29.9

km

30 km

and

more

Total 2,686 1,399 200 610 268 121 88

Under 1,000 inhabitants

52 - 42 6 3 1 1

1,000-1,999 385 226 17 94 39 4 5

2,000-4,999 1,666 909 123 374 153 67 40

5,000-9,999 350 216 49 129 72 45 39

More than 10,000

33 6 5 10 3 5 4

In the territorial distribution of the public utility, activities there can be noticed significant differences between counties. We could sum up by saying that the public network of drinkable water distribution, the capacity of water equipment and the drinkable water volume provided to the households consumers are far from being able to ensure the public needs of the rural population, as number of inhabitants beneficiaries from this public service, as well as share of endowed rural localities. In this regard the rural population does not have decent life conditions, so that the rural population must get drinkable water from other sources: wells, running fountains etc. which do not always provide the adequate quality of water, “contributing” to the increasing the level of infecting the population with diseases and parasites. Sewerage network The rural population is at disadvantage on this mater as well, as compared to the urban population. Out of the total length of existing pipes for sewerage in the country, in the rural environment there are only 864.1 km., namely 5.6% of the total. Of such a network



benefited in 1997 a number of 358 villages, respectively 2.8% of the total localities and the average length of the network in a village was of about 2.4 km. In 1997, from the total volume of residual water purified in the country, the quantity of residual water purified in the rural environment was of only 1,1%, respectively 13,377 thou. Cubic m., i.e. about 102 cubic m./ day for one of the 358 villages. The number of villages provided with network for discharge of residual water represented a share of only 14% of the total villages endowed with network for drinkable water distribution. The lack of ensuring of an adequate capacity of discharging of wastewater generates, among other things, an increased danger for polluting the environment. There are great differences between counties in what regards the public sewerage systems. Natural gas supply network

From the total network for natural gas supply in Romania, a length of 5,591 km., was in the rural environment, in 697 villages, from 320 communes, this representing 31% of the total. In a number of 67 communes there is a network already installed but the gas was not distributed for home consumption. With regard to the volume of natural gas distributed, the rural areas receive 1,465 mill. cubic m. - 10.3% of the total natural gas distribution, and were the share of distributed gas for home consumption is concerned, this was of only 7,9% of total. Thus, it is noticed the small part of natural gas distributed in the rural, less than 1/3 from the total gas provided to the communes, within the 166 cities and towns the home consumption share in the total volume of distributed gas was over 2/5 of the total (43,9%). Consequently, through the natural gas distribution network the rural area received only 1318,5 thou. A cubic meter, which means that a connected locality has a daily average consumption of only 1892-cm, distributed natural gas. A higher degree of endowment of some rural localities from these counties with natural gas distribution network is mainly because in this area of the country there are big resources of natural gas and a concentration of natural gases extracting industry inside these counties. In a completely different situation are 11 counties (the majority of them in the Southern and Eastern part of Romania), in which not a single village is benefiting of a network of gas distribution for home consumption. Network of electric power distribution The consumption of electric power represents an important indicator of the way of life of the country's population. From this viewpoint, in Romania the situation seems to be more favourable for the rural population because all the 2,686 communes of the country have been connected to the public or local network of electric power. According to the latest available data, most of the rural households' benefit of connection to the networks of electric power. It is to be noticed, however, that the consumption of electric power in the rural area is not ensured, in all the localities, at an adequate quality, because of the load variation of the electric power in the network or to voltage drops (due to unsatisfactory technical conditions of the equipment and of the network of electric power in the rural environment). It has to be mentioned that the network of electric power distribution was most of it built between 1950-1970 presently the equipment and the network cables have a high degree of



wear. In over than 70% of the communes this network does not allow the connecting to the new modern equipment, needed for the development of agricultural holdings.

Network of transport

The rural area is confronted to the lack of a satisfactory network of transport, which could ensure useful services to the population for a modern way of life. Regarding transport ways, we are referring mainly to the county and communes' public roads network, which was of 58478 km, meaning 4/5 from the total of public national roads network, at the end of 1997. Of these less than a half (47%) were county roads and 53% commune roads. It is noticed that there is a very small share of modernised communes and county roads (7.7% of all roads). It can also be mentioned that out of communes, roads about 60% are paved, and the rest of them are non-modernised, un-gravelled roads. The road network density is different from one region to another.

Density of public roads per region

Of which:

Density of public

roads /100 sq.

km of territory Region

Public

roads

- km - National

roads

County and

communal

roads

North-East 12,797 2,476 10,321 35.5

South -East 9,992 1,745 8,247 29.2

South-Muntenia 11,083 2,534 8,549 32.1

S-E Oltenia 9,946 1,929 8,017 34.5

West 8,801 1,862 6,939 27.4

North - West 10,820 1,917 8,903 31.9

Centre 8,931 2,027 6,904 25.9

Bucharest Ilfov 791 193 598 37.8

Total 73,161 14,683 58,478 31.0

Regarding the access of rural population to the national public roads network it must be mentioned that only half of the total number of communes (1462) had direct access to the main network of road transport, serving thus approximately 3/5 of the total rural population. Also it is significant the small density of county and communes public roads which, at the end of 1997 it raised to 27.3 km roads on 100 sq. km of rural area. 3.4. COMMUNICATION NETWORK

From the point of view of communication, means it has to be noticed also the fact that the post office units’ network and the telephone-telegraph network do not assure the necessary services volume for the rural population. In 1997, the number of post office units in the rural area was of 7214 units, which means a 90% of the total national Post Office units.



There were also a number of 9805 postal boxes, but their number decreased during 1997 with 6.8%, fact that produced a reduction of the postal services volume in the rural area. The postal units network is undersized, especially in a number of five judets located in the southern part of the country. The number of the units offering telephone-telegraph services in the rural area was of 2182, which means about 4/5 of the total telephone-telegraph fix public units, but we may observe the fact that during the previous year also their number has decreased with 50 units (2.2%). At the end of 1997 the number of telephone lines in the rural area was of 530 thousands, which means 13.4% of the total national installed telephone lines. Although this figure includes also the post offices lines and the telephone lines for the juridical bodies from the rural area, the average value for the rural area is of 52 lines per 1,000 rural inhabitants. It worth mentioning that the fact that, in the rural area, only a number of 1,160 communes have telephone services (about 43% of the total number of communes). At national level, the most developed telephone network is in the northwestern and central part of the country. The radio and television programmes are not accessible at large scales for the rural population, in spite of the fact that the majority of rural localities have electrical power network. In the rural area the number of radio and television subscriptions is of 1.5 millions, which means only 36.7% of the total national radio and television subscriptions; the average value for the rural area is 148 radio and television subscription per 1,000 inhabitants. Referring only to the television subscription their number is 1.23 millions and means 30.3% of the total number of television and radio subscription in the rural area; this also means an average of 121 television subscriptions per 1,000 rural inhabitants. The reduced access of the rural population to the modern communication means limits the rural inhabitants’ access to necessary information and the possibilities to assure them a proper education level. Because of the above-presented situation, from the point of view of the utility endowment of the localities, the rural Romanian area shows a deficit, the endowment degree being lower than the urban one. The public network do not have the capacity to assure all the public utility needs for the rural population because these public networks are under-sized, in comparison with the population number. Distribution of technical infrastructure on residence environment, 1997

Specification Rural Urban

Population –Total (1.VII) 45% 55%

Simple length of drinking water distribution system-km 38% 62%

Simple length of gas distribution pipes-km 31% 69%

Simple length of sewerage network-km 6% 94% Source: National Commission for Statistics ”Activities regarding local interest public utility” 1998;



4. FORESTRY

Romania has one of the most valuable forestry resources in Europe. Covering an area of 6,367 thou. ha. the forests account for 28% of the country’s territory, which is quite close to the European average share. As production structure, the Romanian forestry resources consist of 31% beech, 31% coniferous species, 18% oak, and 21% other species. The largest area under forests, having a varied structure of species, is found in the mountainous and in the hilly regions (about 90% of total area of forests). Between 1989-1997 there were no significant changes of the forest land size (see Annex 60). The forestry output experienced a decrease. Thus, the timber volume exploited in 1997 represents only 75% of 1989, a trend that can be found as regards structure as well (see Annex 61). In 1996, for the forest regeneration and plantation afforestation took place on 12,727 thou. ha. area (see Annex 62). The rate of afforestation was drastically reduced compared to that of 1998. The rate of regeneration is very low (0.20%). In the present, before the appliance of Law No.1/2000, only 400,000 ha of forest belongs to the private sector, and it is foreseen that by applying this law, the private sector will extend to about 3 millions ha of forests. Due to the great number of owners, persons who own small forestlands and due to the low degree of associations of these owners, the average exploitation area is of only 1-2 ha. Those 6 millions ha. forests found in the state property are under the management of the National Autonomous Administration of Forest “Romsilva” which has 27 forestry directorates, each directorate having forestry wards , districts and forest ranges (Annex63). In 1998 in the wood-processing sector there were 31 companies with majority state capital and more than 1,000 private economic agents. The private units process in the present about 40% of the wood resources and their number is increasing. At the end of 1999, there were 2,700 sawing installations and 6500 small sawing equipment for the primary processing of wood. Usually, the processing equipment for tree cutting are obsolete, with rather high technological consumption that produces wood losses of about 10 to 30% (sawdust). State economic agents have an installed capacity of wood cutting of about 16 million cubic metres yearly, and the private economic agents own a capacity of 1 million cubic meters yearly, so that the total capacity of primary wood processing totals 17 millions cubic meters yearly. The private sector uses the state capacity for the primary wood-processing sector. Export of wood products (wood charcoal and articles of wood) was in 1998 on a total value of 108.5 million. EURO. The Patronage Convention of the Forestry Economy sustains the interest of all sectoral associations, including the Associations of the Forestry workers of Romania (ASFOR), which operate especially at level of forest exploitation. About 2.5 million ha agricultural lands are highly degraded and need afforestation. In accordance with the long-term forestry development strategy, the main objective is represented by the increase of afforestation degree, from 27 % in the present, up to 35 % of the country total area.



Exports of wooden products, excluding furniture, recorded in 1997 a value of 2,449, 538 million lei, out of which those with the European Union had a share of 31% (756,715 million lei) At the moment, the forestry sector faces the problems created by the application of Law no. 1/2000, on the reconstitution of the ownership right over agricultural and forestry lands, which is applicable until the 31st of December 2001, as a result of a prologation of the applicability period. Due to the complex issues related to the identification of the former locations and to the compensations to give for the areas which are not subject retrocession and for the forestry cadaster, and also due to the difficulty of constituting the private administrative structures, it is difficult to estimate the period of time necessary for finalising the application of Law no. 1/2000. Until the 31st of December 2001, we expect to achieve the following objectives: � For communal forests 95%; � For the physical persons’ forests 60%; � For the forests belonging to the associative ownership forms 60%; � For the forests belonging to parishes, hermitages, educational units 80%. The total surface of the forestry fund and of the forest of 6,342,538 ha, parceled out by counties and ownership forms, is laid down in Annex 64. The application of Law no. 18/1991 of the forestry fund in forestry reached the following stage at the end of 1999: �438.272 ha represent the surface required by the Local Commissions; �3.744.008 ha represent the surface validated by the County Commissions; �366.240 ha represent the surface accepted by the Forest Directorates. �the surface not accepted by the Forest Directorates and in litigation at the moment - 8168 ha; �the surface not accepted and in progress of being solved in the court of law – 625 ha. According to the estimations of the MWFEP on the basis of the application statistics of Law no.18/1991 there are approximately 500.000 reconstitution ownership deeds for forest surfaces. According to the estimations, when the application of Law no. 1/2000 will be finalised, there will be at least twice more of these ownership deeds. Also according to the estimations, as a result of the comparison with the inter-war period, approximately 2500 associative forms will be constituted, taking into account that the reclaimed surface represents about 725.000 ha of forest. For the communal forest the ownership right will be reconstituted for approximately 1500 communas. During 1990-1999, National Company of Forests implemented an afforestation program, thus obtaining every year significant surfaces located in almost all Romania’s counties, as well as a program of building forestry roads. MWFEP and the National Company of Forests posses in their patrimony several first processing units and processing workshops, as following:



Centers for wood processing

No. County Number and types of the centers

1. Forest Directorate Alba 4 saw-mills

2. Forest Directorate Bacau 2 timber factories, 2 proccesing worshops

3. Forest Directorate Brasov 2 saw-mills

4. Forest Directorate Mehedinti

1 proccesing worshop

5. Forest Directorate Vrancea 2 proccesing worshops

6. ICAS 2 proccesing worshops

7. Forest Directorate Harghita 1 proccesing worshop 8. Forest Directorate Bihor 4 saw-mills

9. Forest Directorate Neamt 1 proccesing worshops

10. Forest Directorate Prahova 3 proccesing worshops, 2 saw-mills

11. Forest Directorate Covasna 2 proccesing worshops

12. Forest Directorate Sibiu 1 proccesing worshop

13. Forest Directorate Ialomita 2 proccesing worshops

14. Forest Directorate Suceava 1 saw-mill

15. Forest Directorate Gorj 1 proccesing worshop

16. Forest Directorate Mures 2 saw-mills

Total 2 Timber factories, 15 saw-mills, 18 workshops

5. ENVIRONMENTAL PROTECTION

Air as environmental factor Air is subject to an intense pollution, especially in the areas situated in the neighbourhood of industrial units that apply obsolete technologies and do not dispose of installations for cleaning the pollutant emissions. For the entire country, average annual emissions compared to the number of inhabitants are close to the European average, and for some substances (CO2) being below the EU countries’ average. This is also due to the reducing of the economic activity after 1989, namely the closing of some industrial factories and of some animal husbandry units and the introduction of non-polluting technologies. Main pollutants compared Romania-EU

kg/inhabitant/year

Pollutants

SOx NOx CO CO2 CH4 N2O NH3 C

Specific Emissions (Romania,1994)

40 14 106 5,400 67 4.6 10 1,472

Specific Emissions (UE 12, 1990)

36 37 137 8,822 61 3 12 2,300

Source: Rural development Rapport Romania, vol.2, 1998, Phare project.



A summary of Romanian air quality data for 1995, 1997 and 1998 is given below: � 29 localities of the 87 monitored exceeded the EU SO2 24-hour limit value of 125

µg/m3, two of these, Baia Mare and Zlatna, by considerable amounts;

� 13 localities of the 76 monitored exceeded EU NO2 annual limit value of 40 µg/m3, seven of these above the limit value plus margin of tolerance;

� 31 localities of the 55 monitored exceeded Romanian annual particulate standards of

75µg/m3; � 4 localities of the 5 monitored exceeded the EU annual lead (Pb) standard of

0.5µg/m3. Water as environmental component

About 6.5 mil tones pollutant substances are froth-over in water courses every year, among which we can find chlorides, organic substances, ammonia, suspensions, phenols, detergents, pesticides, sulphur- hydrogen. Major pollution sources are the industrial discharges of residues, and from the animal farms, from households etc. Although on 31 Dec. 1997, there were 3,116 waste water-cleaning installations, 1,654 were not operating at the established parameters or they do not work at all (CNS data, 1998). The analysis of the short term evolution (see Annex 64) trends for water quality, performed by comparing the situations in 1997 and 1998 pointed out that most of situations remained basically unchanged-over 82%, and worse and better situations were evenly distributed: about 9%. Hydrographical basins with the longest “degraded” watercourses compared to the total length of the river are Ialomita (with its tributaries Prahova and Dambu), Prut (with Jijia, Bahlui), Mures-Aranca (Aries, Geoagiu, Ampoi, Tarnava Mica, Tarnava Mare), Siret (Barlad, Ramnicu Sarat), Somes (Sasar) and Olt (Cibin) see Annex 65. Hydrographical basins that include river courses with large portions of category III water quality are Olt, Prut, Siret, Arges, Jiu, Bega-Timis, Mures-Aranca, Somes (see Annex 66). The global quality of River Danube in 1998, due to high water flows providing an appropriate dilution, met the standard (STAS 4706/1998). Yet, a certain quality deterioration was registered, due to waste water eviction, both upstream from the point where the Danube is entering Romania (Bazias), as well as on the Romanian territory, through diffuse pollution due to its tributaries: Jiu, Olt, Arges, Ialomita, Siret, Prut; eviction of non- or poorly treated waste water by some economic units and due to eviction of municipal waste water coming from towns located on the Danube riverside (Drobeta Tr. Severin, Braila, Galati, Tulcea) and which do not have waste water plants (see Annex 67). Soil as environmental component

Soil quality deterioration degree through erosion, acidifying, alkalisation, humidity or draught excess, marsh land, salty land, compaction, chemical pollution with pesticides, heavy metals, petrol, flours, etc., determine land’s suitability for multiple uses and soil adequacy for different plant crops and their ecological function (Annex 68). About 3.7 mil. ha. of the 9.5 mil. ha. arable lands meet the requirements for a sustainable and efficient agriculture.



The chemical pollution of the agricultural soil is affecting 0.9 million hectares of agricultural land and 0.3 million hectares of forestland and pollution by oil and salty water is affecting about 0.05 million hectares. Pollution by waste landfills is affecting 11.09 million hectares of land. The salty lands are occupying 6.3 million hectares, the wind erosion is affecting 0.4 million hectares, water erosion 6.3 million hectares, the land slides over 0.7 million hectares, and soil hardening about 6.5 million hectares. The periodical humidity excess is affecting 3.8 million hectares of agricultural land and 0.6 million forestlands, and the excessive drought is affecting 7.1 million hectares of agricultural land and 0.2 million hectares of forestland. Other 0.32 million hectares are affected by the excessive skeleton content in the upper layers of the soil and by drainage works. Therefore, the most important problem is the soil erosion, which affects 7 mil. ha agricultural land and which has the tendency to expand and intensify. The wind erosion of soil on 378,000 ha. has the tendency to expand due to the deforestation of some woods and deforestation of some forestry protection curtains in the regions which are exposed to the danger of soil being swept away. (Annex 69). Forests as environmental component

In Romania the total national forest area is of 6.37 mill. Ha, representing 27% of the country surface. The total volume of wood stock is of 1.350 millions cubic meters (of which: 39% conifers, 37% beech, 13% oak, 11% other broadleaf) and average volume of present wood-stock cut is of approximately 14 millions cubic meters. There is an emerging process of forest degradation in Romania, because of deforestation, which has led to erosion and desertification phenomena of some slopes. Another cause of decrease of the wood stock is the industrial pollution, which gave way to acid rains and implicitly to the phenomenon of the forests drying. Thus, on 5.5 % of the area, the forests are affected by polluting factors and these forests are located mainly in the counties: Sibiu, Arges, Suceava, Neamt, Brasov, Teleorman, Dambovita, Ialomita, Hunedoara, Gorj, Caras-Severin, Maramures, Cluj, Salaj. The highest share of defoliation of forests is in the drought zone, the most intensive one being that with the lower degree of afforestation. Concerning all the inventoried tree species in 1998, it can be stressed out that 87.7% are included in the 0-1-defoliation class, and 12.3% in the 2-4 classes. The plains have a forestation percentage of about 7%; considered insufficient for the conditions in our country (the optimum forestation percentage in that area is estimated to be about 15-20%). Presently, Romania is considered, according to the international criteria, a country having moderately affected forests. As regards the forest-covered area, Romania is better situated than countries as: Albany, Bulgaria, Czech Republic, Slovakia, Hungary, Austria, Denmark, Greece, Holland, United Kingdom (see Annex 70). The situation of the game fund started stabilising since 1997.



Status of natural habitats; flora and fauna

The natural and half-natural ecosystems are representing 47% of the country area. Because of the studies performed within the CORINE Biotops Programme, 783 habitat types were identified in 261 country areas all over the territory. In Romania, 584 natural protected areas were established, covering an area of 1140590 hectares, in accordance with the norms of the International Union for Nature Conservation and based upon the studies performed by the Romanian Academy. Status of solid waste

In 1997, in Romania, the waste materials accounted for 217.5 million tones; in 1998 this quantity was reduced with 10-25%, due to the economic recession. From the total waste agricultural wastes represents – 2%. The main type of agricultural wastes is chemical (organic and inorganic). The chemical wastes (organic and inorganic), summing up 2.6 mill tones in 1998, include numerous types like: residual acids, residual bases, salt wastes, wastes with metal content, wastes with halogen content, wastes with phosphorus, wastes with nitrogen content etc.

6. ADMINISTRATIVE CAPACITY

6.1. INSTITUTION - CONSISTENT IMPLEMENTATION OF THE

GOVERNMENT’S PROGRAM Agriculture is a national strategic priority in the social and economic development in Romania. Basic reform in agriculture has been a policy priority of the Romanian government in the social and economic programme. The measures proposed at the beginning of the new government mandate were exactly the measures taken during the period 1997-1999, and whose estimated impact will be: � Provide incentives for agricultural production (agricultural tax was cancelled until 2000); � Setting up land market mechanisms, stimulate competition and strengthening rural

households: - Restitution of land to previous owners, and for those who have litigation; issuing of land titles; - Land transactions; - initiation of a special program for privatisation and restructuring;

� reform of the agricultural financing system: - non-administrative price setting system; - mechanism of financing agricultural campaigns with a minimum of financial resources in 1997; - meeting the requirements of macroeconomic stabilisation.

� adopting measures for local development and initiation of programmes to create new jobs in the non-agricultural sector in the countryside.



The Programme of Macro-stabilisation and Development of Romania until 2000 starts from the principle of making agriculture a key generator of value added the basis of private ownership strengthening and market-oriented mechanisms. This policy objective is to form commercial family farms by supporting performance and competitiveness in order to provide national food security. Being aware of the inherited limitations (lack of own financial resources, severe deficiencies in infrastructure, poor institutional organisation, lack of a strategy concerning agricultural production integration), the Government propose is to approach agricultural policy, based on the following:

�agriculture – factor of economic growth; �an important production in a free domestic and foreign trade environment; �discontinue the centralised financing schemes and support agriculture only through �transparent budget expenditure; �privatisation, de-monopolisation and competition incentives; �free land circulation; �development of the middle class in the countryside; �a coherent legislative framework;

Efficient use own domestic resources based on the principle of Romania’s own comparative advantage. According to the Government Programme for 1997-2000, the following measures have already been applied: �the preparation of an agricultural law reform; �freeing of domestic and foreign trade regimes (reducing import taxes and elimination of export incentives); �changing the incentive framework (reducing the role and volume of directed credits); �redefine the Ministry’s role in order to increase its ability to elaborate and implement agricultural policies; �carrying out a restructuring and privatisation programme for State companies; �analysing the operational and institutional agricultural framework and its relations to local and central administrations; �export incentive facilities; MAF participation in the Inter-ministerial Working Group for Rural Development. Other measures included in the same programme are under preparation and are considering: �The incentive framework

-development of a scheme for guaranteed credits to agriculture; -development of a mutual agricultural credit scheme; -promoting an agricultural insurance scheme; -setting-up national extension service network; -supporting the setting-up of agricultural production associations/co-operatives (formed on the principle of input supply and output marketing);

�Development of commodity specialised exchanges; �Rural development policy:

-appropriate infrastructure; -development of small and medium sized non-agricultural enterprises; -supporting the creation of jobs for women and youth; -environmental protection;

�Redefining the co-operative system.



6.2. GUIDELINES OF THE REFORM PROGRAMME FOR YEAR 2000

The MAF policy will aim to speed the reforms started (discontinuing subsidies accompanied by transparent measures, adjustments in trade regime, privatisation), in order to provide food security and encourage exports. Private sector development:

�consolidation of land ownership; �small farmers support through an input voucher scheme (3000 billion lei); �supporting through cheap credits the formation of larger commercialised farms; �Encouragement technology transfer through investment. �Finalising restructuring process of Agricultural Regies Autonomes in two stages:

I. turning them into commercial companies; II. starting the privatisation process for national agricultural societies/companies

following detailed analysis;

�privatisation of certain state activities in the sanitary-veterinary field; �restructuring agricultural research activity (changing the profile of agricultural research stations; reducing their number and area). Market Regulation

�short term revolving credit for financing agricultural works (1500 billion lei); �subsidising (37%) certied seed prices; �subsidising part of the storage costs for wheat and maize (300 billion lei); �export premia for maize (150 billion lei); �revolving credit for the “Wheat Fund” (700 billion lei); �encouraging agricultural production pre-financing schemes (including the introduction of warehouse receipts). Rural Communities Development

�detailed studies and programmes for rural development based on various strategies such as implementation of SMEs and job diversification; �programmes for encouraging young farmers to work in agriculture (through indemnities). In order to create the rural development fund, the World Bank is preparing a project of 200 million $. Special Measures

�solving the debt problems of agricultural and agro-food companies; �encouraging the formation of professional and inter-professional organisations for the purpose of achieving of the common objectives in up-stream and down-stream of the agricultural activities; �speeding up institutional and legislative harmonisation to EU standards.



6.3. THE DEVELOPMENT OF THE NEW FUNCTIONS OF THE MINISTRY OF

AGRICULTURE AND FOOD

In the Government Programme concerning agriculture and the food sector, there is a section related to institutional reform of MAF and its territorial structures. This is necessary to speed up the reforms and to bring about the convergence of legislation and agricultural policy measures with those used by in EU countries. Government Decision (GD) No.390/07.1997 and after through Government Decision no. 6/1999 approved an improved form of MAF organisation and functioning. It should be mentioned that compared to the previous MAF organisational structure, the new one has General Directorates, Directorates and Departments with new responsibilities including: rural development, agricultural and food policies, fishing and fisheries, services for farmers and an agricultural policy advisory unit. A Directorate of Rural Development is included within the Ministry’s responsibilities for the first time, as it is believed that this domain is a key component for the development of agriculture on a sustainable basis. The importance of fishing was recognised by setting up the “Directorate for fishing, fisheries and inspection”. In order to have a realistic overview on changes in food production, ranging over the whole food chain from raw material supply to the marketing of processed products, the Directorates for crop production, animal production and food industry were unified into one single general directorate for agriculture and food policy. Agricultural policy measures are grouped on a product or groups of product bases, as is done in the EU. Improving the flexibility and performance of the Ministry structure is a permanent objective requiring changes to the structure as and when necessary. We point out that, in the future, the MAF structure is going to be modified in order to correlate it to the new requirements imposed by SAPARD Programme “Implementation System”, programme which is to start in the year 2000. Until the beginning of the year 1999, the problems of the rural development were solved punctually at the level of the various structures of the central and/or local public administration, depending on their characteristic feature. Thus, between 1990-1998 the development concerned the following institutions: � The Department for Local Public Administration-regarding certain attributions of

administrative nature; � The former Department for monitoring the reform within the Council for Economic

Reform subordinated to the Romanian Government, which has disappeared since 1999. Some of its attributions regarding the rural area were taken over by the National Agency for Regional Development, which has as main attributions: the elaboration of the strategy for regional development, which includes the territorial and functional compartments of the rural area; the promotion of the horizontal and vertical between the existing administrative structures; the co-ordination of appliance of the National Plan for Development, a complex document containing also the National Plan for Agriculture and Rural Development, for the purpose of correlating the foreign assistance granted to Romania by the European Union.

� The Romanian Agency for Development, responsible with the promotion of the foreign investments;

� The Agency for Small and Medium Size Enterprises, an institutional structure newly funded, starting with the year 1999;



� The Ministry of Agriculture and Food; � The Ministry of Public Works and Land Arrangements for developing certain local

infrastructures in accordance with the general programs for land arrangement; � The Ministry of Water, Forests and Environmental Protection which is responsible

for the development of the general policy and the national legislation in the field of environmental protection.

Within the institutional reforms initiated by the Romanian Government starting with the spring of the year 1999 it was set up the National Inter-ministry Committee for Agriculture and Rural Development, which chairs the Ministry of Agriculture and Food. The attributions of this institution are co-ordinating the national effort for the elaboration of the strategy of development of the rural area; the elaboration of the National Plan for Agriculture and Rural Development, as a basic document for the implementation of SAPARD Program. It is to be mentioned that on 7th September 2000it was passed by the Romanian Parliament the Law no. 157 regarding the National Plan for Agriculture and Rural Development adherent to the SAPARD Program for its co-financing from the state budget. In this respect it has been drawn up the Ordinance of Emergency no. 142 regarding the setting up organisation and functioning of the SAPARD Agency for the technical and functional implementation of the Program that is to be presented and approved during the session on 14th September 2000 of the Romanian Government. MAF legislative initiatives

The government strategy concerning the structural transformation in Romanian economy began to be applied in 1997. In the agricultural and food sector it was carried out by promoting and supporting regulations to admit and rebuild private ownership in agriculture, to create a land market, to open the capital market and to create the legislative framework to sustain the reforming programme of the Romanian Government. The adoption of Law no.167/1997, which modifies and completes the land law no.18/1991, was very important. In working out the law, the ministry specialists took into account land ownership rights, and the need to remove the numerous impediments and abuses that prevented the application of the Law no.18/1991. In order to settle the restructure of the ownership relations in agriculture on a new basis, the Government, through MAF promoted legal changes concerning the circulation of land and the modification and completes of the land leasing law no.16/1994. These laws have already been adopted. For agricultural producers financial support measures were promoted and adopted in several laws, among of which a very significant one is Law no.62/1997 - to approve the Government Emergency Ordinance no.6/1997 regarding the constitution of a 550 billion lei MAF Fund to finance the agricultural works. Based on this, special credits were given for the following crops: wheat, barley, sugar beet, sunflower, potatoes, vegetables, vineyards and orchards. Another important and very successful measure was the Government Ordinance no.6/August 18-th 1997, through which farmers were given more than 1300 billion lei, within the voucher scheme. The amount for vouchers was allocated from the state budget and based on the given coupons farmers were financially supported to pay the costs of the following inputs: seeds, seeding material, fertilisers, pesticides, fuel or mechanical works for sowing and the cultivation of crops, including the grassland and hayfields. We mentioned that this initiative were repeat in 1998 and 1999 and will be also in 2000.



6.4 STATE PROGRAMMES AND ASSISTANCE REGARDING

RURAL DEVELOPMENT Actions undertaken for financial aid of agriculture from the State budget and from other resources In the European Union Members State, the policies aiming at supporting the agricultural producers represent key mechanisms through which interventions are applied in agriculture. At the same time, the payment which are made represent a way of recognition by the entire society, of the place and role of agriculture sector in the economy. By analyzing the policy of supporting the agriculture in Romania in the period of transition we may sum up the following: In the entire period of transition, the volume of subsidies which the agriculture sector has benefited of, was rather big, function of these mechanism that were practised and function also of their inefficiency and lack of viability. Despite these support the Romanian agriculture has remained in a precarious situation from the following reasons at least:

-The greatest part of this support went towards the segments placed upstream agriculture, in the conditions of which the state was dominated by these segments; -Very often there were subsidised some state farms which were inefficiently and in many cases the value of the subsidies which were granted, were higher than the value that these units could add; -In general, rather many interdictions were used in the case of exports, while the imports very rarely were applied protectionist policies; -the policy of currency exchange rate was a policy of over evaluating the national currency(leu);

In the presentation of the state policies of supporting agriculture since 1999 to the present date, three phases being presented bellow: 1991-1992 – The first state aids were under the form of price differences granted to the processors from the food industry started in the period 1991-1992. This period situated at the beginning of the transition was characterised by the lack of confidence in the market forces and the fact that the majority of producers and agricultural intermediaries were represented by the state enterprises. The biggest shortcoming of these policies was that the agricultural producers were not directly implied. The bonuses granted during this period were established by Law 75/1990, Government Decision no. 1109/1990, and Government Decision no. 464/1991. The total value was of US$ 230,205 thou. in 1991 and of US$ 533,764 thou. in 1992. 1993-1996 – This period is characterised by a diversification of the forms and types of State aid granted to the agricultural producers and the breeders of animals. Starting from 1993, the State has introduced a more liberal form of financial support by creating a genuine maze of subsidies applied to the prices of the input and of agricultural products. The legislative framework regarding the support of agricultural producers was conferred by Law no. 83/1993. This law regulated the appropriations, the subsidies to the interest for production and investment credits, bonuses for output and the compensations, the fiscal advantages, the warrantees for obtaining the credits, the remunerative acquisition prices for the agricultural products of national importance and the granting of speciality technical assistance. However the “entrance” into the system was possible only under the condition of complying to the prices administratively set up for the producers, followed by the observance of the additional prices and of the retail prices. All these were being under the control of the processors and of the wholesalers who bought subsidised products. The main forms of the support granting during this period were:



-bonuses granted to the agricultural producers which were comprised in the acquisitions prices for cows milk, animals and live poultry; -bonuses included in the acquisition prices which were received by the agricultural producers for wheat, maize, and barley ; -subsidies for imported fodder and for covering the differences of currency rate and of the interest to the imports of fodder performed through foreign credits. These subsidies were established through Decision of Government no. 72/1992 and the total amount of the subsidies was in 1992 of USD 48,765 thou; -appropriations for upgrading the productiveness of agricultural lands by granting free of charge of chemical fertilisers on the basis of fertilisation and land melioration programmes;

*USD Thou.

1994 1995 1996 1997

80,015 88,556 67,153 26,838

-subsidies for procurement and maintenance in exploitation of reproduction animals, granted to the agricultural producers;

*USD Thou.

1994 1995 1996

66 4,261 4,967

-subsidies representing up to 70% or 60% of the credits for the procurement of agricultural equipment, agricultural machines, supply with materials and for the extension of agricultural holdings, setting up of agri-foodstuffs stocks; -subsidies granted for setting up of agri-foodstuffs stocks, established through Government Decision no. 426/1995, Emergency Ordinance of the Government no. 7/1996 and Emergency Ordinance of the Government no. 11/1996, the total amount being of:

*USD Thou.

1995 1996 1997 1998

2,126 48,061 26,649 470

-subsidies granted for short term credits regarding the supply with materials and achieving of agricultural production:

*USD Thou.

1994 1995 1996 1997

70,424 70,686 45,772 19,686

Another way of direct support by the state of the agricultural producers is to be found in the provisions of Law no. 50/1994 regarding some measures of organising the activity of land improvement, the expenditures for electric power consumption, and maintenance expenses, repair of land improvement works. The above mentioned expenditures were totally supported from the State budget, as follows:

*USD Thou.

1995 1996 1997 1998

75,863 66,511 38,225 43,918



The main feature of the State aids of this period was the support of agricultural producers through the intermediary of the processors with the condition of selling the products at prices administratively established. In fact, the system intended that the products sold through the control of the state should rich the consumer at small prices. This mechanism eliminated however the emerging private competition. While within the agriculture were being consolidated the subsidising system, the rest of economy, which was undertaking huge efforts of adjustment to the requirements of the domestic and of the international market more and more isolated the sector. Thus, due to the liberalisation of the price of the credit the cost of the interest rate influenced also the size of the financial profit of state farms. Under these conditions the supply of the subsidised rural credit proved to be a difficult problem, because the sum needed for subsidising of the interest, represent a hard burden for the budget. For the sustaining of these policies since 1999, the Government took the Decision to finance these transfers through the tools of the centralised planning. The standard mechanism was that central bank, respectively the National Bank of Romania, should issue credit lines to the Bank of Agriculture, so that these credits be directed to agriculture with real negative interest rates. 1997-1999 After 1997, the modality of subsidizing the agriculture was changed, an emphasis being laid on the direct support of agricultural producers (in their majority physical persons). Since 1997 the loans with subsidies interest were no more appropriated from the sources of National Bank of Romania, but included in the budget of the Ministry of Agriculture and Food. It was brought into practice a system of payment based on value vouchers with transparent financing from the state budget. To this end, it was passed the Law 193/1997, which repealed Law no. 83/1995. The vouchers represent valuables that are granted free of charge to the agricultural producers (physical persons) who are entitled with ownership rights over the agricultural lands of at least 0.5 ha. The value of each voucher was of 10 Euro/0.5 ha. and gave the beneficiary, namely land owners, the possibility to pay part of the agricultural farming works, fodder, medicines, chemical fertilisers, diesel oil. For the year 2000, Ministry of Agriculture and Food, advanced a modified systems of vouchers, namely that the beneficiaries of the vouchers shall be physical persons, owners of agricultural land, who directly farm arable lands, orchards, plantations of noble vine and/or milking cows or buffaloes. The beneficiaries can also be the agricultural companies set up according to the Law no. 36/1991, as well as, set up according to the Law no. 31/1990, and the tenants physical or legal persons, the religious establishments, which are farming the agricultural lands. The sums appropriated from the budget for the voucher system are shown in the table bellow:

*USD Thou.

1997 1998 1999-until 3nd Dec. 1999

183,750 305,565 194,656

In 1998 and 1999 through the Decision of the Government 49/1998 and respectively Decision of Government 32/1999, the agricultural producers were sustained to stock their

wheat – free of charge – in specialised silos, the state budget bearing the expenditures adherent to storing, respectively US$ 5,042 thou. in 1997 and US$ 3,873 thou. in 1998. Since 1998, through Law 165/1998, which established the setting up of a special fund of the Ministry of Agriculture and Food for sustaining the agricultural production, it was created the possibility of supporting the private small agricultural producers. This support



consisted in both granting of credits, and in the facilities related to these credits (interest is borne by the state at the level of 70% if the loans are reimbursed according to the paying back schedules). In 1999 through the Decision of Government no. 36/1999, there were granted credits with

subsidised interest for the procurement of tractors, combine harvesting, and irrigation equipment and of the construction of greenhouses. At the same time, it was continued the policy of granting bonuses to the agricultural producers for wheat, pork and poultry meat. */ For that period 1 USD could be approximate with 1 EURO.

Government policy for supporting the agricultural producers will be, in the future, focused in the following directions: �development of viable and efficient farms; �supporting the agricultural producers who live in economic and social lagging areas or in areas which are less favoured from climatic and environment view points; �developing an agricultural environment, able to prevent depletion of soil resources and improve soil productiveness; �improving the rural infrastructure of agricultural production able to offer the prerequisites for generating higher incomes to agricultural producers and finding out modalities for making use of local human and material resources, in order to obtain ancillary incomes from non-agricultural activities; �initiation of actions for the establishment (at the beginning in pilot areas) of ecological agricultural production. Main actions with financing from the state budget an from other local sources in the latest two years (since January 1998), there were set up into direct support for the farming crops (the system of agricultural vouchers) or bonuses and have covered partially the needs of the agricultural producers.

Budget of the MAF by the category expenditures Th. EURO

Indicators Budget MAF

1998

Budget MAF

1999

Chapter – Agriculture and Forestry-Total 451,155 298,428

Expenditures. with the staff 58,138 53,065

Expenditures with materials 22,682 18,416

Subsidies 55,846 58,545

Bonuses 16,286 20,945

Transfers 277,540 131,500

Out of which vouchers 271,484 129,536

Expenditures with the capital 16,306 11,285

Reimbursement of foreign credits 4,354 4,670

CHAPTER- other economics actions-total 130 55

Control of feats and freezing 130 55

Chapter scientifically research 70 49

Expenditures for financing the Bank of plant genetic resources in Suceava

70 49

Chapter- Loans 70,070 36,082

Loans for crediting the agricultural producers 70,070 36,082

Total budget 521,426 335,354 Source: Ministry of Agriculture and Food



The financing manner of the agricultural sector until the year 1996 involved the constant injection of significant public money funds from the state budget and from outside budget, with the declared purpose to provide producers with cheap credits. Transfers from the budget were supplemented with less transparent funds (quasi – fiscal), in the form of directed credits, re-funded by the National Bank, at a negative interest rate in real terms. Such practices contributed substantially to the deterioration and the tensioning of the macroeconomic situation, with the climax in 1996, the year when the total support granted to agriculture from budgetary resources and in the form of transfers from outside the budget reached 3.85% of GDP. The volume of these transfers was very high compared to the real possibilities of Romanian economy and, as a result, in 1996, for agriculture funding, it was resorted to inflationary money issue. Until the spring of 1997, the system that furnished short term credits to agricultural producers was lumpy and inflationary, and the input distribution market for agriculture was dominated by the integrator-type commercial companies, with mostly state capital. The funds allocated to agriculture funding were concretely used mostly in the state sector. Although it ensures 80% of the branch’s production, the agricultural private sector only received about 20% of the budgetary and quasi-budgetary transfers in the form of interest subsidies for the entire period of the operation of this mechanism. Beginning in1997, the government agricultural policy followed two objectives: - That the financial support of producers is carried on in a transparent manner and in a

non-inflationary manner, from real resources, by the elimination of the inflationary directed credit, refunded by Romanian National Bank (RNB), and the inclusion in the budget of the sums for the entire financial support;

- Those subsidies granted by the public authority reach directly the agricultural producer in the form of direct payments.

Budgetary expenditure was in 1997 of 4,760 billion lei (almost 1.8% of GDP), the share of subsidies, premiums, and transfers representing more than 65%. Beginning 1999, the subsidies were re-orientated toward agricultural input markets, storage and agricultural credit, but in a different form, with the goal to try to avoid the negative effects of the type of those effects that occurred in the previous years. In 1997 a new expenditure chapter was introduced in the structure of the MAF budget, for the benefit of agricultural producers, “Credits from budgetary resources”, which included the fund for financing agricultural works and the wheat fund, which accounted for 22% of the MAF budget for 1997. Taking into account the experience of 1997 year, in 1998, the sum allotted from the budget was 700 billion lei for the funding of expenditure in the crop and animal breeding sectors. The latest scheme for subsidising private farmers was the voucher scheme, initiated in the autumn of the year 1997. This was the answer chosen by the Government of Romania for the problem of changing the input marketing from integrators to wholesales and retail private chains. On the other hand, the government considered necessary to maintain even for a limited period the subsidies for agriculture, but especially to preserve their orientation towards private agriculture, which although also dominant, benefited until 1997 from subsidies incomparable lower than the state agriculture. For the implementation of the voucher system, MAF fundamental option was that the vouchers be granted to all



agricultural private landowners, according to the area. The vouchers’ share in the total MAF budget was 28% in 1997, 52% in 1998 respectively 41% in 1999.

Actions for community financial support

The main actions undertaken with Community support in the latest years (since January 1995) in the agriculture rural development fields are those carried out through non-reimbursable financing programmes of European Union of Phare-type. Phare funds for agriculture and rural development have been operated through: PMU – Administering Unit for Phare Programme -within MAF; FIMAN – the International Foundation for Management – through FIDEL programme – Programme for Small and Medium Enterprises and Regional Development; MPWLA - Ministry of Public Works and Land Settlement;

Phare Funds granted through PMU U.E assistance granted to Romania’s agricultural sector through MAF Phare Programmes began in 1991.

Phare Programmes carried out through MAF

Year

Value

No.

Programmes/

Sub-

programmes

Programme name

1991 39 MECU 3 General technical assistance for Romania; (PATG)

Agriculture supplies; Urgency imports for the food industry;

1992 32 MECU 1/9 Technical assistance for the privatisation of agriculture and food industry

1993 5 MECU 1/2 Support for land reform

1994 - -

1995 10 MECU 1/4 Agriculture and rural development programme

1996 - -

1997 4 MECU 1/2 Harmonisation of Romanian standards with the UE standards regarding the agri-

food field

Total 90 MECU 7/17

The mains activities supported by Phare were targeted towards: (i) Support for land reform, for the registration of property and for the territorial

informational system. EU allocated for this objective 10,2 MECU; the support consisted of: Technical assistance for the know–how transfer, the computerised data organisation and management



Purchasing of equipment and software necessary for the territory informational and for the registration system. Thanks to the supplementary equipment and of the know-how transfer, the land reform registered a progress. Until July 1997, 99% of the provisional titles have been released (as receipts) and 68% of the ownership titles. This Programme also provided support for land evaluation. (ii) Support for agricultural policies

In order to assist Romanian MAF for the formulation of a coherent strategy for a private agriculture in a market economy, UE provided the necessary counselling services through its experts. In 1991, PATG included “Policies and Strategies Cell” chapter, in value of 1,2 MECU. The project’s aim was to grant technical assistance, at MAF request, for the elaboration of agricultural policies. In 1995, the project called “Adjustment of agricultural sector and policy support”, in value of 2,8 MECU took place. Within this programme, “EU Integration and Agricultural Policy Reform” is a sub-project with a 1 MECU budget, of which objective was to support MAF through a training and technical assistance programme offered to teams involved in the preparation of negotiations for UE accession, in order to determine the necessary actions and the Phare assistance necessary for the harmonisation of legislation and standards in the context of European integration, in order to disseminate information regarding agricultural policies. (iii) Improving the efficiency of agricultural markets

For the accomplishment of this objective, Phare granted support for: Setting up distribution channels as well as Setting up an informational system for the agricultural market In 1992, there was provided the project called “Distribution channels”, in value of 4.6 MECU. The sub-project, which had as aim the setting up on the markets of private distribution channels was finalised by the creation of 6 pilot markets of which operation had to begin until the end of 1995. The value of this sub-project was of 2 MECU. Vegetables, fruit, cereals and animals markets were established; a cereal and meat commodity exchange was also set up. Due to the inadequate legal framework, 5 out of the 6 newly created markets interrupted their activity. Market informational system was set up in order to offer market information and information about the agricultural prices for the entire country products to farmers, businessmen and public administration. The sub-project that contributed to the attainment of this objective was in value of 2.6 MECU and had the following components: technical assistance for the project design, training for operators and equipment endowment.

Technical, legal and financial assistance granted to private farmers

Farmers need help in order to operate in a new market-oriented environment. This support consists of: a. Agricultural extension services



In 1992, the project “Assistance for service development and information dissemination”, with the objective to ensure technical assistance for the development of a specialised service network, was in value of 1.9 MECU. In 1995, the “Agricultural extension” Project in value of 3.5 MECU was launched. The results of this project were the set up of a demonstration farm and of the National Agency for Agricultural Counsultancy – ANCA (in October 1998). b. Crop prognosis system: In 1992, the “Agricultural prognosis system”, pilot project – 670 thou. ECU, had as objective the use of the Tele-detection system in combination with land analysis, in 17 counties. The Romanian Centre for Tele-detection Use in Agriculture was set up, which is now an independent body, which offers MAF information on contract basis. In 1995, “Crop prognosis systems” – 1 MECU – proposed the development of the system at national level, the consolidation of the responsible institutions and the enlargement of informational product series in the reporting domain (agricultural prognosis) and in administrative domain (fertilisation, irrigation, soil protection). c. Agriculture in mountain areas: In 1992, through the sub-project “Agriculture in mountain area” - 950 thou. ECU. The result was the non- reimbursable credit funding of 61 small and medium societies (associations and private persons) in 4 counties.

(v). Setting up of a Rural Credit Guarantee Fund through the project “Agricultural

credit” in 1992, in value of 9 MECU. The insufficiency of capital and the limited access of private farmers to credits are the two main obstacles for the underdevelopment of the agricultural sector. The setting up of the Fund aims at supporting Romania’s development of a private agriculture, by offering bank guarantees to small and medium enterprises in rural areas for the obtaining of medium and long term loans necessary for financing the new investments for agriculture in the production, distribution, processing and services segments. The fund operates through 4 banks that take part in the scheme: Agricultural Bank, Romanian Commercial Bank, Romanian Development Bank and Bankcoop. The fund can guarantee up to 60% of a loan, while banks that lend money can support the risk for at least 40% of the loan. UE contributed by 9 MECU for the setting up of the Fund and offered training for the bank personnel for the administration of the fund through another project that carried out in 1992, “Bank Training”, in value of over 1MECU.

(vi) The setting up of Consultancy Centres for farms and agri-industry enterprises.

In 1992 there was the “Farmers and farm business” Project, in value of almost 3 MECU. The result was the setting up of a private and independent Consultancy service for agriculture and agri-food companies that was able to offer its clients the knowledge necessary for the operation of a profitable farm. At the end of the 3-year projects, there were set up 16 private Consultancy firms in the country. Training, legal and financial assistance as well as a minimum endowment was provided through the project.

Technical assistance for re-structuring and privatisation Phare granted support for the acceleration of privatisation and the restructuring of the agricultural sector, through the following actions:



a. The privatisation of agri – industrial units An agri-industrial study has begun since 1991, with the objective: technical assistance for the rehabilitation of the processing industry of the agricultural products. Its value was 1,2 MECU and its results were the establishment of restructuring/privatisation strategy for 193 agri-industrial companies. In 1992 the project “Support for food industry” was implemented by which, 18 commercial companies in the agri-food field received special counselling support with a view to preparation for privatisation. As a result of this project, 6 companies have been privatised. Also, business plans for all selected companies have been prepared and contacts were established with the potential local and foreign investors.

In 1992 was carried out another Phare project “Privatisation/re-structuring ”, in value of more than 5 ECU including the sub-project “Training of managerial teams of commercial

societies in the food industry sector” (1.3 MECU) which had as objective the improvement of the efficiency of these companies for agricultural products processing by introducing a modern management, adequate for market economy. In 1995, there was initiated the project “Financial assistance for farms and private

industrial companies ” – 2.5 MECU. b. The privatisation of industrial units for fowl and pig breeding For the first time in 1991 the accent was laid on the supply in emergency regime of fodder for animals and the necessary equipment for supporting a sector which was under a crises. In 1991, through the programme “Agricultural supplies” with a budget of 25 MECU. The programme included 2 projects: “Agricultural supplies” – 15.8 MECU, with the objective to support animal breeding sector through the import of considerable quantities of products necessary for this sector. “Support for private farmers” - 9 MECU through technical assistance for the rehabilitation and reform of the livestock production, as well as for supporting the mechanisation of agricultural works. In 1992, the sum of 1MECU was allocated to the project “Privatisation of swine and fowl

breeding units”, in order to assist the privatisation process. c. Restructuring/privatisation of agriculture services. Phare granted technical assistance for the development and implementation of the policy regarding the soil preservation services, plant protection and sanitary-veterinary services, and animal selection and reproduction services, presently under the direct control of MAF. The main objective of these projects was the restructuring of the above mentioned services so that they should correspond to the needs of a market economy, respectively the privatisation of those activities that could develop in an efficient manner under private property. The projects were: In 1992, “Privatisation of soil and plant protection services”, with a budget of 530,000 ECU In 1992, “Privatisation of reproduction and sanitary-veterinary services”, -500,000 ECU. d. Restructuring and privatisation of ROMCEREAL – the monopoly in cereal trade



The Government admitted the need for restructuring and privatisation of ROMCEREAL, which represented a monopoly for cereal acquisition as well as a monopoly for input supply as compared to the ordinary producers. In 1995 the Government decided the transformation of ROMCEREAL on two levels: the National Agency for Agricultural Products (ANPA) and 41 commercial companies (COMCEREAL) involved in cereal trade. Phare supported the National Agency as well as local campaigns through two different projects. The first one, “Technical assistance for ANPA”, with a budget of 543,000 ECU had as objective the grant of technical assistance for the managerial team of a newly formed agency, in order to facilitate the future restructuring. The second project, “Technical Assistance for the restructuring/privatisation of Comcereal

commercial companies”, appeared because of Romcereal division, with a budget of 720,000 ECU and offered technical assistance for the restructuring of 5 pilot commercial companies. Results and estimations of the projects financed by Phare during 1998-1999 The projects financed by Phare for the agricultural sector during 1998-1999 were: RO-9704 Harmonisation Food Standards RO-9804 Institution Building RO- 9810 Twinnings And they had as main objectives accelerating the alignment process of Romania to UE standards in the fields:

- foodstuff standards - animal and plant health

as well as the development of the capacities of the Ministry of Agriculture and Food and of its structures for the implementation of the Community Acquis.

Programme Starting

date

Ending

date

Amount

(MEURO) Committ-ed

Reim-

bursed

Current

situation

RO-1704 31/01/98 31/12/99 4.00 100 21 In progress

RO-9804 30/09/98 31/12/00 4.79 06 0 Active

RO-9810.01.01

30/09/98 31/12/00 0.21 100 58 Active

TOTAL 9.00

For the projects RO-9804 and RO-9810 that are still in progress there has not been made till now an evaluation report * (* the source: Yearly Evaluation Report no. R/RO/ AGR/99085). Within the RO-9704 project it was initiated a general law of agri-food and it was adopted a legislation, which aligns Romania to the UE regulations regarding food labelling. Because of the delay in starting this project, there are no other results. The co-operation envisaged in the framework of this project and started by MAF with the Food Chemistry Institute was given up, and MAF is to find another partner.



Phare interventions envisaged starting with 2000 for the agricultural sector

Project denomination Total Twinning Technical

Assistance Investments

Support for agrarian policies 2.55 1.55 1.00 0.00

Agricultural statistics 2.60 0.60 1.70 0.30

Veterinary Acquis 2.90 0.60 0.30 2.00

Phyto-sanitary equipment 1.95 0.00 0.30 1.65

Wine Acquis 2.00 0.75 0.00 1.25

Foodstuff quality control 2.00 0.00 1.00 1.00

Animal identification 4.00 0.00 1.10 2.90

TOTAL 18.00 3.50 5.40 9.10

The Phare steering committee from Brussels has approved the proposal of the Financing Memorandum for year 2000. In the framework of this Memorandum there are including also the SHEETS of the Phare Projects for agriculture. The MAF will carry out the following Phare projects: 1. Harmonisation of legislation and increasing the capacity of communitary acquis management in the field of wines. This project aims at continuing and spending up of the legislative, institutional, and operational harmonization for compliance with the E.U. standards. Total budget – 2.5 mil. EURO 2. Agricultural and regional statistic The main objective of the program is to create the basis for the accomplishment of a sustainable agricultural statistical system, according to the principles of the communitary statistics. Total budget – 2 mil. EURO 3. Strengthening and development of the capacity of applying the acquis regarding the protection against harmful microorganisms. The project aims at implementing the communitary acquis in the plant – health sector. Total budget – 2.5 mil. EURO 4. Strengthening of the system of foodstuffs quality checking The general objective consists in continuing and improving the compliance of the procedures of checking the quality of foodstuffs to the communitary acquis. 5. Improving and harmonization of veterinary legislation and of the capacity of the appliance. The accomplishment of this project aims at continuing and improving the compliance to the communitary acquis of the standards and checking of hygiene and veterinary health. Total budget – 4.9 mil EURO 6. Support for Policy and Management. The project aims at increasing of the economic and administrative capacity of the officials of the ministries and of other central and regional level for development and implementing of co-ordinated policies for the market of development and compliance to the E.U. Total budget – 4.25 mil. EURO.



Other Phare Programs

Support to the ministries and other public services for harmonisation of food

standards (Ro 9704- 01) Project objective This project has the specific objective to support the beneficiary Ministries and institutions in implementing the EU legislation on food covered by the Programme, as stipulated in Annex 2 of the White Paper on the preparation of the CEEC countries for entering the Internal Market - more than 150 directives in all by: establishing within each of the ministries the organization and the methodology adapted to their specific needs. The methodology will include the introduction of defined tools to be used during the implementation process. The Ministries (Ministry of Agriculture and Food, Ministry of Health, Ministry of Industry and Trade, Office for Consumers Protection) are responsible for the implementation of all legislation covering the areas of food and agriculture. Project started on 30 of March 1999; it will be accomplished on 31st of January 2001; Main results so far Two “Harmonisation Units for Food Laws” were created within Ministry of Agriculture and Food (on Directorate for Food Industry structure) and Ministry of Health (on General

Directorate for Hygiene and Public Health structure), both units were equipped with suitable computers, printers and soft; The “Translation Unit for Food Laws” was created within Ministry of Agriculture and Food, staffed and equipped. The selected staffs include 4 translators, one terminologist, and one data base administrator. They were trained with translation techniques applied by the EU newest member state in the pre- accession and accession periods. Special soft programmes were installed and a manual for translation was written. The translation unit translated more than 150 EU directives (including amendments) for food industries, according priorities settled in the White Paper, as follows: Food labelling;

Food additives; Materials and articles in contact with food; Food hygiene and Official control of the food; Contaminants, ecological food products, erucic acid in oils and fats; drinking water and mineral water and quick-frozen foodstuffs; cocoa and chocolate; sugars; honey; fruit juice; fruit jams, jellies, marmalades, chestnut purée, preserved milk, partly or wholly dehydrated preserved milk; caseins and caseinates; coffee extracts and chicory extracts. The result of first translation is considered as row translation. The translated documents were submitted to the following processing operation: legal revision and linguistic revision. Were created 6 Common Working Groups (CWG). The CWG staff is belonging to the Ministry of Agriculture and Food, Ministry of Health, Ministry of Industry and Trade, Office for Consumers Protection. The members of the 6 CWG made the technical revisions of the translated EU directives and than with the support of the translation team consolidated versions of every single piece of legislation were done. The CWG members have received the support and technical assistance from EU experts. The CWG member makes de “Action Plans” for implementations of each pack of legislation.



For enforcement mechanisms, a data base for 139 labs for quality control of the food (MAF, MoH, OPC and privet). Their needs for and equipment were assessed. The tender dossier for equipment procurement was launched. The training is under implementation.

Effects The MAF, MH, OPC, MIT personnel involved in food industries matters is well trained able to understand and put in practice EU legislation for food products; A Glossary for EU food terminology is issuing; The management of 18 labs for food control is trained with procedures, in order to obtain EU accreditation and 6 labs will be partially equipped.

Encountered difficulties So far not identified. Support to enterprises in the food industry for harmonisation of food standards

(Ro 9704- 02) Project objective To support the enterprises in the food industry for ongoing adaptation to the new environment resulting from enforcement of new quality standards and preparations for joining the European Union. Project started on 30 of March 1999; it will be accomplished on 31st of January 2001.

Main results so far A market survey among 50 main producers of food in order to identify their information needs in connection with EU alignment process; The Romanian partner for “Information Centre” and “Newsletter” both for food industry was selected by restricted tender; The activities for both components are implementing together with the Romanian partner selected staff; The pilot number of “Newsletter for Food Industry” was issued and the next periodical (monthly) will be prepared; The partner for “Training and consultancy” components is under selection;

Potential Effects The Romanian food industry will have a strong and self- sustainable Information Centre

and a Newsletter at its disposal, making possible a unitary information capacity.

Encountered difficulties There is a strictly limited number of Romanian companies (state or private) potentially interested in developing an informational and informatic systems for food industries (lack of running capital drastically reduces the number of potential clients).



The project “Development of the national Extension Service” (Ro 9505- 01- 01)

Project objective Further previous 9203 project, this project was aimed to create a national extension service (NES), in agriculture at national and local levels, as institutional building project. This service being financed by the national budget was designed to address especially to medium- and small size farmers initially for free. The extension and consultancy service has to offer to the target farmers up to date agricultural and zoo technical information. The project started in January 1998 and ended in December 1998.

Main results achieved NES at central and local levels has been created ; Local offices and headquarters were partially equipped; 16 people from 16 pilot judets were trained mainly in managerial and economical matters (technical training was not identified as a need); 18 people from other 10 non- pilot judet were also trained on the shorter term basis in same topics; several case studies are achieved;

Effects Technical assistance targeted on small- and medium size agricultural producers is now in place as an existing institution, created according to the European standards; An important and accessible dissemination system has been put in place down to comuna level through leaflets, business letters, mass media utilisation, workshops, periodical meetings of producers with extensionists, etc As a collateral effect is to be mentioned the increase of knowledge level of beneficiaries;

Encountered difficulties The system was designed to become self- sustainable and able to be privatised within the next 10 years. To introduce new fees for granted services is perceived as possible difficulty. The project “Policy advice for development of rural credit financing services”

(Ro 9505- 03- 02) Project objectives To propose a mutual agricultural credit system in Romania and to issue the necessary Terms of Reference for it’s launching. Project started in February 98 and ended in June 98 (having a limited budget allocation of about 52, 000 EURO).

Main results A critical diagnosis of the existing situation has been issued; In correlation with Rural Credit Guarantee Fund activity a mutual credit system has been designed;



Terms of References for such a system implementation were drafted;

Effects A coherent idea of a mutual credit system for the Romanian agriculture exists

Encountered difficulties The existing conception achieved by the named project must be up dated and the financial resources should be identified and allocated for TA project implementation.

The project “Rural development in Romania” (RO 9505- 04- 03- 0005) Project objective To define an integrated development strategy for the Romanian Rural area, as well as an institutional framework for implementing further rural development policies. Project started on 12.01.98 and ended on 12.10.98

Main results A diagnosis of the rural area (for 2685 existing comunas) for which 45 indicators has been analysed. Based on this study there were settled zones of different development and potential levels. The Green Paper for Rural Development in Romania has been created, printed and disseminated. An Action Plan for Rural Development has been adopted at the end of project, as an inter- ministerial document. 34 pilot projects suggestions were submitted.

Effects Romania has now a rural area diagnosis for all comuna and a household survey (only for a limited number of comuna); A coherent approach for medium- and long-term view has been adopted and accepted by all the interested authorities; The basis for rural development plan has been created;

Encountered difficulties During the project implementation in 98 there were no major difficulties, except available data on farmers incomes. Project “EU alignment and policy reform” (Ro 9704- 03)

Project objective Further assistance for the MAF “Working Groups (WG)” in their activity of acquis communitaire transposition and preparation for multi- and bilateral screening exercises. Project started on June 99 and ended on November 99.

Main results Were translated several EU regulation and directives, mainly by the WG members;



The WG member was trained how to understand and to present their field of activity in front of EC examinators; The presentation for bilateral screening was prepared, including sectoral files;

Effects The MAF personnel involved in PAC matters is trained and able to understand and put in practice EU legislation;

Encountered difficulties The lack of foreign languages knowledge of MAF members of the WG; The short period granted for project implementation Project RO 03 Rural Credit Guarantee Fund Project objective The specific objectives of this project are to supply assistance for the establishment of the Rural Credit Guarantee Fund (RCGF) and also, to provide technical assistance to the Romanian Banking Institute. Project started in 1994 and ended in 1998.

Main results Technical assistance in the form of preparatory studies and reviews of the RCGF functioning. A financial line of 9 MECU. Organisation of training for Romanian Banking Institute and involved banks staff, providing of didactic material and equipment.

Effects 14 specialists trained; 24 people trained; a manual in 3 volumes; 6 tutors trained; 20 seminars, totalling 189 credit officers from regional branches.

Encountered difficulties Lack of a proper design encompassing all dimensions: institutional building within the financial sector, institutional building to assist the rural sector to address the financial sector, training, existence of funding sources for long term credit. In 1997 within the Country Operational Programme (COP’97) the funds for the agricultural sector were in value of 4 MECU, with the objective to support the harmonisation and alignment of agri-food legislation, of standards production practices to the community acquis. In 1998 – within Phare ’98 programme, the main priorities were the harmonisation of sanitary-veterinary legislation, preparation/implementation alignment strategies. The value of this programme is – 5 MEURO.



FIMAN International Management Foundation – FIDEL programme – Programme for small and medium sized enterprises and regional development (only a part of these have been for agriculture, and some others had an impact on this sector). There were 20 projects for agriculture and regional development.

Project RO Phare 98/SPP/02: Institutional building of the Ministry of Agriculture and

Food For the implementation of the SAPARD Program Twining partners: Ministries of Agriculture from France, United Kingdom and Germany. France provided the management of the project. The project had started on 20 October 1999 and would be finalised till 20 April 2001. The objectives of the projects were: Enforcement of the capacity of Ministry of Agriculture and Food to elaborate structural policy and strategy of the rural development in accordance with the national plan and with European Reglementations for applying and implementing of the measures of the SAPARD Program. The Project has 3 components. Allocations of time for each of the three components was unequal distributed. A great part of this time was allocated exclusively to component number 3- SPP Program- in disadvantage of the component 1.

Main results:

Component 1 has following objectives: elaboration of the National Plan for Agriculture and Rural Development, elaboration and starting of the operational SAPARD Program and adoption of the communautaire acquis in the domain of agriculture and rural development. In the audit stage of the legislation regarding the agriculture and rural development were achieved the preliminary contacts, the gathering of documents and regarding the analyse and synthesis of documents was elaborated a list of legislation which has to be elaborated/harmonised that would be revised and completed. This list was enclosed in the second variant of the National Plan for Agriculture and Rural Development. On 11 October 2000, National Plan for Agriculture and Rural Development was officially lain down at the European Commission. Through Emergency Ordinance no.142/21 September 2000 was approved the setting up of SAPARD Agency. It was achieved technical and financial evaluation of the pilot project as well as the ex-ante evaluation and established the indicators. The official launch of the SPP Program had taken place on 21 September 1999 and until 12 November 1999 the projects were received at General Directorate for Agriculture and Food Industry. The checking of the projects was done at the central level between 06 December 1999 and 31 March 2000 (because of the great number of the project- 1842) and the elaboration of the minute and transmission to the National Agency for Regional Development (NARD) were done on 18 April 2000. In the framework of the meeting from NARD on 19 May 2000, National Committee for Technical Selection (NCTS) was settled the approval of financing the projects and the amounts left unallocated were reallocated to technical assistance. Delegation of the European Commission from Bucharest was agreed on 26 July 2000 the projects included on measures 1,2,3 following that for measure 4 would be organised a new evaluation starting with 12 September 2000. At the proposal of Ministry of Public works



and Land Arrangements the revaluation will start with 15 September 2000 and Commission of Evaluation will include staff from MAF, MpwLA, PwFEP and NARD. After the finishing of the re-evaluation process of the measure 4 a new NCTS take place for the validation of the results. The results established on this new meeting would be transmitted to the European Commission Delegation for agreement. Special Preparatory Program – Rural actions On 21st September 1999 at the Euro Info Centre from Bucharest it was launched, under the auspices of EU Delegation in Bucharest, the Phare Programme named SPP (Special Preparatory programme) – Rural actions of a value exceeding 3 mill. Euros (out of which the Communitaire support represents 2.5 mill. EURO. The National Technical Selection Committee has accepted the programme. The deadline for receiving the projects was established for 12th November 1999. Through SPP is encouraged the initiation of programs regarding agriculture and rural development in the following directions: �investments in agricultural holdings; �improving the processing and marketing of agricultural products; �development and diversification of economic activities providing for multiple activities and alternative income; �development and improvement of rural infrastructure. The SPP Program aims at testing the following things:

- veracity of foreseen development directions; - size of programs and of projects that could be initiated at the level of

applicants from the rural area; - economic power of participating actors; - types of actors involved in elaboration of programs and development projects; - level of technical knowledge related to procedures of elaboration programs

and projects of local development; - functionality of partnerships and of institutions created for selecting,

monitoring and control of allocated funds; - future needs of normative documents and regulations; - future needs of instruction, communication and information for various

levels of the public administration and of the civil society. For this program, there have been submitted to the county General Directorates for Agriculture and Food, simple and complex projects, that were analysed checked and than sent for pre-selection to General Directorate for Rural Development and Programs. These results represent a first sign that showing the capacity existing in the rural area for projects designing and finding co-financing. There were analysed a number 1,842 projects, representing sub-measures, out of which 1480 simple projects and 362 complex projects.



Results of the pre-selection of SPP projects

Measure

Number

of

projects

%

of the

total

projects

Number

of

eligible

projects

%

of total

projects

Eligible

costs

(MEURO)

%

of

eligible

costs

Investments in agricultural holdings

649 35.2 78 48.1 5.2 11.8

Processing and marketing for agricultural products

147 8.0 12 7.4 1.6 3.6

Diversification of economic activities

164 8.9 16 9.9 1.6 3.6

Development of rural infrastructures

882 47.9 56 34.6 35.7 81.0

TOTAL 1,842 100 162 100 44.1 100

The applicants which have proposed an eligible project, but which are not preselected for SPP, and the applicants, who have proposed an ineligible project, will receive an address from the National Technical Selection Committee. In this address will be briefly precise recommendations for adapting the project for SAPARD program in order to be submitted for this programme. On 19 may 2000, the national selection Committee has selected 60 projects:

-for measure 1, 33 projects with a total eligible cost of 2.4 Meuros, -for measure 2, 12 projects with a total eligible cost of 1.5 Meuros, -for measure 3, 13 projects with a total eligible cost of 1.3 Meuros, -for measure 4, 2 projects with a total eligible cost of 0.3 Meuros.

Other actions for rural aid

Phare operates in close co-operation with other institutions and international organisations: BIRD, BERD, USAID and Governments of France, Germany and the Netherlands. But in these cases, the majority of projects consist of granting loans and not of non-reimbursable funds. Granted loans commonly include technical assistance necessary for project implementation. There were some grants targeted especially to environment problems. An important assistance is given by bilateral projects funded by member states. Projects with the help of France, Germany and the Netherlands Governments were successfully implemented. The actions for financing aid of the World Bank

When the structural reforms of the Romanian Government started, the World Bank redefined its loaning programme in order to support Romania to accomplish the economic reconstruction, offering counselling services and funding for the support of reform in different sectors. On medium term, the Bank will grant priority to supporting sectoral programmes linked to the access to the European Union.



Beginning in 1990, the loans engaged by the World Bank for Romania represent a total amount of about 2,681 billion USD (Source: Projects Portfolio World Bank). Agriculture is a key sector for the World Bank. The main projects in this sector are concentrated on the development of the general land register, on services for the agriculture support, irrigation systems and their administration, the rural financing systems. The most important projects realised by the WB are: Co-funded projects for the support of farmers and private agricultural enterprises. The project value – USD 164.7 million of which USD 100 million represents the loan granted by the World Bank. The Agricultural Bank, the Romanian Commercial Bank and the final beneficiaries paid the co-funding. The project has as objectives: support for rural area development, encouraging the productivity increase and agriculture efficiency, creation of new employment and the improvement of living standards. These projects’ beneficiaries are the farmers and the agricultural products processing units. State or public units where the majority of shares are detained by the public sector were excluded. The tobacco production investments, new vineyards and animal farms were also excluded. Land register project The value of this project is 37 mill. USD, and the loan granted by the WB is in value of USD 25.5 mill. The project has as objective the support of the land reform programme by the assurance of a register and protection basis of the land property right and the creation of an efficient market for land sale. The project will be implemented on a 4-year period, beginning in 1998. The project is meant for the realisation of a general land register in urban and rural areas. The project regarding the creation of a national agricultural service system During the third quarter of the year 1996, the government of Japan granted the government of Romania a non-reimbursable loan for agriculture, administered by WB. MAF is the projects’ beneficiary and the funds’ administrator. The two projects were: Technical assistance for the study regarding the rehabilitation of the irrigation system – 295,000 USD Technical assistance for the study regarding the creation of a national system for agricultural services – 219,840 USD Both projects had as main objective the realisation of feasibility studies and the Terms of Reference for the future loans of the WB, envisaging the two fields. Both contracts were completed at the end of 1996 and were implemented during the 1997-year. As a result of these studies, it was established that loans would be granted for both projects: for the one referring to service development destined to farmers, the cost was estimated to about 25 mill. USD, and the loan granted by the Bank is to be established. World Bank Rural Development Project Proposal. A. Overall objective The overall objective of the proposed Rural Development Project is to increase rural incomes and leaving standards.



B. Development Objectives The proposed project has three essential development objectives that should contribute to poverty decrease and to economical increase in rural space;

�development of rural assets: to augment social, physical and human capital in rural areas, and most importantly, to increase the productivity of rural assets; �development of rural private sector activities and markets: to increase rural household access to markets for agricultural commodities and production factors, and to support rural off-farm investments and job creation; �rural decentralisation: to develop administrative and financial capacity of local public administration for rural development, within a decentralisation frame work that encourages local stakeholder participation �there is a study financed by the World Bank (Binnie and Partners firm) which identifies the irrigation systems that can be rehabilitated with minimal costs (approximately 850 $/ha) and in a short period of time.

Project Concept Within the RDP, technical assistance and training will be delivered. The range of activities which can be founded will be establish in a menu of activities related to infrastructure and other options, according to criteria to be agreed with the EU and GOR. RDP Component 1: Building of Local Capacity for Rural Development Objective: An objective of the project is to support creation of local administrative capacities for development, as well as the capacity of individuals to participate in the economic mainstream. RDP Component 2: Farmers organisations and Off-farm Diversification Objective: This component seeks to improve the integration of small rural households into markets for agricultural commodities, inputs, land and labor, while stimulating rural marketing and off-farm activities, including agro-processing. RPD Component 3: Rural Infrastructure (technical and social) Component objectives: The development and improvement of technical infrastructure is regarded as a prerequisite for rural development. The objectives of this component is also to contribute to improvement and/or rehabilitation of the exiting social infrastructure in rural areas, focusing on health protection, education and social links. Monitoring: The monitoring activities are accomplished by the Regional Development Agencies that will report to the Project Management Unit. Project Territorial Coverage and Targeting During the mission to broad options regarding the geographic scope of the Project were discussed. The question considered was: should the Project concentrate on pre-selected location (judets) which is less develop or should it covered the whole country. Institutional and Implementation Arrangements The Project will have two main levels of decision making:

(i) commune and judet self-governments will have the programming and implementation function within the exiting territorial responsibilities and ongoing agreements; (ii) the central governments will allocate funds, provide overall policy guidance and ensure harmonization of regional and national priorities.

Establishing Priorities and Projects Identification- Bottom –up Approach. Local investment projects to be supported under the RDP will be identified by local communities and their representatives. The RDP will introduce an operational manual with guidelines and procedures to help local beneficiaries take rational and financially sound decisions.



Compliance with Technical and Environmental Standards. Once the commune and judet identify a portfolio of sub-projects, it is subjects to screening for compliance with existing standards, norms, and procedures. The local branches of government and appropriate regulatory agencies at the judet level will assure this. Regional Development Agencies (RDA). The local offices of RDA of submit projects for screening and ranking to the regional office of RDA, which will: (i) check proposals against eligibility criteria for Bank financing, and (ii) assess proposals on financial and economic grounds. RDA has no approval power. Project Approval for Financing –Ranking of Eligible Projects. Decision on project approval will by made by the Regional Development Board, consisting of representatives of local self-government and other local stakeholder. Allocation of Funds among Regions A package of investment projects as ranked by the RDA Board will form the basis for a contract that a region will negotiate with the central government. A pool a funds will be distributed by the central government among all the regions in accordance with national priorities and criteria for the allocation of funds. Indicative Project Cost and Sources of Financing. (Million $)

Components WB GOR TOTAL

TOTAL $100 $50 $150

Of which:

1.capacity building $17 $5 $22

2.rural marketing development $12 $4 $16

3.technical infrastructure $47 $33 $80

4.social infrastructure $19 $6 $25

5.project management $5 $2 $7

Rural finance development project Estimated Cost: USD 93 mil. IBRD: USD 50 mil. Romanian Government: USD 3 mil. Beneficiaries: USD 40 mil. Implementation Period: 5 years Project Objectives

The proposed project's objectives are to (a) accelerate the economic transformation of the rural economy by increasing the flow of investment capital to the sector, (b) increase the role of the private sector in the rural economy by (i) increasing access, on the part of rural households with entrepreneurial activities and private enterprises, to financial services and by (ii) assisting regulated private financial intermediaries to augment their presence in rural localities and in filling the vacuum that may ensue after the privatization of state banks and the likely closing of a significant portion of the existing network of rural branches; (c) facilitate accession to the European Union (EU) by increasing the ability of the rural economy to absorb the grants that will be allocated under the EU's "Special Accession Program for Agriculture and Rural Development" (SAPARD) by making available counterpart funding for the private investments that will be financed by this program, and (d) alleviate rural poverty by financing farm and off-farm investments for the poorer segments of the rural population which currently have no access to credit. The project also seeks to improve the legal and institutional environment for financial transactions and intermediaries in rural areas in four key dimensions that need reform. Project Components



� Rural credit and leasing facility. The component will finance (a) sub-loans to eligible private sector borrowers to finance rural productive activities (farm and non-farm); (b) micro sub-loans to rural households and micro-enterprises; and (c) leasing of depreciable capital assets such as machinery, tools, vehicles, and equipment.

� Rural retail banking and micro-finance. The component will finance (a) incremental expenditures incurred, inter alia, in the (i) development of suitable technologies to provide retail financial services to small and micro-entrepreneurs in small rural localities; and (ii) establishment and operation of a network of pilot private banking offices; (b) training and technical assistance in retail banking and micro-lending to private banks and non-governmental organisations.

� Project management and technical assistance on rural financial market development. The component will finance the (a) incremental expenses incurred by the Government in implementing and monitoring the project and (b) technical assistance to the Government in (i) developing a warehousing receipts system, (ii) examining options to reform the accounting and fiscal treatment of depreciable assets and leasing, (iii) studying the possibilities of establishing instruments for lenders to share the credit history of borrowers in rural areas (e.g., credit rating agencies, centrally managed databases for banks), (iv) examining options to reduce the general risk of rural credit transactions by improving the supply and quality of private insurance services in rural areas (especially index-based agricultural insurance); and (v) regulation and supervision of existing rural mutual financial intermediaries incorporated under Law 109/1996.

Agriculture pollution control project Estimated Cost: USD 8.4 mil. IBRD: USD 3.4 mil. Romanian Government: USD 5 mil. The Ministry of Water, Forests and Environmental Protection, in co-operation with the Ministry of Agriculture and Food shall make the implementation. The main objective of the projects is to reduce the pollution with nutrients of the Danube and the Back Sea. The project aims at diminishing the diffuse pollution produced by agricultural pollutants, and it will be carried on in a pilot area in Calarasi region, comprising the agricultural lands on the administrative area of 7 commune, as well as an agricultural embanked area (polder). These activities are directly tied with the strategic action plan for the rehabilitation of lower Danube and of the Black Sea. The project has 4 components:

-promotion of ecological farming practices among the private farmers ( 2.80 million US $) -ecological restoration of the embankment (polder) Boianu – Sticleanu (1.88 million US $) strengthening the capacity of institutions and of the Romanian Government of elaborating policies and regulation regarding the environment and the impact of agriculture on the environment (0.51 million US $) -implementation of a public awareness (0.58 million US $)

This last project component will be achieved through preparation and implementation of a public awareness plan to help ensure a better understanding of the environmentally sound agricultural practices and disseminate good agricultural practices for water and soil



protection. This component will considered adapting in Romania of the code of Good Agricultural Practices used by EU countries, according to EEC Council Directive regarding water protection against pollution with nutrients – 91/676/EEC (Nitrates Directive). 7. TENDENCIES OF AGRICULTURE AND FOOD SECTOR

7.1 FULFILMENT OF THE POPULATION CONSUME NEEDS Food security, requires the adoption of a food policy that has to be correlated and in accordance with communitary aquis and which will be focussed: � Producing of foodstuff, quantitatively sufficient, with adequate structure and

quality, for satisfying the population needs during the whole year, assuring the obtaining of superior quality products;

� Excess by the entire population to the necessary feeding including the access of the less favoured segment of the population combining the criteria of equity with those of economic efficiency in the production and distribution of food, tending to continually increase the efficiency;

� Obtaining of foodstuff as nutritionally complex as possible, wholesome and of quality, in compliance with international standards;

The insurance of food needs of the populations depends not only on the available products but also on the buying power of the population, which is the outcome of the size of the gross product and the level of cost of foodstuffs. In the present the expenditures on foods exceed 50 % of the income of the population. Such a situation represents an obstacle in the development of the domestic market and of the economic increase. The food policies are not only the matter of agriculture and food industry; it is the matter of the entire national economy. The overcoming of the existing situation depends, of the macro-economic and sectored policies, of the evolution gross domestic product; it also depend on the productivity of national and sectored activity, on incomes and prices, able to generate the increase of the buying power, on the enlargement of the domestic market, with effect economic flourishing. The future achievement of the food consumption pattern in its optional form of generalised satiety could take place through the increasing incomes and through reducing of food stuff products’ prices in real terms, so that the share of the population’s expenses for food consumption from the total amount of expenditure decrease from over 50% to approximately 15 – 20% as it is in Member States. The food consumption in Romania, as compared to European developed countries, is: 52 – 54% meat and meat products, 90 – 95% milk and dairy products, 65 % sugar and sugar products, 75 – 80% vegetables and their products. Exceeding of 70 % on cereals and cereals products consumption to the detriment of animal origin products and consequently of animal protein. The dynamic of inhabitant’s consumption in the last years for the main products maintained to the same parameters.



Food consumption

Food consumption

Physiologic

consumption

Specification 1992 1993 1994 1995 1996 1997

Meat and meat

products, in equiv. cut meat -kg

45.7 47.7 45.5 47.8 47.2 45.1 62

Total fat - kg 14.4 14.1 12.9 14.2 14.3 13 13

Milk and milk products

(except butter) In milk equiv.

Litres

163.7 176.9 179.5 188.6 192.7 192.4 220

Eggs - pieces 196 190 194 197 199 186 260

Sugar and sugar products in equiv. -kg

24.4 23.7 24.5 23.5 24.8 19.9 22

Cereal output (flour equiv.)

kg

146.5 159.6 158.6 162.4 160.6 169.8 133

Potatoes - kg 60 73.9 66.7 71 73.4 81.7 70

Vegetables and products

from vegetables – in equiv. kg

100.7 112.7 110,3 115.6 115.4 111.6 110

Fruits and fruit products In equiv.-kg

47.1 64.3 47.8 45.8 50.5 44.5 60

Source of the information regarding the physiological consumption mentioned in the table is “The National

Plan of Actions for nutrition in Romania, 1995”.

The physiological consumption calculated for Romania is smaller than that calculated for the EU. It comes out that for meat, milk, eggs and fruits the consumption are under the physiological ones, whereas for fats (oil) sugar, potatoes, vegetables, cereals their at the level of physiological needs and over. For sugar the consumption is influenced by sugar imports because the consumption from domestic output is of only 14.1 kg. Function of the physiologic consumption/inhabitant compatible with the average consumption in the EU can be established the production needs for main agricultural products.



Physiologic consumption/inhabitant, in Romania

Product

MU

Average

consumptio

n EU

MU

Production

need for

consumption

in tons (for

22.5 mill.

inhab.)

Achieved

1998 for

consumption

Observations

Cut meat Kg 82 Thou.tons 1,845 1,099 Deficit

Cow’s milk and sheep

milk

L 280 Thou. hl 63,500 47,197 Excess

Fish Kg 8.5 Thou. tons 191 18.6 Deficit

Total fats Kg 13 Thou. tons 292 240 Deficit

Eggs 260 Thou. pieces

5,850 4,800 Deficit

Total vegetables

Kg 110 Thou. tons 2,475 2,818 Excess

Potatoes Kg 70 Thou. pieces

1,575 2,300 Excess

Vegetables -total

Kg 3 Thou. tons 67 71 Excess

Total fruits Kg 60 Thou. tons 1,350 1,036 Deficit

Total sugar Kg 22 Thou. tons 495 317 Deficit

Wheat Kg 170 Thou. tons 3,750 4,600 Excess

In view of achieving of this output it necessary to be provide sectored strategies by crops and species of animals, taking also into account the evolution of the market, the requirement of the consumers, the buying power in the evolution of the general development of the national economy. Physiologic consumption/inhabitant, in the European Union

Specific M.U. Physiologic

consumption

EU

consumption

Output/inh

abitant,

1997

Meat and meat products (in equiv. Meat –kg)

kg 62 82 45.1

Total fats (edible oil +margarine)

kg 13 13 13.0

Milk and milk product (except butter)

l 220 280 192.4

Eggs Pieces 260 260 186

Sugar and products sugar kg 22 22 11.5

Cereals (equiv. Flour) kg 133 133 169.8

Potatoes kg 60 70 81.7

Vegetables and products from vegetables

kg 110 110 111.6

Dried legumes kg 3 3 3.2

Fruits and fruit products kg 60 60 44.5



Necessary output for ensuring the consumption

Physiological

consumption

EU average

consumption

Needed area (thou.

ha) or livestock

(Thou. heads)

Specification MU

Physiologi

cal

consumpti

on

Average

consum

ption in

EU

Meat and meat products

Thou. tons

1,395 1,845 1,500 2,000

Total fats (edible oil +margarine)

Thou. tons

292.5 292.5 750 750

Milk and milk products (except

butter)

Thou. Hl.

49,500 63,500 1,600 1,800

Eggs Million pieces

5,850 5,850 350 350

Sugar and sugar products

Thou. tons

495 495 200 200

Cereal (flour equiv.)

Thou. tons

2,990 2,990 1,400 1,400

Potatoes Thou. tons

1,350 1,575 115 130

Vegetables and products from

vegetables

Thou. tons

2,475 2,475 200 200

Dried legumes Thou. tons

67 67 50 50

Needed arable area Thou. Ha

6,165 6,880

The arable area needed for ensuring products for the consumption of the population is calculated at the average yields achieved in the last years, and feed rations are the ones adapted for semi-intensive consumption for animal raising. In the necessary quantities for consumption are not taken into account the needs for seed in the case wheat, barley, two-row barley for beer producing. The calculation of the arable land needed for ensuring the consumption the population for the main products in the variant of product consumption /inhabitant in EU required a new structure of cropping. The fodder needed for achieving animal production able to cover the consumption/inhabitant in EU can be ensured by improving the natural pastures, but for the concentrated feeds it has to be generalised, for all farm animals, the use of combined fodder, that leads to a reduced consumption of cereals through the contribution of the protein feeds. The fodder crops for cattle and sheep shall occupy an area of 23 – 25 % of agricultural lands.



7.2 GAP ANALYSIS RELATED TO EUROPEAN UNION

The technical and social infrastructure

Transport infrastructure-density The area of the rural environment in Romania has a share of 89% of the country’s territory, greater than in the European Union, where it holds only 81%. Indicators of infrastructure density

Year EU-15 Romania*)

Density of public roads/100 sq.km 1996 158 30.7

Density of railroads/100 sq.km 1996 5,0 4.8

No. of car accidents/100,000 vehicles 1996 26 91 Source: for EU-15, “Eurostat Yearbook”, 1997; for Romania, “Statistical Yearbook for Romania”, 1998 and

“Human Development Report”

The network of public roads has a low density in Romania compared to EU, the density being 5 times smaller. The length of the only highway in Romania is approx. 110 km, and the standards requirements are not met. The railway network has a density close to that of the EU, but the state of the trackage and of vehicles is unsatisfactory. In comparison to the neighbouring countries, the density of the railway – expressed, as ratio to country’s area and country’s population- is lower in Romania. Only Bulgaria has a railway network less dense, reported to the area.

Health and sanitary assistance Expenses for health care in Romania represent a small part of GDP, almost 3 times less than in EU. Indicators of sanitary assistance

Year EU-15 Romania*)

Rural

% health in GDP 7 2.6 -

Beds in public sanitary units/1,000 inhabitants

1990 7.8 7.6 (1996) 1.7

Physicians/ 1,000 inhabitants (dentists excluded)

2.5 1.8 0.7

Infant mortality (‰) 1996 5.5 22.3 25.6 Source: for EU-15 “Eurostat Yearbook”, 1997;

Source: for Romania: “Statistical Yearbook for Romania”,1998 and “Human Development Report”

In comparison with the neighbouring countries, Romania has a relatively small number of doctors in ratio with its inhabitants. In Bulgaria or Hungary, the average number of inhabitants/one doctor is two times smaller than in Romania.



The insufficient medical assistance is also reflected in the very high level of deaths among the new-borns in Romania, where the infant mortality is 1.5-2.0 higher than in neighbouring countries. Human resources General data regarding population The average density of Romania’s population is relatively low in comparison with Europe, and that in the rural is even lower. According to the density threshold used by OECD for the delimitation of the rural from the urban, a part of the territory belonging to the urban administrative territory, where the density is under 100 inhabitants/sq.km should be considered rural. After 1990, the population of Romania and of the rural has continuously decreased -a similar tendency was registered in the neighbouring countries (Bulgaria, Republic of Moldova, Ukraine, Hungary)- while the average European tendency is of demographic growth. The share of rural population in country’s total population continues to have a great share in Romania, almost 3 times greater than in Europe Demographic-economic indicators

INDICATORS Year EU-15 Romania*)

Rural

Density of population-inhab./sq.km 1996 117 95 48

Population Dynamics (1990=100) 1997 103 -0.4 -0.6

Gender structure (%) 1997

- Male 49 49 49.6

- Female 51 51 50.4

Structure by ages % 1997

- 0-14 years old. 17 19.4 19.6

- 15-64 years old. 67 68.0 63.4

- 65 years old. and over 16 12.6 17.0

Share of rural population 1997 17.5*) - 45.1

*) Note: It is only about the population in the communities with demographic densities under 100 inhabitants

/sq. km;

Source: “Eurostat Yearbook” and “Statistic Yearbook of Romania” (National Committee of Statistics”

The gender structure of Romania’s population is as balanced as in Europe. The structure by ages is more advantageous for Romania, for the country as a whole, the population being younger. But the rural population of Romania has a degree of demographic ageing closer to that of the total population in European countries, having the advantage of a greater reserve of young population under the age of 15. Demographic Phenomena

The changes, which have taken place in this decade regarding the demographic phenomena in Romania, had a negative significance. These changes led to the appearance of a deficit of natural increase, especially as result of the alarming increase of mortality, more accentuated



for the 50-60 years old. category. The result is a very low level of life expectation, which continues to be even lower. Indicators regarding the demographic phenomena

Year EU-15 Romania Rural

Average number of children / one women

1996 1.4 1.3 (1997) 1.4

General mortality (‰) 1996 10.0 12.4 (1997) 16.5

Life expectation (years) 1996 (1995-1997) (1995-1997)

Male 74.0 65.2 63.9

Female 80.5 73.0 72.3 Source: “Eurostat Yearbook”, 1997 and “Statistical Yearbook of Romania”, 1998;

Life expectation of the population in Romania is among the lowest in the Central and East European Countries. Unlike other countries, in Romania, especially in the rural, life expectation decreased after 1990 for men and after 1992 for women, also. Population’s employment and economic activities Romania’s population has an employment rate equal to the European one. But there is a great difference between the employment rate of the urban and rural population even in Romania. Unemployment was in 1998, lower than in EU. As a result of restructuring of some branches or commercial companies in Romania, at present the unemployment grew almost up to 10%. Indicators regarding the economic activity of the population

Year EU-15 Romania Rural

(1) (2) (3) (4) (5)

Rate of activity (%) *) 1997 - 64.8 71.5

Rate of employment (%) *) 1997

Total 61 60.9 68.9

Male 69.9 73

Female 50.4 67

Rate of unemployment (%)

Total 10.7 7.4 (1998) 5.0 (1998)

Male 9.3 7.3 -

Female 12.4 7.5 -

Structure of employment by sectors (%) 1997

(1) (2) (3) (4) (5)

agriculture 5.0 37.5 69.8

Industry, constructions 29.4 32.0 16.1

Services 65.6 30.5 14.1 *) calculated as regards total population of 15 years old and over

Source: Eurostat Yearbook, 1997 and NCS :”Statistical Yearbook for Romania”,1997;

Employed (occupied) population of Romania is greatly linked to agriculture and the employed population in the rural is almost totally dependent on agriculture, unlike the EU, where agriculture occupies (employs) a very small part of the population.



Services are poorly developed in Romania, and in the rural they are reduced only to the strictly necessary for administration of the community and to a few social services. In the context of neighbouring countries, Romania’s economy has the most expanded sector of agriculture. As compared to the Czech Republic and Hungary, agriculture in Romania employs (occupies) 4-5 times more population, and unlike the other countries, agriculture’s share is increasing. 7.3 LEGISLATIVE AND INSTITUTIONAL HARMONISATION On 20 May 1996 was forwarded by the ECC the White Paper for the preparation of the Associated Countries from the Central and Eastern Europe for Accession into the Internal Market of the Union. The White Paper has identified the priority components of the aquis communautaire which the candidate countries have to adopt and to implement in order to allowed the free circulation of goods. Appendix V- Agriculture comprises a proper analysis for ensuring the adoption and laying into practice of the legislation in the field and the order in which it can be implemented .At the same time it contains an absolute minimum in matters of agricultural field which has to be assimilated by the associated countries (i.e. by Romania too) in order to ensure the improve of the Single Market .The E.U. agricultural legislation has been formed along a period of more than 30 years and is in a permanent change according to the new developments. This legislation represents about 40% of the entire communautaire legislation. In the majority of agricultural sectors, a legal framework harmonised with the legislation has not been yet promoted. It has to be taken into account that there are Community legal documents, which do not have to be transposed but applied as such on the very day of the accession. The harmonisation of the Romanian legislation with the Community one is still at the beginning in the majority of sectors, excepting the sanitary-veterinary, vine cropping and wine making, seeds, and planting material sectors. Taking into account the volume and complexity of Community legislation in the agricultural sectors, it comes on that huge efforts are needed to succeed in achieving this harmonisation at the terms established. It is necessary the establishment of a monitoring system on the way in which the terms committed for taking over the Acquis in each sector be observed. The organisations or the co-operatives producers don’t exist, which is affecting both the production obtained and the trade of agricultural products in conditions of profitableness for the farmers. In order to monitor the agricultural product prices, it is necessary to set up benchmarks.



Harmonised legislation:

Fruit and vegetables sector – there are standards wholly harmonised (table grapes, plums, endives) and partially for a series of fruit and vegetables, but without a mandatory character; Milk and dairy sector - the provisions of Romanian standards of quality differ from the Community standards and do not have a mandatory character; Pork sector – the Romanian standards are less harmonised (only partially the analytical methods); Arable crops sector – quality standards for cereals are partially harmonised; Trade mechanism in the agriculture sector – the trade regime is liberalised; Processing products - the tariff system applicable in Romania is similar to the E.U. system and is applied in the relations with E.U and Turkey; Vine cropping- winemaking – Law no.67/1997 is largely harmonised with the Community provisions; Sugar industry sector – there are contracts for the acquisition of sugar beet but these contracts differ from those used in the EU; Seeds sector – legal framework established by Law no.75/1995, amended by Law no.131/1997, is largely harmonised with the EU legislation; Producers financial aid policy – Law no. 165/1998 (later on amended by the Government Ordinance no. 34/1999 and the Emergency Ordinance 131/1999) stipulates setting up of the special fund of MAF for agricultural production support; the Government Ordinance no. 36/1999, stipulates the producers support for purchasing machines and agricultural equipment, irrigation equipment through credits with subsidies interest; the ordinances no. 31/1999 and no.19/1999, stipulates the granting of subsidies for exporting poultry and pork, respectively wheat and maize; Policy regarding quality – legal framework ensured by Law no. 84/1999 regarding the marks on products origin and geographical indications and by the Government Decision no. 833/1998, referring to the applying norms to law no.84/1999 is already harmonised with the Community legislation; Forestry sector – for wood grading by quality classes it is already elaborated a Government Decision found in the final stage of approval; the legislation in the field of reproductive material is largely harmonised (Forestry Code as of 1996 and the Technical Instructions no.10/1988); the provisions regarding the protection of forests against air pollution are comprised in “The System of Forest Monitoring in Romania” published in Monitorul Oficial no. 249/1994, being partially harmonised; the Romanian legislation regarding the protection of forests against fire comprises the Lawno.212/1997, the Forestry Code and the specific norms; as for the measures regarding the support of the forestry sector, Law no.7/1990 was passed (on the measures for improving the degraded lands through a forestation) which is partially harmonised with the Community legislation; Poultry and eggs sector – the standards regarding the classifying and labelling of these products is partially harmonised, but they don’t have compulsory character; Honey – Law of bee keeping no.89/1998, provides several supporting measures for the producers; Sanitary-veterinary sector - about 50% of the Community legislation is already harmonised, the Romanian experts in this domain are stating; a number of other 20 harmonised normative documents (which comply article by article to the Community legislation in the field) are to be shortly adopted. Government Ordinance 118/1999 regarding the public acquisitions is partial harmonised.



Non-harmonised legislation:

Taking into account the results of the November 1999 Screening, the non-harmonized legislation is in the following sectors: arable crops; fruit and vegetables; milk and dairy sector; pork; beef and veal; sheep and goat meat; poultry and eggs; policy regarding quality processing products (sugar and tobacco industry); textile fibers; dry fodder; seeds; agricultural statistics; producers financial aid policy; forest. An entire list of legislation which comprise the minimal list with legislative packet necessary for SAPARD Program (basic legislation in practice, existing draft laws and regulation which will be elaborated), is presented in Annex 71. The process of harmonizing is in course and comprised all legal aspects for implementation.



II- Analysis of strengths, weaknesses, opportunities and threats (SWOT)

Strengths Weaknesses Opportunities Threats

THE CONTEXT OF RURAL DEVELOPMENT IN ROMANIA

GENERAL FRAMEWORK

The geographical position of Romania at the crossroads of main European axes: North-South and East-West. There is an agricultural potential proved by: - Romania is a country of medium size, with a significant rural area; - Romania is the second biggest agricultural producer in the Central and Eastern Europe, second to Poland, about 62% of the country’s territory, being used for agricultural production and about 28% for forestry; - the population in the rural areas represents 45% of the total population at national level; - Romania disposes of a huge cultural heritage, represented by an aggregate of historical vestige, art facts, museums to which are added the landscape wealth of the territory. The existence of an adequate legislative framework regarding the re-establishment of the ownership right over the agricultural and forestry lands, regarding the legal circulation of land, regarding the renting and licensing of land.

In Romania, the concept of rural development was mentioned for the first time as a target in the governing programme only in December 1996. The high share of agriculture in GDP, in the Gross Added Value and in the occupied population has a negative significance, as it reflects a tendency of des-industrialisation and of agrarisation based on replacing the capital with life work force. The stage of applying the lows regarding the ownership over the land is still lagging behind. The subsistence character of the agriculture practised in the family agricultural holdings that induce a low development of specialised agricultural market. Lack of several normative documents regarding the guidance and development of agricultural markets. There does not exist a real land market. It is to be remarked an insufficiency of financing sources for credits especially for the rural credit and the lack of adequate institutions. Relatively low foreign capital inputs.

Actions are being undertaken for the implementation of the rural development policies and for defining the issues of sustainable rural development. A sustained policy is being promoted for preparing the process of Romania’s accession to the EU and in the field of rural development. Elaboration of several programs for maintaining and settlement of rural population, especially of the youth and of the women. Through the above-mentioned programs, there will be assisted those persons who meet the legal conditions.

Lack of complete understanding of the complexity of the problems related to the issues of rural development. Maintaining at high level in the latest years of the inflation rate and of the currency exchange rate and the existence of several short terms scenarios, which foresee the maintaining of the existing level of these rates or at least light decrease of these. Transitory legislation. Low development of the physical and services infrastructure in the rural area. The appearance of disparities between those who are the potential beneficiaries of the programme and the other once, that could induce several regional gaps. Inertia of the institutional system and of the financial banking one. Lack of speciality knowledge of potential beneficiaries of programme.



The agricultural co-operatives of services for the sectors up-stream and down-stream of agricultural production is still not functioning. The inter-professional structures in the rural environment are not set up yet.

RURAL DEVELOPMENT POTENTIAL

AGRICULTURE

Natural resources (Physical and geographical features)

Romania’s relief is disposed on 3 major levels: mountains, hills and plains, almost equally distributed, in the form of an amphitheatre, a fact that determines a large diversity of animal and plan production. At the same time, the climate correlated with the other natural conditions of Romania ensures a favourable framework for practising of diversified agriculture and forestry. In Romania, there are to be find many soil types, 26.6% of the soil layer being represented by chernozem, very fertile soils. Important resources of mineral waters. Flora and fauna on the Romanian territory are harmoniously distributed and represent a renewable wealth of great value, if rationally valorised. In this field of the bio-diversity, Romania holds about 40% of Europe's flora and fauna, with: - more than 3,500 plant species; - about 8,600 bird species; - aprox. 100 mammals species. The existence of a well represented forestry fund (27% of the country’s territory.

The animal average rainfall are inequality distributed and very depending on altitude, a fact which, correlated with the temperature variation induces the existence of several zones with humidity deficit and even with the tendency of desertification in the Southern part of the country. Against this background, there are recorded higher average consumption of water and higher specific consumption in industry and agriculture than in other counties, because of exaggerate loses in the supply and distribution networks and because of the dissipation and non-performant technologies used. The productivity of the agricultural land is diminished by 20-25% because of the action of some limitative factors, such as: erosion, compaction, acidifying, depletion in nutritional elements, salty soils, drought.

The use of the natural potential can be accomplished by promoting the investments in the agricultural and forestry holdings, as well as, by improving the processing and the marketing of the agricultural and fishery products, in compliance with the conditions related to the protection of the environment. The natural conditions in Romania (relief, landscape, fauna, etc.) are favourable to the development of eco-tourism, agri-tourism, hunting and fishing, generally by promoting several measures related to the development and diversifying of the economic activities and which create the framework for multiple activities and alternative income.

In Romania, the resources of internal water are limited to about 1,650 cm/ year/ inh. and taking into account the Danube too, at about 3,246 cm/ year/ inh. much lower than the quantities found in other countries, rich in waters, such as Northern countries, Austria, Switzerland, etc. Low awareness of the issues related to the protection of the environment.



Plant and animal production

The agricultural production declined yearly with no more than 15%, under conditions of absorption of labour from non-agricultural sectors and strong diminution of intermediary input. Agriculture was the only sector of the national economy that recorded an increase of the gross added value. Romania is a big agricultural producer. From the point of view of the agricultural land surface, Romania is second big agricultural producer from the candidate states, after Poland. The percentage of agriculture in GDP is 19% in 1998, and the percentage of the population involved in agricultural activities is 36%. From this point of view, agriculture is one of the most important economical branches. At present, agricultural lands mostly belong (84%) to the private sector. All the actions, which are taken, are targeting the strengthening of the private propriety and the changing of the agricultural exploitation system. In order to strengthen the privatisation process have been adopted and are in the process of implementation a succession of legal acts referring to the leasing regime, privatisation of the commercial companies which owns in administration agricultural lands or lands which are permanently under water, and regarding reconstitution of the propriety right upon the agricultural and forestry lands.

Because of a relatively persistent de-capitalisation of economic agents, the asymmetrical de-structuring in the agri-food economy has practically produced “fractures” between: vegetal production and livestock production, within agriculture; agricultural production and food industry; agri- food sector and the rest of the national economy. The present legislation, which creates the general framework for performing contracts, has unclear terms and it is not specialised in agriculture. Lack of a specialised accountancy system for the agricultural exploitations, system compatible with the EU accountancy one. Lack of means for performing periodically structural analysis of the units acting in the agricultural sector. Very low level of agricultural labour productivity, due to the poor technical endowment, to the agricultural land fragmentation, and to the lack of management in the private holdings. It is maintained a significant share (72 %) of subsistence holdings, smaller that 3 ha. and the extremely low share (0.3%) of holdings larger than 10 ha. We point out the absence of a working capital and of preferential credits. Soils are subject to a continuous degradation process. For Romania, the land reclamation problem has been and still is especially acute as agricultural land is affected by various

Stimulation and intervention measures become necessary for the rebuilding of the normal correlation in the sector and also in the rest of the economy, through the diversification of agricultural product processing activities, development of the distribution channels, and strengthening of the markets functioning. There are already created the premises for co-operation with the commercial banks in order to grant preferential credit lines with low interest for agricultural producers. It will be negotiated with the World Bank, a credit guaranteed by the Romanian Government with a total value of 150,000 thou USD.; this credit line is destined to increase the financing sources for SAPARD. There is a relative significant segment of young people in rural area and this segment must be sustained by specific policies to become farm managers. The development of associative and co-operative system is an imperative for the increase of agricultural producer negotiating capacity, and it might be realised by setting up producer groups. There are also necessary some actions in order to develop the services for sustaining the agricultural production. For Romania will be envisaged a series of structural policies orientated to: - producers which have chosen non-agriculture activities ;

Increase of agriculture share in occupied active population (by 9.3%) and in GAV (by 4.9 %) give to the Romanian transition the feature of a beginning of a new agri-culturalisation, with unfavourable impacts on social labour productivity trend (the sensitive decrease of agriculture share in fixed capital stock and investments is to be noticed). The high percentage of old persons managing farms indicates the existence of a low capacity to adjust the production system to the market economy requirements. The subsistence agriculture does not allow to implement new technologies and to extend the agricultural activities. The production system, especially oriented to self-consumption, has determined the lack of connections with the markets and due to this fact the agricultural farms do not respond to the markets signals. The fluctuations of the yields, especially because of the weather conditions, to the chemical products use, and to the adequate technologies use. The very high poverty level of the agricultural producers majority determines the use only of the cheapest production system which allows obtaining the minimum necessary for self-



limiting factors of the productive capacity. The preponderant cereal feature of the production structure is a negative aspect of Romanian agriculture. Yields are generally 2-3 times lower compared to developed West European countries. A considerable reduction of livestock has been registered due to the reduction of the meat and milk consumption, non-adjustment of the marketing system to the very small dimensions agricultural system, the necessary inputs are not accessible to the small producers due to their high prices. The average yield in livestock sector is far from the technical and technological progress recorded in the West - European countries.

- sustaining the agricultural producers in order to change the actual applied production system, through agricultural activities diversification. Compared to European Union countries, chemical fertiliser quantity used in Romania is 4 times lower. This fact is a premise for identifying the areas, which are to be converted to the organic agriculture system, by applying agricultural production methods designed to protect the environment and maintain the countryside. There is a diversification potential for the agricultural crops, but there are necessary measures of orientation of the farmers towards specific crops or animal breeding with the high rate of technicality, and also re-orienting the productions.

consumption in farm.

Human resources

On the territory defined as rural area live about 45% of the country population. In the latest two years Romania has recorded a demographically growth and the decreasing trend has been stopped in the rural areas characterised by the continuously decreasing number of inhabitants. The rural environment dispose at present, of great resources of young and very young labour, which can be qualified and trained. The percentage of rural population involved in economic activity is higher than 57%. The existence of an important number of agricultural experts (more than 60,000 with high

The qualitative structure of the agricultural working force is low because of : - the general process of demographic ageing; - migrations village-town and town-village; - high rate of fragmentation of the agricultural working force; - low degree of qualification of the population occupied in agriculture, as compared to other branches; - low degree of technical endowment of labour. Only a small percentage of the young people are in the position of land owners, the farms being managed by old persons. For the surplus of young labour and

There will be initiated specific policies targeting women and young peoples from the rural areas especially by the development and diversification of economic activities. The young people guidance to investments in agricultural exploitation and also for creating the producers groups allow the involvement of the existing labour potential and also the consolidation of the private property and the management among this category of population. It will be applied the measure referring to the improvement of vocational training.

The young people represent one of the pressures on labour market and without some sustained and coherent actions to create new employment opportunities it is possible to appear the social instability. The low level of agricultural income, monoculture and the absence of other non-agricultural activities did not stimulate young people to remain in rural areas. Great disparities regarding the living level that are still present between the rural and the urban environment.



and medium studies) represents a comparative advantage of the Romanian agriculture, the share for an expert with high degree being of 500 hectares. The labour in agriculture is formed mainly of the members of the peasant families, being thus manifest the phenomenon of self-interest.

especially for women, doesn’t exist enough specific employment opportunities in the rural area. A significant number of persons from the urban area received the former land owned, further to applying Law 18/1991 and who deal with agricultural activities without having any knowledge in this field and from this reason they generally make use of a traditional, inefficient farming. Part of the agricultural experts have left the agriculture and the rural environment for activities in other fields and thus their knowledge is not used for promoting the modern technologies and professional guidance.

The capital

A negative aspect is represented by the absence of markets of capital and of the systems of specialised credits. Obsolete production capacities. The tractors and agricultural machines fleet is obsolete and insufficient for the existing agricultural potential. There were not given back to the former owners the agricultural production means. The private sector from agriculture is des-capitalised and there did not exist a permanent coherent legal framework for stimulating the inputs of capital.

Promotion of several measures for modernising the production capacities and renovation of the tractors and agricultural machines fleet.

FOOD INDUSTRY

There is a relatively wide range of agricultural products, ensured mainly by the diversity of raw

The great majority of the units for processing and marketing of agricultural and fisheries

Stimulation and intervention measures become necessary for the rebuilding of

Delay in the adoption of the Acquis communautaire, related the productive



materials of plant and animal origin, by the installed production capacities and by the existing human resources. The year 1997 meant for the Romanian food industry a decisive stride ahead in the setting up of a genuine competitive environment and in adapting its legislation to the market and competition requirements, especially by adopting some regulations for the import of agri-food products. Fish processing industry is 100% privatised

products are situated in the urban area. Reduction of offer of raw materials for some foodstuffs such as: refined sugar, canned vegetables, canned fruit, tomato paste, meat and meat products, fish and fish products. Stimulation and intervention measures become necessary for the rebuilding of the normal correlation between agricultural and food production, through the diversification of agricultural product processing activities. Processing capacities from the fish industry are old and moral ear and a lack of capacities for sorting and storing perishable products: meat, milk, eggs, etc.

the normal correlation between agricultural and food production, through the modernisation and diversification of agricultural product processing activities. Promoting investments for modernising and development of the agri-food sector concerning the improvement of processing and marketing of the agricultural and fishery products. Harmonising the legislation regarding the structures for quality, veterinary, plant-health and consumer protection control systems. Sustaining by public and private investments the improving of the structures for quality, veterinary and plant-health controls, for the quality of foodstuffs and for consumer protection.

norms and the quality standards. Lack of specialised markets and of preferential credit systems. Exports are oriented especially to agricultural products, raw materials (animals, oilseeds, and cereals).

AGRICULTURAL SERVICES

Comprising of commercial companies for agricultural services in the privatisation process.

Increase of agricultural inputs prices. Low use of mechanisation, land reclamation and irrigation, and for services for storing.

There are necessary some actions in order to develop the agricultural services in the framework of the measure regarding development and diversification of agricultural activities sustaining the agricultural production.

Existence of disparities between the input prices and the prices of agricultural services as compared to the selling price of agricultural products.

AGRICULTURAL AND TRADE MARKETS

The control of prices was dominated until 1996, whereas in 1997 there took place the liberalisation the prices and of the trade. EU is by far the most important commercial partner for the agri-food products, absorbing during 1998 about 34 % of the Romanian agri-food products exports and supplying about 44% of the Romanian agri-food products imports.

Lack of the distribution channels for the agri-food products and of an information system connected to the market. Penetration on the Romanian market of some imported products, causing a competition with the domestic manufactured products, in the condition of an average 50% decrease of custom duties at the import of foodstuffs and in the conditions of continuing slow rhythm

Developing of programs for the setting up of product channels for the plant and animal production.

Lack of market studies might create difficulties in the placement of objectives.



in the development of the systemic and structural adjustment of the commercial companies of the state sector.

OTHER NON-AGRICULTURAL ECONOMIC ACTIVITIES AND THE RURAL TOURISM

Besides agriculture, which is the main economic activity, there are a lot of other non farming economic activities taking place in the rural area, even without being very extended. The existence of traditional activities and handicrafts, such as bee-keeping, sericulture, ceramics, traditional processing of wood, wool and other raw materials. Rural space has a rich tourist, cultural and spiritual potential. The existence of a large surface covered by waters in almost all counties of the country has determined aquaculture to become a traditional activity practised with lower costs. The fisheries and aquaculture represent also instructive, leasure activities and constitute a tourist attraction.

Of the total SMEs, only 17% operated in the rural area (in 1997). The number of handicraft and services units decreased compared to 1989. Low degree of instruction of the rural population. Agricultural units recently privatised. Tourist policy with weak structure (promotion and organisation). The number of handicraft and artisans is continuously decreasing because these activities are not encouraged and the young peoples are not oriented towards these activities. The adequate legal framework has not yet been harmonised. The state does not support sufficiently the improvement of the fisheries and aquaculture. The privatisation of the large surface covered by waters is delayed. The structures that have to ensure the privatisation of the fisheries sector have not yet been set up.

The action of attracting Romanian villages that dispose of tourism and cultural-spiritual potential in the internal and foreign tourism networks, is a progress experienced by many counties in Romania. The NGOs in the rural environment contribute to the development and promotion of rural tourism through: training courses and the workshops, as well as training in delivering of tourism services. The potential for diversifying rural economy must be sustained by legislation, by setting up the preferential credit system, and also by specific promotion actions. Promoting some investments in order to develop and diversify the economical activities, such as handicrafts, bee-keeping, sericulture, aquaculture and rural tourism, which has a high potential to absorb the labour from rural space. The promotion of some programs for the development of the fisheries and aquaculture represent both alternative incomes for the agricultural producers from the rural areas (even the inhabitants from the most isolated areas), and a premise for the development of the tourism.

Decline of the purchasing power for national tourists. Minimising of the potential of Romanian rural tourism for foreigners. Increasing the tourist number in a not enough prepared framework. Seasonal character of the fisheries activities. The lack of knowledge regarding the aquaculture.



Infrastructure (agricultural, civil, social and cultural)

Romania invested in the years ‘70 and ‘80 a huge amount of capital in irrigation and land reclamation works, having as a result: - 3.5 million hectares of land arranged for irrigation; - 3.3. million hectares of land equipped with drainage systems, about 2.2 million hectares were included in the action of soil erosion control. Referring to the electricity network, in Romania the situation is favourable for the rural population because all the communes of the country are connected to the public or local network of electric power. Almost all the localities in the rural area have links to the public roads.

Over-sizing of land reclamation systems resulted in the incapacity of operating the area equipped with irrigation facilities, under economic conditions. The operating rate of irrigation facilities is extremely low (8 – 25%). There are serious problems related to the financing and execution of land reclamation works because of: - lack of capital investments for continuing the master works; - projecting of systems which was performed taking into account great users, these projects being inadequate to the small private users; - shrinking of budgets in financing the maintenance of land reclamation systems. Only a little above half of the communes (54%) have direct access to the national auto, train or air way. The network of drinkable water in the rural environment represents 38.4% of the total length of the national network. In the rural area there are only 5.6% of the total length of existing sewerage pipes in the country. Low degree of sanitary services in the rural areas from the point of view of the sanitary units number and also of their endowment with medical equipment and specialised staff. Low number of education and cultural units in the rural areas and also the low number of specialised staff have as a result a low degree

There are to be identified the areas covered by irrigation systems with approximately low dimensions, which may be improved under economical conditions in order to assure the transition to the private sector. For this purpose, there are to be promoted investments regarding agricultural water resources management, especially for irrigation and drainage. The physical infrastructure must be improved in four priority sectors : - Communal roads, - Drinkable water, - Sewage water. Promoting some complementary programs to the SAPARD Programme in order to accomplish the health and education infrastructure.

The most important needs of the sector are threaten by the lack of the financial means and also by the lack of a performance management system.



of education for the rural population. Non-modernised roads represent more than half of the rural road network. The public utilities are low developed in the rural area: - about 20% of villages are provided with supply of natural gases; - from the total network of sewage only 5.6% are in the rural area; - the network of edible water in the rural area represents 38.4% of the total length of national network.

FORESTRY

Romania has one of the most valuable forestry resources in Europe. The total size of the forest areas is 26.7% of the national territory that ranks second in Central and Eastern Europe, after Poland. The total volume of standing trees that is estimated at more than 1,350 million cubic meters. The total incremental forest growth that is of the order of 27-28 million cubic meters per year. The national exports of wood and wood products that are estimated at 10% of the country’s total exports. The high-level educated professionals in the field of forestry (many of them unemployed). Long tradition in the field of forestry activities. The management of forest is made in an unitary way, through forestry arrangements and each forestry activity is based on the severe observance of some technical norms, elaborated

The forestry output experienced a decrease. Thus, the timber volume exploited in 1997 represents only 75% of 1989). In 1996, for the forest regeneration and plantation afforestation took place on 12,727 thou. ha. The rate of afforestation was drastically reduced compared to that of 1998. The rate of regeneration is very low (0.20%). The limited institutional capabilities of the present public and private institutions dealing with forestry. The shortcomings of the legal and fiscal systems which are not facilitating forestry operations. The limitations imposed by the weak economic environment, particularly concerning the privatisation/ promotion of forestry activities.

The sector of exploitation and processing the forestry products represents a real opportunity to create new jobs and incomes, by promoting investments regarding forestry roads, afforestations, nurseries, modernising the wood harvesting, and also modernising the marketing and processing of the forestry products. The important volume of good quality wooden mass not exploited in latest years (of the governmental quota) due to the economic decline (mostly in the secondary wood-processing sector). The important volume of good quality wooden mass, which can be exploited by improving, and developing the forestry road network. Based on enforcement of the propriety rights on agricultural and forestry lands claimed by the former owners will be returned to the rightful owners, lands which represent about 40% of the

The possible damaging effects of the intended retrocession of state forest lands to their previous owners, if this process is not carefully prepared. Objective or subjective difficulties to bring the products on external market. Insufficient absorption of the products by internal market, due to the lack of correlation between the rhythm of development of different economic sectors and also to the decrease of the financial power of the population. Lack of managerial knowledge of the new owners of the forestry exploitation. Lack of preferential credit systems.



during a period of 50 years of research. The high share of deciduous species with high economic value: 64.1%. In Romania, there are the only virgin woods in Europe about 50,000 hectares. Existence at the national level of a forestry monitoring system accomplished according to the European norms, under which the phito-sanitary health of the forestry fund is under permanent surveillance. The diversified offer for the market: wood of high quality from valuable species (oak, cherry, fir-tree, etc.), forestry nursing trees, forestry seeds, fruits of the wood and high quality mushrooms, hunting and game, fish and bee-keeping, etc. Offers important resources for eco-tourism, forestry-tourism, and hunting-tourism. The function of protection it exerts against the desertification the phenomena, against winds, erosion, etc.

The low level of technologies for harvesting, transports and primary processing of woods. The lack of public financing for investments projects. The imbalances in the national forest road network (two million ha cannot be exploited due to a lack of forest roads – the average road density is of 6.2 m/ha and the network is yet highly irregular). From the total of 6.4 mill ha of forestry surfaces, 6 mill ha are state owned and the rest of 400 thou.( 6% of total) are private owned. The high level of export of forestry products with a low processing degree. Lack of valorising the waste resulted in the primary processing process. Deforestation of about 25,000 hectares out of the total area of 330,000 hectares of the forests found in private property (recently given back to the former owners). Inefficient marketing in all activities in the forestry sector.

forestry total surface of the country. Promoting investments in order to develop and diversify the economical activity and the social and environmental functions of the forests by sustaining multifunctional projects.

ENVIRONMENTAL PROTECTION IN AGRICULTURE

Pressure upon the environment created by the agricultural production has decreased a lot in the same time with the animal breeding units elimination, with decreasing the irrigation water quantity, and also with the very strong decreasing of the chemical fertilisers and pesticides use. For the entire country, average annual emissions

Agriculture is characterised by pollution generated by other human activities, especially in the areas located to the industrial centres. The Romanian soils are affected by pollution, on the one side because of practising of an inadequate agri-technical farming, the extensive use of chemical

In the latest years the water quality improved a great deal, and due to this fact we may realise some efficient investments for water resources management. This aspect must be taken into account in the process of promoting and placing the SAPARD objectives, in order not to

The most important problem is the soil erosion, which affects 7 mil. ha agricultural land and which has the tendency to expand and intensify.



compared to the number of inhabitants are close to the European average, and for some substances (CO2) being below the EU countries’ average. This is the result of reducing the economical activity after 1989, namely the closing of some industrial factories and of some animal husbandry units and the introduction of non-polluting technologies. The setting up since 1992 of a new system for the monitoring of soil quality, harmonised with other European systems and which comprises 940 representative sites/ placements, out of which 670 on agricultural area and 270 on areas under forestry use. Existence of the possibility of obtaining ecological agricultural products exclusively based on natural conditions.

fertilisation - especially before 1990 - and on the other side because of the extractive and processing industries. About 7 million hectares agricultural land are affected by the erosion process and by the land-sliding process. On an area of about 3.5 million hectares, the erosion is very powerful, in some instances the soil losses being of about 20-25 tones/hectares/year as compared to 2-3 tones/ hectares/year represented by the recovering capacity of the soil. Agriculture is also polluted by other human activities, especially in the areas close to industrial centres of big cities. The low awareness of the issues related to the environment protection, manifested both at the decisional level, and, especially, among the population: an incomplete legislative framework in the field of environments protection and lack of firm measures in what regards the cases of serious infringement of the strict environmental norms, massive deforestation in the woods recently recovered by the former owners and in some other situations, have led to the appearance of numerous land-sliding phenomena and to soil erosion, practising of an aggressive rural tourism in what regards the environment.

increase the pollution effects. For all projects, the environmental surveillance must be done to avoid negative impact.

INFORMATION

With the setting up in 1998 of the National Agency for Agricultural Consultancy and of its territorial structures it had started up ensuring of the informational flow from the macro-economic

Data gathering at national level is made through the Agency of the National Commission for Statistics, a service that does not develop an adequate agricultural



level to the micro-economic level. statistics of the rural area. Absence of an official database in the agriculture and rural development fields.

ADMINISTRATIVE CAPACITY

“The Commune" is the basic administrative unit on which territory the rural policy can be implemented. The public communal authorities are the local partners of the national authorities for the attainment of the rural policy. The institutional structure of the public administration in agriculture follows the territorial administrative structure of the country: at the village level: agricultural centres< at county level: the Directorates for Agriculture and Food Industry, at central level, the Ministry of Agriculture and Food. The high level of knowledge of the experts working in the public administration in the agricultural and rural domains.

The low number of development actions directly addressed to the communes and their inhabitants, most of the development actions being targeted on the urban areas. Local structures have not yet gained the experience needed in the implementation and management of local development programmes. Lack of partnership/co-operation between the mayor houses and the other social-economical partners. Low degree of technical endowment and low degree of instruction of the personnel. Ministry of Agriculture and Food has taken over the tasks and functions regarding the rural development starting with the year 1997. Starting with the year 1998 it have been established 8 development regions, but the base administrative units have remained the counties. At the present time, the agricultural statistic and the statistic of the rural areas are very low developed. The local structures of the public administration in the field of agriculture do not have still the necessary experience for the implementation and management of the

The capacity of local management of the programmes is possible to be improved by initiating national and/or regional coherent programmes. The existence of some institutional twinning programmes means opportunities of local and/or regional and/or national administration, together with the Special Preparatory Programme. Promoting the structures for SAPARD Programme implementation and monitoring.

The lack of well-trained persons and their instability in the public administration structures is a major threat to insure a proper implementation of the development programmes. The village and county administrations have a low planning and implementation capacity due to the very low level of available financial resources.



programs of local development. Delay in the setting up of public administrative structures at the regional level, due to budgetary difficulties. Des-structuring of the civil society *reduced number of NGOs in agriculture and rural development and their lack of functionality.

National Agriculture and Rural Development Plan 2000-2006 __________________________________________________________________________________


III - STRATEGY AND PRIORITIES FOR AGRICULTURE

AND RURAL DEVELOPMENT IN ROMANIA 1. Strategy Framework

Agriculture remains a key sector of Romania in the framework of the pre accession period to the European Union. Thus, around of 41% of the employed population work in the primary sector which represent approximately 14% of the Romanian GDP. The Copenhagen Summit Decisions, the Annual Report of EC of October 1999 on the Romanian’s Progress towards Accession as well as the general provisions of the EU Agenda 2000 Framework and the bilateral phase of the acquis screening reached the same conclusions as those of the National Strategy for the economical development of Romania presented to the European Union in March this year, meaning the need for Romania to create a functional market oriented economy, consistent with the principles, norms, mechanisms, institutions, and policies of European Union. The convergence foreseen in this respect is based on an evaluation of resources and opportunities of domestic and international context, and respond as laid down by the updated National Programme for the Adoption of the Acquis to the double requirement of finalisation of a market oriented economy and of preparation for the accession to the European Union, for using the historical chance offered by the decision of the European Council in Helsinki of December 1999 to open the negotiation of accession for Romania. In this given context will have priority the harmonisation of the legislation concerning the SAPARD Programme measures. In the National Programme for Accession of Romania to the European Union (May 2000), in volume I, chapter 3, item 3.4.2.5. Integrated Agricultural and Rural Development, is mentioned that the National Plan for Agriculture and Rural Development (NPARD) is a component part of the National Development Plan, as this latter was approved by the Govrnment Decision 749/1999. In volume II of the National Programme for Accession of Romania to the European Union – Annexes, item 3.4.2.5. Agriculture, Rural Development, in accordance with the Europe Agreement (1994) and with the Accession Partnership, are mentioned the legal documents which are to be elaborated / amended, and are established the deadlines by which the action of legislative harmonisation is to be accomplished, taking into account also the implementation of the SAPARD Programme. Thus, Romania shall implement in the agricultural sector the structural adjustments necessary to its integration in the Common Agricultural Policy and it shall support the investments that respect the Community rules regarding economic, environmental and social fields. Consequently, Romania shall undertake: � On the one hand, in the economic field, the following actions :

-To set-up optimal dimensioned agricultural holdings, economically efficient, by investments and by excluding the marginal exploitations; -To focus on the structural reforms through the strengthening of agricultural holdings, privatisation of commercial companies from the rural areas where nowadays the state has majority capital,



-To improve the legal and institutional framework for a good functioning of agricultural market, and to support the development of the infrastructure necessary for this market, -To sustain policies by agricultural products in order to improve the whole chain from the production to the consumer, both on the internal and external market, in conformity with the quality standards of the EU, -To diversify the rural economy by non-agricultural economic activities, -To support the vocational training of agricultural producers and land or forest owners.

� On the other hand, in the regulation field of the administrative reforms that will

allow: -To align its legislation (especially in the veterinary and phyto-sanitary fields) to the acquis communautaire and to prepare consequently its integration in the Common Agricultural Policy; -To enforce its administrative capacity by training people in order to allow an optimal framing of this economic sector; -To build the institutional structures necessary to the administration of the Common Agricultural policy.

Romania has begun to develop a certain number of reforms in the framework of this policy: -The giving back of the agriculture and forestry land and the establishment of the private property in agriculture, at the same time with the approval of the Land Law No. 18/1991, with surfaces not exceeding 10 ha, and by the approval of the Law No. 1/2000 for the reconstitution of the agriculture and forestry land property right required in conformity with the provision of the Land Law No. 18/1991 and of the Law No. 169/1997, the surface which will be gave back has no mare than 50 ha; -The setting up of the legal frame for: the transfer of the land by the approval of the Law No. 54/1998 regarding the legal transfer of the land; the granting conditions stated by the Law no. 219/1998 regarding the granting conditions; the leasing of the land in conformity with the Law no. 16/1994 regarding the leasing; defining elements of the land reform and for the establishment of the land market; -The ensuring of the legal frame for the privatisation of the agriculture companies (in conformity with the Government Urgency Ordinance No. 198/1998 regarding the privatisation of the companies having in administration agriculture land or land being always under water shine) and of the food industry companies (Government Urgency Ordinance No. 88/1997 regarding the privatisation of the companies and the Law No. 99/1999 regarding the acceleration of the privatisation process); -The administrative – institutional reform of the Ministry of Agriculture and Food (Government Decision No. 331/2000 for the modification and completion of the Government Decision No. 6/1999 regarding the organisation and functioning of the Ministry of Agriculture and Food). -The setting-up of the SAPARD Agency with the Government Urgency Ordinance No 142/2000.



2.Objectives of the Plan On the long term, the strategy proposed by the National Plan for Agriculture and Rural Development (NPARD) is to contribute to the accession of Romania to the European Union and allowing that Romanian agriculture shall be reinforce in order to be able to cope with the Community market competition’s pressure and at the same time improve the life conditions of the economic agents of rural areas. Having regard to: (i) objectives under the Accession Partnership (98/C/202/08 JOCE 29.06.1998), (ii) council Regulation 1268/99 on SAPARD, (iii) the economic priorities laid down by the National Program for the Adoption of the acquis, “Art 1(2) Community Support shall comply with the conditions laid down in the framework

of accession partnerships and shall relate in particular to:

a) contributing to the implementation of the acquis communautaire concerning

the CAP and related policies”, b) solving priority and specific problems for the sustainable adaptation of the

agricultural sector and rural areas in the applicant Countries;

(iv) the socio-economic conditions prevailing in Romania rural areas, their strengths, as well as potential, (v) the multifunctional role of agriculture as provided for in the reform Agenda 2000 and on the basis of the following principles: - a competitive agriculture sector which can gradually face-up to the world market;

-production methods environmentally friendly, able to supply quality products;

various forms of agriculture with the following lines:

-to keep the tradition,

-to maintain the countryside,

-to maintain the active rural communities,

-to maintain the employment,

-a simpler agricultural policy more understandable which establishes a clear line

between the decision that have to be taken jointly and which should stay in the

hands of each state;

- recognition of the services provided by farmers to the society,

- to insure an equal treatment of men and women.

The support given by the Community in the period 2000-2006 through the SAPARD Programme shall be focussed on actions designed to contribute to the reaching of the following general objectives proposed for SAPARD Programme: i) The implementation of the acquis communautaire concerning the common

agricultural policy, the environment protection and related policies in the field of food

and consumer protection regulations, public health, well been and good health condition

of the animals and plants health.



This objective of the Romanian strategy for integration in the European Union for agriculture, food industry, fisheries and rural development sectors is represented by implementing of the acquis communautaire. SAPARD will support practical development to implement the provisions of the acquis regarding:

�Food standards; �Control measures in order to assure the consumers protection, the public health and the animal and plants healthcare; �Environment protection.

ii) Engaging for the environment protection, the transposition in the national legislation

and implementation of the Directive "Nitrates", of the programme "Natura 2000" and of

the Directive "Evaluation of the Environmental Impact"(Annexes I and II). iii) Solving priorities and specific problems for the sustainable adaptation of the

agricultural sector and rural areas of Romania Taking into account the identified strengths, disparities, gaps and opportunities, the short and long term strategy proposed through the National Plan for Rural Development shall have the following strategic objectives: �sustainable development of an competitive agro-food sector by modernising and improving the processing, marketing of agricultural and fisheries products; �to increase standard of living in rural areas by improving and developing the necessary infrastructures, and by defining and setting up the good agriculture practice for sustainable agriculture and rural development; �to develop the rural economy, by setting up and modernising the fixed assets, for private agricultural and forestry holdings, developing and the diversifying the economic activities, in order to maintain and/or create alternative/supplementary incomes and new jobs; �to develop human resources by improving the vocational training for farmers and owners of forestry lands and by building and consolidating the institutional capacity. For all of these strategic objectives, priority will be given to the investments that allow the implementation of the acquis communautaire. 3. Strategies and priorities for SAPARD Assistance The strategy for SAPARD assistance described below aims at achieving the main objectives of the National Agriculture and Rural Development Plan while taking into consideration the following constraints: � The priorities set in Art. 4.3 of Council Regulation 1268/1999, in particular: “In

their plans, applicant countries shall ensure that priority is given to measures to

improve market efficiency, quality and health standards and measures to create new

employment in rural areas, in compliance with the provisions on the protection of

the environment”;

� The list of eligible Measures given in the Art. 2 of Council regulation 1268/1999. To achieve the priorities, the operational objectives referring to the measures proposed by the SAPARD Regulations is as follows, regrouped in four priorities. The general and



specific objectives of each measure are to be found in the measures of the SAPARD Programme that will be promoted. These priorities are the following: Priority 1: Improving the access to markets and of the competitiveness of agricultural

processed products;

Priority 2: Improving infrastructures for rural development and agriculture;

Priority 3: Development of rural economy;

Priority 4: Development of human resources. The elaboration of priorities, in the framework of the rural development strategy, is based upon the following two important principles - A strong correlation between priorities, by correlating the measures corresponding

to each priority, and especially in order to obtain cumulated results, ensuring the development of production chains, the stabilisation of the foodstuff market and implicitly an integrated development of the rural area;

- Previous promotion of certain priorities, which must ensure the development of some resources in the areas with potential as well as a good orientation and management of the programme funds.

In the framework of the first principle, the first priority cannot be fully developed without supply in agricultural raw materials. These resources must be diversified, stable from the quantitative point of view, of superior quality and having competitive prices. These are the objectives pursued in the framework of the third priority. Also, the implementation of the regular supply flow of the marketing and processing units is conditioned by the existence of an sufficient infrastructure network and especially by a network of dense rural axis, which will allow to service the supply units. This objective meets the objective of the second priority. Finally, the implementation and efficient functioning of the production or processing units are conditioned by the training of the economic agents, who are necessary to their functioning. This objective is also provided for in the framework of the forth priority. Thus, the impact of the first priority will be reached by implementing in the same areas the measures belonging to the second, third and forth priority. In the framework of the second principle, Romania will favour during the first years of development of SAPARD the implementation of infrastructure projects that are necessary to the functioning of an economy in rural area. Romania will therefore mobilise 50% of the Community assistance during the first two years for infrastructure projects, which have already finalised their technical studies. There will be implemented standard and specific training courses from the beginning of the programme in order to make viable the operations regarding agricultural holdings and units for processing and marketing of agricultural and fishery products. Thus, there will be ensured all the conditions that will be very necessary to the development and modernisation of modern vegetable and animal farms, as well as the capacities of processing agricultural products in accordance with EU standards. Moreover, this will help to elaborate studies and analyses regarding the market, the production structures, the areas with various development potentials (rural tourism, production diversification, handicraft etc.). The available amount provided through the programme is significant, but, due to the fact that the problems are substantial, the impact of the programme will be relatively limited to



solving the problems and to implementing the acquis. The programme will have also a positive impact on the preparation for the accession at the EU. Priority 1: Improving the access to markets and of the competitiveness of agricultural

processed products The specific objectives are: �Orientation of production in accordance with foreseeable market tendencies or the development encouragement of new markets for agricultural products, especially for processing and marketing of agricultural products grown according to the environmental standards in force, and in certain cases biological products can be used (in particular organic farming). �Quality improvement of processed products and control of food products quality, by respecting the minimum requirements of food hygiene according to EU standards; �Improvement and control of sanitary conditions; �The establishment and strengthening of commercial private agri-food and fish processors. Measure 1.1: Processing and marketing of agricultural and fisheries products. Applying art. 2 from the Council Regulation (EC) no. 1268/1999, art. 3 from the Regulation of European Commission no. 2759/99 and art. 25 and 26 from the Regulation of European Council (EC) no. 1257/1999, the measure has as a general objective the support for investments, destined to the improvement and rationalisation of processing and marketing of agricultural and fisheries production in order to accomplish progressively the accordance with the acquis communautaire, contributing thus to the increasing of competitiveness and added value for these products, being in the same time a sector with a big potential in creating new jobs. This measure will be accompanied with the on-going privatisation of the sector and the suppression of over-capacity owned by the State. Due to the fact that processing sector is for about 85% situated in urban area, investments supported within this measure should have to address also to those units for restructuring and modernisation of the production processes and avoiding the low utilisation of some production capacities. Supporting of some small and medium processing capacities in rural space is justified as long as there is a surplus of raw materials which can be absorbed by the units belonging to the rural space, without diminishing the quantity of raw materials destined to the processing units from urban area. This measure will be put in practice taking into account the following operational objectives: �Support for investments for improving the processing and marketing of agricultural products, by sectors and by specific objectives; �Support for investments for monitoring quality (control laboratories inside the processing plants); �Stimulating investments aiming at the protection and enhancement of the environment as well as livestock hygiene and animal welfare ("green investments"). This measure gives a priority to the production sectors for which the implementation of acquis communautaire needs important investments (milk, meat, fruit and vegetables, wine, fish) but also doesn’t exclude other sectors which represent important potentials to put in



value (cereals and oilseeds). In those sectors, only the modernisation of existing capacities will be sustained. This measure will give a priority to the projects higher than 100.000 EURO but also doesn’t exclude smaller projects (between 30.000 and 100.000 EURO for those projects located in rural areas and based on local markets. The vocational training in this sector will be supported by the measure Technical assistance of SAPARD. Measure 1.2: Improving the structures for quality, veterinary, and plant-health

controls, foodstuffs and consumer protection.

According to article No. 2 of Council Regulation (EC) No. 1268/ 1999, the measure has as general objective implementation of the acquis communitaire in the sanitary- veterinary, plant-health food quality control fields in order to contribute to the improvement of quality of raw materials and of finite agri-food products and to improve the competitiveness of the domestic market and for export prospects. For this measure, support is insured complementarily by both Phare and SAPARD funds. Taking into account that the aim of this measure is institutional building it could be financed especially by Phare Programme. If the Phare Programme will not be able to finance the projects, these will be financed by SAPARD. Phare will focus on the following directions: �Consolidation of institutions building and national legislation in compliance with European one (acquis communautaire) regarding the investments, �Finalising ongoing programmes and measures, �Modernisation and making operative the multi-functional border inspection (including those referring to border inspection for animal health), �Investment projects of more than 2 millions EURO (eligible value). SAPARD shall focus, among others, on smaller actions at local level. This measure requires the harmonisation of the national legislation with the acquis communautaire as specified in the framework of the measure. This measure will be put in practice taking into account the following operational objectives: �Establishment of new laboratories in public and private sectors; �Modernisation, extension and equipment endowment of the existing laboratories; �Setting up an information and communication network system for public laboratories. The public laboratories supported by this measure are considered as investment in infrastructure not generating substantial net revenue.

Priority 2: Improving infrastructures for rural development and agriculture According to article No. 2 of Council Regulation (EC) No. 1268/ 1999, the general directions are in order to improve the rural infrastructure, to increase the living and working standards and to maintain the population in the rural areas, by promoting specific objectives, such as:



�Improvement of access of the inhabitants living in the rural area to holdings, of communication between rural areas, and of access to national network. �Improvement of hygiene and sanitary conditions of the living houses, and of the productive activities carried out according to the standards in force; �To ensure the necessary water consumption for the agricultural crops and for livestock in areas with humidity deficit, in terms of economic efficiency, by increasing the economical and technical efficiency of the existing irrigation systems and reduction of the water losses from the irrigation network. �To increase the capacity of protection of the agriculture lands against floods, by developing new digging and other specifically systems and by the rehabilitation of the existing ones. The water infrastructure, as any other infrastructure investment project, shall be subject to an EIA. Therefore, the environmental aspects will be considered via the related procedure. Management of the water and irrigation infrastructure will be ensured by the beneficiaries and the implementing agency shall include in the grant contract clauses in this respect, since it would be rather complicate to list such details within the body text of the Plan. Drainage systems and water treatment mentioned techniques are subject of technical review to decide weather it is technically feasable. Anyway, by economic point of view and as a follow-up of existing environmental protection obligations , the exact techniques will be fixed. Apparently, therefore it will be no need for an additonal formal procedure in that respect. Measure 2.1 Development and improvement of rural infrastructure

The purpose of this measure is to improve the access of the inhabitants living in the rural localities to the public services, to set-up of prerequisites for modernising the degree of comfort in rural areas, to improve of the quality of the environment and diminishing of polluting sources etc. This measure will be put in practice taking into account the following operational objectives: �Building and modernisation of local communal roads and bridges; �Building and modernisation of the drinking water supply systems; �Better management of the sewage water systems through investments related to water treatment stations, This measure will be implemented with a big amount for the first two years, taking into account the needs in this sector, and also in an integrated way in order to support investments linked with other measures of the SAPARD program. The investment supported by this measure is considered as investment in infrastructure not generating substantial net revenue. Measure 2.2 Management of water resources for agriculture According to the provisions of Article 2 of European Council Regulation 1268/1999, the general objectives of this measure are to ensure a sustainable management of the water resources in the rural area, to maintain and stabilise the production, to preserve and protect the environment, to contribute to the increasing of the incomes and to support rural employment.



The operational objectives within the framework of this measure are the rehabilitation and upgrading of existing irrigation systems, as well as in the rehabilitation and modernisation of existing drainage systems. These can be accomplished taking into account the following operational objectives: �Rehabilitation and upgrading of existing irrigation systems; �Rehabilitation and modernisation of existing drainage systems; �Reduction of water losses in the irrigation network; �Protection against flows. This measure will sustain the investments of the National Society of Land Reclamation which keeps the management by concession of the infrastructures owned by the state, as well as the investments supported by the new association of water users for the management of secondary water networks. This measure will be implemented in areas without high natural value. All the projects submitted in the framework of this measure have to present an Environmental Impact Assessment according to the law n°137/1995 on Environment Protection. The details for the implementation of this measure will be discuss with the Commission before the beginning of its application foreseen in 2002. The investment promoted by administration and supported by this measure is considered as investment in infrastructure not generating substantial net revenue.

Priority 3: Development of rural economy According to provisions of Council Regulation (EC) No. 2759/99, for appliance of the provisions of Council Regulation (EC) No. 1268/1999 and Council Regulation (EC) No. 1257/1999, this priority has as specific objectives the support for investments in agricultural holdings, setting-up producer groups, diversification of the activities in rural areas, which will help the adaptation of the rural economy with the acquis communautaire, for improving the agricultural incomes, the employment and the orientation of the production to the market economy. The specific objectives are oriented to: �Decreasing production costs, �Adjusting the production to the need of the market, �Ensuring the optimal use of the manpower available by encouraging the creation of new employment, �Improving and diversifying production, �Improving the quality, �Promote the diversification of agricultural activities, �Establish in common joint rules concerning the information on the production, especially on the harvesting and market distribution, officially acknowledged within the candidate country, �To preserve the high natural value agriculture environment that is potentially threatened, �Protection and improvement of forest resources by a better valorisation of the forest. Measure 3.1 Investments in agricultural holdings The measure shall be implemented with priority for activating the agricultural potential at the same time with the valorisation of local resource in view of making efficient the practised exploitation to insure the agricultural income. There must be granted support the



setting up or modernisation of the investments in accordance with the acquis communautaire. The exploitations that will receive support from SAPARD Programme should comply with the national legislation and if the legislation is updated during the implementation of the project should comply before the payment with the harmonised legislation in force. This measure will be put in practice taking into account like operational objective the promotion of investments in animal and plant sectors at farm level, in order to improve the farm buildings and to clothe it with new machinery and/or animals with a high genetic quality. The minimal conditions of viability for each sector of production are fixed in the measure, as regards the minimal agriculture area or the minimal number of animals bred, as regards the minimal technical conditions of breeding and feeding, and using of manure, as regards the minimal conditions in order to respect the national legislation of environment. Measure 3.2 Setting-up producer groups

The general objective of this measure is to increase the income of the producers who are members of producers groups and to maintain and create employment in rural areas by setting-up such groups. The purpose of producers groups is to market in common their products and establishes the joint rules of production. Consequently, the quality and marketing conditions of the products obtained by the producers groups must be also improved. Taking into consideration Art. 6 of the Commission Regulation no 2759/1999, there were established the following operational objectives: �Support to encourage the setting-up and to facilitate the administrative operations of producer groups; �To stimulate especially the young farmers (under 40 years old) to be involved in setting-up producer groups. �The quality increasing , by setting up producer groups leads to application of modern technologies and implicitly to the increase of the product quality. The delayed beginning of this measure will allow, through the technical studies that will be implemented and financed within the technical assistance measure of SAPARD Programme, to define its intervention framework and to draw up its implementation methods. The details for the implementation of this measure will be discuss with the Commission before the beginning of its application foreseen in 2002, after the establishment of the necessary legal framework. Measure 3.3 Agri-environmental measures

The development of the practical experience of implementation of agri-environmental measures, both at administrative and local level, respectively at the farm level, according to the principles of the CAP will speed up the process of legislative harmonisation that Romania is undertaking as well as the absorption of experience from the EU Member States. The Ministry of Water, Forestry and Environmental Protection has already started preparing the legal context for the implementation of agri-environmental measures and major pieces of legislation have been already approved in this respect; e.g. Government Ordinance no. 34/1999, referring to organically production and its certification.



According to Article 22 of the Council Regulation (EC) no.1257/1999 the support for the agricultural production methods designed to protect the environment and maintain the countryside (agri-environment) will contribute to multiply the actions of accomplishing the objectives of the community policies regarding the agriculture and the environment; Particularly, the support granted through this measure shall promote like operational objective putting into practice pilot projects aiming at conversion to organic agriculture, the protection of areas with special bio-diversity / natural interest and maintain / improve the rural landscape and natural environment. The details for the implementation of this measure will be discuss with the Commission before the beginning of its application foreseen in 2002. A study will be done on the framework of the technical assistance that will define the concept of good agricultural practice, the activities that go beyond them and the estimated income loss. This study will also establish the zones and the conditions of implementation.

Measure 3.4 Development and diversification of economic activities, multiple

activities, alternative income The general direction of this measure, established according to the provisions of the Council Regulation (EC) No.1257/1999, specifies that the support will envisage to support employment and to generate alternative incomes by diversifying rural activities related to agriculture. This measure will be put in practice taking into account the following operational objectives: �To sustain the agricultural activities in the rural area through the accomplishment of specific services; in this respect, it is proposed to sustain the setting-up of circle of agricultural machinery and services for repairing agricultural machines. �To sustain the activity of youth and women; �To sustain the activities which are specific to the rural tourism (agro and silvotourism); �To preserve and to develop traditional handicraft activities; �To develop aquaculture, bee-keeping, sericulture and mushrooms cultivation. It has to be mentioned that Romania has already an experience in the rural tourism, by the existence of marketing networks (ANTREC, FRDMR etc) and the classification of the agrotouristic units according to their level of comfort. It is proposed to give a priority to the modernisation of existing units, but also to create new units if the applicant bases the investment on a study of the potential market in the area where the project is carried out. Measure 3.5 Forestry According to the provisions of Article 29 of European Council Regulation no 1257/1999, the support for the forestry sector will contribute to achieve the general directions: �Preserving and developing of economic, ecological and social function of the forest in the rural areas, concomitant with the extension of afforested areas, in order to increase the product added value of the forest and to increase the incomes of forest owners; �Fulfilling of the arrangements that Romania agreed upon in the Pan-European Conference on Forests Protection. �The support shall promote one or more of the following operational objectives: �Financial support for local communities for the a forestation of the abandoned land and the forestry roadway system;



Financial support for owners of forests and degraded lands from private sector (individual natural persons or their associations and legal persons), for private companies dealing with harvesting, transport and primary processing of wood, of forests from rural areas for : Creating and modernising nurseries, Afforestation, Harvesting and transport of wood products, First processing of wood.

Priority 4: Development of human resources

In accordance to Article no.2 of the Council Regulation (EC) no.1268/1999, with Article 5 of the Commission Regulation (EC) no.2759/1999 and with Chapter III, Title II of the Council Regulation (EC) no.1257/1999, this priority has as general objective the granting of assistance to the professional training in order to contribute to the improvement of knowledge and professional competencies of the farmers and other persons involved in agricultural activities and in forestry, as well as to their conversion towards non-agricultural activities. The specific objectives of this priority are the following: �To train the farmers for the qualitative re-orientation of production, for the diversification of economical activities, for the appliance of these production methods that are consistent with the preservation and improvement of the landscape and the environment protection, of the norms that are applied in the field of hygiene and of animal welfare, as well as for achieving of a level of professional qualification which is necessary for the management of a viable holding. �o ensure that the program gets acquainted, both by the beneficiaries as well as by the responsible with its implementation ( selection, checking, and monitoring); �To ensure the promotion of the programme; �To ensure the training and forming of various authorities and bodies responsible for the accomplishment of the program; �To elaborate the necessary studies for measures implementation. Measure 4.1 Improving of the vocational training Among the operational objectives of this measure, there are to be mentioned: �Qualitative reorientation of production, including for the setting-up of producer groups; �Production practices compatible with the maintenance of the landscape, the protection of the environment, hygiene standards and animal welfare; including training for farmers' taking-up the agri-environmental measure. �Management of economically viable agriculture and aquaculture farms; �Administration of the irrigation networks by the member of the Water Users Association �Other vocational training: forestry and diversification of rural activities in the case of agriculture and fishery producers and forest owners. The measure will focus on short-term training in the sectors related with the acquis communautaire: environment, hygiene and quality, animal welfare and for the economic viability of the agricultural and fishery holdings.



The measure Technical assistance of SAPARD programme will finance the vocational training for the measure Processing and marketing of agricultural and fishery products, and Phare and national programmes could eventually sustain the vocational training for the non farmers beneficiary of the measure Diversification of economical activities. Measure 4.2. Technical assistance �To ensure that the program gets acquainted, both by the beneficiaries as well as by the responsible with its implementation (promotion, selection, checking, and monitoring); �To ensure the implementation of the program in an efficient, transparent and strict manner, including the purchase of equipment necessary to monitor the program, the equipment and the inner workings of the monitoring Committee; �To inform the beneficiaries and the general public about the programme; �To ensure the training and forming of various authorities and bodies responsible for the accomplishment of the program; �To elaborate the necessary studies for measures and program implementation; �To ensure the evaluation and the control of the implementation of the program; �The training of the agents belonging to processing and marketing enterprises assisted within SAPARD Programme. �The training of the agents responsible with the implementation of the programme. Quantification of expected outputs

According to the Communautaire regulations, for the assessment of NPARD, three types of indicators are use: �the output indicators, which measure the direct effects produced through programme activities, being a quantifying tool for the operational objectives of each measure. The financial and administrative resources of the programme are inputs, which contribute to achieving the operational objectives. �the result indicators, which measure the short term effects of the assistance, in other words, it is allow the evaluation of the specific objectives fulfilment within each measure from the Programme �the impact indicators, which quantify on long term the actions promoted within SAPARD Programme, as a result of the monitoring of the general objectives, for the whole programme and each measure as well The appendix no.72 shows the expected links among inputs (financial amount for each operational objective), outputs, results, and impacts and summarises the intervention logic of the programme. The result and impact indicators proposed in each measure that would be improved subsequently in collaboration with the Commission’s services. On average there will be promoted about 30,000 projects at an average individual cost of 70,000 EURO. The most relevant expected outputs by types of projects are the following:



�2,100 projects that are comprised in the measure of processing and marketing of agricultural products, for the following sectors: dairy products, meat, cereals, oilseeds, wine, fruit and vegetables, potatoes, fish; �178 projects to improve the system of quality control; �1,800 km of communal roads, which represents an increasing of 180% of the existing modernised roads; �2,700 km of pipelines for drinking water, which means an increase of 20% of the existing length; �1,300 km of pipelines for waste water (sewerage), which represents 1,6 time more than the existing length (864 km); �40,000 ha of land improved by irrigation and drainage, i.e 5% of the actually used surface; �11,000 projects of investments for agricultural holdings, supported by about 12,000 farmers, out of which 20% of young farmers, �10,600 equipment for mechanisation of agriculture; �2,200 new livestock buildings or modernised; �900 buildings created or modernised for crop farms; �500 groups of producers sustained, which include 16,800 farmers, out of which 3,300 young; �36,000 ha covered by agri-environmental measures; �7,000 projects of diversification of economic activities, out of which 3700 units for agri and silvo-tourism (which represent an increase by 1,2 times compared to the existing units); �1200 km of newly built forestry roads or improved; �15,000 ha afforested on degraded agricultural lands; 400 enterprises of wood exploitation or sustaining the wood processing; �150,000 farmers (agriculture and fisheries) or forest owners trained on specialised programs. Expected impacts An attempt to quantify the expected impacts is presented in appendix no 72. Among these, one of the illustrative output indicators is “employment”. For each measure where new jobs are created or existing jobs are maintained in better condition, it was estimated the foreseen number. All the measures together represent about 72,000 created and 68,000 jobs maintained in better condition. This number, compared to the number of persons unemployed in rural areas (270,000) reflects the immediate impact of the assistance granted. The average monthly cost for the newly created jobs or for the jobs maintained through the programme of financial assistance is of above 180 EURO. Comparing this figure with the average wage in Romania, which is of 84 EURO/month it clearly appears the immediate effect of allocated sums. Integrated approach The way in which all the measures of the NPARD were correlated is presented in appendix no. 73. For the most important operational objectives and respectively promoted measures, the principles of integrated approach took into account the following:



�Measure 1.1. Processing and marketing of agricultural and fisheries products: It is obvious that this measure can only attain expected results if it is clearly linked with the production of raw material (3.1,3.2,3.3), the improvement of means of transport to reduce the costs (2.1), the existence of viable infrastructures for agriculture to secure the availability of raw materials (2.2), and an efficient system for quality control (1.2). �Measure 2.1. Development and improvement of rural infrastructures: The goal of this measure is to develop the basic infrastructures, which are necessary to improve other infrastructure (2.2), and to develop the rural economy in all the sectors (1.1, 3.1, 3.4, and 3.5). �Measure 3.1 Investments in agricultural holdings: Also this measure can lead to expected results only if it is clearly linked with the improvement of basic infrastructures (2.1, 2.2), the development of downstream market (1.1), the implementation of an efficient system for controlling the quality (1.2). The modernisation of this sector can lead to the implementation of new measures such as: setting-up the producers’ groups (3.2), agri-environmental measure by initiating pilot projects (3.3). �Measure 3.4 Development and diversification of economic activities, multiple activities and alternative income: This measure is also linked with the development of basic infrastructures (2.1), with the modernisation of agricultural and processing sectors (3.1; 3.2; 1.1), which must be sustained by setting up new jobs from non-agricultural activities together with the measure regarding forestry (3.5). These principles of integrated approach lead to the development, but by different priority levels and allocation, of the majority of measures of SAPARD Regulation. In a concrete way, the integrated approach requires the development of action of rural animation for identifying and initiating integrated local projects. 4.Correlation of approaches with Communautaire regulations Defining the criteria of eligibility and selection of each measure sets up the correlation with community rules and the way of approach. These aspects can be summarised by priority and measures as follows: 4.1 Common Agricultural Policy

Within the first priority “Improving the access to markets and of the competitiveness of agricultural processed products” are eligible processing and marketing of the agricultural and fishery products included in Annex I to the Treaty and which originates in Applicant countries or the Community. For measures 1.1, 2.2; 3.1, 3.2 and 3.3 there are excluded from financing the production of those products likely to create problems in the markets, taking into account the EU Reglementations on the exceeding products; For the measure 4.1 (Vocational training) eligible beneficiaries of the training courses are the agricultural producers and owners of forestry lands, fisheries and aquaculture farmers as well as other persons involved in these activities.



4.2 Competition The private projects have to prove economical and financial viability. For these projects, it is necessary to prove the existence of outlets for the concerned products. If the cost of any services, supplies and works costing more than 10000 Euro, the beneficiaries has obtained quotations from at least three suppliers. The minims rule according to the law in force will be applied for the private projects submitted within measure 3.4, and 4.1.Thus, any assistance granted to one potential beneficiary will be limited to 100,000 EURO for a period of three years. For public projects, it is necessary to demonstrate how the way in which acts the competent personnel and how this staff is used in the case of investments for the system of control that was taken into account. The projects will be examined from the point of view of the economic effectiveness (cost/result). The implementation of these projects will be compatible with the rules for the procurement which will be in compliance with the National legislation and the rules set out in the Multi Annual Financing agreement “Service, supply and work contracts concluded within the framework of Community co-operation for the third countries”. 4.3 Financial provisions

Measure Minimum cost of the project (EURO)

Maximum cost of the project (EURO)

% of public contribution

(UE+National budget)

1.1 30,000 2,000,000 50

1.2 50,000 1,000,000 50 or 100*

2.1 100,000 1,000,000 100*

2.2 Undefined** Undefined** 100 *

3.1 10,000 500,000 50

3.2 10,000 20,000 100

3.3 Undefined** Undefined** 100

3.4 5,000 200,000 50

3.5 5,000 500,000 50 or 100*

4.1 10,000 100,000 100

4.2 - - 100* * The rate of 100% can be applied to the public projects not generating substantial net revenue. ** Will be defined after a study financed by technical assistance and negociation with the Commission before 2002. In accordance to the Regulation of European Commission no. 1268/1999, an amount equal to 2% of the value of co-financing from the European Commission may be dedicated to financing the measures proposed at the initiative of the Commission for preliminary studies, study tours, assessments and controls. This amount represents a public aid, financed 100% by the EC.

4.4 Adoption of the acquis communautaire The adaptation of the national legislation to the acquis communautaire will be accomplished as specified in each measure. For measure 1.1, the investments sustained must conform to the ‘acquis communautaire’.



The units for processing and marketing products must comply with the minimum standards regarding the environment, hygiene, and animal welfare according to the national rules. For measure 1.2, the projects in the control system shall belong to the objectives and strategies for accession into EU of the respective sector and to ensure the harmonisation of laboratory methods and techniques with those used in EU. The agricultural holdings must comply with the national minimum standards regarding the environment, hygiene, and animal welfare at the time when the decision to grant support is taken. When acquis related minimum standards are introduced, the decision to grant support will be conditional on the fulfilment by the respective holding of these new standards, until the fulfilment of the investments. During the pre-accession period, the minimum standards regarding environment, hygiene, and animal welfare, must be adapted according the acquis communautaire and the investment should comply with EU norms. The detailed conditions regarding sustaining of the producer groups, taking into account the EU trends for the Member States, will be transposed in the national legislation. In Romania, there is not yet a specific legislation for the producer groups, legislation meant to encourage their setting up and functioning according to the EU Regulations. The Romanian SAPARD plan has been designed in such a manner as to facilitate the transposition into national law and implementation of the Nitrates and Natura 2000 Directives. Existing protected areas in Romania will be taken into account for future Natura 2000 network whose transposition and implementation is a priority for Romania and will be completed by year 2002. 4.5 Employment, integration of women, men, and policies for youth The beneficiaries (natural persons and/or the persons responsible within the organisations) shall prove professional skills related to the project they wish to initiate. Vocational training in the field of processing and marketing of agricultural and fish products, proved through a copy of the diploma or through a statement of competence acquired by traditional practising of a trade over a period of at least three years, or statement on own responsibility showing that the beneficiary of the project will attend a vocational training course before the payment of the last instalment for the respective assistance. For the measures 3.1 and 3.4, priority is given to projects to projects sustained by a young farmer (under 40 years of age), to projects sustained by women especially for the measure diversification of economic activities. Moreover, there will be nor discrimination neither between men and women nor against minorities. 4.6 Environmental policy Priority is given to projects, which make use of existing infrastructure and which contribute directly to the improvement of environment. The environmental consequences will be analysed in all the cases. The acceptability conditions of the projects – especially the need or lack of it for impact studies – regarding the Romanian legislation are specified in the framework of the Law N°137/1995, as described in the table below. For the measure 2.2, the projects in the irrigation field or land reclamation field will be set in priority geographic zones without high natural value and after an Environmental Impact Assessment.



For the measure 3.3, the beneficiary of the agri-environmental scheme shall have to implement sustainable agricultural methods compatible with the environment and with the preservation of the rural landscape over a period of at least five years from the date of concluding the contract. For this measure, the projects are located in sensitive areas from the ecological point of view, and the scheme stipulates at least one objective regarding the protection of the bio-diversity. Natura 2000 and the Nitrates Directive a) Nature 2000 is to be enforced by the legislation under development, which will of course address the agricultural policy as well. Protected areas legislation is under approval.

-Directive 79/409/EEC on the conservation of wild birds, as well as Directive 85/411/EEC amending Directive 79/409/EEC on conservation of wild birds, Directive 91/244/EEC ammending Directive 79/409/EEC on conservation of wild birds Directive 94/24/EEC ammending the Annex II of Directive 79/409/EEC on conservation of wild birds, Directive 79/49/EC amending 79/409/EEC EEC on conservation of wild birds -Directive 92/43/CEE on the conservation of the natural habitats and wild flora and fauna

Are transposed in national legislation as follows: -Law no. 5/2000 on land planning use - section III - protected areas, adopted in March 6, 2000 and published in O.M. no. 152/ April 12, 2000 -Law no. 89/2000 for ratify the Agreement on the conservation of african-eurasian migratory waterbirds, adopted in May 10, 2000 and published in O.M. of Romania no. 236/30 May 2000 -Law no. 90/2000 for ratify the Agreement on the bats conservation in Europe, adopted on May 10, 2000 and published in O.M. of Romania no. 228/23 May 2000 -Law no. 91/2000 for ratify the Agreement on the conservation of cetaceans in the Black Sea, Mediterranean Sea and contiguous Atlantic area, adopted in May 10, 2000 and published in O.M. of Romania no. 239/30 May 2000.

Nitrates Directive transposition is under implementation via an agri-environment project:”Agriculture Pollution Reduction”, financed by GEF/World Bank - stage of transposition: Council Directive no. 91/676/EEC regarding water protection

against pollution caused by nitrates from agricultural sources

�There has been approved the Governmental Decision concerning the approval of an Action Plan regarding water protection against pollution caused by nitrates from agricultural sources (no. 964/13.10.2000)

Environmental Impact Assessment - stage of transposition: Council Directive no. 85/337/EEC concerning assessment of the

environmental impact produced by some private and public projects �The Law draft regarding the ratification of ESPOO Convention concerning the assessment of tranboundary impact onto the environment, has been approved by the Government and transmitted to the Parliament for the approval



The list of the activities subject to an Environmental Impact Assessment in view of

issuing an environmental visa and /or authorisation, in accordance with Law

137/1995, republished in 2000

Measure No. Activities subject to an Environmental Impact Assessment 1.1 1.2 2.1 2.2 3.1 3.2 3.3 3.4 3.5

1 Slaughter houses and butchers’ with a production capacity over 5 000 Tons /year

x

2 Industrial units for manufacturing foodstuff and agro-technical products

x

3 Use of dangerous substances and pesticides x

4 Storage of chemical products x x x

5 Land improvements made by art works as well as interventions on surfaces over 200 ha and/or accompanied by technical measures for agricultural purposes, such as irrigation or draining of agricultural lands on surfaces over 20 ha, and also general projects of removal from the agricultural circuit

x

6 Buildings and equipment for breeding farm animals, with capacities over:

100 places for bovines for meat 500 places for pigs for meat 6 000 places for laying hens 6 000 places for chicken for meat 1 500 places for turkeys for meat

x

7 Equipment for sorting, treatment, recycling, incineration of waste

x x

8 Warehouses for liquid, solid and past-like waste

x x x

9 Equipment for treatment of waste waters x x x

10 Fishery arrangements x x

11 Clearing of forest vegetation outside the lands covered by forest

x

12 Equipment for wood processing x

13 Urbanism and land arrangement plans x

The list of the activities subject to an Environmental Impact Assessment in view of issuing an environmental visa and/or authorisation will be completed by the central authority for environmental protection (MWFEP), which will add to it any new activity, unknown at the time when the list was drawn up. A screening procedure to appraise the likely environmental impacts of the projects will be undertaken, involving the competent authorities, in all cases where any significant impact might reasonably be anticipated. It will decide whether an Environmental Impact Assessment (EIA) must be carried out or not. This screening procedure may be based on a case by case examination or on threshold criteria, which will be made available to the Commission. In any case, the projects listed in annex I and II of the Directive 97/11 (amending directive 85/337) will be subject to an EIA An agreement on the project by the competent environmental authority (including local level) must be provided for those projects where a significant negative impact on the



environment could reasonably be anticipated and in particular for those covered by measures 1.1, 1.2, 2.1, 2.2, 3.1, 3.4 and 3.5. Information should be given on the potential negative environmental effects of the project (e.g. land use, chemical use, emissions, atmospheric, water and soil pollution) and the method of their attenuation particularly in the environmental sensitive areas. 5. Description and effects of others measures

Other Community programs Correlation of the National Plan for Agriculture and Rural Development (NPARD) with the National Plan for Development (NPD). The National Plan for Development is a complex document elaborated in conformity with the Romanian Plan for Accession to the European Union, to the Law no. 151/1998 regarding the regional development in Romania and to the Council Regulation (EC) no. 1260/1999 regarding the financial support co-ordination, especially with art. no. 4 (concentration) and with art. 5 (financing priorities). The correlation and co-ordinations or actions and the respectively of the national allocations with those from the National Plan for Development creates the basis for Phare, ISPA and SAPARD programs for the period 2000-2002 and also for the initial Phare 2000 Program. The National Plan for Development correlates and integrates the content of the following sectoral documents (plans/strategies): National Plan for Transport; National Plan for Environment; National Strategy for Human Resources Development. The Romanian National Plan for Development aims at creating the basis for a new thinking and a policy for regional development. According to this document, the strategic principles of the regional development are: �Promoting the market economy mechanisms in all the regions in order to improve the competitiveness; �Promoting a new spatial and harmonious development and the localities network; �Promoting the principles of a sustainable development; �Co-ordination of the regional development initiatives with the national principles and with the European orientations. The National Plan for Development stresses the fact that “agriculture is going to remain for a long period of time a strategic sector for Romania, due to the natural advantages of the country and to the social-economical environment”. The National Plan for Development contains a financial table for years 2000 to 2002 where the integration of Phare, ISPA, and SAPARD is shown. A specific line of the NPD is devoted to agriculture and rural development supported only by SAPARD. From the document it also comes out that for the further development of human resources in the future, both Phare and SAPARD will contribute, but SAPARD shall sustain only farmers, forest owners, and others persons involved in agricultural activities while Phare could contribute to the formation of others persons involved in the rural development. The partnership with NARD and Regional Agencies for Development in implementing the SAPARD program will represent a way of ensuring the developing of unique financial instrument by project. Inside the measure 1.2, support is insured complementarily by both Phare and SAPARD funds. Phare will focus on the following directions:



�Consolidation of institutions building and national legislation in compliance with European one (acquis communautaire) regarding the investments, �Finalising ongoing programmes and measures, �Modernisation and making operative the multifunctional border inspection (including those referring to border inspection for animal health), �Investment projects of more than 2 millions EURO (eligible value). �SAPARD shall focus, among others, on smaller actions at local level for:

-Establishment of new laboratories in public and private sectors; -Modernisation, extension and equipment endowment of the existing public and private laboratories; -Setting up an information and communication network system.

For the measure 4.1 Vocational training, SAPARD will support only farmers and owners of forest. The measure Technical assistance of SAPARD programme will finance the vocational training. for the measure Processing and marketing of agricultural products, and Phare may sustain the vocational training for the non farmers beneficiary of the measure Diversification of economical activities. As regards ISPA (Instrument for Structural Policies of Pre-accession), this instrument will sustain the modernisation of infrastructures for transports and the protection of environment, only for important projects for which the total cost will be higher than 5 million Euro. Though there is a well-defined difference between these two financial instruments, ISPA and SAPARD, the latter will focus only on communal infrastructures (under 1 million Euro). This will create a synergy between both financial instruments in order to avoid double use and to insure a good co-ordination. 6. Areas covered by specific territorial measures For the implementation of SAPARD programme, it was adopted, as a general rule, that the programme will be applied on the rural space defined according to Law no. 2/1968. The rural space is defined as the administrative territory covered by the communes. That means that only the 2,688 communes (NUTS 5) of Romania are eligible, and that the SAPARD Programme will be applied on 89% of the surface of all the country. There are however, some exceptions, which are defined taking into account specificity of the strategy and of some measures. (i) measures which are eligible on the whole country:

►Improving the public structures for quality, veterinary, plant-health and foodstuffs controls, which are located in the urban areas; ►Fish processing, taking into account the localisation of the existing units in urban areas; processing of others products, for which the projects will be located also in the urban area, taking into account the fact that the majority of processing capacities are located in urban areas. For these projects, only the modernisation of existing capacity will be financed. A priority will be given for the projects located in rural areas.



� Improving of the vocational training for beneficiaries who come from the rural areas. Taking into account the localisation of several institutions responsible for this measure, the projects may be situated in the urban areas;

� Technical assistance.

(ii) measures which are eligible in specific areas: � Agri-environmental measures, which are focused on identified zones;

� Measures for management of water resources.

For some of the measures, a priority is given for projects carried out in areas with high potential: Measure 1.1: in annex 3, it is mentioned the judets which have a big potential for the processing and marketing of agricultural products for each sector. The productive potential is expressed by the total production yearly obtained and the number of enterprises. Measure 3.1: in annex it is mentioned the judets which have a big productive potential for the production of agricultural products for each sector. Measure 3.4 identifies also in selection criteria the specific areas for the different actions: agricultural services, agro tourism, aquaculture. It is important to notice that the choice of priority areas is in the most cases selection criteria and not an eligible one, taking into account the insufficient experience regarding the rural development sector. As the Conference from Cork on Rural Development concludes, and as the rural development policy in the framework of Agenda 2000 proposes, all rural areas could be sustained.. It is also important to sustain a bottom-up approach based on private and local initiative.

7. Measures time-scheme and uptake The implementation of the measures of SAPARD programme is shown in the table below, which comprises the share of each measure in the total of the sum proposed for each year.



Total annual =100%

No. Measure 2000 2001 2002 2003 2004 2005 2006

1.1 Processing and marketing of agricultural and fisheries products

18.1 18.0 22.2 23.1 24.3 25.0 25.4

1.2 Improving the structures for quality, veterinary, and plant-health controls, foodstuffs and consumer protection

0 0 2.0 1.9 2.4 4.9 5.0

2.1 Development and improvement of rural infrastructure

37.8 37.6 16.3 14.1 12.8 10.6 9.5

2.2 Management of water resources 0 0 2.0 1.9 2.6 2.5 3.8

3.1 Investments in agricultural holdings

21.2 21.0 19.6 19.3 20.5 20.0 18.1

3.2 Setting up producers groups 0 0 2.0 1.9 1.3 1.2 1.3

3.3 Agri-environmental measures 0 0 2.0 1.9 2.6 2.5 2.5

3.4 Development and diversification of economic activities, multiple activities, alternative income

3.3 3.3 16.6 18.1 17.1 16.7 14.5

3.5 Forestry 11.8 12.3 10.2 10.0 9.0 8.7 10.6

44.1 Improving of the vocational training

2.3 2.3 3.3 3.6 4 .0 3.9 5.2

4.2.1 Technical assistance 4.5 4.4 3.0 3.0 3.0 3.0 3.0

4.2.2 Technical assistance (CE)* 1.1 1.1 1.0 1.0 1.0 1.0 1.0 * Expressed in total cost, the percentage of technical assistance at the initiative of the CE represents 1%. However, in accordance to the Regulation of European Commission no. 1268/1999, an amount equal to 2% of the value of co-financing from the European Commission may be dedicated to financing the measures proposed at the initiative of the Commission for preliminary studies, study tours, assessments and controls. This amount represents a public aid, financed 100% by the EC.

This table establishes clearly in financial terms the priority granted given to five measures, which are the most important for the accomplishment of the four priorities previously mentioned. In the designing of this time-scheme of measures, the following general principles were observed: ■to give an answer to the numerous projects elaborated for the Special Preparatory Programme which have demonstrated the capacity that exist in rural areas to design projects. These projects could be looked upon as what could be named the basic portfolio for the equivalent measures of the SAPARD programme, in as much they observe the established criteria; ■to observe the logic of rural development by sustaining first the rural basic infrastructures, which is the line of further economic development of activities in the rural area; ■to promote pilot projects for the following cases:

-when the legislative or institutional framework does not exist or is vaguely formulated and cannot be implemented from the start in the entire field of actions of the measures; after the adaptation of the legislative and institutional framework, the implementation of the measures will increase; -the existence of others financing resources for some measures and which can be used at the beginning .



The specific principles for each measure are described below: Measure Comments on the proposed time-table

Processing and marketing of agricultural and fisheries products

Important needs to cover. First priority for Romania which processes only 15% of agricultural products and import 50 % of products for consumption. The measure will give a priority to the projects located in rural areas. However, it will also support the companies from the urban area, because concentrates over 85% from the processing existing capacities and has a big demand for restructuring and modernisation

Improving the structures for quality, veterinary, and plant-health controls, foodstuffs and consumer protection

2002-2006: creation or modernisation of public structures 2005-2006: to support the setting-up of private labs in veterinary and foodstuff control sectors. PHARE and SAPARD will support complementarily the projects as explained before.

Development and improvement of rural infrastructure

Important needs to cover the first two years, with many projects, which are ready to start. The development of basic rural infrastructures is a preliminary conditions for sustainable development.

Management of water resources Modernisation of existing units and promotion of local collective system managed by the National Society for Land Reclamation and the associations of Water Users. Will begin in 2002 and will be developed in accordance with the setting-up of the associations. Creation and modernisation of protection systems against flows.

Investments in agricultural holdings

Important needs to cover. Second priority for Romania that has to modernise and make economically and environmentally viable this sector. Will decrease when the general framework in this sector will be established, and with the implementation of other priorities.

Setting up producers groups Starts in 2002 with the necessary adaptation of the legislation and the training, which will be necessary to implement this measure.

Agri-environmental measures Starts in 2002. Will be developed with the necessary adaptation of the legislation and of the control system. From the technical point of view, the drastic decreasing of chemicals use after 1993 make the conversion to organic agriculture easy to accomplish.

Development and diversification of economic activities, multiple activities, alternative income

Important needs to cover. Necessary to be implemented with the modernisation of agricultural sector in order to procure new jobs and incomes. Will begin with the agri-tourism sub-measure. Necessary to support all the rural activities, not only the diversification to the agricultural activity as main activity, in order to absorb the excessive labour force from rural area, as well as the labour force coming from other declining economic sectors. It will determine the support/increase of the incomes of rural population with a high level of poverty.

Forestry 2000-2002: nurseries, a forestation, forestry infrastructure and modernisation of harvesting and processing for 100% private companies. 2002-2006: continuing the first priorities and support to private forest owners when the legislative framework will be stabilised.

Vocational training 2000-2005: to cover the needs for training. Increasing at the end to train farmers and forest owners to prepare new activities, identify new fields...

Technical assistance Important needs to be covered, especially for the first two years to insure the implementation of the program.



IV - MAIN CONCLUSIONS AND RECOMMENDATIONS PROPOSED BY THE

PRIOR APPRAISAL The prior appraisal of the NPARD was elaborated in the framework of the Twinning RO98/IB/SPP02 by an expert of the United Kingdom of Great Britain, Mr. Van Slooten, between November 1999 – January 2000. The report drawn up by this expert was most of it rewritten by an expert resident in Bucharest, Mr. Davies, assigned by the Ministry of Agriculture, Fisheries and Food of the United Kingdom. This last report was sent to the European Commission the 27th of April 2000, at the same time with the second version of the NPARD. This report is provided in annex 74. The main conclusions and recommendations of the prior appraisal, as well as the improvements proposed in the National Plan for Agriculture and Rural Development are mentioned below. The references to the prior appraisal are given in brackets. Reliability of the statistics used The Romanian authorities are aware of the difficulties related to the use of agricultural statistics. The data used are those presented by the Official statistical yearbook (year 1999 – data 1998), as well as the operational data of the Ministry of Agriculture and Food concerning the most recent ones. The main difficulties consist, besides the annual productions, in the lack of more qualitative data regarding for instance the production capacities, or the economical parameters both of the agricultural holdings and of the processing units. In these circumstances, it is extremely difficult to focus the intervention on the fields considered to be competitive (cf. 3.21, 3.22). Proposal: In the framework of the measure Technical Assistance, studies by sector could be elaborated in order to identify more precisely the potentialities of the different production sectors. There are also presented several proposals for supporting the improvement of the agricultural statistics within the Phare Programmes 2000, 2001. The issue of the contribution in kind and of the public contributions rate for the

investments generating revenue (2.7) The prior appraisal raises the issue of the public contribution rate of 50% for the investments generating revenues, by mentioning three difficulties: -The use of subsidised credits which, if the occasion arises, should be calculated as part of the public contribution, -The assessment of the working costs, -The usefulness of systematising the public intervention rate to 50%, -And proposes to establish differentiated aid rates. Proposal: If there will be called on subsidised credits, an equivalent – subvention will be calculated and will be integrated in the public contribution. Taking into account the small self-financing capacity, it is essential to create an efficient system of rural credit. The World Bank project concerning a line of credit should be allowed to contribute. A description of this project is presented in the new version of the NPARD.



In the framework of the Multiannual Financing Agreement, Annex Section B Article 4 Al.3, the payment in kind may be eligible on the basis of a case-by-case examination by the Commission and subsequent Decision, which shall be issued within three months of submission of a reasoned request to the Commission by Romania. The Romania will prepare this request before the accreditation of the SAPARD Agency. In the measures concerned, it is stipulated that the rate of 50% is a maximal rate and a selection criterion gives priority to the projects asking for a smaller contribution rate. Development of services in rural area and diversification of economic activities (3.7,

3.13, 3.41) The sector concerning the development of services and non-agricultural employment in rural area is mentioned. It must be noted that the European Commission’s position regarding this matter is quite moderate, SAPARD aid being thus limited to agricultural and forestry sectors or to those directly linked to them. In the given context the non-agricultural rural population will benefit from vocational training programmes through Phare and national financed programmes. The diversification of economic activities seems also to concern, in accordance with the observations of the European Commission, only farmers, fish breeders and forest owners. Proposal: An analysis of the Medium and Small Enterprises’ situation in rural area is attached to the diagnosis. Measure 3.4 responds partially to the need for services in rural area, supporting the services related to agriculture: -Support for setting up the agricultural machines circles, -Support for the agricultural machine enterprises (maintenance and overhauling services). The diversification of forest activities, especially in the field of tourism, was also added to the field of action of the measure. The amount of the measure increased consequently. Level of training of rural population The prior appraisal emphasizes for good reason that the insufficient education level of the rural population (3.17, 3.18) as well as the prevalence of subsistence agriculture (3.16) are a major obstacle in the implementation of the acquis communautaire and in the augmentation of competitiveness of the agricultural and rural economy. Proposal: A higher amount will be granted to the measure regarding vocational training. This one will focus mainly on the fields related to the acquis communautaire (environment, hygiene and animal welfare), to the economic viability of the holdings and to the setting up of producer groups (3.19). The number of participants at the training course changes from 330,000, in the previous version, to 150,000, which represents a reasonable one. With regard to the restructuring of agriculture, the measure “Investments in agricultural holdings” has been revised, establishing viability limits for every production sector, priority



given to farmers that market a substantial part of their production and imposing minimal conditions of technical viability (fodder base and buildings) and environmental conditions (particularly with regard to the use of nitrates from animal dejection). Regional development (3.11, 3.12, 3.23, 3.41) The report recommends differentiating the development approach according to regions, which means that a reinforcement of the presentation in the diagnosis is required, especially concerning the agricultural productions. Proposal: The presentation of the statistics is improved in the diagnosis by offering data for every region. The operational unit remains however the judet, especially for indicating the priority areas in the measures, because the regions do not correspond to homogenous units from social, demographic, physical an economic point of view and with regard to their potentiality for the agricultural and rural development. It must be mentioned that the choice of the priority areas represents in most cases a selection criteria and not an eligibility one, taking into account that the insufficient experience in the field of rural development does not allow categorical choices. On the other hand, the guideline provided by the Cork conference towards rural development and the rural development policy proposed to the Member States in the context of Agenda 2000 is to offer the possibility of supporting rural areas. This means also to be in favour of an ascendant approach based on local and private initiative. Romanian authorities do not want to stop these initiatives by choosing eligible areas that risk being inappropriate. Choice of the competitive production sectors (3.21, 3.22, 3.43). The situation of competitiveness by production sector (comparative advantages) is mentioned in the prior appraisal, but remains venturesome, taking into account the insufficiency of reliable data regarding the economic situation of the enterprises. Proposal: It is proposed the implementation of additional analyses regarding development and opportunities of the different agricultural sectors, based especially on a realistic market analysis. These studies should allow the programme to focus its support on priority and competitive production sectors. The technical assistance of the programme could be used to finance studies of the sectors at the beginning of the programme. In these circumstances, measures 1.1 and 3.1 give a priority to the production sectors where the implementation of the acquis communautaire needs important investments (milk, meat, fruits and vegetables, vineyard and wine) but do not exclude other sectors where Romania has important potentialities (cereals, oilseeds) as emphasised in the report.

Mechanisation of agriculture (3.24) The issue of agricultural mechanisation is a difficult one, taking into account the fragmentation of the agricultural property and of the land use. The proposal of financing “machines circles” within the measure of diversification is a proposal that aims to respond to this difficulty.



Irrigation (3.25)

As a result of the retrocession of the agricultural lands and of the fragmentation that followed the retrocession, most of the existing irrigation systems became useless due to the lack of common management of the infrastructure. Proposal: Measure 2.2 tries to bring an answer to the degradation of the existing infrastructures by supporting the investments of the National Company for Land Improvement, which, according to an ordinance issued in 1999, administrates, in granting conditions, the infrastructures belonging to the State. Associations of water users must be set up in order to administrate the secondary networks. This measure was therefore delayed until 2002 and the amount of the measure remains limited. Strategy of the foodstuff sector The report points out that the strategy for the foodstuff industry deserves also precisions by sectors, especially regarding the capacity envisaged to improve, the size of the enterprises to support (3.27, 5.7): the foodstuff self-sufficiency should not be presented as an objective (3.28). The strategy in the field of product processing should rely on a realistic identification of the markets both internal and exportation. Proposal: The proposals of annexe 3 of measure 1.1 are justified by additional analyses presented in the diagnosis (foodstuff part). The technical assistance could also be asked for in order to finance studies by sector. Regarding the size of the enterprises to support, the minimal amount of 30,000 EURO is maintained, because there are opportunities for setting up small viable enterprises in rural area aiming at the local market. The repartition between the types of projects is however modified. A more considerable part is given to projects with a value higher than 100,000 EURO. Therefore, the average cost by project is increased and the number of projects expected is reduced (5.7).

Strategy in the forestry sector The presentation of the forestry sector should be more developed, particularly in order to justify the considerable amount granted to this measure. Proposal: The diagnosis of the sector is improved and completed by a strategic vision of the field. Taking into account the suggestions of the European Commission and the negotiations that took place, it is proposed however to reduce the amount of the measure Forestry and to use these resources for increasing the measure Diversification of the economic activities, especially in order to include the diversification of other activities that are linked to the forest (forest tourism), as well as for the measure vocational training, especially for the training of the forest owners that resulted from the retrocession of forest lands by the application of the Law 1/2000.



Strategy in the tourism sector A strategic vision of tourism development should be presented, especially in order to emphases the real potentialities of this sector regarding the setting up of additional tourism units taking into account the market. Proposal: The agri-tourism sector is already subject to multiple initiatives in Romania. There are marketing networks (ANREC, FRDMR) and a classification of the agri-tourism units, depending on the comfort level has already been established. In the framework of measure 3.4 Diversification of economic activities it is proposed to give priority to the modernisation of the existing units, particularly for supporting the augmentation of the comfort level. The setting up of new units was not excluded, provided that the applicant could rely on a market potentiality study of the area where the investment is envisaged. It is required also a minimal comfort level, as well as the obligation to market the investment through an existing network. Strategy in the rural infrastructure sector The strategy in the field of road infrastructure deserved more additional explanations. Proposal: The Ministry of Public Works and Land Arrangement has several detailed land arrangement plans, presenting the strategic needs in the field of rural infrastructure. The implementation of investments in the framework of these plans is an eligibility condition. Moreover, priority is given to projects related to those financed within other measures, in order to ensure the minimal viability requirements. As for the other measures, the existence of basic infrastructure represents also a priority in order to ensure the minimal conditions for the application of the acquis, as mentioned in the assessment report. The situation with regard to the acquis communautaire The report points out the absence in the diagnosis of the implementation stage of the acquis communautaire (3.45), particularly in the processing of agricultural products and sanitary veterinary, phyto-sanitary and foodstuff control sectors. This information is presented in the framework of each measure and they were synthesized in the diagnosis. The measures stipulate also that the equipment procured is to be in accordance with Community standards. (4.56). SWOT analysis The prior appraisal report submits several proposals for improving the SWOT analysis. These proposals have been analysed and included in the new version. Presentation of the rural development strategy The integration of the strategy proposed for SAPARD Programme in the framework of a broader rural development strategy should be presented, particularly in order to explain the articulation of the objectives had in view by SAPARD Programme with those of the other



Community programmes (Phare and ISPA), as well as with the rural development programme of the World Bank. (4.9, 4.10, 4.11, 4.12). Proposal: The strategy proposed in the framework of “Green card” and the one presented in the National Plan for Development could be included, by identifying what could be financed through SAPARD, what could be financed through PHARE or through other funds donors (especially the World Bank). Complementarities should be sought particularly for social infrastructure not financed through SAPARD. Financial repartition between measures. The prior appraisal points out: The important amount reserved for infrastructure is appropriate, as well as the field of action of the measure. Proposal: As the European Commission emphasises it, as well as the prior appraisal, the development of basic infrastructure represents a necessary condition for the economic development and the adoption of the acquis communautaire. The amount of this measure is increased, especially for the first two years of implementation of the programme, taking into account the absorption capacity of the measure and the easier implementation of this type of investments (without private co-financing, procedures easier to implement, higher unitary investment amount).

-The amount reserved for the processing of products is also considered as appropriate; the sectors of milk, meat (including fish), wine, fruits and vegetables are considered to be priority; the cereal sector has a question mark.

Proposal: The sectors considered to be a priority receive a more important amount. The sectors of oilseeds, cereals and sugar have a limited amount and should allow only modernisation of existing capacities, without augmentation. The public contribution rate is also reduced to 30%. The economic viability (4.19) is defined in the Romanian legislation on the basis of feasibility studies according to different economic and financial indicators. One of them is used as selection criterion (net profit/turnover).

-For the measure investments in agricultural holdings it is recommended to focus the intervention more on those directly related to the implementation of the acquis communautaire. The application regulation of SAPARD Programme allows however more flexibility for this measure. The problem of focusing on competitive production sectors remains tributary to the availability of data allowing their identification. -The share of the measure Forestry deserves more justifications.



Proposal:

As mentioned before, the share of the measure is reduced, to the advantage of diversification of economic activities and of vocational training (as a result of the proposal made by the prior appraisal). The justification of the measure is reinforced.

-It is proposed to increase the share of the measure Diversification of economic activities, taking into account the needs of generating off-farm revenues and employment.

Proposal: The share of the measure is increased. However, in order to explain the limitation of the field of action of the measure, it must be pointed out the caution of the European Commission in financing through SAPARD rural development in the broad sense of the concept, by limiting the measure to the diversification of activities carried out by farmers, forest owners or fish breeders.

-The amount reserved for the measure Vocational training is considered small. Proposal: The financial amount of the measure is increased. -It is pointed out the interest of financing measure 1.2 for the control structures. The financial needs have been established on the basis of a needs inventory, made first of all by the Sanitary Veterinary National Agency. The investments are focused on those that complete the measures Processing of agricultural products and Investments in agricultural holdings. -The agri-environmental measure deserves to be substantially revised. Its implementation is foreseen for 2002. It is necessary to elaborate a study financed by the technical assistance in order to define the type of agri-environmental contracts and the amounts of aid. -Taking into account the importance of setting up producer groups, which can contribute to the restructuring of agriculture, the amount reserved for this measure is considered too small. It is however necessary to put a question mark as to the implementation capacity of this measure, taking into account the lack of legislation, the calendar foreseen for the adoption of the legislation and the need to implement important popularisation actions in this field. The fishery and aquaculture sectors are proposed in addition to producer groups. This proposal was not taken into account, especially because of the Commission’s position with regard to financing fish breeders within the measure Investments in agricultural holdings. -In the framework of most of the measures, a selection criterion gives priority to young people and women (4.34), especially for the diversification of economic activities.



Monitoring and assessment of the programme Regarding indicators, the issue of the monitoring level deserves further clarifications. The documents of the European Commission that have been used propose output, result and impact indicators for every measure. The aggregation of the indicators concerning the priority axes or the general objectives raises the issue of identification and quantification. The present proposal is based on a monitoring that can be implemented for every project or for several projects in the framework of the measure. Anyway, the European Commission should provide harmonised indicators to the applicant countries. Implementing system of the programme The implementing system was subject to numerous remarks made by the European Commission, partially integrated in the prior appraisal. The main observation is undoubtedly the one referring to the intricacy and complexity of the implementing procedures, articulated on three geographic levels, with a selection of the projects at national level. This procedure involves indeed too many personnel and implies a very long time in terms of selection and payment commitment. Proposal: In the framework of the new version of the NPARD, the implementing procedure has been revised. Is foresees two selection levels, at regional and national level, depending on the measures and amounts of the projects. Environmental conclusions Environmental provisions can be found in all proposed measures of the plan and often explicitly. There is a difference in the treatment of environmental issues within the plan. This variation consists in different approach intensities, however culturally sensitive, but also determined by the degree of integration of environmental issues in the technical elements of the measure. For all the measure, the environmental performance is explicitly controlled through various means attached to description of the measures (operational objectives, general selection criteria, supporting documents). Formal environmental impact assessment for all actions under these measures is requested by the Romanian Law, as well as the environmental endorsement by the responsible authorities. Indeed, the environmental evidence (as eligibility criteria) is to be officially used as a mandatory supporting documentation (according to Law 137/1995 and order 125/1996) for the proposal submitted for financing. Clearly defined specifications of environmentally friendly practices are provided in chapter 6 of the plan. These are herein dealt with as in the case of environmental management systems leading to a continual improve of environmental performance. Certain international commitments are explicitly made, and among others for the measure 3.5. For the measures that will be implemented in 2002, some informations must be completed subsequently. The actions described in the measure could be improved by including a holistic approach to the issue rather than a pure institutional therapy. Also, even though a sustainable approach is to be found in the description of the measure 2.2, special provisions and eligibility criteria for the protection of wetlands and biodiversity conservation within the irrigation and drainage area could be considered adequate. A more clear reference to quantitative and qualitative elements of the water management could be emphasized.



It is expected that through SAPARD Programme will be promoted and supported methods and practices in order to prevent and avoid environmental damages, in accordance with EU environmental legislation. In many cases the projects must be sustained by an environmental impact assessment (see table from the page 148). In this way to the elaboration of the measures of the programme was taken into consideration the protection and the conservation of the environment. The protection of the environment will be realised through the following provisions:

•There is not allowed to locate the investments in area with high degree of pollution risk; •All the investments that are considered polluting, as a result of an environmental impact assessment, have the following obligation: to provide the existence of an environment protection system and not to be located in areas naturally protected or which present risks (humidity, saltiness), in order to prevent the pollution of these areas; •The technologies used in the agricultural production have to avoid the creation of a negative environmental impact.

The conservation of the environment will be realised through: realisation of waste water treatment at the elaboration of the investment (measure 1.1 and measure 3.1); investments in network of sewers and wastewater treatment stations (measure 2.1); investments in draining and dike systems (measure 2.2); biological agriculture (measure 3.3); realisation of forest shelter belts (measure 3.5); The national environmental legislation is under armonisation, the Government Decision No 964/2000, on the approval of the Action Plan for the protection of waters against the pollution with nitrates resulted from agriculture sources, provides a 2 years period for the Ministry of Waters, Forests and Environment Protection and the Ministry of Agriculture and Food will establish the methodologies for application of provisions concerning nitrates (annexes I, II of the Nitrates Directive)



V. TECHNICAL FICHES OF SAPARD MEASURES

ROMANIA



MAIN DOCUMENTS NECESSARY IN ACCORDANCE WITH THE NATIONAL

LEGISLATION FOR PUBLIC INVESTMENT FRAMEWORK

In Romania, for realising a public investment or an investment financed for a public aid it is compulsory to provide some documents, such as: - Feasibility study; - Technical project; - Business plan; - Environmental agreement; - Decision of Public administration for supporting the investment, if a public body makes the investment.

• Feasibility study elaborated according to the Order of the Ministry of Finance No. 784/1998 and of the Ministry of Public Works and Land Arrangements No. 34/N/1998 lays down the general data for acknowledgement of the investment, the main technical, technological and economical elements and solutions of the work, the total value of the investment objective, detailing by the structure of the general estimate, according to the legal provisions. In the framework of the study all agreements and endorsements necessary to the execution of works are obtained, namely:

-The urbanism certificate, framing the site in the urbanism plan, endorsed and approved according to the law, as well as the legal status of the land; -The agreements regarding the utilities supply (thermal and electric power, methane gas, water, pipelines system, telecommunications etc);

-Agreements for fuel consumption; -Agreements for environmental and water protection; -Other specific technical agreements established according to the legal provisions.

• Technical project according to the Order of the Ministry of Finance No. 784/1998 and of the Ministry of Public Works and Land Arrangements No. 34/N/1998, checked, endorsed and approved in accordance with the legal provisions, represents the written and drawn documentation that is integral part of the tendering documentation, on which basis is elaborated the offer. This document is attached to the execution contract and on its basis the work is executed. The technical project is elaborated on the basis of the approved feasibility study and it is checked by specialised agents accredited by the Ministry of Public Works and Land Arrangements, in accordance with the Regulation approved by the Governmental Decision No. 925/1995. It is endorsed and approved by the legal buyer.

• Business plan presents the economic intentions of the applicant, the current situation of the company and the estimations, containing mainly: data for identifying the economic agent, description of the current activity, current market, description of the project for which financial aid is requested, data regarding the market and product promotion, financial



information on the current activity of the company, financing plan of the investment and financial forecasts for the 3 years following the grant of the financial aid.

• Environmental protection is settled by law on the basis of the strategic principles and elements leading to the sustainable development of society. The authorities responsible for the environmental protection implement the authorisation procedure and issue environmental agreements and authorisations. The request for an Environmental Agreement is compulsory for new investments, for the modification of the existing ones and for the activities foreseen in Annex II of Law No. 137/29.12.1995. The list of the activities subject to an Environmental Impact Assessment in view of

issuing an environmental visa and /or authorisation, in accordance with Law

137/1995, republished in 2000 Measure No

. Activities subject to an Environmental Impact Assessment 1.1 1.2 2.1 2.2 3.1 3.2 3.3 3.4 3.5


x


x




x

6 Buildings and equipment for breeding farm animals, with capacities over: 100 places for bovines for meat 500 places for pigs for meat 6 000 places for laying hens 6 000 places for chicken for meat 1 500 places for turkeys for meat

x

7 Equipment for sorting, treatment, recycling, incineration of waste

x x

8 Warehouses for liquid, solid and past-like waste

x x x



11 Clearing of forest vegetation outside the lands covered by forest

x



The request for an Environmental Authorisation is compulsory when rendering operational the new objectives which have an Environmental Agreement. The validity of the environmental agreement and authorisation is of maximum 5 years.



Legislation in force:

- Law of environmental protection no. 137/29.121995. - Order No. 125/19.03.1996 of the Ministry of Waters, Forestry and Environment Protection for approval of the procedure of regulating the economic and social activities which have an impact on the environment, - Order No. 278/25.05.1996 for the approval of the Regulation of licensing for the elaboration of studies on the impact of the environment and for the environmental balance sheets.

• The checking and control of the achievement of the proposed investment objective is accomplished: - from technical point of view regarding the respect of the provisions laid down in the documentation and of the conditions foreseen in agreements and endorsements by: the State Inspection in Buildings, Public Works, Urbanism and Land Arrangements (SIBPWULA); - from the economic point of view for the public investments by the Court of Auditors of Romania.



MEASURE 1.1

THE IMPROVEMENT OF PROCESSING AND MARKETING OF

AGRICULTURAL AND FISHERIES PRODUCTS

1. BACKGROUND

The measures of SAPARD programme are primarily aimed at facilitating the implementation of the Acquis communautaire, directing to the reducing of some shortcomings, which characterise agriculture in Romania, before its accession to E.U. Particularly, support for this measure is destined to improve the performances of agri-food production from the point of view of quality standards and diversification of range of processed products, to eliminate some malfunctions, manifested on their specific markets, namely:

• the present agricultural markets do not operate coherently;

• the existence on the market of an important agricultural production, traded without a previous processing and/or insufficient /inefficient which does not allow in this form, the increasing of added value of the sector and does not contribute to the improvement of farmers’ incomes;

• the un-suitable conditions for taking over, sorting, storing, processing, conditioning and marketing of agricultural products, including eggs that determine, most often large percentage of production losses (perishable goods, without the possibility of product storing and the absence of markets), with the exception of the direct sale of products from the agricultural holdings;

• the location of only 15% of the branches of agri-food industry in rural areas does not favour the local processing of agricultural products, thus generating high transport costs and significant product losses;

• the continuous degradation of productive equipment and a high degree of wear of the existing units that do possess neither high performance processing equipment nor competitive capacities, at the level of European standards, capable to assure the production quality and control;

• lack of equipment in the endowment of food industry units, for the evacuation of waste water and residual products that do not allow for the sufficient protection of the environment, protection and the insufficient endowment with plants laboratories and with equipment to measure and control the products quality;

• the weak diversification of agri-food products, according to the quality standards imposed by EU, although the consumers’ requirements claim for an improvement of the range of processed products.

• weak capitalisation of textile plants as flax and hemp. Priorities are the improvement of processing and marketing in the following sectors: milk and dairy products; meat; vegetables, fruits and potatoes; winery, fish, fishery products and textile plants. In Romania’s context, taking into account the surfaces and the cereal, oil seeds, sugar beet and textile plant productions, as well as the existing deficiencies in the field of primary



processing, we consider as being of paramount importance the investments regarding the modernisation of existing processing and storage capacities of these sectors. During 2005 in Romania have occurred the most severely floods from the past 20 years which affected all the country’s counties. The periods when the floods have been occurred are the following: 10th -30th of April, 1st – 31st of May, 1st – 7th and 11th – 17th of June, 14th – 25th of August, 19th – 25th of September. In many cases there are localities affected more than once. The current estimation of the total damages produced by floods during April – September 2005 had been evaluated at 5.975 millions lei RON (1,6 billion EURO), representing about 3,4% from GDP (2003 level). In order to support the economic activities in the flooded areas and to ensure the legal framework needed for applying the provisions of article 16 Section A, of the MAFA, the Romanian authorities approved by Government Decision no.1512 on 29th of November 2005 the list of localities (villages) affected by floods during the period April - September 2005 and their damage degree . In order to determine the physical damage degree, an evaluation fiche was drawn-up for each locality (village) and the calculation method, having in view the following scoring : houses (15 points), outbuildings (10 points), rural infrastructure (35 points), agriculture and forestry surface (20 points), public buildings (10 points), forestry and flood prevention infrastructure (10 points). The existent data shows that 3755 villages were affected, out of which 1277 commune’s covering all the counties, with the following damage degree:

Damage degree %

5% -10% 27,1

10%-30% 29,6

Higher than 30% 3,1

In order to explain the data presented in the above table and as a result of the analyses of the assessment fiches for each locality it is observed that in case of a damage degree higher than 30% have been recorded significant damages to all elements which have been taken into consideration in calculation of the damage degree. In those villages economic activities and standard of living are seriously affected by floods having a significant negative impact on the development. In the case of a damage degree between 10 and 30% have been recorded significant damages only to certain elements which have been taken into consideration in calculation of the damage degree which have negative impact on the development of economic activities and standard of living. In the case of a damage degree between 5 and 10 % have been recorded damages only to certain elements which have been taken into consideration in calculation of the damage degree, especially on rural infrastructure.



• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA , shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree higher than 30% (Chapter VIII from NPARD– Annex no. 77 ).

• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree between 10 and 30% and which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD – Annex no. 76.

*Local Committee for Emergency Situations is set up according with provisions of the Government Decision no. 1491/2004 for approval of the Standing Order – Framework,

regarding the organisational structure, tasks, functioning and endowment of the committees and operational centres for emergency situations.

2. OBJECTIVES General objectives The overall objective of the measure is the improvement of efficiency, processing and marketing of agricultural and fishery products, resulting in high quality products in order to contribute to the implementation of the acquis communautaire, to increase the competitiveness and the added value of the products and to contribute at the same time at the creation of new jobs. The progressive privatisation and the decreasing of the exceeding capacity of the public sector will accompany the measure. The measure will contribute to:

• maintaining existing jobs;

•creating new employment;

• increasing the revenues in the sector. The implementation of the foreseen measures will be done according to the provisions of the art. 3 of the EC Regulation No. 2759/1999. Specific objectives

•Improvement of the competitiveness of processed agricultural products;

•Orientation of production in accordance with foreseeable market tendencies and encouragement of developing new markets for agricultural products;

• Improvement or rationalisation of wholesale collecting and marketing networks and of agricultural and fishery products processing under this measure;

• Improvement of presentation and conditioning of agricultural and fishery products on the market (from qualitative and commercial point of view);

• Encouragement of a better using of by- products and/or elimination of by- products or of wastes;

• Increasing efficiency by using modern technologies;

• Favouring of innovative investments;



• Improvement of processed products quality and of food products quality control, by compliance with the minimum requirements of food security requested by EU;

• Improvement and control of sanitary conditions;

• Promotion of environmentally friendly methods of production;

• The appearance and consolidation of some competitive private economical agents;

• The increasing of new jobs opportunities in rural area and help to maintain the existent ones;

• Setting up of ‘’green markets’’ aiming at the emergence of new segments of consumers oriented towards ecological agricultural products. Operational objectives - Support for investments for improving the processing and marketing of agricultural and fishery products, by sectors and by specific objectives; - Stimulating investments aiming at the protection and enhancement of the environment as well as livestock hygiene and animal welfare ("green investments") - Any investments in processing and/or marketing units, should involve the harmonisation of the mentioned units to the acquis communautaire when the investments are accomplished. 3. CORRELATION WITH OTHER MEASURES

The support granted within this measure is complementary to the actions provided in the measures ” Investments in the agricultural holdings”, “Improving the structures for quality, the veterinary and plant-health controls for the quality of foodstuffs and for the consumers protection”, with the measure “Agricultural production methods designed to protect the environment and maintain the countryside”, with the measure “Setting up of the groups of producers”, with the measure “Agricultural water resources management” and ‘’Technical Assistance’’ will have a positive effect on the production, the trade channels and the environment. 4. FIELD OF ACTION OF THE MEASURE

• The measure is focused on investments projects for: - improvement and optimisation of production flows processing and marketing of agricultural and fishery products; - setting up or modernisation of local collecting networks, of reception capacities, storing, conditioning , sorting and packing of agricultural and fishery products.

• Those investments contribute to the adoption of European standards in the following sectors: milk and dairy products; meat (beef, pork, mutton, poultry) and eggs; vegetables, fruits and potatoes; processing of grapes, high quality wine varieties; fish and aquaculture and oyster culture products; cereals; oil seeds; sugar; textile plants (flax and hemp). These sectors were selected on the basis of: high productive potential and the lack of local processing and storage capacities in rural area.

• For all above-mentioned sectors, the investment type that can be financed refers to:



Milk and dairy products - New investments for buildings, installations, machinery and equipment and the modernisation and technological upgrading of the existing units, for setting up collecting, reception, cooling and storage units for milk as a raw material, as well as the purchase of new, specialised new transportation means (refrigerating and isotherm vehicles, vehicles for liquid and powder products) for the enterprise as defined in the feasibility study. - Investments in processing, storing and marketing of milk and dairy products as well as for modernising and technological upgrading of the existing capacities; - Investments in treatment, recycling and elimination of residual products and harmful waste; - Investments to increase the value-added of by-products resulting from milk processing (whey, butter milk) within the processing and marketing units; - Investments in improving of the monitoring and control system of reception, collecting, processing and marketing channel of products from quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed, products and by-products obtained within the processing and marketing units (buildings and modernisations of placements for test laboratories and purchase of laboratory equipment). Meat, meat products and eggs - New investments for buildings and modernisation and technological upgrading of the existing units for the slaughtering and meat processing of cattle swine, sheep, goat and poultry, including: buildings, machinery, installations and equipment, concerning slaughtering, processing, packing, storage and marketing of meat and meat products and of eggs, as well as the purchase of new internal transportation means, and new specialised means of transportation (isotherm vehicles, refrigerating vehicles and vehicles for animal transport) necessary as a result of their identification in the feasibility study; - Investments in treatment, recycling and elimination of residual products and harmful waste; - Investments to increase the value-added of by-products obtained as a result of the slaughtering process and meat processing (offal, lard, blood, connective tissues) within the processing and marketing units); - Investments in improving the monitoring and control system of reception, slaughtering, processing, storage and the marketing channel of products from a quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for test laboratories and purchase of laboratory equipment).

Fruits, vegetables and potatoes - New investments for buildings, machinery and equipment, and/or modernisation of the existing units for storage, sorting, conditioning, cooling, freezing, processing, packing and marketing; - Investments in improving product quality and hygiene; - Investments in environmental protection (purifiers for waste waters);



- Investments to increase the value-added of by-products resulting from processing of fruits, vegetables and potatoes within the processing and marketing units; - Investments in improving the monitoring and control system of reception, storage, processing and marketing channel of products from quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for test laboratories and purchase of laboratory equipment). Wine - New investments and/or modernisation and technological upgrading of buildings, machinery and equipment of wine making, including reception, storage, processing, bottling and marketing of wine; - Investments in improving product quality and hygiene; - Investments in treatment, recycling and elimination of residual products and harmful waste; - Investments in improving the monitoring and control system of reception, storage, processing and marketing channel of products from quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for analysis laboratories and purchase of laboratory equipment). - Investments in the implementation of the quality management system in accordance with the ISO 9000 requirements.

Fish and fishery products

- New investments, and/or modernisation and technological upgrading of the existing capacities of buildings, machinery and equipment for storage (including freezing store houses), processing, packing and marketing of fish and fishery products (including equipment for cooling, freezing and ice making); - Investments in improving hygiene and quality according to EU standards; - Purchase of new specialised means of transportation necessary as a result of their identification in the feasibility study.(freezing lorries) - Investments in treatment, recycling and elimination of residual products and harmful waste; - Investments to increase the value-added of by-products resulting from fish and fishery products processing (fish-bones, heads and scales) within the processing and marketing units; - Investments in improving the monitoring and control system of reception, processing and marketing channel of products from quantitative and qualitative point of view; Improvement of internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for test laboratories and purchase of laboratory equipment).



Textile Plants - New investments for constructions, modernization and technological upgrading of existing units for processing of textile plants (flax and hemp), including buildings, machinery, equipments, installations and equipment for processing, packaging, storing and marketing of textile fibre. - Investments for the treatment, recycling and elimination of residual products and harmful waste; - Investments to increase the value-added of by-products resulting from textile plants processing; - Investments for improving the monitoring and control system of reception, processing storing and marketing flow of textile plants from quantitative and qualitative point of view; - Investments for improvement of internal control of raw material quality, products and by-products obtained within the processing and marketing units (buildings and modernisation of spaces for analysis laboratories and purchase of laboratory equipment). Cereals

- Construction (within the processing and marketing units) and/or modernisation of buildings, machinery and equipment and technological upgrading of the existing ones for storage (without increasing the national capacities) and first processing of cereals (drying, calibration, cleaning, conditioning, milling); Investments in equipment for environmental protection (organic and mineral dust emissions, mineral and organic impurities); - Investments in improving the monitoring and control system of reception, storage, processing and marketing channel of products from a quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for test laboratories and purchase of laboratory equipment). Oil seeds

- Construction (within the existing processing and marketing units) and/or modernisation of buildings and equipment of the existing capacities with new technologies for storage and processing of oil seeds (drying, calibration, cleaning, conditioning, preservation in cold spaces, extraction, refining), including sunflower seeds; - Investments in treatment, recycling and elimination of residual products and harmful waste; - Investments to increase the value-added of by-products resulting from storage and processing of oil seeds (oil-protein meal) within the processing and marketing units; - Investments in the improvement of the monitoring and control system of reception, storage, processing and the marketing channel of products from a quantitative and qualitative point of view;- Investments in improving the internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for test laboratories and purchase of laboratory equipment).



Sugar

- Construction (within the existing processing and marketing units) and/or modernisation of buildings, purchase and technological upgrading of equipment and installation for storage and processing of sugar beet; - Investments for improvement of storage, marking and packing technologies for sugar; - Investments in improving hygiene and quality according to EU standards; - Investments to increase of the value-added of by-products resulting from sugar beet processing (molasses, beet pulps) within the processing and marketing units; - Investments for treatment, recycling and elimination of residual products and harmful waste; - Investments in improving the monitoring and control system of reception, processing and marketing channel of products from quantitative and qualitative point of view; - Investments in improving the internal control of raw material, semi-processed products, products and by-products obtained within the processing and marketing units (buildings and modernisation of placements for the test laboratories and purchase of laboratory equipment). 5. ELIGIBILITY CRITERIA General

• The project will be placed in the rural area and only for the modernisation of existent capacities can be placed in the urban area;

• The investments must contribute to the improvement of the situation of the basis sector of agricultural production to which reference is made;

• The processing and marketing of agricultural and fish products are eligible within this measure, if included in Annex 1 to the E.U Treaty. Agricultural products, excluding fishery products, must originate from Community or applicant countries provided for in item 8 of Section F of MAFA;

• It should be demonstrated the economic-financial viability of the project through a feasibility study and business plan. The business plan is required in the case of projects having a total eligible budget exceeding 50,000 EURO. Economic viability is defined as the full utilisation of a processing unit or a part thereof by reporting effective financial performance at an efficient scale and the ability to operate without recourse to public support to its operational activity. The beneficiary must demonstrate that he can pay regularly his obligations and debts without exposing to any risk the activity of the economic agent and that a significant income is generated. Particularly the existence of markets for the respective products (attested through market studies included in the business plan). After the implementation of the project, the beneficiary’s processing and/or marketing units must comply with the E.U. environmental, hygienic and animal welfare norms;

• The projects regarding construction of new buildings or modernisation of existing ones or of parts of these, as well as the necessary equipment, must correspond to the EU norms;

• The private co-financing must cover at least 50% of eligible expenditures, with the exception of investments in sugar sector (70%). For oil seeds sector the private co-finance is 50% of eligible expenditures for investments in environment protection and 70% for

other types of investments. • The applicant and / or the technical expert responsible for the project must prove professional experience related to the project they wish to elaborate,



through a document issued by competent authorities, proving minimum 3 years professional experience in the area: diploma, copy of the workman’s pass or statement on own responsibility that the technical expert responsible for the project will attend a training course till the finalization of the project, before the last payment of the aid

• The project should have access to basic infrastructure (main roads, water supply, electricity, and communications.

• The applicant must ensure the quality control of the products, by his/her own quality control services or done by the third parties.

• Shall not be eligible the applicant who has losses or unpaid fiscal obligations to the state budget or to the social insurance budget and banks (other than those for which the reimbursement timetable is observed), according to the latest fiscal statements or other statements issued by the fiscal authorities.

• Before starting the investment the functioning storage/processing establishment has to respect the national legislation; and after the ending of the entire investment, the concerned establishment has to respect also the community legislation. Before starting the investment, milk and dairy products, meat and meat products processing units will present a restructuring program approved by the national sanitary-veterinary authority.

• In the villages where the damage degree higher than 30% (Chapter VIII from NPARD – Annex no. 77) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

o Modernization for all beneficiaries under this measure; o New investments only for beneficiaries under this measure which fulfil the

criteria as small and medium enterprise in accordance with the national legislation in force

• In the villages where the damage degree is between 10% and 30% (Chapter VIII from NPARD – Annex no. 76) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

o Modernization for all beneficiaries under this measure which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005.

Specific

For all sectors mentioned below the minimal capacities are expressed in terms of raw material. Milk and dairy products

• The project must present the following dimensions: - for new or modernised collecting, reception, cooling and storage centres of milk: minimum 2,000 hl/year - for new processing capacities: minimum 12,500 hl/year; - for modernising the existent processing capacities: minimum 50,000 hl/year;

• Raw processed materials must comply with the quality requirements of the national standards.



• Projects regarding the modernisation of the installations for processing of the butter and skimmed milk powder creamed milk are eligible, without increasing the global existent processing capacities at national level. Meat, meat products and eggs

• The project must present the following dimensions: - New slaughterhouses: for various species (cattle, swine, sheep) having a minimal capacity of production of 1500 t/year; - New slaughterhouses for poultry having a minimal capacity of production of 1250 t/year; - Modernised slaughterhouses for various species (cattle, swine, sheep) having a minimal capacity of production of 5000 t/year; - Modernised slaughterhouses for poultry having a minimal capacity of production of 3000 t/year; - New capacities of meat processing having a minimal capacity of production of 250t/year; - Modernisation of existent capacities for meat processing: minimal capacity of production 1250 t/year; - Sorting and eggs storage: minimal storage capacity 300,000 pcs (6 million pcs/year). Fruits, vegetables and potatoes

•For fruits and vegetables the project must present the following dimensions: - New storehouses for raw materials: minimum 200 t; - Modernised storehouses: minimum 400 t; - New processing capacities: minimum 100 t/year; - Modernised processing capacities: minimum 500t/year; - New capacities for dehydrated fruits and vegetables: minimum 250 t/year; - Modernised capacities for dehydrated fruits and vegetables: minimum 500 t/year; - Modernised capacities for juices and natural fruit and vegetable nectars: minimum 12,500 t/year.

• For potatoes the project must present the following dimensions: - New storage capacities: minimum 1,000 t; - Modernised storage capacities: minimum 2,000 t; - New processing capacities: minimum 500 t/year; - Modernised processing capacities: minimum 500 t/year;

• Raw materials must comply with the quality requirements of the national standards.

Wine

• The project must present the following dimensions: - New wine warehouses: minimum 5,000 hl; - Modernised warehouses: 10,000 hl; - New processing capacities: minimum 500 t of grapes/harvesting campaign - Modernised processing capacities: minimum 1,500 t of grapes/ harvesting campaign

Fish and fishery products

•The project must present the following dimensions:



- New collecting, storage, sorting, conditioning and processing capacities: minimum 200 t/year; - Modernised collecting, storage, sorting, conditioning and processing capacities: minimum 100 t/year; Textile Plants

• The project must present the following dimensions: - New capacities for reception, storing and processing: minimum 200t/year; - Modernised capacities for receiving, storing and processing: minimum 1200t/year. Cereals

• The project must present the following dimensions: - Modernised storage capacities: minimum 2,000 t; - Modernised capacities for the first processing: - Milling minimum 5,000 t/year; - Husking minimum 5,000 t/year; Oil seeds

•The project must present the following dimensions: - Modernised processing capacities (sunflower, linseeds, soybean, rape-seed, and castor-oil seeds): minimum 15,000 t/year for extraction and minimum 12,500 t/year for refining; - New processing units without increasing global capacity: minimum 25,000 t/year for extraction and refining. Sugar

•The project must present the following dimensions: - Modernised processing capacities for sugar beet: minimum 2,000 t/day or 150,000 t/ harvesting campaign

The eligible investments are:

• all the investment specified in paragraph 4 – “Field of action of the measure”

• the eligible costs as they are, as follows: a) the construction of new buildings and installations and the modernisation of the existing ones; b) new machinery and equipment, computer soft-ware, including the installation and mounting costs based on contracts with third parties; c) the part of costs representing architects’, engineers’, and consultants’ fees, legal fees, feasibility studies, purchase of licenses and patents, for preparing and/or implementing a project directly related to the measure which does not exceed 12% of the total eligible cost of the project; d) purchase of specialised new transportation means necessary as a result of their identification in the feasibility study.



Eligible investments are specified above and in the Ordinance for measure implementation and reflected in the procedures manual, in the application forms, selection checklists, control checklists and contracts. Expenditures shall be considered eligible for support, if they meet the requirements laid down in Art. 4, Section B from the MAFA between the Commission of the European Communities on behalf of the European Community and Romania, signed on February 2, 2001 (published in Official Journal of Romania no. 362/July 5, 2001) Only expenditures paid by the Agency from the date of the Commission Decision conferring financial management on the Agency or the date(s) specified therein, shall be eligible for Community support. For a project to be eligible for Community support, all services, machinery and supplies shall originate in the Community or in the countries mentioned in Art. 14 (2.7) Section A from MAFA; if so requested the final beneficiary shall be able to establish the inputs into works or service contracts, using any admissible means of evidence. There are not eligible:

• investments at retail level

• investments regarding the measure 3.4

• investments in port areas aimed at cereals storage and processing.

6. SELECTION CRITERIA

The projects will be selected according to the following criteria:

No. Criteria Score

1 Investments in units for processing milk and dairy products, as well as meat and meat products with restructuring program to be achieved up to 2007

15

2 Own supplies and contractual relationships with producers covering at least 50% of the supplies of raw materials for at least 1 year after the finalisation of the project

15

3 Improvement of quality control of products (own plant laboratories), modernised of new ones

20

4 Better valorisation of by-products 10

5 Production of traditional products 10

6. Placed in areas with productive potential pursuant to annex 3 Rural high potential average potential low potential Urban

Max.15 15 10 5 5

7. Project objective: Capacities modernisation New investments

Max.15 15 10

TOTAL 100

Note:



The selection criteria do not apply in the case of the potential beneficiaries which fulfill the

accession conditions of Article 16(1) and 16(1)(a), Section A, from MAFA.

7. BENEFICIARIES Final beneficiaries shall be:

• Associations and groups of producers (with legal status);

• Commercial companies with private capital at least equal/more than 75%.

• In the wine making sector there are supported: associations, producer groups and private trade companies processing only high quality varieties of grapes.

• Consumption Cooperatives 8. NATIONAL LEGISLATION IN FORCE

The legislation undergoing harmonisation and the national legislation in force are indicated in Chapter “Legislation Appendix”.

9. FINANCIAL DISPOSITIONS

• The projects within this measure are considered to be income-generating investments;

• The public support granted within this measure will not exceed 50% of the total of eligible expenses;

• Within this measure could be financed projects of a total eligible value between 30,000 – 4,000,000 EURO, no more than twice inside the eligible amount;

• The financial plan and the total financing sources are shown in the Chapter VI: Financial Allocation (see Page 352); INDICATIVE ALLOCATION BY SUB-MEASURE

SUB-MEASURE % of the measure

Meat 23

Milk and dairy products 23

Cereals 10*

Oilseeds 3

Wine 9

Fruit and vegetables 16

Fish and fishery products 6

Sugar 4

Textile plants 6

TOTAL 100

* Public contribution will not overpass the value of 25.6 mil. € for projects within the processing and marketing units.

The degree of intervention for the project of private interest:

• For milk and dairy products, meat, vegetables, fruits and potatoes, wine making, fish, textile plants sector, oil seeds (investments in environment protection) as well as for



cereals sector but without increasing existing national production capacity and with the exclusion of investments carried out in ports :

- 50% private contribution - 50% public contribution out of the eligible expenditures, out of which:

- 75% EU contribution - 25 % national budget

• For the investments in oil seeds (other than those in environment protection) and sugar sectors:

- 70% private contribution - 30% public contribution out of the eligible expenditures, out of which:

- 75% EU contribution - 25% national budget

The eligible project activities have to take place after the signature of the contract with exception to feasibility and technical studies, in the limit of the percentage approved in the measures. The payment of the financial support will be made on the base of justifying documents, which prove the accomplishing of the activities and them eligibility. Taking into consideration the options of the beneficiaries, the payment can be made as a single payment at the end of the project or in maximum 5 installments. For investment projects located in villages identified in Chapter VIII from NPARD, Annex no. 76 and 77, the intervention rate is: 25% private contribution, 75 % public contribution

For the public contribution, the intervention rate is: -85% EU contribution -15% national budget contribution These provisions will be applied to projects approved until 31st of December 2006. The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, will not be applied for oilseeds and sugar sub-measures. 10. GEOGRAPHICAL COVERAGE

• In the rural area of Romania defined according to the national legislation in force.

• In the urban area for the modernisation of the existing capacities.

• The measure will be implemented with priority in geographical areas which have high productive potential, according to Annex 3 . Projects where the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA are applied shall be located in villages affected by floods in accordance with Chapter VIII from NPARD– Annex no. 76 and 77. The projects financed within this measure do not overlap with projects financed from national or foreign funds of the Ministry of Environment, Waters and, Ministry of Transport, Constructions and Tourism and Ministry of Administration and Interior. 11. OUTPUT, RESULT AND IMPACT INDICATORS



Output indicators General indicators

• Total estimated number of projects breakdown by sectors of activities and types of investments 1,900 out of which:

Out of which: Products Total number

of

projects Projects for

processing

Projects for storing

Milk and dairy products 450 300 150

Meat and meat products 490 300 190

Fruits, vegetables and potatoes

340 200 140

Wine making 190 100 90

Fish and fishery product 130 60 70

Cereals 160 100 60

Oil seed 30 20 10

Textile plants 60 60 -

Sugar 50 30 20

• Achieved and processed productions, existent capacities of processing and storing and the investments possible within SAPARD Programme in the agri-food sector, improved through 1.1 measure are shown in annexes 7 and 8. Result indicators Increasing the competitiveness:

• Capacity-use in assisted processing and marketing line >80%;

• Decreasing in processing and marketing costs per unit of basic product: 20% (only for the existing capacities);

• Share of marketed products from assisted processing and marketing lines sold with quality label (number of products and %) >20%; Situation of the basic agricultural production sector:

• Share of supply of basic products to beneficiaries producers (processing) or marketers that depends on multi-annual contract >30%;

Improving health and welfare:

• Share of assisted investments related to health and welfare, >20%, of which: - aiming to improve of the nutritive and hygiene quality of products for human consumption >30%; - aiming to improve workplace safety >20%;

• Trend in frequency of reported workplace incidents, decreasing; Protection of the environment:

• Share of all investments assisted or not with an environmental purpose (emissions, resource use) within assisted processing and marketing lines >20%.

Impact indicators Increasing added-value

• Added value of the products in assisted processing and marketing lines increase by 10%; Employment and social impact



• Number of full-time equivalent jobs (FTEs) maintained in better conditions 13,300 – 70% and created 5,700 - 30%, (minimum 10 FTE/project), expected: 19,000; The result and impact indicators will be improved subsequently in collaboration with the Commission’s services. � Number of plants for processing of red meat, milk, pig meat, poultry and fish, included

in classification list type B, C, D – 1.100 out of which from list B - 345, list C - 53, list D - 712.

12. PROGRAMME PROMOTION The potential beneficiary will be informed about the existence/conditions of the eligibility of the present measure by:

• Public announcement in media;

• Distribution of information leaflets;

• Seminars;

• Meeting with potential beneficiaries;

13. SUPPORTING DOCUMENTS The potential beneficiary shall attach the following documents to the financing application:

• The feasibility study drawn up in accordance to the joint Order No 1013/873/2001 of the Ministry of Public Finance and of the Ministry of Public Works, Transportation and Housing regarding the approval of the structure containing and the way of applying of the standard documentation for elaboration and submitting of the public acquisition of services;

• Copy of the ownership deed over the land, the leasing contract, concession contract or of any other document justifying the right of using the land and if the case, the ownership deed over the other real estate, goods, according to the legislation in force;

• Certificate of urbanism;

• Technical fiche (annex to Urbanism Certificate) regarding the conditions for environment protection necessary to obtain the unique endorsement. If the case on the unique endorsement is applied stamp A or B, which might contains in annex, the environmental endorsement issued by the competent authorities for activities with relevant impact over the environment, defined according to the national legislation consistent with EU legislation;

• Certificate of registration in the Office of the Register of Trade and the fiscal code (copy);

• The business plan (the business plan is required in the case of projects having a total eligible budget exceeding 50,000 Euro);

• The latest three annual balance sheets and the latest half yearly Accountant Report. If the beneficiary has not undertaken an activity prior to submitting the project, he/she will attach a document in proof of this, issued by the tax administration; Only for processing units within sub-measure “Oil seeds” annual balance sheet referred to one of the last three years preceding the year which the project is submitted for and the units has not registered losses.

• The endorsement of fiscal authorities certifying that the beneficiary of the project has no obligations to the state budget or the social insurance budget and banks other than those for which the reimbursement schedule is observed;



• The statement on own responsibility showing that the applicant does not benefit of financing through other programmes for the projects that make the object of the SAPARD assistance;

• Certificate showing that the responsible of the project has a honest judiciary record;

• The existence of own financial contribution of the beneficiary shall be proved through a document issued by the bank and/or other authorised financial institutions, in which it is certified the existence of co-financing and the manner of its provision;

• Professional experience related to the project, proved through the copy of: study diploma or a document proving a minimum of 3 years professional experience in the area (copy of the workman's pass) or statement on own responsibility that the applicant and/or the person responsible for the project will attend a training course till the finalization of the project, before the last payment of the aid;

• Before starting the investment, the functioning storage/processing establishment must have the functioning authorization according to national legislation; and after the ending of the entire investment, the concerned establishment must have the functioning authorization according to community legislation before last payment of aid.

• Sanitary-veterinary and/or sanitary notification, issued by the competent institution attesting that the enterprise is in compliance with the national legislation and that through the realisation of the investment, the processing and/or marketing units will respect EU legislation;

• Processing units for milk and dairy products, meat and meat products should present a restructuring program to be achieved up to 2007 or 2009, approved by the sanitary and veterinary authority;

• Contract for effectuation of the laboratory analyses, in the case if it has not its own laboratory;

• A letter of intent or pre-contracts for the trading of 70% part of the output, and pre-contracts for purchasing or other evidence showing that at least 50% of the quantity of raw materials comes from the primary producers or from own supply.

• For potential beneficiaries with projects located in a village with a damage degree between 10% and 30% a document issued by Local Committee for Emergency Situations*, at the commune level which proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD– Annex no. 76.

*Local Committee for Emergency Situations is set up according with provisions of the

Government Decision no. 1491/2004 for approval of the Standing Order – Framework,

regarding the organisational structure, tasks, functioning and endowment of the committees

and operational centres for emergency situations.

Through economic viability of the project it is understood the acquiring of efficient financial performances, and the ability to operate without recurring to public support in its operational activity. The beneficiary shall prove that he/she is able to pay regularly his/her obligations and duties, without putting to any risk the normal activity of the economic agent, and that he/she generates a significant net income (at least 5% profit).

14. FINANCING CONDITIONS

• The beneficiaries shall draw up monthly balances detailed by current investment account, the balance sheet at the middle of the year and the balance sheet at the end of the year;



• A beneficiary may receive, on its own name, a grant for two times between 2000 – 2006, with a cumulated total within the maximum eligible sum of the measure;

• The beneficiary may ask another financial assistance for a new project after the completion of the previous project;

• The beneficiary will collaborate and will forward any information required by the officials of the MAFF, SAPARD Agency, EU Commission or by other structures authorised to check and audit the project implementation;

• The support granted will be claimed back if the financed procurement are not used according to the intended purpose or if the respective procurements are sold or leased within a period of 5 years after the completion of the project (the date of the last instalment);

• If the cost of the service or of a good exceeds the total value of 10,000 Euro, the beneficiary shall submit offers from at least 3 suppliers; 15. IMPLEMENTING AUTHORITY

• SAPARD Agency represents in Romania the Implementing Authority.

• The Technical Delegated Bodies are the central and decentralised services of the Ministry of Agriculture, Food and Forests



APPENDIX 1

SITUATION (2004)

Food Production Capacities

* The situation comprises operative dates of Ministry of Agriculture, Forest and Rural Development

CAPACITIES No.

crt.

Specification UM

Existing

processing

units

Estimated to be

closed up to 2007,

%

1 Milk processing and dairy

products

Thousand

hl/year

18,667.7 60

2 Meat processing and meat

products

Thousand

t/year

777.3 30

3 Animal Slaughter Thousand

t/ year

728.5 30

4 Fish and fishery

processing and conservation

Thousand

t/ year

33.7 25

5 Bread processing and mill

and bakery products

Thousand

t/year

54,34 15

6 Fruits and vegetables

processing and conservation

Thousand

t/year

777,4 10

7 Oil processing and

vegetable and vegetable

fats

Thousand

t/year

428,3 30

8 Sugar and sugar products:

- Sugar production;

- Sugar and sugar

products

Thousand

t/year

3.973,1

738,3

40

20

9 Wine production Thousand

hl/year

19.195 25

10 Cereal and oil seed storage Thousand

t/year

10.166,0 45



APPENDIX 2

FOOD INDUSTRY UNITS SITUATION (MAY 2004)

Units in restructuring

program

No. Objective Total

no.

Units in

accordance

with

European

standards

Up to 2007 Up to 2009

Estimated

units to

be closed

1 Slaughter-

house for red

meat

561 4 14 20 523

2 Meat

products

units

581 5 52 17 507

3 Venison

processing

units

3 3 - - -

4 Poultry

slaughter-

house

40 6 7 2 25

5 Processed

meat units

5 5 - - -

6 Milk and

units

574 18 35 28 493

7 Fish and

fishing

products

units

40 7 6 - 27

8 Snail units

4 4 - - -

9 Eggs

products

units

1 1 - - -

10 Intestine

units

5 5 - - -

TOTAL 1773 58 114 67 1575



APPENDIX 3

PRIORITY AREAS FOR INVESTMENTS PROPOSED THROUGH MEASURE

“IMPROVEMENT OF PROCESSING AND MARKETING OF AGRICULTURAL

AND FISHERY PRODUCTS” CEREALS: a) high potential: Timis Calarasi, Constanta, Ialomita, Teleorman, Olt, Arad, Braila, Dolj, Buzau, Iasi, Mures. b) average potential:Galati, Botosani, Satu-Mare, Bihor, Tulcea, Neamt, Bacau, Giurgiu, Vrancea, Vaslui, Cluj, Arges, Prahova, Alba, Valcea. c) low potential:Mehedinti, Caras-Severin, Suceava, Dambovita, Hunedoara, Bistrita, Salaj, Gorj, Sibiu, Brasov, Ilfov, Maramures, Covasna, Harghita, M.Bucuresti OIL SEEDS:

Sun Flower a) high potential: Constanta, Ialomita, Braila, Calarasi, Buzau, Tulcea, Teleorman, Timis,.Galati, b) average potential: Satu-Mare, Vaslui, Olt, Dolj, Botosani, Iasi, Giurgiu, Bihor, Vrancea, Arad, Prahova, Ilfov. c) low potential: Arges, Neamt, Mehedinti, Salaj, Cluj, Bacau, Dambovita, Caras-Severin, Suceava, Maramures, Mures, Alba, Bistrita Nasaud.

Soya: a) high potential: Braila, Calarasi, Galati, Timis, Arad, Tulcea, Iasi, Ialomita. b) average potential: Dolj, Botosani, Teleorman, Constanta, Neamt. c) low potential: Giurgiu, Vaslui, Bihor, Olt, Buzau, Satu- Mare. MILK AND DIARY PRODUCTS

Cattle: a) high potential: Suceava, Cluj, Iasi, Maramures, Arges, Botosani, Bihor, Neamt, Bacau, b) average potential: Dambovita, Mures, Bistrita Nasaud, Harghita, Teleorman, Alba, Buzau, Dolj, Hunedoara, Satu Mare, Prahova, Giurgiu, Brasov, Olt. c) low potential: Timis, Gorj, Vrancea, Caras-Severin, Salaj, Arad, Valcea, Braila, Ialomita, Galati, Vaslui, Sibiu, Constanta, Covasna, Mehedinti, Calarasi, Ilfov. Sheep: a) high potential: Mures, Botosani, Iasi, Teleorman, Tulcea, Bistrita Nasaud, Caras Severin, Dolj, Cluj, Timis. b) average potential: Constanta, Suceava, Sibiu, Brasov, Bacau, Buzau, Alba, Mehedinti, Olt, Harghita, Maramures, Neamt, Vaslui, Galati, Arad, Vrancea, Arges. c) low potential: Braila, Covasna, Calarasi, Gorj, Prahova, Hunedoara, Giurgiu, Salaj, Bihor, Ialomita, Valcea, Satu- Mare. MEAT:

Beef: a) high potential: Suceava, Iasi, Arges, Bacau, Maramures, Bihor, Botosani, Neamt, Cluj, Buzau, Alba, Dambovita, Gorj, Bistrita Nasaud, Valcea, Mures, b) average potential: Hunedoara, Brasov, Satu Mare, Prahova, Harghita, Arad, Timis, Dolj, Vaslui, Teleorman, Caras- Severin, Vrancea, Braila, Salaj, Olt, Galati.



c) low potential: Giurgiu, Ialomita, Sibiu, Covasna, Mehedinti, Constanta, Tulcea, Calarasi, Pork:

a) high potential: Timis, Cluj, Arad, Bihor, Mures, Bacau, Satu Mare, Teleorman, Braila, Calarasi, Valcea, Ilfov, Dolj, Gorj. b) average potential: Arges. Neamt, Olt, Iasi , Suceava, Ialomita, Constanta, Buzau, Maramures, Brasov, Giurgiu. c) low potential: Alba, Tulcea, Dambovita, Prahova, Botosani, Covasna, Sibiu, Salaj, Vaslui, Bistrita Nasaud, Galati, Mehedinti, Hunedoara, Harghita, Vrancea, Caras-Severin. Sheep:

a) high potential: Tulcea, Iasi, Timis, Botosani, Sibiu, Mures, Cluj, Dolj, Constanta, Caras Severin, Bistrita Nasaud, Buzau, b) average potential: Alba, Arad, Brasov, Braila, Suceava, Vaslui, Neamt, Galati, Bacau, Teleorman, Olt, Maramures, Calarasi, Vrancea, Mehedinti, Arges, c) low potential: Hunedoara, Harghita, Ialomita, Covasna, Prahova, Gorj, Bihor, Valcea, Salaj, Giurgiu, Satu-Mare, Dambovita, Ilfov. Poultry (including eggs): a) high potential: Bacau, Teleorman, Dolj, Dambovita, Gorj, Olt, Buzau, Galati, Constanta, Calarasi, Botosani, Alba, Iasi, Bihor. b) average potential: Prahova, Giurgiu, Timis, Brasov, Valcea, Ialomita, Arad, Sibiu, Suceava, Arges, Hunedoara, Vrancea, Braila, Ilfov, Mures; c) low potential: Cluj, Tulcea, Caras- Severin, Vaslui, Neamt, Maramures, Mehedinti, Salaj, Satu-Mare, Sibiu, Harghita, Municipiul Bucuresti, Covasna. VEGETABLES: a) high potential: Galati, Timis, Olt, Iasi, Arad, Mures, Cluj, Dolj, Suceava, Bacau, Dambovita, b) average potential: Ilfov, Botosani, Vrancea, Valcea, Teleorman, Giurgiu, Satu- Mare, Neamt, Gorj, Bihor, Constanta, Buzau, Alba, Ialomita, Arges. c) low potential: Prahova, Hunedoara, Salaj, Caras-Severin, Sibiu, Bistrita Nasaud, Braila, Mehedinti, Vaslui, Tulcea, Calarasi, Maramures, Covasna, Harghita, Brasov, M. Bucuresti. POTATOES: a) high potential:Suceava, Covasna, Maramures, Brasov, Harghita, Bistrita Nasaud, Neamt, Cluj, Mures, Iasi, Hunedoara. b) average potential: Botosani, Bihor, Timis, Dambovita, Bacau, Alba, Caras Severin, Salaj, Sibiu, Satu Mare. c) low potential:Arad, Arges, Valcea, Prahova, Constanta, Gorj, Dolj, Teleorman, Galati, Vrancea, Olt, Buzau, Tulcea, Vaslui, Mehedinti, Ilfov, Giurgiu, Calarasi, Braila, Ialomita. FRUITS: a) high potential: Arges, Dambovita, Valcea, Cluj, Maramures, Iasi, Caras Severin, Salaj, b) average potential: Bistrita Nasaud, Bacau, Mures, Bihor, Hunedoara, Satu Mare, Neamt, Prahova, Vrancea, Gorj, Suceava, Arad, Buzau, Olt, Timis, c) low potential: Vaslui, Galati, Botosani, Alba, Mehedinti, Sibiu, Dolj, Constanta, Giurgiu,Teleorman, Harghita, Ilfov, Ialomita, Brasov, Calarasi, Covasna, M. Bucuresti.



WINE: a) high potential: Vrancea, Galati, Constanta, Buzau, Vaslui, Prahova, Iasi, Tulcea, Dolj, Alba, Mehedinti, b) average potential: Valcea, Bacau, Olt, Arad, Timis, Bihor, Mures, Arges, Braila, Salaj, c) low potential: Caras- Severin, Satu Mare, Neamt, Cluj, Teleorman, Ialomita, Giurgiu, Botosani, Bistrita Nasaud, Calarasi, Gorj, Hunedoara. FISH AND FISHERY PRODUCTS a) high potential: Tulcea, Iasi, Botosani, Bihor, Constanta, Dambovita, Calarasi, Ialomita, b) average potential: Ilfov, Dolj, Giurgiu, Galati, Suceava, Mehedinti, Arad, Prahova, Braila, Mures, Bacau, Neamt, Vaslui, Alba, Timis, Caras Severin, Cluj, Buzau, Bistrita Nasaud, Valcea, Teleorman Brasov, c) low potential: Arges, Sibiu, Satu Mare, Hunedoara, Gorj, Maramures, Salaj, Vrancea. SUGAR: a) high potential: Suceava, Botosani, Satu Mare, Neamt, Iasi, Mures, Cluj, Galati, Covasna, b) average potential: Bihor, Brasov, Vaslui, Arad, Bacau, Alba, c) low potential: Vrancea, Timis, Harghita, Braila, Sibiu, Salaj, Buzau, Hunedoara, Prahova. FLAX AND HEMP

Flax for fibre: a) high potential: Arad, Bihor, Bistrita – Nãsãud, Brasov, Brãila, Caras - Severin, Cãlãrasi, Cluj, Constanta, Covasna, Galati, Harghita, Ialomita, Maramures, Mures, Neamt, Sãlaj, Satu Mare, Suceava, Timis; b) average potential: Alba, Arges, Buzãu, Dâmbovita, Dolj, Giurgiu, Gorj, Hunedoara, Mehedinti, Olt, Prahova, Sibiu, Teleorman, Tulcea,Vâlcea; c) low potential: Bacãu, Botosani, Iasi, Vaslui, Vrancea Hemp for fibre: a) high potential Arad, Bihor, Botosani, Caras - Severin, Iasi, Mures, Neamt, Satu Mare, Sãlaj, Suceava, Timis, Vaslui,Vrancea; b) average potential: Arges, Bacãu, Brãila, Buzãu, Dolj, Dâmbovita, Galati, Giurgiu, Ilfov, Mehedinti, Olt, Prahova, Teleorman, c) low potential: Alba, Bistrita – Nãsãud, Brasov, Cluj, Covasna, Gorj, Harghita, Maramures, Sibiu, Vâlcea


Revised version, 7th of July 2006

APPENDIX 4

PRODUCTION OBTAINED AND PROCESSED IN 1998

AGRICULTURAL

PRODUCTS

M.

U.

RAW

MATERIALS

OBTAINED

1998

RAW

MATERIALS

PROCESSED

1998

RAW

MATERIALS

PROCESSED

%

MILK Thou hl

54.360 9.000 16,5

MEAT (alive) Thou tones

1.594 526 33,0

FRUITS-VEGETABLES

Thou tones

3.926 54 1,3

POTATOES Thou tones

3.319 - -

FISH AND FISHERY PRODUCT

Thou tones

39 23 59,0

GRAPES Vitis Vinifaera Thou tones

425 425 100

CEREALS (wheat+ corn)

Thou tones

15.010 3.668 24,4

OIL SEEDS Thou tones

1.180 726 61,5

SUGAR BEET Thou tones

1.831 1.831 100

TEXTILE PLANTS Thou tones

11.8 11.8 100*

*Note. Sources used: operative data MAF



191

APPENDIX 5

INVESTMENTS WITHIN SAPARD PROGRAMME IN THE FOODSTUFF IMPROVED THROUGH MEASURE 1.1.

SPECIFICATION M.U EXISTENT CAPACITIES FOR

IMPROVED CAPACITIES THROUGH SAPARD PROGRAMME FOR

PROCESSING STORAGE MODERNISATION NEW CAPACITIES

PROCESSING STORAGE PROCESSING STORAGE

CANT. % CANT. % CANT. % CANT. %

MILK AND DAIRY PRODUCTS (except for butter and skimmed milk powder)

Thou hl 22,000 - 6,600 30 - - 4,400 20 - -

MEAT: -slaughter-houses (cattles, swine, sheep, fowls) - refrig. storehouses - meat preparations

Thou t

2,634 - 675

- 274 -

658 - 170

25 - 25

- 55 -

- 20 -

395 - 67

15 - 10

- 27 -

- 10 -

VEGETABLES+FRUITS Thou t 306 345 60 20 85 25 45 15 35 10

POTATOES Thou t 200 215 20 10 54 25 50 25 22 10

FISH AND FISHERY PRODUCTS

Thou t 38 18 19 50 6 33 11 30 2 10

WINE (high quality varieties)

Thou hl 3,470 - 870 25 - - 350 10 - -

CEREALS Thou t 9,377 12,950 938 10 1,300 10 - - - -

OIL SEEDS Thou t 1,500 - 425 25 - - 75 5 - -

SUGAR (roots beet/day) Thou t 69 - 10 15 - - - - - -

TEXTILE PLANT* (raw material)

Thou t 45,4 - 8 17,6 - - 30* 66,1 * - -

NOTE: The modernisation and purchasing of new technologies of the existent capacities has as a result also a diminution of capacities thanks to their adjustment to the sources of raw materials and to the market conditions. We reckon the capacities could be reduced in proportion of 20-25% of the existent ones. The new capacities proposed will partially cover this diminution. SOURCE: The short and medium-term development strategy of the food industry (1999-2000 and 2001-2005). * « Strategic projects for rehabilitation of flax and hemp industry in Romania » (September 2000)

National Agriculture and Rural Development Plan 2000-2006 ______________________________________________________________________________


MEASURE 1.2

IMPROVING THE STRUCTURES FOR QUALITY, VETERINARY AND

PLANT-HEALTH CONTROLS, FOR THE QUALITY OF FOODSTUFFS AND

FOR CONSUMER PROTECTION

1. BACKGROUND With respect to the need of ensuring the improvement of the veterinary, plant-health and foodstuff quality control structures, of ensuring the adequate quality of food and the consumers’ protection, and with a view to ensure the speeding –up of the adoption of the Acquis communautaire, investments are necessary (including specialized software) in the following areas: sanitary-veterinary, plant-health, food quality control and consumers’ protection fields.

• Sanitary and veterinary sector: - The existing situation of the spaces and the existing equipment at the level of the

laboratories and of the entitled institutions is non-competitive and/or incomplete and does not meet totally the requirements needed by the process of the accession into EU, a plight noticed by the Community experts as well.

- - Given the foodstuffs import increase and the observance of the Community directives,

it is essential to enforce some unitary analysis and diagnosis methods at the level of all public and private sanitary veterinary and food safety laboratories.

- . -At the end of the 2003 and the beginning of the 2004, the legal frame and the infrastructure regarding the sanitary veterinary and food safety and quality control were improved, following the organization and beginning of the National Sanitary Veterinary and Food Safety Authority (NSVFSA) functioning, through the reorganization of the Food Safety Romanian Agency and the National Sanitary Veterinary Agency from the Ministry of Agriculture, Forest and Rural Development. One of this authority’s purposes is to ensure the food safety, from the raw materials production to the foodstuffs delivering to the consumers. Following these and consultancies with the communitarian experts, was issued the Strategy regarding the improvement of the infrastructure of the sanitary veterinary and

food control, in the public sector. This strategy purposes are to reorganize the activity of the sanitary veterinary laboratories and the modernization of constructions and endowment of certain sanitary veterinary and food safety county laboratories with specific apparatus and equipments for the food safety and quality control, both of the animal and vegetal origin, according to the EU requirements in this field.

• Plant-health sector:



- The review of the plant-health situation and of the condition of the pests in the agricultural crops, as well as of their evolution allow the practical substantiation of the prevention and combat decisions.

- Should be maintained a proper endowment in the field of the plant-health control, the control of the pesticide quality and the determination of pesticide wastes in plants and vegetal products, allow totally the implementation of the EU regulations concerning public health and environment protection.

- The Phyto-sanitary Division from the Ministry of Agriculture, Forests and Rural Development (MAFRD is lacking sufficient rapid and modern communication means (at horizontal and vertical level) with the County Phyto-sanitary Units for the surveillance of the plant-health condition by laboratory diagnosis, plant-health control of plants and vegetal products, by pesticide quality control and pesticide’s residues from plants and vegetal products determination.

• Foodstuff quality control sector: - The foodstuff quality, of animal and vegetal origin, and the quality of alcoholic or non

alcoholic drinks must be surveyed, verified and checked both by the economic agents who are carrying out their activity in the field of foodstuff production and by the authorities for supervision and control, in order to protect the consumers’ health and interests, in accordance with the specific regulations of this field.

- The economic agents who are producing, packaging, manipulating, transporting, storing and marketing foods do not have all the necessary plants laboratories.

- The inspectors assigned to ensure foodstuff quality control within the County Directorates for Agriculture and Rural Development -DARD and County Sanitary Veterinary and Food Safety Directorates - CSVFSD cannot fully exert their functions of assessing the conformity of the qualitative parameters and of the foods with the standards, technical specifications or product normative documents, as well as the functions of surveying the market, due to the lack of endowment of laboratories for assuring the animal health , for determinating the foodstuff quality parameters and it is also due to the environmental factors.

- The Institute of Food Bio-Resources – Bucharest, is actually the only public institute of the Ministry of Agriculture, Forests and Rural Development, assessing the grains quality for all the County Directorates for Agriculture and Rural Development and the raw materials, finished products and packaging materials quality, for the economic agents of the food industry. This institute didn’t receive financial support by PHARE Programs, has laboratories accredited at national level, according to the standard SR EN ISO/CEI 17025/2001, and will extend this accreditation also for the methods of reference analysis foreseen in the Community regulations regarding the organization of the common market for various food categories

Its activity is necessary both for assessing the food safety and quality of the foodstuffs resulted from research activity, and for the foodstuffs delivered to the consumers.

- The risk factors cannot be monitored and removed when manufacturing, manipulating and marketing foodstuff, due to the fact that the economical agents and the surveillance and control authorities lack in specialized laboratories.

-The Strategy regarding the improvement of the infrastructure of the sanitary veterinary

and food control, in the public sector establishes the modernization and endowment of



the 16 county sanitary veterinary and food safety laboratories from 8 regions, with specific apparatus and equipments, for food of animal and vegetal origin safety and quality control. In this way it is possible to respect the Communitarian provisions regarding food safety and quality assessment and consumers protection, avoiding the expenditures for the construction of new laboratories designated to food control. N.B. For this measure, the support is given in full complementary with the PHARE programs and taking into consideration the “Support for agricultural and rural actions by PHARE or SAPARD” (Vademecum for the co-ordination of the three pre-accession instruments).

The laboratories strategy of development covers the identification of requested changes in order to comply with CAP and veterinary and food safety field. The alignment at European Union standards of the methodology regarding sampling, packing, transport and preparing the samples coming from animals for laboratory diagnosis motivates the laboratories development, taking into consideration that the transport infrastructure in Romania is not yet modernized, especially in the rural areas where most of the animal exploitations and establishments for animal origin and non-animal origin products, submitted to control and sanitary veterinary and food safety surveillance, are located (see annex). Taking into consideration that starting with 2007, Romania will become member of EU, it is important to strength the surveillance system at N-E border, that will become border of EU, in accordance with communitary requirements for protection of public and animal health, as well as for protection of environment. Being located at the border with Republic of Moldavia, Ukraine, Serbia and having access to Black Sea, Romania should have critical borders after accession. In these conditions, our country should have a strict control of borders, controlling the diseases by an efficient and operative epidemiological system. Transposing and implementing the veterinary and food safety acquis implies the development of new techniques, so the development of more laboratories on region was determinated by the large number of animal exploitations and establishments for animal and non-animal origin products. It is also very important to take into consideration increasing the range of products that will be analyzed, other than those of animal origin (vegetal greases, alcoholic and non-alcoholic drinks, food products derived from biotechnology, etc).

It was also took into consideration the importance as international touristic areas in continuous development that implies European standards for food safety. An important aspect is considered preserving the natural reservation of Danube Delta, for that being necessary investigations of wild animal diseases with impact over the domestic and aquaculture animal health. The current aspects regarding toxicological and eco-toxicological problems are extremely complex because of the existence of a large number of pollution area and the occurrence of some ecological accidents. That’s why these should be treated in an unitary and integrated concept, that contain principal relationships between environment and live organisms, between feedstuffs and animal and between animal and human, in order to ensure an efficient prophylaxis to contribute to the protection of the animals and human health. In this way it is necessary to endow with equipments that should identify and quantify of a large number of toxic compounds that affect the public health, of the laboratories situated in areas with pollution risk.



The development of some national passive and active surveillance programs; elaborating the emergency plans regarding control and eradication of animal diseases; elaborating of some zonal epidemiological programs of Romanian territory for list A disease in order to draw up some eradication plans; elaborating some eradication plans for zoonosis, elaborating some programs for crossing border surveillance of List A disease, as well as rapid alert system, implies the development of laboratories that should ensure implementation of the provisions of these programs. The county distribution of the public laboratories for the sanitary veterinary, phyto-sanitary and food safety and quality control sectors which will be financed by SAPARD are given in Appendix No. 2. Taking into account that the aim of this measure is institutional building, it could be financed especially by the PHARE programme. Those projects not financed by PHARE programme will be eligible for financing by the SAPARD programme. For sanitary veterinary and food safety field, the national reference institutes and border inspection posts and also training of personnel will be financed by PHARE programs. The endowment of county laboratories will be financed by SAPARD program.

2. OBJECTIVES General objective

• Implementation of the Acquis communautaire in the sanitary- veterinary, plant-health and foodstuff quality control sectors in order to contribute to the improvement of quality of raw materials and of finite agri-food products and to improve the competitiveness of the domestic market and for export prospects.

Specific objectives

• Rendering operational and efficient the sanitary-veterinary, plant-health and food control;

• Adoption of new techniques of laboratory analyses similar to those used in the EU countries;

• Modernization of laboratories, in view of accreditation by the institutions in charge. Operational objectives

• Modernization, extension and investment in equipping of the existing public laboratories;

• Setting up or modernization and endowment of certain information and communication network systems for public laboratories.

3. CORRELATION WITH OTHER MEASURES This measure is correlated with the measure “Investments in agricultural holdings”, and the measure “Improvement of processing and marketing of agricultural and fishery products”. 4. FIELD OF ACTION OF THE MEASURE



• The measure aims at improving the structures in the following fields: sanitary veterinary, plant-health and foodstuff control.

• The following actions are to be pursued: - extension, modernization of the constructions and endowment of the existing

laboratories; - improvement of the systems of data and information processing and communication

for public laboratories. (if are not financed by Phare programme) In the sanitary veterinary sector the investments consist in: - extension and modernization of the existing constructions and endowment with

specific equipments and apparatus of the laboratories of the existing 16 County Sanitary Veterinary and Food Safety Directorates, subordinated to NSVFSA, within 8 regions, established in the strategy of this sector ;

- purchase of specific IT means, with a view to introduce the EU computer information systems and relevant database, especially TRACES program for a rapid communication with the European reference centres, as well as between sanitary veterinary and food safety county directorates, and all of them with the National Sanitary Veterinary and Food Safety Authority (NSVFSA) regarding import, export and transit procedures;.

- modernization and/or endowment with specific equipments and apparatus of certain public laboratories

In the plant-health sector, the investments consist in: - Endowment of a modern laboratory for the determination of pesticide residues in

plants and vegetal products, serving several counties; - Purchase of apparatus (Agro-expert systems), IT techniques and equipment and

software for the National Informational System for Plant Protection within the 42 County Phyto-sanitary Units .

For the foodstuffs quality control, the investments consist in: - Modernization of the buildings and endowment with specific equipments and

apparatus of the laboratories within the Institute of Food Bio-Resources Bucharest for the food safety, quality and packaging materials control, in the view of national accreditation in accordance with SR EN ISO/CEI 17025/2001 standard, for the analyses imposed by the control authorities on the occasion of checking up the economic agents, and for the laboratory analyses required by the economic agents without factory laboratories or having laboratories without performance endowment, from Bucharest municipality and surrounding counties;

- - Extension and modernization of the existing spaces with foodstuff assessment designation and endowment with specific equipments and apparatus for food security and quality control of the laboratories within the 16 sanitary veterinary and food safety directorates subordinated to NSVFSA, within 8 regions

- Providing for a modern information and monitoring system, with a view to communicate the data regarding food safety and quality to the involved authorities;

- .



- Modernization and/or endowment with specific equipments and apparatus of some public laboratories for food safety and quality control of foodstuff for animal and vegetal origin, authorized or accredited, recommended by NSVFSA.

5. ELIGIBILITY CRITERIA

General

• The projects should comply with the objectives and the EU accession strategy for sanitary-veterinary, phyto-sanitary and food quality control sectors and to ensure the harmonization of laboratory methods and techniques with those used in EU;

• Investments should be located in areas with high agriculture potential and with deficits in ensuring the control in the sanitary-veterinary, phyto-sanitary and food quality control sectors, in conformity with Annex 1;

• Investments in modernizations should ensure that the analyses are made in accordance with EU norms concerning sanitary-veterinary, phyto-sanitary and food quality control sectors;

• Beneficiary has to ensure the monitoring of the information in the served area;

• The laboratories of the public institutions should be authorized for the activity carried out in the sanitary veterinary, phyto-sanitary and food quality control sectors, before the submission of the project;

• The existence of co-financing must be certified.

Specific Sanitary – veterinary sector

• The projects must be correlated to the actions undertaken in Romania in order to ensure consumers’ protection, animal health, environmental protection and to settle the circulation of animals and products of animal origin.

• The projects must include the measures destined to protect the territory against the diseases listed at OIE, with high spreading potential that constitute risk factors.

• The projects must use diagnosis methods listed in the National Catalogue after the formal accreditation and notice, methods from OIE Manual of Standards, ISO and other international standards. The buildings of the laboratories must comply with the biosafety norms.

• The projects must comply with the Programme of strategic actions for surveillance, prophylactic and fight disease of the farm animals and sanitary veterinary expertise of animal products and fodder.

Plant health sector

• The projects must make sure that surveillance and control be made in well defined areas, assuring that information is monitored,

Foodstuff quality control



• The laboratories proposed to be modernised must be authorized

• The projects must make sure that the harmonized standards and analyses reference methods destined to determine the qualitative foods parameters are applied in accordance with European regulations.


• Those mentioned in the section 4 “Field of action of the measure” for the sectors involved.

• The eligible expenditures could be:

- Extension and modernization of the existing constructions; - Acquisition of new specific installations, equipments and apparatus, IT equipment and

software, including their installing and fitting costs; - That part of expenditures representing the payments for architects, engineers,

consultants, legal fees, feasibility studies, acquisition of licenses and patents, costs for the preparation and/or implementation of the project, directly connected with the measure, which will not exceed 12% of the total eligible cost of the project, excepting the cases where the constructions are not included, when these expenditures will not exceed 5%.

The expenditures will be considered eligible for aid, if they accomplish the art.4 Section B requirements mentioned in MAFA, with subsequent amendments and completions. Only expenditure paid by SAPARD Agency from the accreditation data for this measure, or specified dates, will be eligible for community support. In order to be eligible for the community support, all services, works and goods procurements will be originate from the European Community or from the countries mentioned in Article 4, Section B from MAFA Annex, with its subsequent amendments and completions. There are not eligible: All expenditure mentioned in section B “Management, Monitoring and Assessment of the Programme”, article 4, paragraph 2 of the annex of the Multi-annual Financing Agreement.

6. BENEFICIARIES

Laboratories of the public institutions authorized to carry out sanitary veterinary, phyto-sanitary and food quality control activities. 7. NATIONAL LEGISLATION IN FORCE The list of legislation in force, for the three-targeted sectors, regarding this measure is shown in Chapter “Legislation Appendix” from NPARD. 8. FINANCIAL DISPOSITIONS



• Within this measure, projects of which eligible total value is comprised between 50,000 – 2,000,000 EURO, can be funded;

• Indicative budget of this measure divided by years is presented in Chapter 6. - Financial Allocation for SAPARD measures, NPARD.

• For the public projects and the investments in infrastructure not generating substantial net revenue, the aid granted is 100% of the total eligible costs;

The degree of intervention will be: - 75% EU contribution; - 25% national budget

The eligible expenditures of the project activities shall be made only after conclusion of financing contract excepting the feasibility study and technical projects, within the approved limit of this measures. The payment of the financial support will be made on the base of supporting documents, which prove the accomplishing of the activities and their eligibility. Taking into consideration the options of the beneficiaries, the payment can be made as a single payment at the end of the project or in maximum 3 instalments. 9. GEOGRAPHICAL COVERAGE

The public projects may be situated in the rural and urban areas. 10. OUTPUT RESULT AND IMPACT INDICATORS Output indicators

General indicators

− Number of projects by types of activity (20) as follows:

Sanitary

Veterinary

Phyto-sanitary Food quality

control

Types of activity Public

Private

Public

Private Public Private

Extension, modernization of constructions, and endowment of laboratories

16 0 1 - 1 (16

section of

SVFSL)*

Informational national network

1 1 0

*Note: SVFSL are sanitary veterinary and food safety laboratories of the County Sanitary

Veterinary and Food Safety Directorates, within NSVSFA. They have sections of foodstuff

assessment.

Laboratories

• Number of beneficiaries (18) ;



• Number of public projects for modernization,( 18);

Information network

• Number of projects. (2)

Result indicators

• Ratio between the number of analyses performed meeting EU standards from the total number of analyses performed to exceed 90%;

• 20% increasing of the number of types of analyses performed, according to EU requirements, thanks to the assistance’ as compared to the number of analyses done before granting the assistance’ for the modernized laboratories;

• Improving the quality of foodstuffs and feedstuffs Impact indicators Implementation of the Acquis communautaire in the sanitary-veterinary, plant-health

and foodstuffs control

• Share of laboratories using UE standards or community methods of reference analyses, (%) – 100% for : - modernized laboratories;

11. PROGRAMME PROMOTION The potential beneficiaries shall be informed about the existence/eligibility conditions of the present measure, through:

• Mass-media communications;

• Distribution of information leaflets;

• Local workshops;

• Meetings with the applicants.

12. SUPPORTING DOCUMENTS For public projects:

• The justifying report or the feasibility study drawn up in accordance to the Common Order of Minister of Public Finance and Minister of Public Works, Transports and Housing No. 1013/873/2001 for approval of the structure, content and guidelines of Standard Documentation for elaboration and presentation of the offer for public services procurement, including general estimate drawn up according to Government Decision 1179/2002 (if the case);

• Certificate of urbanism, if the case;

•••• Technical sheet (annex to the Urbanism Certificate) regarding the conditions for environment protection necessary for obtaining the unique endorsement, on which if the case stamp A or B is applied, which might contains in annex, if the case the



environmental endorsement issued by competent authorities for activities with relevant impact on the environment, defined in compliance with the national legislation, according to EU legislation.

• The statement on own responsibility showing that the applicant does not benefit of financing through other programmes for the projects that makes the object of the SAPARD assistance;

• If the case sanitary veterinary document, issued by the competent institution attesting that the project is in compliance with the national legislation according to EU legislation

• If the case, sanitary document, issued by the competent institution attesting that the project is in compliance with the national legislation, according to EU legislation.


• Beneficiaries have to clearly mention in their accounting records all the operations regarding the concerned investment,;

• The beneficiary will co-operate and provide any information requested by the structures authorized to control and audit the project implementation;

• The granted support will be recovered , if the financed objectives are not used according to the declared purpose or if the respective objectives were leased or sold within a period of 5 years after the completion of the project (the date of the last instalment );

• The beneficiary may receive grant two times throughout the 2000-2006 period, within the limit of the maximum amount of the eligible sum of the measure. The beneficiary may ask financial assistance for a new project after the completion of the previous project;

• The public procurements of the services, of the works or of the goods will be achieved according to the legislation in force regarding the public procurements.

14. IMPLEMENTING AUTHORITY

• In Romania, the SAPARD Agency represents the Implementing Authority



APPENDIX NO. 1

LABORATORIES OF THE PUBLIC INSTITUTIONS PROPOSED FOR SAPARD

PROGRAM, ON THE SECTORS:

I.SANITARY VETERINARY:

The laboratories of the county Sanitary Veterinary and Food Safety Directorates

(16), from 8regions: 1. North West Region: SVFSL Cluj and SVFSL Satu Mare ; 2. North Est Region: SVFSL Bacau, SVFSL Suceava, SVFSL Iasi ; 3. Center Region: SVFSL Brasov, SVFSL Alba ; 4. West Region: SVFSL Hunedoara, SVFSL Timis; 5. South West Region: SVFSL Dolj, SVFSL Olt ; 6. South Est Region: SVFSL Constanta, SVFSL Tulcea ; 7. South Region : SVFSL Prahova, SVFSL Ialomita ; 8. Bucuresti Region : SVFSL Bucuresti.

II. PHYTO-SANITARY: The Laboratory of the Phyto – sanitary Unit County Mures for the determination of the pesticide residues in/on plants and vegetal products, serving the beneficiaries from: Alba, Sibiu, Covasna, Harghita, Neamt, Suceava, Botosani, Bistrita Nasaud, Satu Mare, Maramures counties. III. CONTROL OF FOODSTUFF QUALITY The laboratories of the Institute of Food Bio-Resources, Bucuresti. The sections for foodstuff assessment within the 16 laboratories of the county sanitary veterinary and food safety directorates, of the 8 regions, as are presented at Sanitary veterinary sector.



MEASURE 2.1

DEVELOPMENT AND IMPROVEMENT OF RURAL INFRASTRUCTURE

1. BACKGROUND The infrastructure in rural area is very low developed, and it is characterised by high disparities. As a general rule, in the rural area the following aspects are to be noticed:

• un-modernised local roads or total lack of local roads, a situation which has a negative impact on the direct access to the national road, railway , and also those which improve the circulation in the rural areas and/or provide access to the agricultural holdings;

• drinkable water supply networks in centralised systems is insufficient;

• sewage networks and stations for waste water treatment do not exist yet;

• most of the communes lack sewerage systems as for the waste water treatment stations, they do not exist, generally the waste water being discharged in the water ways that flow near the rivers or the waste waters are spread in the fields

• floods often affected Romania and there is a tendency for increased flood levels and frequency, in the last ten years. Between 1992 and 2001 there were floods almost every year, in same parts of the country, that led to significant material and human looses. The main risk of disasters is owed to the presence of unprotected streams as well as the existence of deteriorated facilities and improper services for protection against floods.

During 2005 in Romania have occurred the most severely floods from the past 20 years which affected all the country’s counties. The periods when the floods have been occurred are the following: 10th -30th of April, 1st – 31st of May, 1st – 7th and 11th – 17th of June, 14th – 25th of August, 19th – 25th of September. In many cases there are localities affected more than once. Due to extremely severe rainfalls that fell during April - September 2005, many rivers flows have registered increases and have exceeded the flood rates, affecting all the counties of Romania. In 30 counties, a total agricultural surface of 646.793 ha was affected by floods. A summary of the damages occurred is presented below:

TOTAL

April – September 2005

Defence against floods

Dams-Dikes (km) 312,578

Defending against banks (km) 1.234,938

Dams (nr) 140

Roads

National Roads (km) 560,460

County Roads (km) 3.700,580

Communal Roads (km) 6.160,121



Streets (km) 2.465,772

Bridges, footbridges and crossing ways

Bridges (nr) 2.106

Footbridges (nr) 6.172

Crossing ways (nr) 835

Railways (nr) 23,810

Networks, public utilities

Water supply networks (nr) 198,782

Sewerage networks (nr) 141,350

Electric networks (km) 631,020

Networks of natural gaze transportation (km) 14,782

Communications Networks (km. optic fiber cables) 89,6

Water sources (fountains) Nr 90.394

Water plants (Piece) 53

Water treatment (piece) 42

Gas regulation stations(piece) 4

The current estimation of the total damages produced by floods during April – September 2005 had been evaluated at 5.975 millions lei RON (1,6 billion EURO), representing about 3,4% from GDP (2003 level). Taking into consideration the weather conditions in 2005, which have affected the roads and railways infrastructure, drinking water supply and sewerage networks, as well as the land reclamation infrastructure and in order to support the economic activity from flooded areas and to ensure the legal framework needed for applying the provisions of article 16 Section A, from the Multi Annual Financing Agreement, the Romanian authorities decided that the list of localities (villages) affected by floods in the period April - September 2005 and their damage degree to be approved by Government Decision no.1512 on 29th of November 2005. For establishing the physical damage degree, an evaluation fiche was drawn-up for each locality (village) and the calculation method, having in view the following scoring : houses (15 points), house annexes (10 points), rural infrastructure (35 points), agriculture and forestry surface (20 points), socio – economical objectives (10 points), forestry infrastructure and protection against floods infrastructure (10 points). The existent data shows that 3755 villages were affected, out of which 1277 commune’s covering all the counties, with the following damage degree:

Damage degree %

5% -10% 27,1

10%-30% 29,6

Higher than 30% 3,1

In order to explain the data presented in the above table and as a result of the analyses of the assessment fiches for each locality it is observed that in case of a damage degree higher than 30% have been recorded significant damages to all elements which have been



taken into consideration in calculation of the damage degree. In those villages economic activities and standard of living are seriously affected by floods having a significant negative impact on the development. In the case of a damage degree between 10 and 30% have been recorded significant damages only to certain elements which have been taken into consideration in calculation of the damage degree which have negative impact on the development of economic activities and the standard of living. In the case of a damage degree between 5 and 10 % have been recorded damages only to certain elements which have been taken into consideration in calculation of the damage degree, especially on rural infrastructure. For rehabilitation of public utility – technical infrastructure affected by floods in 2005 shall be submitted projects only in the villages with a damage degree higher than 5% (Chapter VIII from NPARD, Annex no. 75). The greatest part of the floods occurred in this year is located in the floods risk areas and landslides risk area. The administrative territorial units which have risk on floods and respective landslides are defined within Annexes V and VII of the Law no. 575 from 2001 (Official Journal No. 726/2001) which approves within Section V areas with natural risk, the Arrangement Plan of the national territory . The works for protection against floods have a total length of 1.181 km of dikes in the Danube and 1.089 km of dikes on the inner rivers together with 114 dams, protecting a total surface of 1.011.810 ha, on which a stable agriculture has been developed, as well as production centers, agricultural buildings, communication and electric power transportation networks. Romania has concluded water management agreements with all its neighbors. Within these bilateral agreements one of the most important issues are related to the cooperation for floods control. According with the provisions of these agreements all the works developed within one country which could affect the waters of the other country should be agreed by the two parties. Moreover the cooperation in Romania concerning the flood control has been previously developed in the framework of Tisa Initiative. International Commission for the Protection of the Danube River (ICPDR) is involved in the activity of the Tisa Forum and will assist it in the development of a flood protection strategy in line with EU best practices, building upon the existing Action Plan for sustainable Flood protection in the Danube river basin developed in 2004, and incorporating the flood impact assessment. However the cooperation in the framework of ICPDR for the implementation of the Danube Basin Flood Action Plan shall be continued. The foreseen EC Floods Directive



proposed by this new directive will be taken into account in Romanian for medium and long term strategy. The medium and long term strategy will be developed with the support of the European Commission within a PHARE project. In this regard, it is necessary to include within this measure a new sub- measure which refers to works on infrastructure type, designed to prevent and protect against floods. The projects proposed for financing are located in areas affected by floods in 2005 and the previous years and also located in the areas approved by Law no. 575 from 2001 as areas with natural risk for floods and landslides. Priorities for this new sub-measure are the following:

1. Emergency restoration of the protection works against floods (dykes and banks); 2. Construction and/or rehabilitation of the infrastructure for protection against

floods in areas with natural risk, according to Law no. 575/2001 – annexes V and VII.

The priorities mentioned above are identified in the Short Term National Strategy for management of the flood risk – responsibilities and liabilities of the ministry of agriculture, forest and rural development:

- Identification of natural risk areas; - Maintaining in function the infrastructure for protection against floods ; - Facilities for flood and landslides prevention.

The Short Term National Strategy for management of the flood risk has been developed by an inter-ministerial working group lead by the Ministry of Environment and Water Management. In this strategy the immediate actions and measures has been provided, the most important being the repairing of the damaged dykes and defense works. Through out the years and especially in the last period (1995-2005) a series of changes have been produced in the Danube banks, and areas dangerously affected by erosion emerged subsequently, which led to damaging of dikes and flooding of protected areas. The area with high risk for floods are placed in the Danube meadow, West Plane – Banat (Timis county), Danube embanking isles – Insula Mare a Brăilei (Braila county), Ialomita Isle (county Ialomita and Calarasi), on inner rivers, as well as at the level of surfaces protected by dams for swells mitigation. All of these have been very affected by the severe rainfalls in 2005. 14 risks areas with bank erosion at the Danube, which affect the safety functioning of the dikes for protection against floods and 21 dams for swells mitigation have been identified and affected by dangerous meteorology phenomenon during April- September 2005. Areas exposed to active riverbank erosion along Danube River were classified considering the intensity of the erosion process (width of eroded area from the water course up to the bottom of the flood protection dyke bottom, during a certain period of time).This areas have a higher degree for vulnerability when Danube records excess flow.



Erosion process intensity is determined by repeated wave adverse action in the area, caused by intense ship traffic there and by wind adverse action over areas not covered by protective forestry plantations.

Exceptional water volumes conveyed along steep valleys, in certain periods of the year, shall be stored behind dams.

Areas exposed to high risk of bank erosion along Danube River and inland rivers that endangers the flood protection dykes safe operation, are as follows: a). 2 (two) high risk areas - ongoing or almost completed construction works with Government funds provided from the State budget: - Cerbu Area (Danube River/ Borcea Branch) km 46+900 (46.9) - km 45+800 (45,8); - Baital Area km 305+800 (305.8) - km 307+800 (307.8)(Danube River/ Borcea Branch); b). 3 (three) high risk areas are included in the “Hazard Risk Mitigation and Emergency Preparedness Project” - sub-components C2 and C5, financed from a loan provided by International Bank for Reconstruction of Development (IBRD) : - Bentu Area (Danube River/ Borcea Branch) km 35+000 (35.0) - km 32+000 (32.0); - Făcăieni Area (Danube River/ Borcea Branch) km 19+915 (19.915); - Borduşani Area (Danube River/ Borcea Branch) km 28+050 (28.050) - km 27+950 (27.950); c). 5 (five) high risk areas zone are proposed to be financed under the SAPARD Program – Measure 2.1: - Luciu Giurgeni Area (Danube River/ Borcea Branch) km 232+450 (232.450) – km 233+450 (233.450); - Ciobanu Area (Danube River/ Borcea Branch) km 84+000 (84.0) - km 83+300 (83.3); - Olteniţa Surlari Dorobanţu Area (Danube River downstream the Oltenita City) km 426+000 (9426.0) - km 422+000 (422.0); - Salcia Grădina Area (Danube River/ Măcin Branch) km 70+000 (70.0) - km 68+000 (68.0); - Areas close to the flood protection dike along inland rivers Breţcu, Ojdula, Căpâlna and Mărtănuş. d). For the remaining 5 high risk areas there are Feasibility Studies, funded from national budget. There are no available funds to start construction works. Concerning the high flows alleviation dams floods significant affected in 2005, 2 (two) are proposed to be included in the SAPARD Program – Measure 2.1: - Hydro-technical Complex “Şomuz I Reservoir”; - Hydro-technical Complex “Grăniceşti.Reservoir”; For the other dams, the National land Reclamation Administration (NLRA) performed local interventions in the framework of maintenance and repairing operations.



The SAPARD Programme, through the measure infrastructure, is complementary to the National Programme for Life Standards Improvement in the Countryside. This Programme is being implemented by the Romanian Government through the Government Decision no.577/1997 regarding paved of commune roads and water supply of the villages and respectively through the Government Decision no.687/1997, regarding contracting and guaranteeing by the Government of an external credit for the implementation of certain governmental programmes (water supply for villages and insurance of social households). Through the programme approved by the Government Decision no.577/1997 the project of improving the rural infrastructure were financed during the period 1997-2000 mainly with funds from the state budget and this financing represents the support granted by the Romanian state for the endowment of villages with road and building infrastructure. The programme comprised projects of major interest for the local activities, within the limit of 30% of the works identified as being necessary. The programme financed through the Government Decision no.687/1997 was set up with the aim of supporting and speeding up the programme applied through the Government Decision no.577/1997.The latter provides for the warranting by the Romanian Government of a foreign credit of US$340 million out of which US$280 million are the sub-programme of supplying the villages with drinkable water. Likewise, the SAPARD Programme is in close relationship at national level with the PHARE Programme and ISPA Programme which have in mind projects of water supply, sewage, water filtering and setting up of ecological pits, excluding those for the urban area (cities with more than 300.000 inhabitants). The Programme is planned for duration of 7 years between the years 2000-2006. Another programme, to help developing rural infrastructure, is being carried out by the World Bank starting 2001.This Programme provides financial support for the water supply projects in the rural localities. Through the SAPARD Programme it will be provided financing for both modernisation and building of local interest roads, according to Law 82/1998 regarding the approval of the Government Ordinance no.43/1997 on the juridical statute of roads of local interest that will be comprise: - The rural roads ensuring the connection between: - The commune and the component villages - Cities and their belonging villages (city to village); - Connection routes giving villages access to the county/national public roads and to the railways; - Among villages (village to village), - The roads between ownerships are the roads with public character foreseen in General Urban Plan and are final roads. Roads for agricultural exploitation are provisional roads during agricultural campaign and cannot be financed through SAPARD programme; - Streets-public roads within localities, irrespective of name (street, avenue, lane, embankment, blind alley) All these programmes shall be in close relationship, so that through their carrying out be accomplished an integrate development at national level.



2. OBJECTIVES General objective

• To improve the actual situation of the infrastructure within rural areas, to help to increase both the living and standards of work as well as to help to maintain the population in the rural areas

• To ensure the reconstruction and preservation of infrastructure for protection and prevention against floods.

Specific objectives

• Improvement of access of the inhabitants living in the rural localities to the public network of village, county, national roads, and to the network of railways, as well as to the agricultural holdings, tourists objectives of national importance or other economic objectives;

• Support of the economic, commercial and tourism activities by developing a minimal infrastructure;

• Improvement of hygiene and sanitary conditions of the inhabitants, and of the productive activities, carried out according to the standards in force;

• Improvement of the quality of the environment and diminishing of polluting sources;

• Ensure the necessary prevention and protection against floods. Operational objectives

• Building and modernisation roads of local interest and bridges;

• Building and modernisation of the drinking water supply systems;

• Building of sewage water networks and investments related to water purification stations.

• Rehabilitation of existing dikes for protection against floods.

• Rehabilitation and consolidation of works for land stabilization and for prevention against floods.

3. CORRELATION WITH OTHER MEASURES This measure allows the development of several integrated and sustainable measures and actions, creating thus real pre-requisites for the accomplishment of the other directions of SAPARD (diversification of the economic activities, processing and marketing of agricultural products, investments in the agricultural holdings) because, most than often, the existence of a minimal infrastructure is a pre-requisite for the success of the project established within the other measures.

4. FIELD OF ACTION OF THE MEASURE In order to attain the proposed objectives, the following sub-measures will be sustained in the framework of certain types of projects: 1. Public utility – technical infrastructure



Roads in rural areas. Within this sub-measure the following types of projects will be sustained:

• Building new roads of local interest, and modernising the existing roads of local interest, priority being given to the roads allowing access to the county and national public roads, to the railways as well as other necessary works in the construction of roads in accordance with the Law no. 82/1998. In addition to the above-mentioned works, it is necessary to be built external networks in order to connect the investment to the utilities’ networks (electricity, communications). Drinkable water supply in centralised network in rural areas Within this sub-measure the following types of projects will be sustained:

• Building of new water supply works, extension and/or modernising the existing works such as: spring water catching, water supply, water treatment stations, tanks for water storing, pumping stations, distribution network); In addition to the above-mentioned works, it is necessary to be built external networks in order to connect the investment to the utilities’ networks (electricity, access road, communications, water, sewerage).

Sewerage in centralised system in rural areas Within this sub-measure the following types of projects will be sustained:

• Building of new sewerage works, extension and/or modernising the existing works such as: networks of waste water collecting canals, waste water treatment plants, biological steps or facility pumping stations and, evacuation canals for waste water (processed in treatment plants); In addition to the above-mentioned works, it is necessary to be built external networks in order to connect the investment to the utilities’ networks (electricity, access road, communications, water, sewerage). 2. Infrastructure to prevent and protect against floods Within this sub-measure the projects will comprise the following main categories of works :

• Rehabilitation and consolidation of rivers banks and dikes in areas affected by floods and with flood risk; these works have in view the consolidation of dikes for defense of embanking captures both at the Danube and inner rivers, and also to fight against bank erosion in the area of suction piping and/or pumping stations situated at Danube;

• Maintaining draining off capacity for excess water from embanking areas through the channel network;

• Rehabilitation of certain hydro technical structures from areas affected by floods and with the high risk of flood; these works have in view the rehabilitation of some dams with mitigation role against floods and protection of localities and agricultural land from this area, as well as the consolidation and rehabilitation of sub-crossing (construction trestle) of irrigation water supply pipe deteriorated as a result of floods from the period of 2002-2005;



• Small Forest belts built-up for protection and consolidation of the river bank, with the species from APPENDIX 2

• Regulating the leaking on versants;

• Stabilization of slippery soil;

• Elimination of humidity excess by setting up rainfalls collecting channels on slopes and their directioning towards natural outlets;

• Arrangement of valleys and ravines by setting up proper hydro-technical structures. 5. ELIGIBILITY CRITERIA

General

• The project shall prove its functional and technical utility through an explanatory statement and feasibility study;

• During the execution of the works only materials in accordance with the national regulations in force as well as the national legislation and standards consistent with EU legislation; these materials must be in accordance with the Decision of Government no.766/1997 and with Law no. 10/1995 regarding the obligation of using materials agreed by the law in force when executing works;

• The project shall be based in the proposed priorities established through the General Urbanism Plan (GUP) and through the Plan of Arrangement of Territory;

• The legal status of the land where the work is carried out must be public property.

Specific

1. Public utility – technical infrastructure

• The commitment of the beneficiary of the project to draw up the technical study at the latest 6 months from the approval of the project;

• The Decision of the Local Council of the benefiting commune with reference to the necessity of the investment;

• The Decision of the Local Council for providing the expenditures for maintenance

For the sub-measure roads in rural areas

•The projects implemented through this sub-measure must not refer to building of earthen roads;

•The projects shall prove their consistence with the national regulations regarding the environment, consistent with EU legislation in the environment field, by submitting the Environmental Agreement as well as the Environmental Impact Study for the proposed investment when required using standards and procedures similar to those stipulated in the EU legislation on Environmental Impact Assessment (EIA), Directive 85/337/CE, as amended by Directive 97/11/EC;

•The projects shall observe the provisions of Law no. 82/1998 for the approval of the Government Ordinance no. 43/1997, regarding the legal regime of roads and the technical norms concerning the drawing up, building, rehabilitation, modernisation, maintenance, repairmen, management and exploitation of public roads, elaborated and approval through the Order of the Minister of Transports;



•The projects must include the arrangement through adequate coats of the entries belonging to earthen roads allowing access to an exploitation;

•The projects should proposed public roads with a transversal profile and a structure of the roads system corresponding to the respective functional category and technical class;

•The projects, which proposed level track, with stone layer, should also provide that after the operation of applying the stone layer the operations of coating and stabilising the track layer should be performed in accordance with national legislation;

•The projects must earmark that gutters, ditches and discharge footbridges will do the collecting of the water coming from rainfall. For the sub-measure drinkable water supply in centralised system in rural areas:

•Presentation of hydrological or hydro-geological studies to confirm the existence of a water source with sufficient capacity for new and extension investments and only justificative memoriam for modernisation from the feasibility study;

•The projects shall prove their consistency with the national regulations regarding the environment, as well as with the European legislation in the environment field, by submitting the Environmental Agreement as well as the Environmental Impact Study for the and procedures consistent with EU legislation on Environmental Impact Assessment proposed investment when required using standards (EIA), Directive 85/337/CE, as amended by Directive 97/11/EC;

•The storage of drinkable water will be done only in closed tanks;

•The pumping in the public network of the water coming from the village fountains must not be allowed, unless it has been processed in a water treatment station;

•Use only closed water supplies;

•For all the types of water catching (underground, springs, ground) it is compulsory to be instituted sanitary protection areas in accordance with the Decision of the Government 101/1997;

•Number of inhabitants which will be served: 500 minimum. For the sub-measure sewerage in centralised system in rural areas:

•There are allowed only the projects that solve the evacuation of the substances held in the sewerage network an/or the eviction of the mud resulted from the water treatment station;

•The projects shall prove their consistency with the national regulations regarding the environment, as well as with the European legislation in the environment field, by submitting the Environmental Agreement as well as the Environmental Impact Study for the proposed investment when required using standards and procedures consistent with EU legislation on Environmental Impact Assessment (EIA), Directive 85/337/CE, as amended by Directive 97/11/EC.

•Number of inhabitants which will be served: 500 minimum



2. Infrastructure to prevent and protect against floods

• The project must respect the legal provisions and standards regarding the impact study on the environment;

• A technical study shall be drawn up.


• All the investment provided for at paragraph 4 – “Field of action of the measure”

• Purchase of informational means and software for monitoring the exploitation process and the control of its quality;

• The part of costs representing architects’, engineers’, and consultants’ fees, legal fees, feasibility studies, purchase of licenses and patents, for preparing and implementing a project directly related to the measure, which does not exceed 12% of the total eligible cost of the project; The machinery and equipment must be new, originate the Community or applicant countries, (provided for in item 8 (14) of Section F of MAFA), comply with the EU norms including the norms regarding the treatment, recycling and removing of residual products and toxic waste. Eligible investments are specified above and in the Ordinance for measure implementation. Expenditures shall be considered eligible for support, if they meet the requirements laid down in Art. 4, Section B from the MAFA between the Commission of the European Communities on behalf of the European Community and Romania, signed on February 2, 2001 (published in Official Journal of Romania no. 362/July 5, 2001). Only expenditures paid by the Agency from the date of the Commission Decision conferring financial management on that Agency for this measure or the date(s) specified therein, shall be eligible for Community support. For a project to be eligible for Community support, all services, machinery and supplies shall originate in the Community or in the countries mentioned in Art. 14 (2.7) Section A from MAFA; if so requested, the final beneficiary shall be able to establish the inputs into works or service contracts, using any admissible means of evidence. There are not eligible: The entire cost mentioned at article 4 “eligibility of expenditure” paragraph 2 from section B “management, monitoring and programme evaluation” from the appendix of the Multi-annual Financing Agreement, to which there will be added:

• Procurement of transportation means.

6. SELECTION CRITERIA The projects will be selected according to the following criteria:



1. Public utility – technical infrastructure General

N° Criteria for project assessment score

(if yes)

1 Projects placed in the de-favoured areas (Annex 1) 10

2 Projects having a total value higher than 250,000 EURO 10

3 Projects that are placed: - in the priority areas in which one of the measures 1.1, 3.1, 3.4 and 3.5 are applied; - in the priority areas in which one of the measures 1.1 , 3.1 3.4 and 3.5 are applied and which can serve the cultural and tourist objectives in accordance with the clarification of the Law no. 5/2000 regarding the approval of NPTA, Section III, protected areas located along the route.

Max. 15 10

15

4 The existence of a private financial donation to cover non eligible expenditures: - 5% - 10% of the eligible cost of the project -more than 10% of the eligible cost of the project

Max. 10 5

10

5 The number of localities benefiting of the project: 2 localities 3 localities 4 or more localities

Max. 15 5

10 15

6 Projects with their technical study already drawn up and are ready to start dully after the signing of the contract

10

TOTAL 70

Specific

For the sub-measure roads in rural areas


(if yes)

1 Projects that ensure the connection with county and national roads, and with the rail-road network or those carried out within the framework of other projects such as the World Bank, ISPA, etc;

10

2 The projects for existing roads which are made of minimum 80% earth and the projects for the roads upon new locations.

15

3 Roads facilitating the access or serving to national tourism objectives Law no. 5/12.04.2000 regarding the approval of the Arrangement Plan of the National Territory - Section III –protected areas placed along the route;

5

TOTAL ( sub measure) 30

For the sub-measure drinkable water supply in centralised system in rural areas


(if yes)

1 Project placed areas in which the traditional water resources (wells, shafts) are: -Insufficient or sufficient but polluted; -Polluted and insufficient

Max.15 10 15



2 Projects of which benefit a population of more than 2,500 inhabitants. 15

TOTAL (sub measure) 30

For the sub-measure sewerage in rural areas


(if yes)

1 Projects including next to the sewerage network -of a mixed type (for rain falls and for waste waters) -of a separate sewage (for rainfalls and for waste waters)

Max.15 10 15

2 Projects of which benefit a population of more than 2,500 inhabitants; 15

TOTAL (sub measure) 30

Note:

The selection criteria do not apply in the case of the potential beneficiaries which fulfill

the accession conditions of Article 16(1) and 16(1)(a), Section A, from MAFA.

7. BENEFICIARIES

1. Public utility – technical infrastructure Local Councils of communes; Associations with legal status between the Local Councils of the communes. The public beneficiaries shall pledge themselves to realise the works according to MAFA. 2. Infrastructure to prevent and protect against floods

National Land Reclamation Administration 8. NATIONAL LEGISLATION IN FORCE The legislation undergoing harmonisation and the national legislation in force are indicated in Chapter “Legislation Appendix”. 9. FINANCIAL DISPOSITIONS The public projects are projects of infrastructure that are not of a nature to generate substantial net revenue and therefore the public contribution is 100% of the total eligible costs. Projects of infrastructure that are not of a nature to generate net substantial revenues are those projects for which the net present value of the future flow of revenue, less operating costs, resulted in a figure lower than at least 25% of the total cost of the investment concerned. Operating costs are the costs inquired for the operation of the investment, including the maintenance costs, but excluding depreciation or capital costs. For these projects the public contribution is 100% of the total eligible costs. Within this measure may be financed the projects for public utility – technical infrastructure whose total eligible cost is between 100,000 EURO and 1,000,000 EURO;



One beneficiary could benefit from financial support for the entire period of the SAPARD Programme maximum 2 times within the limit of the maximum eligible sum of the measure, without taking into account the projects damaged by floods during April-September 2005. It will be taken priority to projects for public utility – technical infrastructure as follows:

1. Priority is given to the projects identified in the waiting list of SAPARD Agency, eligible and selected without financing, located in villages foreseen in Chapter VIII from NPARD– Annex no. 75.

2. Within the limit of available funds, will be selected and contracted new projects located in villages foreseen in Chapter VIII from NPARD– Annex no. 75.

In case when there are more than 1 municipality involved in a project all the municipalities have to be located in a damaged area in order to pay the higher Community contribution. The financial plan and the total financing sources for the measure are shown in Chapter VI Financial Allocation (Amended page 354) In addition to figures included in the table from page 354, the full amount of interest earned on SAPARD euro accounts for the whole period of the programme shall be spent for projects under this measure in accordance with the provisions of Article 10§3 of Section A of the MAFA. The Monitoring Committee and the Commission will be informed on a regular basis on the use of these amounts through specific monitoring table. Projects financed from interest earned should be clearly identified and only receive community co financing coming from interest earned.

INDICATIVE BUDGET BY SUBMEASURE

SUBMEASURE % of the measure

Roads in rural areas 50

Drinkable water supply 35

Sewerage in rural areas 9,6

Infrastructure to prevent and protect against floods 5,4

TOTAL 100

This support is generally made up of public sums as follows:

- Minimum 25% national contribution (national or local budget); - Till 75% EU contribution.

The rate of 100% can be applied to the public projects not generating net substantial revenue



The eligible project activities have to take place after the signature of the contract with exception to feasibility and technical studies, in the limit of the percentage approved in the measures. The payment of the financial support will be made on the base of justifying documents, which prove the payments for eligible expenditures were made by the beneficiary. Taking into consideration the options of the beneficiaries, the payment can be made as a single payment at the end of the project or in maximum 5 instalments. The provisions of Article 16(1) and 16(1)(a), Section A, from MAFA shall be applied only for projects of public utility – technical infrastructure and located in villages foreseen in Chapter VIII from NPARD– Annex no. 75. The provisions of Article 16(1) and 16(1)(a), Section A, from MAFA do not apply for projects within sub-measure Infrastructure to prevent and protect against floods. For investment projects which apply the provisions of Art. 16(1) and 16(1)(a), Section A from MAFA the intervention rate is: -85% EU contribution -15% national budget contribution. These provisions will be applied for projects approved until 31st of December 2006. 10. GEOGRAPHICAL COVERAGE The project for public utility – technical infrastructure will be situated in the rural space, defined according to the law in force. For projects accomplished within communes, which had become cities, a condition for their acceptance is that the change had occurred after signing the financial contract. Projects of public utility – technical infrastructure which apply the provisions of Article 16(1) and 16(1)(a), Section A, from MAFA are located in villages foreseen in Chapter VIII from NPARD– Annex no. 75. The projects financed within this measure do not overlap with projects financed from national or foreign funds of the Ministry of Environment and Water Management , Ministry of Transport, Construction and Tourism and Ministry of Administration and Interiors.

11. PROGRAMME PROMOTION Potential beneficiaries shall be informed about the eligibility criteria of the present measure by:

•public announcement, through mass media channels;

•distribution of information brochures;

•seminaries;

•Meetings with potential beneficiaries.



12. OUTPUT, RESULT AND IMPACT INDICATORS

Output indicators General indicators:

Number of projects: 724 Number of inhabitants concerned: 342.000 Number of communes: 900

Roads in rural areas

Number of projects: 300 Number of inhabitants concerned: 147.000 Number of km : 1,500 Number of communes: 380

Drinkable water

Number of projects: 300 Number of inhabitants concerned: 145,000 Number of communes: 370 Number of km of pipes for water supply: 3,100 Number of pumping stations: 500 Number of drinkable water basins: 500 Sewerage in rural areas

Number of projects: 100 Number of inhabitants concerned: 50.000 Number of communes: 130 Number of km of pipes for waste water: 1.300 Number of pumping stations: 300 Number of purge stations: 100 Infrastructure to prevent and protect against floods

Number of projects: 24 Number of km reconstruction of dyke: 0.5 Number of km protection of bank: 2.3 Number of km reinforce of bank: 1.7 Number of km reshaping of dyke: 14.5

Surface (ha) with works for floods prevention: 2,685 Surface (ha) with works for floods prevention on slope land: 800 Number of km of rehabilitation and consolidation of ravines and valleys: 101

Result indicators

• Percentage of holdings/households/businesses, which have access to the infrastructure benefiting of support (%): increases with 50%;

• Increasing of the tourist frequency in the rural areas (no. of tourists and length of stay).



• Environment protection:

• Residual products/ wastewater sewage/ waste water processed in a treatment station as a result of the assisted actions (percentage increase in the volume of treated water and the number of connected holdings /households).

Impact indicators Maintenance of population in the rural area

� Evolution of number of inhabitants Number of jobs and social impact

� Number of jobs created: during the execution of the project: 14,400 permanent jobs: 1,400 The result and impact indicators will be improved subsequently in collaboration with the Commission’s services. 13. SUPPORTING DOCUMENTS The potential beneficiary shall attach the following documents to the financing application:

• The feasibility study drawn up in accordance to the joint Order No 1013/873/2001 of the Ministry of Public Finances and of the Ministry of Public Works, Transportation and Housing, regarding the approval the Methodological Norms regarding the structure, containing and the way of applying of the standard documentation for elaboration and submitting of the public acquisition of services.

• For the projects regarding the public utility – technical infrastructure the Decision of the Local Council of the benefiting commune with reference to the necessity of the investment.

• For the projects regarding the public utility – technical infrastructure Decision of the Local Council attesting that the work is provided for in the local budget for the period of carrying out of the investment. The respective decision of the Local Council will also mention what non-eligible costs shall be borne by the Town Hall.

• Certificate of urbanism comprising the list of necessary endorsement for the starting up of the investment;

• Technical fiche (annex to Urbanism Certificate) regarding the conditions for environment protection necessary to obtain the unique endorsement. If the case on the unique endorsement is applied stamp A or B, which might contains in annex, the environmental endorsement issued by the competent authorities for activities with relevant impact over the environment, defined according to the national legislation consistent with EU legislation.

• The statement on own responsibility showing that the applicant does not benefit for the same project of funding from national or European Community support programmes;



• Sanitary notification, issued by the competent institution attesting that the project is in compliance to the national legislation, only for projects regarding water supply and water sewage;

• For the projects regarding the public utility – technical infrastructure the Decision of the Local Council for providing the expenditures for maintenance;

• For the projects regarding the public utility – technical infrastructure the Decision of the Local Council for elaboration of the technical project, or the existing technical project if it was drawn up;

• For the projects of infrastructure to prevent and protect against floods, the technical project must be approved.


• The beneficiaries shall have to mention clearly in their accountancy registers, all the operations related to the respective investment.

• At the moment of handing in the application form the commune should be included in SIRUTA code;

• A beneficiary may receive an aid for two times between 2000 – 2006 within the maximum eligible sum of the sub-measure without taking into account the projects damaged by floods during April-September 2005.

• The beneficiary may ask financial assistance for a new project after the completion of the previous project;

• The beneficiary will collaborate and will forward any information required by the officials of the MAFRD, SAPARD Agency, EU Commission or by other structures authorised to check and audit the project implementation;

• The support granted will be recovered if the supported objectives are not used according to the destined purpose or if the respective objectives were sold or leased within a period of 5 years after the completion of the project (the date of the last instalment); 15. IMPLEMENTING AUTHORITY

•The SAPARD Agency represents the implementing authority in Romania.

• The Technical Bodies for checking on the spot of payments are the specialised units within SAPARD Agency.



APPENDIX 1

The situation of disfavoured areas

N° Area County Normative act for

approval

1 Mining area Brad Hunedoara GD 991/1998

2 Mining area Jiu Valey Hunedoara GD 992/1998

3 Mining area Balan Harghita GD 993/1998

4 Mining area Albeni Gorj GD 191/1999

5 Mining area Schela Gorj GD 192/1999

6 Mining area Motru Rovinari

Gorj GD 193/1999

7 Mining area Stej Nucet Bihor GD 194/1999

8 Mining area Suncuiu - Dobresti- Vadul Crisului

Bihor GD 195/1999

9 Mining area Popesti - Derna - Alesd

Bihor GD 196/1999

10 Mining area Rusca Montana

Caras Severin GD 197/1999

11 Mining area Bocsa Caras Severin GD 198/1999

12 Mining area Moldova Noua Anina

Caras Severin GD 199/1999

13 Mining area Ip Salaj GD 200/1999

14 Mining area Hida - Surduc - Jibou

Salaj GD 201/1999

15 Mining area Sarmasag - Chiejd Bobota

Salaj GD 202/1999

16 Mining area Baia Mare Maramures GD 203/1999

17 Mining area Borsa VIseu Maramures GD 204/ 1999

18 Mining area Filipesti Prahova GD 205/1999

19 Mining area Ceptura Prahova GD 206/1999

20 Mining area Comanesti Bacau GD 207/1999

21 Mining area Bucovina Suceava GD 208/1999

22 Mining area Baraolt Covasna GD 209/1999

23 Mining area Altan Tulcea GD 210/1999

24 Mining area Rodna Bistrita Nasaud GD 640/1999

25 Mining area Apuseni Alba GD 813/1999



APPENDIX 2

LIST

with trees and shrubs used for banks and dikes consolidation 1. Acer tataricum 2. Taxodium distichum 3. Hippophae rhamnoides 4. Tamarix ramosissima 5. Morus alba (nigra) 6. Fraxinus excelsior 7. Fraxinus americana 8. Fraxinus pennsylvanica 9. Fraxinus angustifolia 10.Fraxinus pallissae 11. Gleditsia triacanthos 12. Acer campestre 13. Populus alba 14. Populus euramericana 15. Populus canescens 16. Pirus pyraster 17. Salix alba 18. Robinia pseudacacia 19. Elae agnus angustifolia 20. Quercus robur 21. Quercus pedunculiflora 22. Ulmus minor 23. Ulmus pumila 24. Ulmus laevis

National Agriculture and Rural Development Plan 2000-2006 ____________________________________________________________________________________


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APPENDIX 3

List of projects which are financed within the sub-measures Infrastructure to prevent

and protect against floods

No.

crt.

Project name

1. Rehabilitation of protection works against flooding at Danube, on the precinct of Oltenita – Surlari – Dorobantu, km 422 – 426, Calarasi county

2. Branch consolidation Măcin/Dunăre and fighting against bank erosion, km 83+650, Constanta county

3. Bank consolidation Borcea/Dunărea in Luciu - Giugeni area, Ialomiţa county

4. Rehabilitation of protection works in Breţcu -Ojdula area, Covasna county

5. Consolidation and rehabilitation of sub-crossing (construction trestle) Buzau river, Buzau county

6. Rehabilitation of hydro-technical complex accumulation Somuz I, Suceava county

7. Works to prevent and fight against the landslips in Pausesti Maglas area, first level, Valcea county

8. Works for consolidation of slope areas and for rehabilitation of existing arrangements in order to regularize the water leaking on versants in Bistrita, Romani sub-basin, Orbic-Buhusi area, Bacau county

9. Dike protection on the precinct of Insula Mare of Braila against bank erosion in Salcia Gradina area, on Macin branch, Braila county

10. Rehabilitation of hydro-technical complex Grăniceşti accumulation, Suceava county

11. Land arrangement in order to fight against flooding and to regularize the water leaking on versants in Ampoi hydrographical basin, Patrunjeni area, Zlatna city, Alba county

12. Works to prevent and fight against landslips in Somesul Mic hydrographical basin, Bontida sub-basin, Cluj county

13. Arrangement of sloped land in Brates – Bala area, Mehedinti county

14. Preventing and combating the landslips and humidity excess in Topolnita hydrographical basin, Gornovita Costesti area, Mehedinti county

15. Land arrangement in order to fight against flooding in Valea Tarsei sub-basin left bank, Breaza area, Prahova county

16. Completion and extension of the arrangement works of sloped land affected by slipping from the north region of Medias county, Sibiu county

17. Works for consolidation and arrangement of the Vutcani torrent, Vaslui county

18. Land arrangement in order to fight against flooding in Sitna hydrographical basin, Burla sub-basin, area V-Sulita, Botosani county

19. Arrangement of land affected by slipping in Suditi area – Fieni city, Dambovita county

20. Works to prevent and fight against landslips in Rediu-Aldei area, Vaslui county

21. Arrangement of sloped land and elimination of humidity excess in Poiana Magura – Campia area, Salaj county

22. Rehabilitation of works for preventing the soil erosion and regulating the leaking on versants in Curciu – Darlos basin, Sibiu county

23. Rehabilitation and completion of works to fight against flooding on Dodesti torrent Elan hydro-ameliorative system, Vaslui county

24. Works to prevent and fight against landslips from Prut hydro-graphical basin, Valea lui Ioan sub-basin, Vaslui county



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MEASURE 3.1

INVESTMENTS IN AGRICULTURAL HOLDINGS 1. BACKGROUND

•Through the appliance of Law 18/1991 - the Land Law, with its subsequent changes, there were laid the grounds of the private property and the generalisation of the private property in agriculture. Thus, if according to Law no. 18/1991 the maximum returned area was of 10 ha, through Law no. 1/2000 for the restoring of the ownership rights over the agriculture and forestry lands requested according to the provisions of Law no. 18/1991and of Law 169/1997 the area to be restored is of maximum 50 ha. At the same time, through Law no. 54/1998 regarding the legal circulation of lands, the natural and juridical persons may acquire/procure per family up to maximum 200 ha agricultural land in arable land equivalent.

•The agricultural holdings especially those from the plant production sector face with an insufficient endowment consisting mainly of tractors, combine harvesters, agricultural machines and equipment with a high degree of physical and moral wear

•The existing area put to vineyards and orchards, though not much less than the area put to vineyards in 1990, is characterized by the phenomena of ageing of some wine plantation and of losses because of natural calamities that occurred in the latest years and to the faulty way of cultivation the vineyards and orchards. In 1996 from the total vineyard patrimony of 283.8 thou. Ha, 166.1 thou. Ha are represented by the varieties of the Vitis vinifera and the difference of 117.7 thou. ha are represented by the hybrid assortment directly productive.

•In the case of several technical plants and traditional crops (sugar beet, rape, flax, hemp, tobacco, castor oil crop, fodder plants, medicinal and fragrance plants etc.) it is noticed a diminishing of the cropped area and of the yields obtained, as well as a diminishing heated green houses from 1,656 hectares in 1990 to 957 ha in 1999, out of which 282 ha belong to the private sector. The transfer of the low performance animals from the former agricultural production co-operatives to the private sector leads to the need of acquisition of performance breed animals as well as to the necessity of ensuring the conditions for applying the performance technologies of animal rising and welfare. These technologies shall observe the conditions of protecting the environment and the natural landscape. For the livestock of 3,100 thousand cattle heads existing in 1999, out of which 1,400 thousand milk cows, in order to improve the breeds there are necessary approximately 60-70 thousand primary heifers with high genetic potential (only 25% of these animals will be ensured through the SAPARD Programme).

NOTE

In Romania, there are 6 centres belonging to SC “SEMTEST” for testing male sires,

depending on their own performances and pedigree, with regard to reproduction and

semen.

The Association of Cattle Breeders of Romania makes the artificial insemination.

The National Agency for Improvement and Reproduction in Livestock breeding ensures by

its territorial units the natural reproduction and the respect of the Improvement Plan at

national level.



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About 20% of the total number of farmers is more than 65 years of age. At the same time, very few youth have real conditions for settling in the rural area and become the managers of some agricultural holding. The agricultural producers lack of resources of capitalisation led to the impossibility of making important investments in the agricultural sector, that determine the impair of the potential of plant and animal production and especially of its qualitative parameters. In the strategy of agriculture development it is proposed the quantitative and qualitative balance of crop and animal production, in view of improving the agricultural holdings and restoring the crop and animal production potential (improving the quality, hygiene, increasing the conditions of animal welfare, improvement of the genetic potential and of the environmental conditions), diversifying the production both in the crop and animal breading sectors, in view of a better valorisation of the existent potential and raising the incomes of the agricultural producers. The investments in agricultural holdings will be oriented, mainly towards completing and renewing the tractors and agricultural equipment, replacing the non-productive animals with some other animals having a high genetic potential, modernising and rehabilitation of crop farms, including the greenhouses and the existing farms of animal breeding. During 2005 in Romania have occurred the most severely floods from the past 20 years which affected all the country’s counties. The periods when the floods have been occurred are the following: 10th -30th of April, 1st – 31st of May, 1st – 7th and 11th – 17th of June, 14th – 25th of August, 19th – 25th of September. In many cases there are localities affected more than once. The current estimation of the total damages produced by floods during April – September 2005 had been evaluated at 5.975 millions lei RON (1,6 billion EURO), representing about 3,4% from GDP (2003 level). In order to support the economic activities in the flooded areas and to ensure the legal framework needed for applying the provisions of article 16 Section A, of the MAFA, the Romanian authorities approved by Government Decision no.1512 on 29th of November 2005 the list of localities (villages) affected by floods during the period April - September 2005 and their damage degree . In order to determine the physical damage degree, an evaluation fiche was drawn-up for each locality (village) and the calculation method, having in view the following scoring : houses (15 points), outbuildings (10 points), rural infrastructure (35 points), agriculture and forestry surface (20 points), public buildings (10 points), forestry and flood prevention infrastructure (10 points). The existent data shows that 3755 villages were affected, out of which 1277 commune’s covering all the counties, with the following damage degree:

Damage degree %

5% -10% 27,1 10%-30% 29,6

Higher than 30% 3,1



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• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA , shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree higher than 30% (Chapter VIII from NPARD, Annex no. 77).

• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree between 10% and 30% and which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD, Annex no. 76. *Local Committee for Emergency Situations is set up according with provisions of the Government Decision no. 1491/2004 for approval of the Standing Order – Framework, regarding the organisational structure, tasks, functioning and endowment of the committees and operational centres for emergency situations. 2. OBJECTIVES

General objectives

• In the framework of this measure, financial support shall be granted for investments in private agricultural holdings, vegetal and livestock breeding, for ensuring the rationalisation and reorientation of the production for a increasing of the quality of the products resulted from the application of competitive technologies and which may also limit the pollution on the environment.

• This measure will contribute to the improvement of the agricultural producers’ incomes, to attract young people in the agriculture activities by improving their life and working conditions, as well as to ensure the hygiene and welfare conditions of the livestock.

• The implementation of the measure will be carried out in accordance with the provision of Article 2 of CE Regulation of the 2759/1999 and it will ensure the conditions for the implementation of the Acquis Communautaire in the agricultural holdings.



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Specific objectives

• To modernise the farming technologies and reduce the production costs;

• To diversify production and improve the quality of Romanian agricultural products;

• To ensure the improvement of the breed, of animal hygiene and welfare conditions;

• To diminish the production losses and to increase the efficiency of the agricultural holdings;

• To promote the diversification of agricultural activities in order to ensure a better use of the labour force from agriculture;

• To ensure a better capitalisation of the agriculture potential of each area;

• To facilitate the transfer of agricultural holdings to the young farmers;

• To protect, preserve and improve the natural environment, to ensure the restoring and preservation of soil quality;

• To stimulate the competitiveness. Operational objectives

•To promote the investments in the animal breeding and in the plant sector at the farm level, for the improvement of farm buildings (for animal breeding and for plant sectors), investment in new machines and/or with animals of high genetic value, renewing and improvement of fruit tree and vineyard plantations. 3. CORRELATION WITH OTHER MEASURES

This measure shall be correlated with the following measures:

• Improving the structures for quality, veterinary and plant health controls, for the quality of foodstuffs and for consumer protection,

• Improving the processing and marketing of agricultural and fishery products, Agricultural production methods designed to protect the environment and maintain the countryside,

• Setting up producers groups,

• Agricultural water resources management,

• Development and improvement of rural infrastructures,

• Improvement of vocational training,

• Technical assistance.

4. FIELD OF ACTION OF THE MEASURE

The eligible projects shall refer to: Vegetal production farms Help the development of viable farms through:

• Acquisition of the equipment necessary for the modernisation of the holdings from the plant sector by endowing them with: tractors, combine harvesters, equipment, machines, installations and agricultural equipment, including for calibrating, sorting, conditioning and storing of the agricultural products obtained and processed within the farm, irrigation installations, installations for processing vegetable residuals;



228

• Rehabilitation of the fruit growing plantations (with the change of the structure of the fruit trees) through the procurement of planting material, as well as works carried out by third persons for upturning soil preparation, planting and replanting with the exception of soil fertilizing;

• Rehabilitation of vineyards plantations (re-conversion, replacement of the ageing vine and hybrids only by noble varieties) on existing surfaces, without increasing the total area put to vineyards, through procurement of planting material, setting up of vineyards nursery (cold storage complexes and straining by warmth, grafting hall, agricultural machines and equipment, warehouses and materials storehouses), as well as the works carried out by third persons for upturning soil preparation, preparing the land, planting and replanting with the exception of soil fertilizing;

• Investments in vegetal farms by modernisation and extension of buildings and utilities (water and electric power supply, supply with thermal energy, draining off of wastes, sewerage, etc.) and the complementing with several buildings necessary for agricultural production (sorting and storage spaces, fuel storehouses, shelters for equipments, fence for limiting the concerned areas, etc.).

• Modernisation and building up of new greenhouses, made of metal light structures, with own thermal units and irrigation equipment, including ensuring of utilities – water and electric power supply, drainage of water, sewage, waste water treatment, etc. - in order to respect the conditions of environmental protection

Farms for animal and poultry breeding

To ensure the development of viable farms for animal and poultry breeding through:

• Procurement of animals (first acquisition - female) with high genetic potential breed animals, by mentioning the origin (pedigree) the source and the registering with the territorial units of the National Agency for Improvement and Reproduction in Livestock breeding1, (excepting poultry) as well as purchasing of quality semen.

• Investments in tractors, equipment, machines, and installations for carrying out the activities in the farms of animal breeding.

• Setting up of farms for animal and poultry breeding, modernising of existing ones, as well as the completion with other buildings and utilities: paddocks, hay deposits, septic tank, deposits for collecting liquid manure, platforms for manure, cleaning stations for waste water treatment, installations for producing and batching complex fodder, milking halls and halls for milk collection, units of thermal power, fuel storehouse, installations for water supply, sewerage networks, electric installations, enclosures for limiting the concerned areas, etc.


General

•The project will be located in the rural area except for modernisation of greenhouses which may also take place in urban area if heating sources are provided.

•It must be demonstrated the economic and financial viability* of the project. * By economic viability it is understood the obtaining of efficient financial performances and the ability to operate without recurring to public support in the operational activity of the project. The beneficiary shall prove that he/she is able to accomplishing regularly

1 The National Agency for Improvement and Reproduction in Livestock breeding ensures by its territorial units the natural reproduction and the respect of the Improvement Plan at national level.



229

his/her- obligations and duties, without producing any risk to the normal carrying out of the-economic agent’s activity and that it generate a significant net - income (at least 5% profit).

• At the time when the decision to grant support is taken, the farms shall comply with national standards regarding the environment, hygiene and animal welfare, and at the investments finalization, for projects whose value is:

o ≤ 500,000 Euro, investment must be in compliance with sanitary veterinary, phyto- sanitary, hygiene and animal welfare and environmental EU legislation.

o > 500,000 Euro, holding must be in compliance with sanitary veterinary, hygiene, animal welfare and environmental E.U. legislation.

• Financial support with a value > 500,000 Euro will be granted only to projects whose objectives is the acquis communautaire implementation in animal breeding and poultry farms;

•Beneficiaries are the owners of the land or they have rent or concession contracts for the land for a period of 10 years or for minimum 5 years in case of other type of investments which do not imply constructions;

•The project shall provide clearly the minimum quantities destined for trading and it shall contain data regarding the market and the potential customers.

•Existence of co-financing shall be certified.

•The beneficiaries (natural persons and/or technical expert responsible) shall prove professional education related to the project they wish to initiate by a document issued by the competent authorities certifying that the beneficiary has professional knowledge in the field: the diploma or training certificate or a statement on own responsibility, that will attend a training course, till the end of the project, before the last payment of the aid.

• Shall not be eligible the applicant who has financial losses and unpaid fiscal, financial obligations to the state, to the social insurance budget and to the banks (other than those for which the repayment schedule is observed), according to the latest fiscal statements or other statements issued by the fiscal authorities.

• In the villages where the damage degree is higher than 30% (Chapter VIII from NPARD, Annex no. 77) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

o Modernization and new investments for all beneficiaries under this measure;

• In the villages where the damage degree is between 10% and 30% (Chapter VIII from NPARD, Annex no. 76) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

o Modernization and new investments for all beneficiaries under this measure which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005.



230

Specific

• The vine plantations are achieved on existing surfaces without their increase by replacing the ageing or low productive vine and hybrids only by noble varieties;

• Vineyards nurseries will have a minimal surface of 1 ha with 160.000 grafted seedlings and 48.000 grafted vines;

• Should be eligible the fruit trees and vine varieties which are: - registered in the “Official Catalogue of varieties of culture plants of Romania” annually approved through Order of the Minister of Agriculture, Forestry and Rural Development; - registered in European Community catalogues. - foreseen in the supplier offers from community countries, in which the varieties are clearly defined and with a detailed description, coming from a member State; - material should comply with the “EC quality” conditions or with the Romanian norms in force.

• For the procurement of animals that represent reproduction herds with high genetic value, the beneficiary must present certificate of origin and productivity.

• The initial purchase of cows/ buffalos with high potential value shall be made with pure breeds reproduction animals as well as breeds derived from them, from countries mentioned in Section F, item 8 of Multi-annual Financing Agreement (MAFA) having a pedigree origin and productivity certificate, issued according with legislation in force of the country of origin and will be limited at:

- For Individual private farmers: 6 heads - For Family associations: 20 heads - For commercial/ agricultural companies: 35 heads.

•The initial purchase of sows with high genetic value shall be made with pure breeds reproduction animals as well as breeds derived from them, from countries mentioned in Section F, item 8 of Multi-annual Financing Agreement (MAFA) having a pedigree origin and productivity certificate, issued according with legislation in force of the country of origin and will be limited at:

- For Individual private farmers: 20 heads - For Family associations: 50 heads, - For commercial/agricultural companies: 170 heads.

•The initial purchase of sheep/goats with high potential value shall be made with pure breeds reproduction animals as well as breeds derived from them, from countries mentioned in Section F, item 8 of Multi-annual Financing Agreement (MAFA) having a pedigree origin and productivity certificate, issued according with legislation in force of the country of origin and will be limited to:

- For Individual private farmers: 200 heads, - For Family associations: 300 heads - For commercial/agricultural companies: 1,400 heads

The purchasing of animals with high genetic value will not exceed the following total number during the implementation period of the program:

- Cows/buffaloes: 15,000 heads



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- Sheep/goats: 50,000 heads - Sows: 23,000 heads

•For animal breeding projects, the beneficiaries should prove that they have in exploitation the minimum area of fodder crops (depending on the cultivation region) which is necessary for feeding his animals at a high performance level:

- for milking cows 0.6 ha/head; - cattle for fattening 0.3 ha/head; - sheep/goats 0.06 ha/head; - lambs for fattening 0.04 ha/head.

• For the procurement of animals, in the framework of the project, the existence of adequate shelters or construction proposals of shelters should be proved in correlation with the concerned animal number and the EU veterinary, animal welfare and environment conditions should be observed. These conditions have to be proved through veterinary certificate and environment agreement in observance of the provisions regarding the approval of NTPA 001 on the content of pollutants in waste waters discharged into the water sources. The eligible investments are:

•All the investment provided for at paragraph 4 – “Field of action of the measure”

•The eligible expenditures could be: a) Construction of new buildings and installations and modernization of the existing ones; b) New equipment and machinery, software for computer, including expenditures for assembly and mounting costs based on contracts with third parties; c) That part of costs representing the pay for architects, engineers and consultants, legal fees, feasibility studies, acquisition of licenses and patents, for preparing and/or implementing the project, directly related to the measure, which do not exceed 12% of total eligible cost of the project, except the cases when no constructions are foreseen when it should not exceed 3%. d) Acquisition of specialised new transportation means as a result of their identification in the feasibility study/justifying report.

The expenditures will be considered eligible for grant, if they meet the requirements of Art. 4, Section B from MAFA, with subsequent modifications and completions. Only expenditures paid by SAPARD Agency from the accreditation date for this measure or from date/dates mentioned in this regard shall be eligible for Community support. In order that the project should be eligible for community support all services, equipments and acquisitions must originate in the European Community or other states mentioned in Section B, art. 4 of MAFA with subsequent modifications and completion; There are not eligible:

• Eligible and non-eligible investments are in accordance with art.4, Section B, from MAFA, with subsequent modifications and completions are detailed in the Applicant Guide.

• Investments regarding the measure 3.4.



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6. SELECTION CRITERIA The project will be selected and evaluated function of the following criteria: General

N° Selection Criteria Score

(if yes)

1 Projects with a total eligible value between 10,000 and 300,000 Euro);

20

2 The projects which are sustained by young farmers (maximum 40 years);

10

3 The projects presented by producers groups, or their members

15

4 The project applies “environmental-sound” technologies* 15

5 The project ensures the diversification of production, so that more than 30% of incomes will have to be obtained thanks to diversification;

10

6 The project* respect the farms sizes recommended in Annex 1/2;

10

7 The project* has its emplacement in an areas whose productivity, according to Annex 3 B, has an: * a) high potential * b) average potential c) low potential

Max. 15

15 10 5

8 The project* with existing structures, and/or animal with high genetic potential, and/or equipment bought more than 5 years before and which can be used in the technological flow

5

TOTAL 100

Note: The selection criteria do not apply in the case of the potential beneficiaries which fulfill the

accession conditions of Article 16(1) and 16(1)(a), Section A, from MAFA.

*There shall be promoted investments and technologies “environmental-sound”, which

have a small impact over the environment (zero or positive), for both the plant and animal-

breeding sector. These technologies are defined through 3 directions:

1. Inputs into the farm: a). Water - irrigation systems with low water consumption (for example systems of drip

irrigation), - systems of adapting the animals with the ration water consumption and

minimising the water losses (for example drinking troughs with constant level).

b). Soil – technologies of increasing and preserving the soil fertility (anti-erosion works,

sowing grass, etc.).

c). Energy – investments in equipment for using recoverable energies (biogas, solar energy,

windmills, geo-thermal energy, etc.).

d). Investments in preserving the local genetic resources (plant and animal).

e). Investments in equipment ensuring hygienic and welfare of animals in the holding.

f). Investments in ergonomic – ecological designing of the farms.



233

2. Processes in the farm: a). Investments in agri-ecological specific equipment (equipment for ensuring the

integrated management for controlling the pests and diseases).

b). Investments in equipment for preserving the farm products.

3. Outputs from the farm: a). Investments in equipment that ensure the management of organic waste in the farm

(basins for stocking the liquid manure, platforms of making compost from farmyard

manure).

b). Equipment for loading, transportation and spreading the farmyard manure in the field;

c). Installations for waste waters treatment and recycling the treated water.

d). Installations for bio-gas production.

7. BENEFICIARIES

Beneficiaries shall be:

•The individual agricultural producers;

•The agricultural family associations;

•The private agricultural companies/associations with legal status provided by Law no. 36/1991 regarding the agricultural companies, and other associative forms in agriculture;

•Agricultural commercial companies with private capital at least equal/more than 75%, set up according to Law no. 31/1990 and Law 15/1990;

• Producers groups. 8. NATIONAL LEGISLATION IN FORCE

The legislation undergoing harmonisation and the national legislation in force are indicated in Chapter “Legislation Appendix”. 9. FINANCIAL DISPOSITIONS The projects within this measure are considered to be income-generating investments. Within this program could be financed projects of a total eligible cost between 5000 -500,000 EURO. Total eligible value of projects could reach 2.000.000 Euro only if their objective is the implementation of acquis communautaire in animals breeding and poultry farms, at the end of the investments. Total eligible value of projects could also reach 1.000.000 Euro only for rehabilitation of vineyards plantations (re-conversion, replacement of the ageing vineyard and/or low productive and hybrids only by noble varieties) projects of which the value of equipments purchased will not exceed 10% of the total eligible value. Degree of intervention:

- for the projects in the all areas, with the exception of mountain areas: 50% private contribution, 50% public contribution

- for the projects of young farmers under 40 years in areas other than mountain areas: 45% private contribution,

55% public contribution - for the projects in mountain areas:



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40% private contribution, 60% public contribution

- for the projects of young farmers under 40 years in mountain areas: 35% private contribution,

65% public contribution The public contribution will be composed, as follows:

- 75% SAPARD contribution; - 25% national budget.

Within this measure the beneficiary might be given support up to two times in the 7years period up to the maximum amount laid down in the financial dispositions under the measure. Indicative budget of this measure divided by years is found out in Chapter VI – Financial Allocation for SAPARD measures, page 356.


Out of which: SUBMEASURE % of the

measure In other zones than

mountain

areas %

Realized by young people

%

In the mount

ain areas

%

Realized by young people

%

Fields crops 19 17.2 1.8 - -

Horticulture (out of which flowers 1.5%) 8 6.4 1.6 - -

Vineyards 8 6.4 1.6 - -

Fruit cultivation 8 5.12 1.28 1.28 0.32 Greenhouses 4 3.2 0.8

Dairy cows/buffaloes 14 7.84 1.96 3.36 0.84

Cattle-rearing and fattening 14 7.84 1.96 3.36 0.84

Sheep/goats farms 3 1.2 0.3 1.2 0.3

Young muttons fattening farms 3 2.4 0.6 - -

Pig farms 10 8 2 - -

Poultry farms 5 4 1 - - Other vegetal, animal and poultry breeding farms specialised in productions for human consumption

4 2.56 0.64 0.64 0.16

TOTAL 100 72.16 15.54 9.84 2.46 The eligible expenditures of the project activities shall be made only after conclusion of financing contract except for the feasibility study and technical project, within the approved limit for this measure. The payment for the financial support shall be made based on the supporting documents, which prove the accomplishing of the activities and their eligibility. Taking into consideration the beneficiary’s options, the payment may be made in a single instalment at the end of the project or in maximum 5 instalments.



235

For investment projects located in villages identified in Chapter VIII from NPARD– Annex no. 76 and 77, the intervention rate is: 25% private contribution, 75 % public contribution

For the public contribution, the intervention rate is: -85% EU contribution -15% national budget contribution These provisions will be applied to projects approved until 31st of December 2006.

10. GEOGRAPHICAL COVERAGE

The project shall be placed in the rural area of Romania, defined according to the national legislation in force, with the exception of modernisation of greenhouses placed in urban area. The projects will be placed in the mountain area in compliance with the national legislation in force.1

Projects where the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA are applied shall be located in villages affected by floods in accordance with Chapter VIII from NPARD– Annex no. 76 and 77. The projects financed within this measure do not overlap with projects financed from national or foreign funds of the Ministry of Environment, Waters and, Ministry of Transport, Constructions and Tourism and Ministry of Administration and Interior. 11. PROGRAMME PROMOTION

The potential beneficiaries will be informed about the existence / conditions of the eligibility of the present measure through: - Public announcement in media - Distribution of information leaflets - Local seminaries - Meetings with the potential beneficiaries 12. OUTPUT, RESULT AND IMPACT INDICATORS Output indicators

General indicators

Number of projects 11,000 out of which share of "green investments" * 20% Number of beneficiaries 11,000 out of which young farmers assisted 2,400. * "Green investments": investments aiming at the protection and enhancement of the environment as well as livestock hygiene and animal welfare

Geographical breakdown Number of projects in less-favoured areas so defined according to the Ordinance of Emergency no 24/ 1998 (republished) regarding the less-favoured areas; 2,400



236

1 The Joint Order no

. 328/321/2004 of the Minister of Agriculture, Forests and Rural Development and of the Minister of Internal Administration (published in the Official Journal of Romania no. 758/2004. First Part) for delimitation approval of municipalities, towns and communes in mountain area, based on the delimitation criteria concerning mountain areas approved by Government Decision no. 949/2002: a) very difficult climatic conditions established on the altitudes over 600 m, b) existence of a slope with more than 20°, c) combination of the points a) and b). Breakdown by sectors of production –number of projects

Vegetal production

Field crops 2,300 Horticulture 900 Vineyards 800 Fruit growing 800 Greenhouses 100

Animal and poultry breeding farms Milking animals 1,500 Cattle rearing and fattening 1,500 Seep/goats breeding 400 Young muttons fattening 400 Pigs 1,100 Poultry 600 Other vegetal and animal poultry breeding farms 600

Breakdown by type of investment Buildings - livestock housing (cattle/buffaloes) 1,000 pieces - pig fattening houses 400 pieces - other livestock buildings 800 pieces - greenhouses and related equipment 280 pieces - other farm buildings 600 pieces Installations and independent equipment (total) - tractors 8,000 pieces - harvesters 600 pieces - other equipment 2,000 pieces Purchase of livestock with high genetic potential (total) - cows/buffaloes 15,000 heads - pigs 23,000 heads - sheep-goat 50,000 heads Agricultural plantations - orchards 1,300 ha - vineyards 1,700 ha - Vineyards nurseries 100 ha Greenhouses - new building surface 60 ha - modernised surface 200 ha



237

Result indicators

•Better use of production factors on farms

•Ratio of “outputs” to “all inputs” on assisted farms is expected to record an increase by 20%.

•Decrease of the cost per unit of basic product sold (EURO/measure unit) on assisted farms by - at least 10%.

•Ratio of cost to turnover on assisted farms is expected to be smaller by 10%.

•Improving the quality of farm products Ratio of price of assisted quality-improved basic products to average price for the commodity concerned is expected to be higher than 1 and on the increase.

•Facilitating environmentally-sound farming Share of beneficiary farms devoting more than 10% of the total co-financing to investments linked to environmental improvement is expected to be higher than 30%, compared to the total assisted farms out of which: - relating to waste and excess manure (%) - relating to on-farm water management (%) - relating to other farming practices/systems environmentally-sound (%) Share of farms which benefited of assistance and which improve storage/land-spreading of farm manure (%) is expected to be higher than 30%, out of which: - ensure storing (%), - ensure spreading of manure on the land (%).

•Ratio of storage capacity of farm manure on assisted farms to total farm manure output on assisted farms is expected to be higher than 0.8.

•Share of assisted farms meeting standards concerning farm manure (%) is expected to be higher than 30%.

•Reduction in exposure to any of the followings: noxious substances, odours, dust, extreme climatic conditions, lifting of heavy loads, aberrant working hours.

•Share of assisted farms meeting new animal welfare standards (%): is expected to be higher than 90%.

•Share of animals housed in accommodation that meet the community standards on assisted farms (%): is expected to be higher than 90%.

Impact indicators

•Increase of incomes Gross farms income of in the case of assisted holdings (EURO): is expected to be by 20% higher.

•Setting up new jobs and social impact Number of full-time equivalent jobs (FTEs) maintained: 16,800 Number of full-time equivalent jobs (FTEs) newly created: 3,200 Increase of the number of young farmers established in rural area: 2,400

- out of which owners of farms 600 The result and impact indicators will be improved subsequently in collaboration with the Commission’s services.



238

13. SUPPORTING DOCUMENTS The potential beneficiary shall attach the following documents to the financing application:

• The justifying report or the feasibility study (only for the projects which comprise building works) drawn up in accordance to the joint Order no. 1013/873/2001 of Minister of Public Finance and Minister of Public Works, Transports and Housing for approval of the structure, content and mode of use of Standard Documentation for elaboration and presentation of offer for public procurement of services, including general estimate drawn up according to Government Decision 1179/2002 ;

• Copy of the ownership deed over the land, the leasing contract, concession contract or any other document justifying the right of using the land. The ownership deed or the document providing free use according Emergency Ordinance of Government no. 168/2001 over real estate goods, in compliance with the legislation in force;

• Certificate of urbanism, if the case;

• Technical sheet (annex to the Urbanism Certificate) regarding the conditions for environment protection necessary for obtaining the unique endorsement, on which if the case stamp A or B is applied, which might contains in annex, if the case the environmental endorsement issued by competent authorities for activities with relevant impact over the environment, defined according to national legislation consistent with EU legislation.

• Certificate of trader registration (copy) if the case;

• Certification from county GDAFI attesting that the vineyard area to be rehabilitated is registered within Catalogue of viticulture plantation according to Minister Order MAFF/MPA no. 64/144/2003, which confirm the initial existent surface (the ageing vine and/or hybrids) and with the mention that this surface will not be increased through the project.

• The business plan proving the viability of the project is required in the case of projects having a total eligible budget exceeding 50,000 Euro;

• If the case, an annual balance sheet referred to one of the last three years preceding the year in which the project is submitted. If the beneficiary has not undertaken an activity prior to project submission, he/she will attach a document in proof of this, issued by the fiscal authority;

• If the case, the certificates attesting that the beneficiary of the project has no unpaid obligations to the state budget, the state insurance budget or banks other than those for which the repayment schedule is observed;


• Certificate showing that the beneficiary of the project has a honest judiciary;



239

• The existence of own financial contribution of the beneficiary shall be proved through a document issued by the bank, and/or other authorised financial institutions in which it is certified the existence of co-financing and the way of its insurance;

• For the purchasing of animals it should be shown a pedigree or origin and productivity certificate

• Vocational training in the field, proved through a copy of the diploma or training certificates or statement on own responsibility showing that the project’s beneficiary and/or person responsible for the project will attend a vocational training course, till the end of the project, before the last payment of the aid;

• If the case sanitary-veterinary notification and/or phyto-sanitary and/or sanitary notification, issued by the competent institutions attesting that the investment comply with EU hygiene and animal welfare norms;

• If the case a documentary justification for marketing of 70% of the output within the project.

• For the potential beneficiaries with an age of less than 40 years, a legal copy of the birth certificate. For potential beneficiaries with projects located in a village with a damage degree between 10% and 30%, a document issued by Local Committee for Emergency Situations*, at the commune level which proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD – Annex no. 76.

*Local Committee for Emergency Situations is set up according with provisions of the Government Decision no. 1491/2004 for approval of the Standing Order – Framework, regarding the organisational structure, tasks, functioning and endowment of the committees and operational centres for emergency situations. 14. FINANCING CONDITIONS


• The beneficiary will collaborate and will submit any information required by authorized institutions to check and audit the project implementation;

• The support granted will be recovered if the supported objectives are not used according to the destined purpose or if the respective objectives were sold or leased within a period of 5 years after the completion of the project (the date of the last instalment);

• If the cost of the service or of a good exceeds the total value of 10,000 Euro, the beneficiary shall submit offers from at least 3 suppliers;



• Technical delegated bodies of MAFF.



240

Appendix No.1

MAIN TYPES OF FARMS BY SIZE RECOMMENDED FOR THE PLANT SECTOR

BENEFICIARIES TYPES OF FARMS SIZE OF FARMS (ha)

Individual private farmers CEREALS AND TECHNICAL PLANTS Plain area Hilly area Mountain area VEGETABLES HORTICULTURAL VINEYARDS GREENHOUSES

10 - 50 5 - 30 5 - 15 1- 20

5 - 30 5 - 25

0.2 – 1.5

Family associations CEREALS AND TECHNICAL PLANTS Plain area Hilly area VEGETABLES HORTICULTURAL VINEYARDS GREENHOUSES

50 - 200 30 - 150

4 - 40 25 - 60 25 - 50 1.5 - 3

Agricultural associations, agricultural

companies, commercial companies from

the private sector

CEREALS AND TECHNICAL PLANTS Plain area Hilly area VEGETABLES HORTICULTURAL VINEYARDS GREENHOUSES

200 - 1,000

150 - 500 10- 110

80 - 150 50 - 250 10 - 20



241

Appendix No.2

MAIN TYPES OF FARMS BY SIZE RECOMMENDED FOR THE ANIMAL HUSBANDRY SECTOR

BENEFICIARIES TYPES OF FARMS SIZE OF FARMS (heads)

Individual private farmers - farms for milking cows/buffaloes (for the mountain area) - farms of cattle for fattening (for the mountain area) - farms of ships or goats - farms of lambs / young rams for fattening or old ewes for reconditioning - farms of breed sows and the adherent categories in closed circuit - farms for pigs, for fattening in closed circuit - farms for laying hens - farms for broilers

12 - 25 (6 - 10) 50 - 100 (25 - 50)

150 - 300

300 - 1,000 30 - 50

200 - 1,000 1,000 - 2,000

5,000 - 15,000

Family associations

- farms for milking cows/buffaloes (for the mountain area) - farms of cattle for fattening (for the mountain area) - farms of ships or goats - farms of lambs / young rams for fattening or old ewes for reconditioning - farms of breed sows and the adherent categories in closed circuit - farms for pigs, for fattening in closed circuit - farms for laying hens - farms for broilers

25 - 50 (20 - 40) 100 - 200 (50 - 100)

300 - 500

500 - 1,500 50 - 100

1,000 - 3,000 2,000 - 10,000

15,000 - 30,000

Agricultural associations,

agricultural companies,

commercial companies

from the private sector

- farms for milking cows /buffaloes - farms of cattle for fattening - farms of ships or goats - farms of lambs / young rams for fattening or old ewes for reconditioning - farms of breed sows and the adherent categories in closed circuit - farms for pigs, for fattening in closed circuit - farms for laying hens - farms for broilers

50 - 150 200 - 500

500 - 1,500

1,500 - 7,500 100 - 200

3,000 - 10,000 10,000 - 20,000 30,000 - 60,000



242

Appendix No.3

Regional emplacement of main investments in farms

A) mechanisation, modernising and / or new constructions in farms of the plant production

sector

Cereal cropping a) high potential: Timis, Calarasi, Constanta, Ialomita, Teleorman, Olt, Arad, Braila, Dolj, Buzau, Mures,Galati, Giurgiu, Ilfov, Mun. Bucuresti. b) average potential:, Botosani, Satu-Mare, Bihor, Tulcea, Neamt, Bacau, , Vrancea, Vaslui, Cluj, Arges, Prahova, Alba, Valcea, Covasna, Dambovita, Iasi, Mehedinti, Salaj. c) low potential:, Caras-Severin, Suceava, , Hunedoara, Bistrita Nasaud, Gorj, Sibiu, Brasov, , Maramures, , Harghita, Technical plants-Sun flower: a) high potential: Constanta, Ialomita, Braila, Calarasi, Buzau, Tulcea, Teleorman, ,.Galati, Giurgiu, Ilfov, Olt, Mun. Bucuresti b) average potential: Satu-Mare, Vaslui, , Dolj, Botosani, Iasi, , Bihor, Vrancea, Arad, Prahova, Arges, Caras Severin, Dambovita, Mehedinti, Neamt, Timis, Vaslui. c) low potential:, Salaj, Cluj, Bacau, Suceava, Maramures, Mures, Alba, Bistrita Nasaud, Brasov, Covasna, Gorj, Sibiu, Hunedoara, Valcea. -Soya:

a) high potential: Braila, Calarasi, Galati, Timis, Arad, , Iasi, Ialomita, Giurgiu, Ilfov, Olt, Teleorman, Mun. Bucuresti. b) average potential: Dolj, Botosani, , Constanta, Neamt, Arges, Bihor, Buzau, Dambovita, Mehedinti, Prahova, Salaj, Satu Mare, Vaslui, Vrancea. c) low potential:, , , , , , Alba, Bacau, Bistrita Nasaud, Brasov, Caras Severin, Cluj, Covasna, Gorj, Harghita, Hunedoara, Maramures, Mures, Sibiu, Suceava, Tulcea, Valcea . -Flax for oil production: high potential: Iasi, Bacau, Vaslui, Tulcea, Constanta, Dambovita, Arges, Valcea, Olt, Mehedinti, Timis, Arad, Bihor, Salaj, Calarasi, Dolj, Galati, Giurgiu, Ialomita, Ilfov, Teleorman, Mun. Bucuresti; b) average potential: Botosani, Braila, Buzau, Neamt, Prahova, Satu Mare, Vrancea; c) low potential: Alba, Bistrita Nasaud, Brasov, Caras Severin, Cluj, Covasna, Gorj, Harghita, Hunedoara, Maramures, Mures, Sibiu, Suceava; ;-Flax and hemp for fibre production: high potential: Satu Mare, Suceava, Neamt, Bacau, Buzau, Brasov, Salaj, Ialomita, Ilfov, Olt, Mun. Bucuresti; b) average potential: Alba, Arad, Arges, Bihor, Botosani, Braila, Cluj, Constanta, Dambovita, Dolj, Galati, Giurgiu, Covasna, Harghita, Iasi, Hunedora, Maramures, Mehedinti, Mures, Prahova, Satu Mare, Sibiu, Teleorman, Timis, Vaslui, Vrancea; c) low potential: Bistrita Nasaud, Caras Severin, Gorj, Tulcea, Valcea -Sugar beet: a) high potential: Suceava, Botosani, Satu Mare, Neamt, Iasi, Galati, Covasna, Arad, Buzau, Calarasi, Dambovita, Dolj, Giurgiu, Ilfov, Mun. Bucuresti:



243

b) average potential: Bihor, Brasov, Vaslui, Bacau, Alba, Arges, Braila, Cluj, Constanta, Ialomita, Mehedinti, Mures, Olt, Prahova, Salaj, Sibiu, Teleorman, Timis, Tulcea, Valcea, Vrancea; c) low potential: Harghita, Hunedoara, Bistrita Nasaud, Caras Severin, Gorj. Maramures. Vegetables: a) high potential: Galati, Olt, Arad, Dolj, Braila, Buzau, Calarasi, Giugiu, Ialomita, Ilfov, Teleorman, Mun. Bucuresti;b) average potential: Botosani, Vrancea, Satu- Mare, Neamt, Gorj, Bihor, Constanta, Alba, Arges, Bacau, Cluj, Dambovita, Iasi, Mehedinti, Mures, Prahova, Suceava, Timis, Tulcea, Vaslui; c) low potential: Hunedoara, Salaj, Caras-Severin, Sibiu, Bistrita Nasaud, , Maramures, Covasna, Harghita, Brasov, Valcea. Potatoes: a) high potential:Suceava, Covasna, Maramures, Brasov, Harghita, Bistrita Nasaud, Neamt, Cluj, Hunedoara, Calarasi, Ialomita, Ilfov, Olt, Mun. Bucuresti. b) average potential: Botosani, Bihor, Timis, Dambovita, Bacau, Alba, Caras Severin, Salaj, Sibiu, Satu Mare, Arad, Braila, Buzau, Dolj, Galati, Giugiu, Prahova, Teleorman, Vrancea; c) low potential: Arges, Valcea, Prahova, Constanta, Gorj, Tulcea, Vaslui, Mehedinti, Iasi. Orchards: a) high potential :, Timis, , Iasi, Dambovita, Constanta, Salaj, Valcea, Neamt, Vrancea, Vaslui,; b) average potential: Bistrita Nasaud, Bihor, Hunedoara, Satu Mare, Prahova, Gorj, Suceava, Arad, Buzau, Olt, Arges, Botosani, Bacau, Caras Severin, Cluj, Covasna, Calarasi, Dolj, Galati, Giurgiu, Ialomita, Ilfov, Maramures, Mehedinti, Mures, Olt, Sibiu, Suceava, Teleorman, Tulcea, Mun. Bucuresti; c) low potential: Harghita, Brasov,. Vineyards: a) high potential: Vrancea, Galati, Constanta, Buzau, Vaslui, Prahova, Iasi, Tulcea, Dolj, Alba, Mehedinti; b) average potential: Bacau, Olt, Arad, Timis, Bihor, Mures, Arges, Braila, Salaj, Calarasi, Dambovita, Giurgiu, Ialomita, Ilfov, Teleorman, Mun. Bucuresti; c) low potential: Caras- Severin, Satu Mare, Neamt, Cluj, Botosani, Bistrita Nasaud, Gorj, Hunedoara, Brasov, Covasna, Harghita, Maramures, Sibiu, Suceava, Valcea. Tobacco: high potential:, , Calarasi, Ilfov, Ialomita, Giurgiu, Olt, , Teleorman, Mun. Bucuresti; b) average potential: Arad, Arges, Bihor, Botosani, Braila, Buzau, Caras Severin, Constanta, Dambovita, Dolj, Galati, Iasi, Mehedinti, Neamt, Prahova, Satu Mare, Timis, Tulcea, Vaslui, Vrancea; c) low potential: Alba, Bacau, Bistrita Nasaud, Brasov, Cluj, Covasna, Gorj, Harghita, Hunedoara, Maramures, Mures, Salaj, Sibiu, Suceava, Valcea. Rice: high potential: (in the alluvial plain of the Danube) Braila, Ialomita, Calarasi, Giurgiu, Teleorman, Olt, Dolj; B) Acquisition of livestock, modernisations and / or new constructions of stables and farms

Cattle: a) high potential: Suceava, Cluj, Iasi, Maramures, Arges, Botosani, Bihor, Neamt, Bacau, Arad, Braila, Buzau, Calarasi, Constanta, Covasna, Dambovita, Dolj, Galati, Giurgiu, Ialomita, Ilfov, Olt, Prahova, Salaj, Satu Mare, Teleorman, Timis, Vrancea, Mun. Bucuresti;



244

b) average potential: Mures, Bistrita Nasaud, Harghita, Alba, Hunedoara, Brasov, Caras Severin, Sibiu, Mehedinti, Gorj, Tulcea, Valcea, Vaslui. Pigs:

a) high potential: Timis, Cluj, Arad, Bihor, Mures, Bacau, Satu Mare, Teleorman, Braila, Calarasi, Valcea, Ilfov, Dolj, Gorj, Botosani, Buzau, Constanta, Covasna, Dambovita, Galati, Giugiu, Ialomita, Neamt, Olt, Prahova, Salaj, Suceava, Vrancea, Mun. Bucuresti;b) average potential: Arges. Iasi , Maramures, Brasov, Alba, Caras Severin, Harghita, Mehedinti, Sibiu, Tulcea, Vaslui. c) low potential: Bistrita Nasaud, Hunedoara. Sheep and goats:

a) high potential: All the counties Poultry: a) high potential: Bacau, Teleorman, Dolj, Dambovita, Gorj, Olt, Buzau, Galati, Constanta, Calarasi, Botosani, Alba, Iasi, Bihor, Arad, Braila, Covasna, Giurgiu, Ialomita, Ilfov, Neamt, Timis, Mun. Bucuresti; b) average potential: Prahova, Brasov, Valcea, Sibiu, Suceava, Arges, Hunedoara, Vrancea, Mures, Bistrita Nasaud, Caras Severin, Cluj, Harghita, Maramures, Mehedinti, Salaj, Satu Mare, Tulcea, Vaslui.

National Agriculture and Rural Development Plan 2000-2006 _____________________________________________________________________________________


APPENDIX No. 4

SITUATION OF GREENHOUSE AREAS IN 1999

COUNTY

Area of

greenhouses

Area of greenhouses under operation

built - Ha

TOTAL - Ha Out of which under

heated system - Ha

ALBA 8 3 3

ARAD 119 89 10

ARGES 32 2 2

BACAU 36 28 6

BIHOR 104 90 50

BISTRITA 4 - -

BOTOSANI 4 - -

BRASOV 96 83 71

BRAILA 46 46 46

BUZAU 12 - -

CARAS-SEVERIN 11 - -

CALARASI 15 - -

CLUJ 33 33 33

CONSTANTA 57 57 20

COVASNA 3 3 3

DAMBOVITA 34 16 8

DOLJ 220 113 -

GALATI 42 42 8

GIURGIU 5 4 -

HARGHITA 15 - -

HUNEDOARA 14 13 -

IALOMITA 4 - -

IASI 44 32 -

MARAMURES 8 - -

MEHEDINTI 9 - -

MURES 39 39 24

NEAMT 30 12 4

OLT 20 - -

PRAHOVA 207 105 -

SATU-MARE 10 2 -

SALAJ 3 3 -

SIBIU 51 1 -

SUCEAVA 15 6 3

TELEOMAN 22 - -

TIMIS 45 9 2

TULCEA 8 - -

VASLUI 15 7 3

VALCEA 6 1 -

VRANCEA 9 4 -

ILFOV 23 20 5

MUNICIPIUL BUCURESTI 222 122 122

TOTAL 1656 957 373

National Agriculture and Rural Development Plan 2000-2006 _____________________________________________________________________________________


Appendix no. 5

The repartition of the traditional wine growing areas 1. North East Region Cotnari, Iasi, Husi, Racaciuni. 2. South East Region Nicoresti, Pannciu, Odobesti, Cotesti, Dealurile Buzaului, Dealurile Bujorului, Ostrov, Mulfatlar, Istria, Babadag, Sarica Niculitel, 3. South Muntenia Region Dealul Mare, Pietroasa, Valea Calugareasca, Stefanesti. 4. South west Oltenia Region Samburesti, Dragasani, Segarcea, Sadova Corabia, Dealurile Craiovei, Calafat. 5. West Region Buzias, Dealurile Tirolului, Moldova Noua, Teremia, Minis Maderat, Recas, Silagiu. 6. North west Region Diosig, Valea lui Mihai, Silvana, Lechinta. 7. Centre Region Tarnave, Alba, Sebes, Apold, Aiud.

National Agricultural Rural Development Plan 2000 – 2006

Reviseded version, 7th of July 2006 247

APPENDIX No. 6

HIGH QUALITY VARIETY OF GRAPES CULTIVATED

Ozana Aromat de Iasi Oporto Pinot gris 13 Mf Pinot gris 34 Bl Pinot noire Pinot noire 5 IV Alb aromat Busuioaca de Bohotin Donaris Ezerfurtu (selectii) Feteasca alba Feteasca neagra Muscat Ottonel Muscat Ottonel 12 Bl Negru de Dragasani Neuburger 10 Bl Neuburger Tamaioasa romaneasca Tamaioasa romaneasca 5 t Tamaioasa romaneasca 36 Pt Tamaioasa romaneasca 104 Dg Zweigelt (selectii) Aligote Arcas Blasius Burgund mare Chardonnay Columna Cramposie selectionata Creata Cristina Grasa de Cotnari Grasa de Cotnari 4 Pt Grasa de Cotnari 45 pt Haiduc Mamaia Majarca Merlot Merlot 8 VI Merlot 17 Od

Muscadelle 1 Is Mustoasa de Maderat 79 Mn Novac Pandur Raluca Rosioara 8 Tb Sangiovese (selectii) Sauvignon gros 9 Bl Sauvignon petit 62 Dg Selena Sarba Traminer roz 60 Bl Unirea Zghihara Astra Balada Cabernet Sauvignon 4 Is Cabernet Sauvignon 7 Dg Carbenet Sauvignon 33 Vl Codana Feteasca regala Feteasca regala 21 Bl Francusa Furmint Furmint de Minis Galbena de odobesti 33 Od Galbena de Odobesti 50 Od Iordana Negru aromat Plavaie 16 Od Riesling italian Riesling italian 3 Bl Riesling de Rin Rikatiteli (selectii) Roz de minis Saint Emilion Steinschiller Amurg Babeasca gri Babeasca neagra 94 Pt Cadarca 123 Mn Miorita



MEASURE 3.2

SETTING UP PRODUCERS GROUPS

1. BACKGROUND

• Even if agriculture was the first sector of the national economy in which the basis of the private property were laid down (Law 18/1991), it is however ascertained a deep crises, affecting all the elements of the agricultural system:

− the structures of social-economical organisation of the agricultural owners and producers;

− the production structures;

− the rate of conversion and the production levels;

− the agricultural management etc.

• The private agriculture is currently characterised by an excessive fragmentation of the agricultural production system. The land market is not functional.

• The tendency to co-operate in activities of marketing and even of production is reduced, affecting the income of the peasant households.

• The efficient organisation in producers groups depends mainly on the geographical location of the agricultural holding materialised in different structures and shares of the agricultural crops, as well as on the endowment with production means.

• The necessity to organise the agricultural producers for economical purposes, in order to improve the capital and labour force, to protect the producer’s interests on the market and in their relation with the State.

• The situation of the producers groups in the sectors considered as priority in the application of this measure is:

- In 2002, the cultivated area with cereals was of 6.038.077 ha, out of which 5.826.061 ha (96%) in the private sector. The private associations have an area of 1.314.387 ha representing 22%. The association level rate is low compared to the real possibilities of association, therefore it is immediately necessary the setting up of the producer groups. - Medicinal plants were cultivated on an area of 10.6 thousand ha, out of which 8.3 thousand ha (78.3%) in private sector. The total medicinal plants production obtained in 2002 was of 5.4 thousand tones, of which 3.9 thousand tones in private sector (72.2%) - In 2002 the cultivated area with tobacco was about 9.1 thousand ha, of which 8.9 thousand ha (97.8%) in private sector. The total tobacco production obtained in 2002 was about of 16 thousand tones, of which about 15.8 thousand tones (98.8%) in private sector. For a better production valorisation it is necessary to organise the tobacco producers of private sector in producers groups. - Hops: the total surface cultivated in 2002 was of 196 ha, the whole area being in private sector. The total production obtained in 2002 was about 142 tones (MAFRD operational data). - The area cultivated with vegetables was of 235.3 thousand ha in 2002, out of which the private sector represented 233.6 thousand ha (99.2%). The associations represent 3% of total area tilled by the private sector. Typical of the current vegetable growing is the crop on small plots, the quantities obtained being



reduced. It is necessary to organise producers groups, cultivating a different surface, depending on the production assortment and destination. - The potato crop occupy an area of 282.4 thousand ha, out of which 280.3 thousand ha (99.9%) representing the private sector. The private associations represent 4% of total area tilled by the whole private sector. The association degree being very small, it is necessary to set up producers groups. - Orchards occupy an area of 203 thousand ha, out of which 180.6 thousand ha (88%) representing the private sector. In this sector the associative form is insignificant, in order to improve the quality of the production and the efficiency of the sector, it is necessary to set up producers groups. - Vineyard occupies a 233.1 thousand ha area, out of which 90% in the private sector. It is necessary to set up producers groups for the purpose of obtaining a stable production from quantitative and qualitative point of view. In 2002 from the total vineyard patrimony 116.6 thousand ha are represented by the vinis vinifaera varieties and the difference of 116.5 thousand ha are represented by the inter-specific hybrid varieties, to which it has to be added 30.0 thousands ha with direct producing hybrid varieties. - Flowers and decorative plants cultivated:

− On the field: the total area cultivated in 2002 was of 158 ha, out of which 99 ha (62.6%) in private sector. The total production obtained in 2002 was about of 17376 thousand wire (blade), of which 6581 wire (37.9%) in private sector.

− Green house: in 2002 the total area cultivated was about of 160 ha and the total production obtained was about 70013 thousand wire (MAFRD operational data).

- Milk: in 2002 the milk cows livestock was of 1627 thousand Heads out of which the private sector represented 1616 thousand heads which represents 99.3% out of the total amount. The milk production obtained in 2002 was of 52,761 thousand Hl out of which over 99% in the private sector. As a result, it is necessary to organise the cattle breeders in producers groups in view of improving the conditions of collecting and increasing the degree of valorisation of the obtained production. - The organisation of meat producers in groups will have as a result the improvement of quality indicators of animal production. Presently, the structure of the livestock destined to the meat production is as follows:

Number of heads Tones of meat in living weight Animal type

Total Private Total Private Cattle 2 878 000 2 847 000 318 600 314 800

Poultry 77 379 000 76 547 000 431 600 425 700

Mutton and goat 7 945 000 7 898 000 118 300 117 600

Pigs 5 058 000 4 876 000 634 900 613 400 (Romanian Statistical Yearbook 2003)

- Consumption eggs: in 2002 the total number of egg chickens was about 44.667 thousand heads, of which 44.399 thousand heads in private sector. Total eggs production obtained in 2002 was about 6.432 million eggs, of which 6.360 million (98.9%) eggs in private sector. As a result it is necessary to organise egg chickens breeders in producers groups in view of improving the collecting conditions and increase the level of obtained production valorisation. - In 2002 the total number of family bees was about 781 thousand families, of which the private sector had about 775 thousand families. The total honey



production obtained in 2002 was about 13.434 tons, of which 13.398 tons (99.7%) from private sector. As a consequence it is necessary to organise beekeepers in producers groups, with the aim of improving the collecting conditions and increase the level of obtained production valorisation.

- Currently, in Romania, fishery may be practiced on about 100 thousand ha of fishery farms, out of which 40 thousand ha in the Danube Delta. Also, the fishery may be practiced for the commercial purposes on 300 thousand ha. of swamps, natural and accumulation lakes, 1.075 km2 exclusive economical area of Black Sea. These areas were leased for a private administration and exploitation, providing about 16.227,5 fish tones, out of which aquaculture 9.248 tones (57%), in 2002. It is necessary the setting up of the producers groups for improving the qualitative and quantitative indicators of the fishery production.

- The surface of national forest fund is of 6.4 thousand ha, out of which 1.8 thousand (28% from total surface) there are in individual or common private property. For about 600 thousand ha it has been setting up associations for housing manages in a forest regime, by the private forest centres. The annual average production of wooden mass harvested on these areas is of about 16-17 million cubic metres, meaning 2,7 cubic metres/year/ha. Non-wooden production is variable, structurally and quantitatively speaking, its value being of about 1,5% of wooden products value. The capitalization of forest products (in compliance with the provisions of Law no. 26/1996 – Law regarding the Forest Code) wooden or non-wooden, is hardly performed without a group policy, the fact which determines the small incomes, insufficiently to cover the necessary funds for a sustainable administration of private forests. It is necessary setting up the producers groups with the aim of valorisation of wood and non-wood products and improvement of qualitative indicators of forests production. Taking into account the necessity of activities diversification and considering the weight of private producers in the mentioned sectors, it is necessary to set up producers groups for a better valorisation of production and the incomes increase.

• The setting up of producers groups will contribute to the increase of the economical efficiency of the agricultural, fishery and forestry holdings, having an important role in the improvement of the products quality, environment protection and supplying and distributions networks, as well as in the establishment of a balance between supply and demand.

• Setting up producers groups in view of joint marketing, according to certain production rules, will ensure the increase of incomes for producers who are members of producers groups, will maintain or create employment in rural areas and will improve the quality of marketed products.

2. OBJECTIVES

General objective

• Financial support for the setting up of producers groups by joining on free initiative of agriculture, forestry and fisheries producers.

Specific objectives

• Focusing, specialization and efficiency of marketing for agriculture, forestry and fisheries products from the economic point of view as well as with reference to the quality of products provided on the market.

• Promoting transparency on market;



• Adoption of standards specific for each products;

• Common adaptation to unitary rules regarding the production, its preparation and distribution on market and rules concerning the environment protection in rural areas.

Operational objectives

• Encouraging by financial support the setting up and functioning of producers groups in view of joint marketing the agriculture, forestry and fisheries products.

3. CORRELATION WITH OTHER MEASURES

This measure shall be applied simultaneously with the following SAPARD measures:

− Measure 1.1 - Improvement of the agricultural and fishery products processing and marketing;

− Measure 3.1 - Investments in agricultural holdings;

− Measure 3.4 – Development and diversification of economic activities, providing for multiple activities and alternative incomes;

− Measure 3.5 – Forestry;

− Measure 4.2 - Technical assistance;

− Measure 2.1 - Rural infrastructure development and improvement, as part of the integrated rural development.

− Measure 4.1 - Vocational training.

4. FIELD OF ACTION OF THE MEASURE

• Encouraging the setting up of producers groups, by granting fix amount of money dedicated to setting up and functioning of producers groups recognized according to legislation in force.


a) Conditions for recognition

• To be set up on free initiative of concerned producers for a jointly market activity;

• The producers group should have legal status and their own statute, unanimously adopted by all group’s members;

• The production and the outputs of group’s members should be adapted according to quantitative and qualitative requirements and market price, based on common rules of information regarding the production, supplies and evolution of market;

• To have common rules concerning the production practices. The production practices should ensure a proper level of quality and environmental protection;

• To have common rules concerning the marketing and the internal management of production dedicated to market;

• Within each group, the number of private agriculture producers -with or/and without legal status- should be at least 30 for agriculture and forestry products and at least 7 for fisheries products;

• The producers group should have an annual turnover of at least 150.000 Euro; or



• The producers group should own or administrate fixed assets; or

• Producers group should realize an annual marketed production equal at least to the following figures below:

No. Product Minimal marketed or

production Minimal fixed

assets

1 VEGETAL

PRODUCTS

1.1 Cereals and Technical Plants

1000 row material tones/year 300 ha

1.2 Medicinal and aromatic plants

75 tones/year 25 ha

1.3 Specialized crops: tobacco, hops (dry)

20 tones/year 15 ha

1.4 Vegetables and Potatoes

600 tones/year 45 ha

1.5 Fruits, including grapes


1.6 Wine grapes 580 tones of grapes/year 50 ha 1.7 Mushrooms 120 tones/year 0,6 ha

1.8 Flowers and decorative plants

530 thousand flowers/year 8 ha

2 ANIMAL

PRODUCTS

2.1 Milk 11.900 hl/year

(1.225 tones/year) 350 heads

2.2 Meat

2.2.1 - cattle 110 tones/year alive 275 heads

2.2.2 - pork 150 tones/year alive 1.500 heads

2.2.3 - sheep/goats 150 tones/year alive 6.300 heads

2.2.4 - poultry 145 tones/year alive 72.500 heads

2.2.5 - mixed categories In this case the producers group should have an

annual turnover of at least 150.000 Euro

2.3 Eggs for consumption 2.350 thousand eggs/year 18.300 eggs

laying hens

2.4 Honey and beekeeping products

74 tones/year

4.100 bees families

3 FISHERY

PRODUCTS


4 FORESTRY

PRODUCTS

4.1 Wood and non wood products (at least 1% out of turnover)

Equivalent of 7.300 cubic metres of raw wood/year

2.700 ha

• The producers group’s recognition could be withdrawn if: - Recognition conditions, mentioned above, are no more fulfilled; - The recognition has been granted based on wrong information; - The recognition was obtained by illegal ways.



b) Conditions for granting

• Producers group is eligible only if it has been recognised by the MAFRD, starting with the 1st of January 2004;

• Producers group should respect the conditions of recognition, when the grant was requested and for the whole granting period;

• To have a program in order to commercialize in commune products for at least a 5 year period, based on a production plan of producers group’s members, in compliance with the qualitative and quantitative requirements which confer the certainty of an annual turnover of at least 150.000 Euro;

• The producers group’s responsible should have specialized and superior or medium qualification within the field of action of the producers group, or should present a statement on his/her responsibility that he/she will attend and conclude a preparation stage, officially certified according to national legislation.

6. RECOGNITION PROCEDURES The national recognition procedures of producers groups regarding the competent institution and responsible services, the conditions for the withdrawal of recognition and the appeal mechanism, are foreseen in the national legislation in force. 6.1 Competent Authority for producers groups recognition:

• Ministry of Agriculture, Forests and Rural Development, through following competent territorial authorities:

- Counties Directorates for Agriculture and Rural Development for the animal and vegetal products;

- Territorial Fishery Inspectorate for fishery products; - Territorial Directorate of forestry and hunting regime for forestry wood

and non-wood products;

• Rural Development Directorate monitors the whole activity of producers groups recognition and inscribes the recognised producers groups into a special Register of evidence of producers groups constituted for marketing of agriculture, fishery an forestry products, according to the national legislation in force;

• In case of non-respect of recognition conditions, the recognition could be withdrawn through a withdrawal decision issued by the same territory competent authorities and using the same procedure mentioned above.

6.2 The support will be granted by SAPARD Agency on the basis of supporting documents submitted by producers groups which comply with the eligibility conditions.

7. BENEFICIARIES

The agricultural, fisheries and forestry producers groups legally set up and recognised by MAFRD starting with 1st of January 2004 and which fulfil the granting conditions.

8. NATIONAL LEGISLATION IN FORCE

The list of the legal act on this measure is presented in Chapter “Legislation Appendix”.




• Financial support for administrative activities concerning the establishment and the operating will be granted to all producers groups which fulfil the eligibility conditions.

• The designed for the producers groups shall be granted according to the group setting up and functioning cost.

• The aid shall be established yearly for each producers group based on his or her yearly-marketed production, thus:

a) for the first, second, third, fourth and fifth year to 5%, 5%, 4% 3% and 2% of the value marketed production up to 200000 EURO/year.

b) for the first, second, third, fourth and fifth year to 2.5%, 2.5%, 2%, 1.5% and 1.5% of the values of marketed production exceeding 200000 EURO/year.

c) the grant will be paid in annual instalments to a maximum ceiling for each producer group of:

- 20,000 EURO for the first year - 20,000 EURO for the second year - 16,000 EURO for the third year - 12,000 EURO for the fourth year - 10,000 EURO for the fifth year.

The first instalment will be paid one year after the signature of the grant contract.

10. GEOGRAPHICAL COVERAGE

The project must be located in the rural area, defined according to the legislation in force. 11. OUTPUT, RESULT AND IMPACT INDICATORS Output indicators

• Number of producers groups supported:700, out of which A. vegetal products: 600 out of which:

- Cereals and technical plant 330 - Medicinal and aromatic plants 10 - Specialized crops 2

- Vegetables and Potatoes 170 - Fruits, including grapes 50 - Wine- grapes 30 - Mushrooms 5 - Flowers and decorative plants 3

B. Animal Products - Milk 45 - Meat 20 - Eggs for consumption 3 - Honey 17

C. Fishery Products 5 D. Forestry Products 10

• Number of members of producers groups: 22.950



Results indicators

Adjustment to the market needs

• The volume of the minim primary production marketed by the producers groups per year. - Cereals and technical plant 330.000 tones

- Medicinal and aromatic plants 750 tones - Specialized crops 40 tones

- Vegetables and Potatoes 102.000 tones - Fruits, including grapes 20.000 tones - Wine- grapes 17.400 tones - Mushrooms 600 tones - Flowers and decorative plants 1.590 thousand flowers - Milk 55.125 tones (535.500 hl) - Meat 3.200 tones - Eggs for consumption 7.050 thousand eggs - Honey 1.258 tones - Fishery Products 3.000 tones - Forestry Products 73.000 cubic metres

• Ratio of marketed primary agricultural products by the producers groups to marketed primary agricultural products is minimum 70 %.

Impact indicators

Income increase

• Increase of producer's incomes related to the previous situation 10% Employment and social impact

• Minimal number of full-time equivalent jobs (FTEs) - maintained in better conditions 20.850 - new created 2.100

12. PROGRAMME PROMOTION

The potential beneficiaries will be informed about the existence and eligibility conditions of the present measure by:

• Public announcement in media

• Distribution of information leaflets

• Seminaries

• Meetings with the potential beneficiaries

13. SUPPORTING DOCUMENTS

•The recognition notice of the producers group according to the national legislation.

•The registration document of the producers group on Trade Register;

•Proving documents (annually) concerning the origin of production obtained and marketed, in order to establish the lump sum granted each year;

• Supporting documents regarding the marketed products needed to establish the contract amount annually granted in order to support the activities of setting up and operating of producers groups.




•The producers group has to respect minimal recognizing conditions and the grant receiving conditions;

•A group may receive annually one grant within this measure per recognized activity during 2004 – 2006;

• The producers groups could unroll simultaneously projects through Measure 1.1 - Improvement of the agricultural and fishery products processing and marketing or Measure 3.1 - investments in agricultural holdings.

•The beneficiary will collaborate and will forward any information required by the officials of the MAFRD, SAPARD Agency, EU Commission or by other structures authorized to check and audit the project implementation;

• The support will not be granted if the recognition is withdrawn.

• The support will be cancelled at the recognition withdrawn and it will be recovered if it is found out that the recognition and/or the granted support had a fraudulent base.


• SAPARD Agency represents the Implementing Authority in Romania;

• The delegated technical services of the MAFRD. .



MEASURE 3.3

AGRICULTURAL PRODUCTION METHODS DESIGNED TO PROTECT

THE ENVIRONMENT AND MAINTAIN THE COUNTRYSIDE

1. BACKGROUND Agriculture has had a major influence upon the rural environment of Romania. Many centuries of traditional agriculture have produced a diversified landscape and important semi-natural habitats of great national and international value. However, the intensification and specialization of agriculture, started in the second half of the last century, has more recently resulted in major losses and damage for the rural environment, including: Soil

- intensive farming has led to the decrease of soil fertility, to the diminishment of biological and genetic diversity and to an increase in the risk of environmental pollution;

- large scale fragmentation of agricultural lands has led to the impossibility of applying farm practices with beneficial effects on the environment, with negative effects on soils fertility;

- at present, about 7 million hectares of Romanian’s soils are affected by erosion, with the effect of 150 million tones of soil loss / year out of which 1.5 million tones of soil humus are lost (to this amount an area of 702,000 ha land affected by land slides has to be added). The estimated index of erosion risk varies between 24.9 m3ha/year in Transylvania and 39.4 m3/ha/year in Central Moldova Plateau, reaching the highest degree of 55.9 m3/ha/year in the Getic Plateau.

- a significant reduction in the level of soil nutrients due to the decline in good farming traditional practices with reference to the use of organic fertilizers;

- until the restitution / privatization of agricultural land, over 1/3 of the areas affected by erosion, were consolidated with anti-erosion operations, usually by ploughing across the slope. After privatization, large agricultural land surfaces have been fragmented into smaller parcels. Those small pieces of land are oriented down hill, thus making it impossible to plough across the slope. At present, in the hill and mountain area, some lands have been abandoned as a result of woodcutting, destruction or lack of access, big distances of farmers’ dwellings from cultivations and marginal arable lands. On these surfaces, soil erosion has increased and developed. In many cases, soil erosion is associated with other deteriorating processes, water excess and/or land slipping –new or reactivated- as well as derangement of water courses and lands. The preservation of natural land resources generates an urgent need for protection and fight against soil erosion, landslides and pollution. The measure must be adapted to the specific geographical conditions, soil climate and local traditions, with the aim of a sustainable development of agriculture and rural space, as well as the environment protection and landscape maintenance. Since this measure is a pilot one, 4 actions have been selected as priorities for protection against soil erosion. Causes concerning land abandon or forests cuts are presently supported by specific programs provided by the MAFRD policy.



Biodiversity

- grassland ecosystems are an important component of natural resources. They represent an important group of habitats, with an inestimable value for diversification of plants and other organisms groups. Many types of grassland are affected by agriculture, resulting in a decrease of bio-diversity in the ecosystems, and generating the need for rehabilitation and reconstruction measures. The massive intensive farming development that took place between 1945 and 1989, led to many cumulative negative outcomes, producing a derangement to plant communities structures, to specific natural resources and to these habitats presence and distribution throughout the country. During this period around 50% of grassland in Romania was affected by: conversion into arable land, use of hybrid mixtures, intense fertilization, soil erosion and over grassing land. After 1990, significant pasture surfaces depending of grazing were threatened especially by invasive species and bushy plants.

- the loss of approximately 300,000 ha of natural habitats including some of great international importance;

- the increased use of land for intensive agriculture has led to the degradation of an area of 2.4 – 2.5 mill. ha (with the consequent destruction of several ecosystems and appearance of large vulnerable areas that require a special management).

- for a sustainable preservation and utilization of grasslands, important because of their big biological diversity, it is necessary to develop special management plans that should contain specific measures of caring and maintenance, optimal harvesting of hay fields, optimal utilization of pastures during the grazing period, animals density, transport, etc.

The natural grasslands from hilly areas (300-800m) represent a survival of European importance, since the majority of such mid-altitude flower-rich pastures have been lost elsewhere in Europe. The botanical diversity of these areas is exceptional – more than 1000 plant types have been identified in the area studied under the pilot programme. These meadows and pastures are very vulnerable to abandonment and to intensification/fertilisation, either of which would rapidly damage the diversity of flora and associated flora. Water

- today, there is practically universal consensus on that intensive agriculture may well pollute soil and water by excessive use of fertilisers, pesticides and of quantitatively and qualitatively unsuitable irrigation water, especially on arable lands excessive worked.

- the polluting agents, toxic and/or harmful substances, respectively, can accumulate in quantities exceeding the maximum allowable limits in both soil and surface and ground waters. Such polluting agents include: animal husbandry wastes, urban sludge (domestic and drainage), sludge from the processing of sugar beet, flax, hemp, cellulose, etc. which may contain over maximum admissible limits, heavy metals, organochloric substances of the HCH and DDT classes, triazine, nitrogen and phosphorus compounds (nitrates and phosphates), etc. as well as various pathogens.

- nitrates may generate nitrites, which in high quantities have harmful effects on human health. Likewise, if phosphates and nitrates find their way into stagnant waters, they contribute to the occurrence and intensification of eutrophication, which leads to degradation of such waters and partial or even total destruction of the fauna by oxygen depletion and generation of noxious chemical compounds.



- the pollution of ground and surface water by agricultural activities has declined significantly and recent monitoring data show a general improvement in water quality. However, the pollution of shallow wells remain a particular problem in some areas due to the poor management of animal waste and there continue to be reports of public and private wells with unacceptable bacteriological standards and excessive levels of nitrate/nitrite.

Although water management in the agri-environment policy is very important, in the present measure framework is not included a specific sub measure on water. The sub measure regarding soil erosion and organic farming have significant positive effect on water quality. Moreover, within the National Agri-environment Programme (at present in the drafting stage), water will be presented as distinct action.

On the other hand, there are also some positive trends. As in the majority of other European countries, organic farming shows major potential for contributing to sustainable development of the agriculture in Romania. The cultivated area under organic management has grown considerably in the last years. In 2003 the total surface had trebled to 57200 ha, compared with 17438 ha cultivated in 2000. In 2004, the cultivated area under organic farming model was 75500 ha with an increase of 31 % compared with 2003. The natural pastures from mountain area, situated at up of 800 meters altitude occupies a surface of 1562 thousands ha, representing 32 % of the total surface of the pastures. These surfaces are principally used for grazing or mowing. From this surface, 200 thousands ha are situated over 1500 m altitude. The majority of the mountain pastures from Romania remained in a situation close by that natural and has been characterized by a great biological diversity including numerous local species. Upon accession to the EU, Romania shall implement a National Agri-environment Programme as part of the acquis communautaire implementation. Measure 3.3 of the National Plan for Agriculture and Rural Development, with its pilot actions, gives an important contribution to this process and represents an important step towards the elaboration of National Agro-Environment Program. Within this measure and in accordance with the objectives of NPARD, it is promoting those agricultural practices which are friendly to the environment by applying methods that preserve soil, natural resources, species diversity, landscape and traditional characteristics. 2. OBJECTIVES

General objectives The general objectives of the measure are to:

• promote the introduction and continued use of agricultural practices that are environmentally-friendly and which are going beyond the Good Farming Practices, referred to in Annex no. 3;

• develop practical experiences, skills and abilities for implementing agri-environment measures, at both administrative and farming level;

• enhance the environmental awareness of farmers. Specific objectives

Support granted within this measure will promote:



• Prevention and reduction of water and land pollution that commonly results from bad agricultural practices;

• Conservation of soil in those areas affected by erosion, through the prevention of soil loss and the maintenance of soil fertility;

• Preservation of biodiversity and semi-natural environment, by encouraging the utilization of traditional agriculture practices;

• An increase in the area of land where organic farming standards are fulfilled


• The support will be granted to the farmers in the form of a compensatory payment for: undertaking pilot sub measures for organic agriculture, soil preservation, protection against erosion and the conservation of bio-diversity through traditional practices.

3. CORRELATION WITH OTHER MEASURES

This measure will work with other measures of the National Plan for Agriculture and Rural Development to support the implementation of integrated rural development in Romania. This measure has potential linkage with the following measures:

• Measure 3.5 Forestry sector through adequate development and re-afforestation and afforestation of degraded agricultural lands;

• Measure 1.1 Improving of processing and marketing of agricultural and fisheries products through increasing their quality and environmental performance;

• Measure 1.2 Improving the structures for quality, veterinary and plant-health controls, foodstuff quality and consumers protection for promotion of quality products and food safety;

• Measure 3.4 Development and diversification of economic activities providing for multiple activities and alternative income that increase employment in rural areas, through the application of extensive methods with high consumption of manual labour and diversification of the production by including the ecological component;

• Measure 3.1 Investments in agriculture holdings through the improvement of the environmental performance of the farms, their hygienic conditions and standards of animal welfare;

• Measure 3.2. Setting up producers groups, specially for organic products;

• Measure 2.2 Management of water resources through the protection of water quality and/or through reintegration of waters in its natural regime;

• Measure 4.1 Improvement of vocational training through introduction of the objectives of agri-environmental measures in the training programs;

• Measure 4.2 Technical assistance. One of NPARD goal is that all SAPARD measures to respect the verifiable standards comprised in Good Farming Practices. The list of the activities subject to an Environmental Impact Assessment in view of issuing an environmental visa and/or authorisation, in accordance with Law no. 137/1995, republished in 2000



Measure No.

Activities subject to an Environmental Impact Assessment

1.1 1.2 2.1 2.2 3.1 3.2 3.3 3.4 3.5


x


x




x

6 Buildings and equipment for breeding farm animals, with capacities over:

100 places for bovines for meat 500 places for pigs for meat 6 000 places for laying hens 6 000 places for chicken for meat 1 500 places for turkeys for meat

x

7 Equipment for sorting, treatment, recycling, incineration of waste x x

8 Warehouses for liquid, solid and past-like waste x x x



11 Clearing of forest vegetation outside the lands covered by forest x



The list of the activities subject to an Environmental Impact Assessment in view of issuing an environmental visa and/or authorisation will be completed by the central authority for environmental protection (MWEP), which will add to it any new activity, unknown at the time when the list was drawn up. A screening procedure to appraise the likely environmental impacts of the projects will be undertaken, involving the competent authorities, in all cases where any significant impact might reasonably be anticipated. It will decide whether an Environmental Impact Assessment (EIA) must be carried out or not. This screening procedure may be based on a case by case examination or on threshold criteria, which will be made available to the Commission. In any case, the projects listed in annex I and II of the Directive 97/11 (amending directive 85/337) will be subject to an EIA An agreement on the project by the competent environmental authority (including local level) must be provided for those projects where a significant negative impact on the environment could reasonably be anticipated and in particular for those covered by measures 1.1, 1.2, 2.1, 2.2, 3.1, 3.4 and 3.5. Information should be given on the potential negative environmental effects of the project (e.g. land use, chemical use, emissions, atmospheric, water and soil pollution) and the method of their attenuation particularly in the environmental sensitive areas. This measure can also be considered, in the long term, as an instrument for supporting the implementation of other components of the acquis communautaire that have an impact on the relation between agriculture and environment in Romania – especially with regards to the Nitrate Directive, the Water Framework Directive, Bird and Habitats Directives and obligations associated with Natura 2000. 4. FIELD OF ACTION OF THE MEASURE

The measure consists of a number of voluntary, pilot activities that farmers will be invited to participate in return for annual payments for a period of 5 years. The resulting “management agreement” will take the form of a contractual obligation



signed by the farmer and SAPARD Agency. Each management agreement will be specific for each participating farmer. Within the framework of this measure the following three pilot sub-measures will be offered to farmers: - A: Preservation of soil and protection against erosion - B: Preservation of biodiversity through traditional agricultural practices - C: Organic farming

Depending upon the geographical scope of the sub-measures (see Chapter 10), farmers can participate in one or more of the pilot sub measures and related activities in the same time.

Combination of activities

Possible combinations of the agri-environmental sub-measures on the same parcel of land are shown in the table below.

Preservation of soil and protection against erosion

Preservation of

biodiversity through

traditional agricultural

practices

Organic farming

A1 A2 A3 B1 B2 C1 C2 C3 C4 C5

A1 - - - - - - - - +

A2 - + - - + + + + -

A3 - + - - + - - + -

B1 - - - - - - - - -

B2 - - - - - - - - +

C1 - + + - - - - - -

C2 - + - - - - - - -

C3 - + - - - - - - -

C4 - + + - - - - - -

C5 + - - - + - - - -

“+” possible combination; “-” impossible combination.

Where different sub-measures are combined, the total support payments per hectare must not exceed the maximum amounts established in the Annex of Council Regulation 1783/2003. This will be checked during the processing of applications received from farmers by the SAPARD Agency. It is anticipated that similar sub-measures, and more, will be proposed for the National Agri-Environment Programme that will be implemented upon Romania’s accession to the EU. All participating farmers will be required to undertake relevant training in the field of environmental protection and technologies against pollution. Farmers participating in sub-measure C: Organic Farming will undergo additional training. All training will be offered within the framework of measure 4.1– improvement of vocational training for the successful implementation of measure 3.3. The legal framework for the



professional training of adults in Romania is regulated by the Government Ordinance no. 129/2000 regarding the professional training of adults, approved by Law no. 375/2002. Two categories of courses will be organised as follows:

• Training courses of 1 week maximum and a number of students between 25 – 50 persons/modulus for achieving of the theoretical and practical knowledge about pilot measure and sub-measures;

• Specialized courses of management (i.e. sustainable management of the water resource with agricultural use linked with reconstruction and conservation of environment quality in the rural zones), marketing, drawing of environment plans at farm level, bookkeeping, etc.

The content of the training courses will be organized after measure 3.3 is accredited and will have the following objectives:

• Improving the professional training of farmers for the application of environment protection methods and environmentally-friendly production practices;

• Improving the professional training of farmers for increasing management and marketing knowledge necessary for the administration of a viable business based upon environmentally-friendly production practices;

• Improving knowledge of verifiable standards of “Good Farming Practice” that must be followed.

Implementation of the training will be ensured by Rural Development Directorate (RDD) within the Ministry of Agriculture, Forests and Rural Development (MAFDR) and by the National Agency of Agricultural Consultancy (NAAC). - RDD will coordinate training courses implementation, including the elaboration of administrative procedures, establishing the allocated budget for each training course and setting the objectives of training program, drawing up the standard fiches for training offers as well as organising and participating in the evaluation and selection of received offers from the training providers. Also, RDD will ensure the control of training programme implementation and of payment documents. - NAAC will participate to the drawing up of the reference terms for each training course, will participate in the evaluation and selection of received offers, will ensure the documents verification and on the spot checking. In the framework of this measure, the following actions are eligible:

Sub-measure A: Preservation of soil and protection against erosion

Objectives

The objectives of this sub-measure are to:

• reduce the risk of soil loss from agricultural land due to severe water and/or wind erosion

• maintain or enhance soil fertility by encouraging the use of appropriate crop rotations

Requirements Within this sub-measure the following actions are eligible:



• A1.Transformation of arable land into pastures (grassland). The utilization of arable land with a mixture of perennial grass, with the exception of weeding. (The

obligatory grass mixture will be recommended for each location taking into

account the volume and distribution of the rainfall and the pedological

conditions). Grazing is not allowed in the first year - actions going beyond of the Good Farming Practices. In the following years, rational grazing is allowed in such a way that annual re-generation of the pasture is ensured. No use of mineral fertilisers and pesticides are allowed - actions according with Good Farming Practices.

• A2. Establishment of grass strips on sloping land (applicable on perennial crops when the land inclination is bigger than 8%).Establishment and maintenance of grass strips oriented towards the general direction of the level contour. For areas where average annual rainfall is over 650 mm, the strips will be orientated downhill at 1-1,5 % compared to the level contour to create water outlets - actions going beyond of the Good Farming Practices . The grass strips will not be grazed and no pesticides or chemical fertilizers will be allowed on the grass strips - actions according with Good Farming Practices. The minimum width of strip is 5 m. The maximum distance between grass strips is 80 m- actions going beyond of the Good Farming Practices.

• A3. Establishment of green cover crop on arable land after harvesting. A green cover crop that will be used as fodder/green manure must be established within 30 days after harvesting the main crop. Cover crops used as green manure or fodder must not be ploughed-in or harvested more than 2 weeks before the next crop is sown. Specific mixtures of annual crops have to be used (graminae, leguminous, rape, mustard, etc.) The green cover crop must be established by shallow cultivation. Ploughing will not be allowed- actions going beyond of the Good Farming Practices

Expected impact

It is expected that the implementation of these actions will:

• reduce the risk of soil loss due to water and wind erosion

• diminish the risk of water pollution caused by soil erosion and nutrient leaching

• reduce the risk of rivers clogging and flooding due to soil erosion

• improve soil fertility by improving soil organic matter content and protecting against the risk of soil degradation

• enhancing the biodiversity of cultivated agricultural land

Payment rates

A1. Transformation of arable land into pasture (grassland)

1° year: 217€/ha/year Following years: 91 €/ha/year

A2. Establishment of grass strips on sloping land

(the payment is only for the area of the strips)

1° year: 245 €/ha/year

Following years: 193 €/ha/year

A3. Establishment of green cover crop on arable land after harvesting

129 €/ha/year



Sub-measure B: Preservation of biodiversity through traditional agricultural

practices Objectives

The objective of this sub-measure is to encourage the maintenance and the adoption of traditional farming methods to promote the conservation of biological diversity in two contrasting semi-natural habitats:

• halt biodiversity losses

• specific traditional crops grown (rice)in the lowland areas of the Danube floodplain

• the meadows and pastures of the Carpathian mountain and the intra-Carpathian hills

Requirements Within this sub-measure the following actions are eligible:

• B1. Maintenance of temporary flooded areas by the traditional cultivation of rice. This will include the introduction of crop rotations with at least 33% rice crop - actions going beyond of the Good Farming Practices and no use of mineral fertilizers containing nitrogen-actions according with Good Farming Practices.

• B2. Preservation of mountain and intra-Carpathian hills pastures and meadows by ensuring a rational utilization (with at least 0.3 and maximum 0.5 livestock unit/ha -actions according with Good Farming Practices; avoiding erosion effects through re-seeding with indigenous species; maintaining by mowing, at least once a year (not before June 15th ); prevention of soil acidification through leaving 20 % of the pastures unutilized by turns for a period of one year- actions going beyond of the Good Farming Practices and no fertilization with mineral fertilizers and no application of pesticides or insecticides- actions going beyond of the Good Farming Practices.

Expected Impact It is expected that the implementation of these actions will:

• partially restore the traditional rice cultivation in the Danube floodplain leading to increases in the diversity and abundance of valuable flora and fauna, reductions in soil degradation, and the creation of local socio-economic benefits due to increased employment opportunities in the specialised labour force required for rice production;

• preserve the nature value and traditional mountain landscapes of the Carpathian mountain and intra-Carpathian hills, with positive benefits for both biodiversity and tourism;

• eliminate over grazing of mountain and intra-Carpathian hills pastures with subsequent increase of vegetal coverage level, decrease of alien species as a result of the decrease of chemical substances (azoth) in soil, decrease of the plants habitat disturbance plants habitat, by keeping an optimal vegetal density.

Payments rates

B1. Maintenance of temporary flooded areas by the traditional cultivation of rice

206 €/ha/year

B2. Preservation of mountain pastures and meadows 95 €/ha/year



Sub-measure C: Organic farming

Objectives

The objective of this sub-measure is to:

• support the development of organic farming as an environmentally-friendly method of food production in five selected pilot areas

• satisfy the growing demand for organic products (notably in the export market) and promote the development of a domestic market

• support and increase the competitiveness of organic farming in five selected pilot areas

Requirements Within the framework of this sub-measure, the following actions are eligible:

• conversion to organic farming production methods

• on-going maintenance of existing organic farming production methods Since this is a pilot action, support will be limited to the following crops that are considered of economic significance and (where appropriate) have good market potential:

- C1. vegetables; - C2. fruits; - C3. aromatic and medicinal plants;

- C4. fodder crops (forage barley) - C5. natural pastures. In Romania in 2004, 26% vegetables land from total arable land and 13.5% fruit land from agricultural land was used in a conventional way, by using fertilizers, pesticides, etc. Due to the lack of financial support the majority of fruit and vegetable producers do not utilize chemical substances and fertilizers in the production process. As a result, they can very easily convert to organic production. In order to encourage the ecological milk production, natural pastures were selected, as an action within this sub-measure. There are 4 green forage processing units at this moment that produce certified forage for cattle feed. In Romania, there are processors using medicinal and aromatic plants obtained from domestic crop as well as from natural grown plants. Bearing in mind that some of these processed products are used as nutritional as well as phyto-therapy products, it is preferable that these products are cultivated within an organic system. The support payment offered is intended to compensate farmers for:

- the production losses during the conversion period; - the production losses associated with the avoidance of chemical substances

used as fertilizers and pesticides; - the influence of modifying crop rotation; - the increased labour costs and use of mechanical works for weed control etc.; - additional expenditure for the certification of products.

The compensatory premium for conversion will be granted for the conversion period as long as the production is certified.



• Farmers who request the compensatory premium have to respect the organic production rules according to national legislation in force, and should: a) have the qualification of organic farming producer (recording card approved

by DARD and advised by MAFRD) and have a contract with an inspection and certification body accredited by MAFRD (Minister Order no. 527/2003), regarding control and certification;

b) organic product certification issued by a control body accredited by MAFRD (for certified farmers).

The national legislation is entirely harmonised with the community legislation (CEE Regulation no 2092/1991) and the necessary institutional structure was created in order to implement this legislation (Chapter VII of NPARD – Legislation Annex. Expected Impact Implementation of this sub-measure is expected to:

• reduce the environmental and health risks of using organic fertilisers and crop protection products, and to help maintain soil fertility and to increase the biodiversity.

• increase the cultivated area under organic production in order to create a domestic market for organic products with quality guaranteed by accredited certification and inspection organisations as well as to develop export opportunities;

• increase the added value of organic products. Payments rates

C1. Vegetables 329 €/ha/year - conversion period

273 €/ha/year - certificated situation

C2. Fruits 320 €/ha/year- conversion period

181 €/ha/year - certificated situation

C3. Aromatic and medicinal plants 287 €/ha/year- conversion period

190 €/ha/year- certificated situation

C4. Fodder crops (forage barley) 123 €/ha/year- conversion period


C5. Natural pastures 35 €/ha/year- conversion period



General

•The support shall be granted to potential beneficiaries who enter voluntarily in agri-environmental scheme and sign a commitment to apply the obligations regarding the agri-environmental measures for a period of five years.

•Potential beneficiaries shall present a whole farm agri-environment plan.

•Also the potential beneficiaries shall prove keeping of farm records and prepare the farm accounts (detailed within the implementation procedure).

•Potential beneficiaries shall prove the ownership of the land, through a leasing contract, concession contract or any other document justifying the right of using the land, according to the legislation in force for a period of 5 years since the application



for the compensatory premium through measure 3.3 for undertaking agri-environment action. The applicant must submit cadastral plans or maps of the whole land area he is responsible for farming, not only that land for which he is requesting financial support under this measure. If his application is successful, the beneficiary of this measure must then follow the verifiable standards of Good Farming Practice (Annex 3) on all the land he is farming. This cadastral plan or map may be requested from the local Mayor's office (local council office) and must be approved and provided by the County Offices of Cadastre and Immovable Publicity. This is an obligatory document which will support the work of the control body to establish a transparent and reliable control system.

•The legal and/or the technical manager of the project must prove professional experience related to the action by the copy of: study diploma or a document proving of minimum 3 years professional experience in the area (copy of the workman’s pass) and a written commitment that he or one of his employees will follow a training course within the Measure 4.1 (improvement of vocational training) before the first payment of the aid.

• The beneficiary must give his written approval that he/she will share information about the agricultural production methods designed to protect the environment and to maintain the countryside, at the request of other agriculture producers and will organise meetings within the farm (demonstrative farm) for other agriculture producers interested in the project in order to disseminate the information of the project results

•As eligibility condition, the verifiable standards of the GFP (referred to in Annex 3) have to be respected on the whole farm surface. All farmers participating in the pilot project will be required to comply with standards of the Good Farming Practices across the whole of their farm surface. Since land ownership is very fragmented this effectively means following the Good Farming Practices on all land that is owned and farmed by participants in the pilot activities. These are the minimum requirements for the farmers. This avoids the risk that the farmers will receive payments for part of their farm, while damaging the other part. The approach proposed for introducing the Good Farming Practice within the agri-environment measure for Romania is based upon 3 key elements:

• environmental legislation - obligatory for all farmers in Romania

• Verifiable Standards of Good Farming Practice - obligatory for all farmers participating in the agri-environmental scheme

• Additional recommendations for Water Protection - which are recommended for all farmers participating in the schemes but not obligatory.

Romania has already a draft of Code of Good Agricultural Practices (CoGAP) approved by Minister Order no. 918/2002, published in 2003, prepared according to the Framework Content indicated in Annex 3 of Governmental Decision No. 964 (October 13, 2000) to approve the Action Plan for water protection against pollution with nitrates from agricultural sources.

The Code of Good Agricultural Practices (CoGAP) is an advisory publication that “aims to recommend the most useful practices, measures and methods that may be applied by each farmer” in order to protect the environment.

The Code of Good Agricultural Practices (CoGAP) includes the definitions of the organic and conventional agricultural systems; principles and recommendations of the Code for biodiversity, water resources, water run-off and soil erosion; compaction



and soil structure destroyed, the application mode for organic and chemical fertilizers ; fertilizing plans and the register of using fertilizers evidence in farms; measures and works of conservation and improvement of the soil quality; plant protection and wastage regime.

Specific Sub-measure A. Preservation of soil and protection against erosion

For this sub-measure 1 ha is the minimum area of land for which the compensatory premium is given, and the maximum is 50 ha, for which it is compulsory to respect the requirements actions. Farmers in the pilot areas will be eligible for this sub-measure according to the following criteria: 1) the slope of the land is over 8%; 2) a minimum 50 % of land surface is affected by erosion. For these criteria is used a soil mapping (carting) with erosion soil location. This mapping (carting) will be provided by the County Office of Pedologycal and Agro-Chemical Studies. Sub-measure B. Preservation of biodiversity through traditional agricultural

practices

For this sub-measure 5 ha is the minimum area of land for which the compensatory premium is given, and the maximum is 50 ha, for which it is compulsory to respect the requirements actions. Sub-measure C. Organic farming For this sub-measure, the minimum and the maximum areas for which the compensatory payments are given, are as follows:

� C1. vegetable: 0,1 – 1 ha; � C2. fruits: 1 – 10 ha; � C3. aromatic and medicinal plants: 0.1 – 2 ha; � C4. fodder crops (forage barley): 0.5 – 10 ha; � C5. natural pastures: 2 – 30 ha.

For the all five actions, the farmers shall respect the requirements for each action under this sub measure. Farmers who request the compensatory premium have to respect the organic production rules according to national legislation in force, and should:

a) have the qualification of organic farming producer (recording card approved by DARD and advised by MAFRD) and have a contract with an inspection and certification body accredited by MAFRD, regarding control and certification;

b) organic product certification issued by a control body accredited by MAFRD (for certified farmers).

6. SELECTION CRITERIA Due to the pilot character of the measure and taking into account the limited total budget and each sub measure, the beneficiary compensatory premium will be ensured



based on the principle “First in, first served”, according to the arrival of the application form at the SAPARD Agency, with the condition that the beneficiaries do respect exactly the requirements of this measure (SAPARD Agency has an unique numbering system on national level). 7. BENEFICIARIES Beneficiaries can be landowners or persons that will have rented land, concession or any other document justifying the right of using the land, according to the legislation in force for a period of at least 5 years within the geographical regions (pilot areas) listed in chapter 10. They may have the following organizational status:

•Individual producers - physical persons;

•Agricultural associations without legal status;

• Producers groups;

• Family association with legal status;

•Private commercial and agricultural companies with at least equal/more than 75 % private capital.

8. NATIONAL LEGISLATION IN FORCE

•A list of normative documents in force, relevant to the present measure and sub-measures is presented in the NPARD – Chapter VII – legislative Annexes. 9. FINANCIAL DISPOSITIONS

• The compensatory payments granted in the framework of this measure are 100% public expenditure, out of which: – 75 % European Community contribution

- 25% national public contribution.

• The compensatory payment for farmers will be paid annually, as a flat rate expressed in EURO and it is calculated on the basis of:

- net cost increased as a result of fulfilling the requirements of the agri-environment sub-measure adopted (total additional costs, minus savings)

- estimated income loss caused by fulfilling the requirements of the agri-environment sub-measure adopted

The payments to farmers will be granted in national currency (ROL). These payments may fluctuate during the period of five years, according with the exchange rate in each year.

• Farmers will receive compensatory payments only for extra expenses or losses associated with the actions of agri-environment that involve activities above and beyond the verifiable standards of “Good Farming Practices” and additional actions defined in Annex 3.

• Annual compensatory payments will be granted when a beneficiary submits a payment claim and provides a written declaration in order to respect their management agreement requirements.



• Cases of force majeure which can occur in the development on agri- environmental action are mentioned in the Chapter 14 - Financing conditions. ESTIMATED BUDGET ALLOCATION PER SUB MEASURE

SUB MEASURE %

Preservation of soil and protection against erosion

40

Preservation of biodiversity by traditional agriculture practices

20

Organic farming 40

TOTAL 100

The indicative budget of this measure, separated by years, is presented at Chapter 6. Financial Allocations for the SAPARD measures, page 358 from NPARD. 10. GEOGRAPHIC COVERAGE

Due to the pilot character of the measure, each sub measure has been selected based on specific selection criteria: SELECTION CRITERIA FOR PILOT AREAS

SUB MEASURE ACTION SELECTION CRITERIA

A: Preservation of soil and protection against erosion

A 1Transformation of arable land into pasture (grassland)

A 2 Establishment of grass strips on sloping land (the payment is only for the area of the strips) A 3 Establishment of green cover crop on arable land after harvesting

- areas with highest erosion coefficient

B: Preservation of biodiversity through traditional agricultural practices

B1 Maintenance of temporary flooded areas by the traditional cultivation of rice

- agricultural potential due to geographical specific conditions - tradition in the rice crops

B2 Preservation of mountain and intra-Carpathian hills pastures and meadows

- management plan available, agreed with grassland owners -high value and floristic diversification, including major representative varieties of spontaneous meadow flowers - good data base available

- C: Organic farming C1. Vegetable C2. Fruit C3. Aromatic and medicinal plants C4. Fodder crops (forage barley) C5. Natural pastures

- percentage of agriculture used surface in organic farming - coverage grade of selected crops under the measure - previous experience for organic farming practices



The sub-measures detailed above are pilot agri-environment actions and will be located as follows: � Sub-measure A: “Preservation of soil and protection against erosion” - from a total of 42 Romanian counties soil erosion in excess of acceptable levels is found to occur in 34 counties. Taking into account the form and intensity of soil erosion observed it is proposed that the implementation of Sub-measure A should be piloted in the following seven counties: Vrancea (17 tones/ha/year), Alba (14.3 tones/ha/year), Prahova (14.2 tones/ha/year), Dambovita (14 tones/ha/year), Valcea (12 tones/ha/year), Buzau (12 tones/ha/year) and Bacau (12 tones/ha/year) (see map in Annex no.2a). According with the published data at 31 December 2003 the agricultural surface of Romania is of 14717.4 thousand hectares, from which those 7 selected counties have 2077.4 thousand hectare (14%). In these counties the affected surface by erosion represents 54 % from total agricultural surface affected by erosion 1114.8 thousand hectares, as in the following table:

From which affected by erosion: County Agricultural surface at 31 Dec. 2003

Agricultural surface

affected by erosion

Inconsiderable with danger of accentuation

Moderate – Intensive

Very intensive – excessive

% from

total agricultural

surface

1). Vrancea 255,6 101,7 17 21,8 62,9 0,40

2). Alba 328,3 210,4 104,8 85,5 20,1 0,64

3). Prahova 271,6 134,7 59,1 38,5 37,1 0,50

4). Dâmboviţa 249,3 84,9 32,6 39,5 12,8 0,34

5). Vâlcea 246,3 181,5 111 58,3 12,2 0,74

6). Buzău 402,9 176,6 54,6 72,8 49,2 0,44

7). Bacău 323,4 225 117,9 104,5 2,6 0,70

TOTAL 2077,4 1114,8 497 420,9 196,9 0,54

Source: MAFRD, 2003

� Sub-measure B “Preservation of biodiversity through traditional agricultural practices” – for the pilot action “Maintenance of temporary flooded areas by traditional cultivation of rice” a total of seven counties adjacent to the River Danube are selected as pilot areas: Braila, Ialomita, Calarasi, Constanta, Teleorman, Olt, Dolj (see map in Annex nr. 2b). Our country is situated in the northern limit agriculture area, reason for which, rise cultivation is concentrated only in the areas considered to be favorable, in the South and Southeast of the Romanian lowland, in the near vicinity of the Danube. In this area, for a period of 150-160 days per year (April 20th and October 10th), the sum of

average temperature above 0° C of about 2800-3200° C, and a light intensity of over 1200 hours. The rise farms are using low productive soils, aiming at the optimum use of those lands and improving the quality of the saline and alkaline lands. The partial lack of use from those lands lead to an increase in the saline and alkaline content of those lands (after 3 years of being kept out of use those agriculture facilities will decay to the initial status of law fertility, being unusable for agriculture activities).



For Bistrita, Ialomita, Calarasi, Constanta, Teleorman counties the main water source for rise growing facilities is the Danube, and for other counties the main water sources are represented by the inland waters and rivers: Jiu river for Dolj county, Olt river for Olt county and Teleorman county.

These counties provide : - Proper climate conditions for rice production, average summer isotherma is

21-22º C and termical parameter is between 2800-3200º C ; - Rice surfaces concentration in large areas; - Water existence guarantee, being near by water sources.

From the social situation point of view, within these areas, a tradition has been developed, in terms of vocational training. There are specialists trained for running perpetually the existing structures. For the pilot action, “Preservation of mountain and intra-Carpathian hills pastures and meadows” the National Park Retezat and the proposed Natura 2000 area of SE Transylvanian mid-altitude grasslands are selected as pilot areas (Sibiu, Braşov and Mureş county). These two pilot areas offer a useful contrast in agri-environment management: one mountain area with few habitations, mostly used for sheep grazing, currently a protected area, and one lower-altitude area with a larger number of habitations, that has exceptional floral diversity in grasslands but is currently not a protected area. Both areas have management plans accepted by local farmers. The National Park Retezat is delimited into 3 functional zones: zone with strict protection, zone with special protection and buffer zone. The buffer zone is selected as the pilot area since this is the area in which economic activities are permitted, including traditional agricultural activities by land owners. The National Park Retezat (buffer zone) is situated within the administrative boundaries of the following three counties: Hunedoara, Gorj and Caras Severin (see map in Annex no.2b). The main objective of the Retezat National Park Biosphere Reservation is the preservation of the biological diversity. Also, it aim is to avoid and to prevent the use, and exploitation of the natural resources not complying with its preservation objective, as well as ensuring the necessary conditions for educational, recreation and scientific research activities. Traditional activities are allowed, as long as they are undertaken by the landowners, with the approvals of the administration of the Retezat National Park (RNP). The land surfaces in the RNP have the following structure, depending on the way they are used: 49% forest and 51% mountain area, including mountain pastures, juniper trees and rocks. After 1990, the socio economical conditions and the restitution of land to original owners, lead to a change in attitude of land owners and users, the pressure towards the natural resources of the park increasing in a significant way. The pastures mountain area represents especially important area, containing most of the mountain flora species. The biggest threat towards the Retezat National Park flora is the over pasturing.



The proposed Natura 2000 area of SE Transylvania is an area of 95000 ha, including 10 communes and 30 small villages. Approximately 18% of the area is pasture, 20% is meadow, 38% is forest, 25% arable. Scientific studies of the area show that it is High Nature Value, supporting a rich diversity of flora and fauna including many internationally threatened species, including numerous Habitats Directive Annex II, II* and IV fauna and flora species, and over 40 Birds Directive Annex I species. More than 50 plant species are related to domesticated European plants, and represent important agro-biodiversity. Traditional methods of grazing and haymaking have led to the development of the grasslands which cover much of the project area. The species-rich grasslands contain a mixture of Carpathian, steppe and Mediterranean flora. More than 1000 plant types have been recorded in the area, over 30% of the entire Romanian flora. Many of these plants and the communities in which they occur are EU Habitats Directive. The wildflower meadows are also a genetic resource for future selection of forage crops, especially sainfoin, clovers and other legumes. Drier grasslands contain more than 20 species on the Romanian Red Data List and at least nine listed on Appendix 2 of the EU Habitats Directive. � Sub-measure C “Organic farming” – this will be available in five counties: Suceava (12.4 thou. ha), Galati (16 thou. ha), Timis (7.4 thou. ha), Calarasi (8 thou. ha), Arad (3 thou. ha)( see map in Annex no. 2c). Suceava - situated in the North East part of the country, with an agriculture surface of 349.9 thousand hectares, of which 180.5 thousand hectares are arable land, with 469 farms, of which 29 are crop and vegetable production. This area supplies the necessary food resources for the consumers. The natural pastures within this area provide the opportunity to raise animals in an environmental friendly way. Galati - situated in the South – East area, with an agricultural surface of 358.7 thousand hectares, of which 289.1 thousand hectares are arable land, with 20808 farms of which 523 vegetal productions. This area retains good conditions for vegetable, wine, crops and fruit plantations. Arad - situated in the west part of the country, with fertile soils of cernoziom with an agricultural surface of 511.6 thousands hectares of which 348.9 thousand hectares of arable land, with 7434 farms, of which 483 on vegetal production, very variable from economic point of view. Timis - situated in the west part of the country, with ceronsiom soil mainly, with an agricultural surface of 702.1 thousand hectares and arable surface of 533.1 thousand hectares, well organised in 9124 farms of which 2717 in vegetal production. This area is adapted to crop, oil plants, vegetable and fruit production. It is a well-developed economic area, with real capacity to provide the necessary food for the consumers. Calarasi - situated in the southeast of the Romanian lowland, with cernozim soil, very adapted to agricultural cultures. It has an agricultural surface of 426.8 thousand hectares, with an arable surface of 416.2 thousand hectares. It is a well-organised area, with 29084 farms, of which 28870 farms in vegetable production.

11. OUTPUT, RESULT AND IMPACT INDICATORS The monitoring and evaluation of the progress and performance of the measure will be an important priority and will be carried out as much as possible in accordance



with relevant EU reporting procedures. It is recognised that information and understanding of the uptake and impact of this pilot agri-environment measure will be necessary for effective development of the future national agri-environment programme. MAFRD will develop appropriate monitoring and evaluation procedures, including the selection of competent organisations. Output indicators (and Targets) – corresponding to operational objectives of the measure

Target

• Total number of agri-environment agreements: 600

Of which:

• Sub-measure A: Preservation of soil and protection against

erosion

250

• Sub-measure B: Preservation of biodiversity trough traditional agricultural practices

100

• Sub-measure C: Organic farming 250

• Total area (ha) of land in agri-environment agreement: 19100

Of which:

• Sub-measure A: Preservation of soil and protection against

erosion

7000

• Sub-measure B: Preservation of biodiversity trough traditional agricultural practices

3500

• Sub-measure C: Organic farming – of which: 8600

Vegetables 1500 Fruits 600 Aromatic and medicinal plants 300 Fodder wheat 2000 Natural pastures 4200 Result indicators – corresponding to specific objectives of the measure


• Area of land with management agreement as percentage of total land in pilot areas which is vulnerable to soil erosion

Sub-measure B: Preservation of biodiversity trough traditional agricultural

practices

• Area of land with management agreement for temporary flooding as percentage of total land in pilot areas suitable for rice cultivation

• Area of land with management agreement for pasture management as percentage of total area of mountain and hilly area grassland in pilot area

Sub-measure C: Organic farming

• Increase (%) in the total number of certified organic farmers

• Increase (%) in the total area of land under certified organic management

• Number of farmers converting to organic farming production methods



Impact indicators – corresponding to general objectives of the measure

Appropriate impact indicators for measuring the longer term environmental and socio-economic effects brought about by the measure will be developed as necessary and within the limits of available resources and expertise. The first drafts of these indicators are as follows:

General objective of measure

3.3

Indicator

Promote the introduction and continued use of environmentally friendly agricultural practises

As all participants follow obligations of GFP on the whole farm plus have a management agreement, the amount of participants of the measure as part of the whole farmers population of the relevant pilot area indicates the success and the same goes for the surface involved as part of the agricultural used area of the pilot area.

Develop practical experience for implementing AEP on administrative and farming level

Once measure 3.3 put into practise, the developing of experience on administrative and farming cannot be stopped. The quality of the NAEP which is now under construction indicates to what extend the learning ambition of SAPARD measure 3.3 will be realised

Enhance the environmental awareness of farmers

As GFP is part of measure 3.3, the general environmental awareness of farmers will rise as this programme will be put into practise. One indicator is the amount of farmers actually participating in the project as part of the total relevant population (pilot area). Another indicator is the spreading of the good experiences of the 3.3-participants to the other farmers and the positive effect this will have on participation of the NAEP.

12. PROGRAMME PROMOTION

The potential beneficiaries will be informed about the existence / conditions of the eligibility for the measure through:

• Publicity in media: - TV broadcasts will ensure good national coverage for launching the measure and providing information of general interest to potential beneficiaries. - As the measure is unrolled and quantifiable uptake by farmers is obtained, TV broadcasts will continue to present the successful results of the measure. - In the radio broadcasts; - In the local newspapers and the special interest magazines;

• Publishing and distribution of the Applicant Guide for Measure 3.3;

• Distribution of leaflets, booklets of information (SAPARD Informational Bulletin type);

• Local seminaries organized in the pilot areas indicated at Chapter 10 “Geographical Coverage”



• Meetings with SAPARD Agency, MAFRD, NAAC represents and the potential beneficiaries 13. SUPPORTING DOCUMENTS The potential beneficiary shall attach the following documents to the financing application:

• A whole farm agri-environment plan during the period of project implementation.

• A commitment on the respecting of the obligations as defined by agri-environmental measure during 5 years.

• Justified documents on keeping of farm records and preparation of farm accounts.

• Copy of the ownership deed over the land, the leasing contract, concession contract or any other document justifying the right of using the land, according to the legislation in force.

•Cadastral plans or maps of the whole land area, themselves administrated, and not only to surface for which they requested financial support under this measure. If his application form is approved, the beneficiary has to fulfil verifiable standards of good Farming Practice (Annex 3) across the whole administrated agriculture surface. This cadastral plan or map may be request from the local Mayor’s office (local council office) and must be approved and provided by the County Offices of Cadastre and Immovable Publicity.

• The legal and/or technical manager of the project must prove professional experience related to the project by the copy of: study diploma or a document proving a minimum 3 years professional experience in the area (copy of the workman’s pass) and written commitment, on the date of financial claim submission, that he/she or one of his/her employees will follow a training course within the Measure 4.1 (improvement of the professional training) graduating before the first payment of the compensatory premium.

• Certificates that the beneficiary of the project has no outstanding obligations to the state budget;

• The statement on own responsibility showing that the applicant does not benefit of financing by other programmes for the projects that make the object of the SAPARD assistance;

• Certificate showing that the responsible of the project has a honest judiciary record;

• Written Commitment of the beneficiary that he/she will accept the control of the project at the authorised bodies' request;.

• For Sub-measure C (Organic Farming) – a) the recording card approved by DARD and advised by MAFRD, b) evidence of a contract with an organic inspection and certification body accredited by MAFRD; c) the certificate of organic product issued by a control body accredited by MAFRD (for certified producers).

• Written Commitment of the beneficiary that he will organise meetings within the farm (demonstrative farm) for other agriculture producers interested in the project for information dissemination of the project results. 14. FINANCING CONDITIONS Participation in the pilot agri-environment measure will be voluntary for farmers, but once accepted they will sign a commitment for a period of 5 years. Payments will only be made to those beneficiaries that carry out their farming activities according to the terms of their agri-environment management agreement.



The SAPARD Agency will implement an effective control system for the agri-environment measure with the objective of a) ensuring that the measure achieves its overall objectives; b) preventing fraud or over-payments; c) ensuring compliance with the relevant national and EU regulations regarding the use of SAPARD co-financing, and; d) providing data for monitoring the actual uptake of the pilot sub-measures at farm level. In accordance with EU norms there will be two type of control applied to the agri-environment measure: administrative control and ‘on-the-spot’ checks. The administrative control will comprise a full check of all documents presented by the beneficiary before any payment to be made.

The purpose of ‘on-the-spot’ checks is to verify all provisions of the management agreement which may be controlled at the time of inspection, including compliance with the verifiable standards of Good Farming Practice. Sanctions and Penalties If it is ascertained that the beneficiary does not fulfil the contractual commitments of his/her agri-environment management agreement, the SAPARD Agency is entitled to a) decrease the value of the annual payment and/or b) demand the reimbursement of payments already made. The value of the diminished payment and/or reimbursement will be established according to the degree of non-compliance with the contract. MAFRD and the SAPARD Agency will set up the most appropriate penalty system to implement. According to the national legislation in force, any reimbursements requested from farmers will be subject to interest. Force Majeure No financial restitution will be demanded in following majeure force cases:

- death of the farmers ; - long-term professional incapacity of the farmers; - expropriation of a large part of the holding, if this could not have been

anticipated on the day on which the commitment was given; - a severe natural disaster seriously affecting the agricultural land on the

holding - the accidental destruction of livestock buildings on the holding.

Cases of force majeure shall be notified in writing to the competent authority, together with relevant evidence to the satisfaction of that authority, within 10 working days of the date on which the farmer is a position to do so.


• SAPARD Agency represents the Implementing Authority in Romania through the Delegated technical services of: - Ministry of Agriculture, Forests and Rural Development together with the

certification and inspection organism accredited by MAFRD (Annex 1) - Ministry of Environment and Water Management; - National Agency for Agricultural Consultancy.



THE PILOT AREAS PLACING –Sub measure A Preservation of soil and protection against erosion

Annex no. 1a

BC: 12 t/ha

VN: 17 t/ha

BZ: 12 t/ha

PH: 14,2 t/ha

DB: 14 t/ha

VL: 12 t/ha

AB: 14,3 t/ha

The selection criteria for those 7 counties was the indicator of the surface erosion

(t/ha/year)

Pilot areas for the sub measure “Preservation of soil and protection against erosion”



THE PILOT AREAS PLACING

–Sub measure B: Preservation of biodiversity by traditional agriculture methods

Annex no. 2b

Pilot areas for rice production

Pilot area for Preservation of mountain and intra-Carpathians hilly pastures and meadows

HD

CS

GJ

National RETEZAT Park was selected for the action B2. The National Park RETEZAT is delimited into 3 functional zones: zone with strict protection, zone with special protection and buffer zone. The buffer zone is selected as the pilot area since this is the area in which economic activities are permitted, including traditional agricultural activities by land owners. Natura 2000 area of SE Transylvania is an area of 95000 ha, including 10 communes and 30 small villages. Approximately 18% of the area is pasture, 20% is meadow, 38% is forest, 25% arable. Scientific studies of the area show that it is High Nature Value, supporting a rich diversity of flora and fauna including many internationally threatened species, including numerous Habitats Directive Annex II, II* and IV fauna and flora species, and over 40 Birds Directive Annex I species.

BR

CT

CL

IL

TR

OT

DJ

For Bistrita, Ialomita, Calarasi, Constanta, Teleorman counties the main water source for rise growing facilities is the Danube, and for other county the main water sources are represented by the inland waters and rivers: Jiu river for Dolj county, Olt river for Olt county and Teleorman county.

SB

MS

BV



THE PILOT AREAS PLEACING – Sub measure C

“Organic Farming”

Annex no. 1c

Organic Farming

GL: -4 prod. -16 mii ha

SV: -6 prod. -12,4 mii ha The selection criteria

of the pilot areas: - No. ha covered by the organic farming; - No. of certified producers from the selected areas

AR: -3 prod. -3 mii ha

TM: -17 prod. -7,4 mii ha

CL: -3 prod. -8 mii ha

National Agriculture and Rural Development Plan 2000-2006 ______________________________________________________________________________________


282

Annex no.2

GOOD FARMING PRACTICE

All farmers receiving agri-environment support payments under Measure 3.3 must also comply with verifiable standards of Good Farming Practice during the duration of their “agri-environment management agreement”. These standards must be respected on THE WHOLE land managed by the agreement holder.

The agri-environment support payments will only compensate farmers who undertake measures, which go beyond Good Farming Practice. This is ensured because the management requirements of each sub-measure are significantly higher than any of the activities identified below as Good Farming Practice.

For the purposes of EU legislation, “usual good farming practice” has been defined according to Article 23(2) of Regulation (EC) No. 1257 / 1999 as the “standard of

farming which a reasonable farmer would follow in the region concerned”. In the Romanian context, the minimum standard of usual good farming practice is interpreted as compliance with the main environmental legislation relating to agricultural activities. Where appropriate, some additional references have been included to the initial draft (2002) Code of Good Agricultural Practices (CoGAP) approved by Minister Order no. 918/2002, prepared according to the Framework Content indicated in Annex 3 of Governmental Decision No. 964 (October 13, 2000) to approve the Action Plan for water protection against pollution with nitrates from agricultural sources.

The Code of Good Agricultural Practices (CoGAP) is an advisory publication that “aims to recommend the most useful practices, measures and methods that may be applied by each farmer” in order to protect the environment. Specific parts of CoGAP will become obligatory for farmers in designated Nitrate Vulnerable Zones with the future implementation of the EC Nitrate Directive 91/676 concerning the protection of waters against pollution caused by nitrates from agricultural sources.

Good Farming Practice is a completely new concept to be applied in Romania and it is essential to ensure that the verifiable standards proposed are: a) relevant to the current environmental problems; b) clear and practical for farmers to adopt in the current agronomic and socio-economic context, and c) straightforward to control. The implementation of a pilot agri-environment programme under Measure 3.3 therefore provides an important opportunity to test what standards of Good Farming Practice are most appropriate to Romania and can be most clearly defined and easily controlled at farm level. Four areas of Good Farming Practice have been identified by the existing environmental legislation, relating to the activities of farmers in Romania, namely:

• Water protection;

• Soil protection;



283

• Plant protection;

• Conservation of the biodiversity

Although a special legislative act for soil protection does not exist, the legal provisions concerning it are in Law No. 18/1991 – Law of the Land Fund, Articles No. 53-88 and in Law No. 137/1995 of Environmental Protection – Chapter III, Section 3, and Articles No. 47-53. In addition, in Law No. 137/1995 of Environmental Protection there is a legal provision for the preservation of biodiversity. The obligations relating to compliance with the verifiable standards of Good Farming Practice will be clearly explained in information/guidance materials provided to farmers. Guidance on compliance with Good Farming Practice will also be included in the training undertaken by farmers receiving agri-environmental support payments.

Supervisory and Control Authorities: The following supervisory authorities will participate, according to their competence, in control of Good Farming Practice:

- SAPARD Agency - County Departments for Agriculture and Rural Development; - National Agency for Environment Protection; - County Agencies for Environment Protection; - Plant Production Inspectorate, - National Veterinary Agency and Food Safety, - Administration of Retezat Park

Verifiable Standards:

WATER PROTECTION

Legislation:

• Water Law no.310/2004

• Decision of the Government no 969/2000 regarding the Approval of Action Plan for Water Protection against Pollution with Nitrate from Agricultural Sources

National legislation relating to the protection of water from agricultural pollution will, amongst others, be harmonized with the following EU acts:

• Directive 2000/60/EC of the European Parliament and of the Council which establishes a framework for Community action in the field of water policy;

• Council Directive 91/676/EEC concerning the protection of waters against pollution caused by nitrates from agricultural sources;

• Council Directive 76/464/EEC on pollution caused by certain dangerous substances discharged into the aquatic environment of the Community

Verifiable

Standards:

1. Farmers must keep a “field record book” to record all applications of fertiliser, pesticides and manures (including waste water sediments) on the farm



284

Verification Method: On the spot inspection and cross-checking to other farm records (e.g. purchases of fertilisers and pesticides) 2. Farmers are prohibited from applying more than 170 kg N per hectare of cultivated land per year as animal manure (farmers will be provided with the necessary conversion tables for calculating the nutrient content of animal manures produced on the farm). Verification Method: On-the-spot check and checking of field records. 3. Farmers are prohibited from applying fertilisers, pesticides or treated wastewater sediments (sewage sludge) in a water protection zone. Untreated waste water sediments (sewage sludge) are prohibited from use on all agricultural land Verification Method: Checking of field records and on-the-spot check of agricultural land within water protection zones. 4.Farmers are prohibited from constructing a new manure store or manure heap within a water protection zone Verification Method: On-the-spot check of agricultural land within water protection zones.

SOIL PROTECTION

Legislation • Law no. 18/1991 – Law of the land fund (art. 53-88);

• Law no. 137/1995 for environment protection with modification and further completions (Chapter III, Section 3, Soil, Sub-soil and Terrestrial Ecosystems Protection, art. 47-53)

National legislation relating to the protection of agricultural soil resources will, amongst others, be harmonized with the following EU act:

• Council Directive 86/278/EEC on the protection of the environment, and in particular of the soil, when sewage sludge is used in agriculture.

Verifiable

Standards

5.Farmers are prohibited from using agricultural land for non- agricultural purposes without authorization from Ministry of Agriculture, Forests and Rural Development (MAFRD) Verification Method: On-the-spot check of agricultural land and cross-checking by MAFRD. 6. Farmers must report to the Ministry of Agriculture, Forests and Rural Development (MAFRD) via the County Departments for Agriculture and



285

Rural Development any pollution problem that affects the soil quality Verification Method: Some verifications are possible by the cross-checking of farm records by MAFRD. 7. Farmers are prohibited from applying untreated waste water sediments (sewage sludge) to all agricultural land. Verification Method: On-the-spot check of agricultural land. 8. Farmers are prohibited from causing damage to the land and crops through the storage of materials and waste. Verification Method: On-the-spot check of agricultural land. 9. Farmers should avoid soil damage and over-grazing by limiting grazing animals to an appropriate number for animal specie, land area and pasture quality. A maximum stocking rate per ha will be defined for cattle and sheep/goats. Stoking rate per ha is of 0.3 - 0.5 heads/ha for cattle and for sheep/goats is of 2 / 3.5 heads/ha for mountain pastures. Verification Method: On-the-spot check of agricultural land and cross-checking with farm/field records. 10. On sloping grounds with an angle of inclination higher that 8%, ploughing and other cultivation must be oriented towards the general direction of the level contour. Verification Method: On-the-spot check of agricultural land and cross-checking with farm/field records.

PLANT PROTECTION

Legislation:

• Ordinance of Emergency of the Government No 4/1995 regarding the production, commerce and usage of phyto-sanitary products for diseases, pests and weeds fighting in agriculture and forestry, approved by Law no. 85/1995

National legislation relating to the use of agricultural pesticides will, amongst others, be harmonized with the following EU act:

• Council Directive 91/414/EEC on the placing of plant protection products on the market and the thematic strategy on the sustainable use of pesticides.

Verifiable

Standards:

11. Farmers must be able to prove that all pesticides of the farm are applied using trained personnel, taking account of all available information on the



286

occurrence of weeds, pests and diseases, and respecting the conditions specified in the labelling Verification Method: On-the-spot check of farm personnel and inspection of field records. 12. Farmers must only use approved pesticide products for weed, disease and pest control, including phyto-sanitary treatment. It is not permitted to use products from I and II toxicity groups Verification Method: On-the-spot check and inspection of farm records (purchases of pesticides). 13. The technical condition of all crop protection equipment used by the farmer must be inspected every 3 years Verification Method: On-the-spot check of equipment and farm records.

CONSERVATION OF THE BIODIVERSITY

Legislation:

• Law no. 137/1995 for environment protection

• Law no. 462/2001for approving of the Emergency Ordinance of Government no. 236/2000 regarding the natural protected areas regime, natural habitats preservation, of the wild flora and fauna

• Law no. 347/2004 of the mountain National legislation relating to the conservation of biodiversity will, amongst others, be harmonized with the following EU acts that serve as the basis for the NATURA network of the EU Member States:

• Council Directive 92/43/EEC on the conservation of natural habitats and of wild flora and fauna;

• Council Directive 79/409/EEC on the conservation of wild birds.

Verifiable

Standards:

14. Farmers must not burn the stubble field, rush, bushes and the vegetation without authorization of the competent authority for the environment protection. Verification Method: On-the-spot check and, where necessary, cross-checking by relevant authority. 15. Farmers must not permit the hunting or collection of any protected species (plants or animals) on their land Verification Method: On-the-spot check. 16. Farmers are prohibited from taking actions that are likely to cause damage to “nature monuments” on their land



287

Verification Method: On-the-spot check and visual assessment by relevant authority of “nature monuments” on agricultural land. 17. Farmers are prohibited from using a mountain meadow from a protected natural area, without approval of the protected area administration. Verification Method: On-the-spot check and, where necessary, cross-checking by relevant authority.



288

Annex 3

Detailed payment calculations for Measure 3.3

General introduction remarks to the payment calculations • The payment calculations for the agri-environmental SAPARD Measure 3.3 are designed

regarding the specific situation in Romania in general and if appropriate the specific situation in the relevant region. A comparison is made between the conventional and the agri-environmental ways of production, taking into account differences in costs and differences in income.

• Measures (or parts of measures) that do not go beyond Good Farming Practise are not taken into account.

• If appropriate, for one sub measure there are two payments elaborated, e.g. when the situation changes drastically during the first year or years. This certainly occurs regarding organic farming, were the situation in the first few conversion years is definitely different from the years once the farm is certificated.

• Yields are for 2004 harvest taken from MAFRD annual report;

• Costs of the present payment calculation are evaluated in 2004 prices, taking into account the inflation rate;

• The sources of the used figures are data of the Romanian Agro-Economic Institute in Bucharest, of DARD – Constanta County and of the MAFRD. The basic information used in the calculations lies within the Department of Rural Development of the MAFRD.

• All the payment calculations are based on the figures published in Agro-Economic Institute Report on 2004, available to the farmers through the county Agricultural and Rural Development Directorates of MAFDR.



289


A1 Transformation of arable into pastures (grassland) - year 1 Usual Practice Conventional way of maize production

Agri-environment practice transformation of arable land into grassland (year 1) 25% loss in the yield (late start of growing), 30% higher labour because of manual spreading of organic fertilizer

Difference to the income between the usual practice and the agri-environment practice

Costs Income Costs Income

Action Units Action Units

Maize 3.500 kg /ha (4.200 lei/kg)

14.700 thou. Ro Lei/ha

Hay 1.700 kg/ha (3.000 Lei/kg)

5100 thou. Ro Lei/ha

-9.600 thou. Ro Lei/ha

Total difference


Seeds for maize


Seeds for grass


Fertilisers for maize


Fertilisers organic for grass


Irrigation 0 Irrigation

0

Plant protection for maize

895 thou. Ro Lei/ha

Plant protection

0

Machinery for maize


Machinery 1.454 thou. Ro Lei/ha

Labour for maize


Labour for hay (30% more)


Total variable costs / ha for maize


Total variable costs /ha for grass


1.149 thou. Ro Lei

Total difference of variable costs 1.149 thou. Ro Lei

Total difference of income -9.600 thou. Ro Lei

Compensatory premium required in Ro Lei 8.451 thou. Ro Lei

Exchange rate 39 thou. Ro Lei/EURO

Compensatory premium required in EURO 217 EURO

Assumptions; - Due to the characteristics of selected pilot areas (soil erosion) the hay price is 3.000 lei/kg, lower than the average from the rest of the country (4000 lei/kg) - The selected pilot areas are not designed with irrigations; - The average yield for maize is of 3500 kg/ha being in areas affected by soil erosion and lack of irrigations. - For first year when the grassland is established, the grass seeds necessary was reanalyzed (30 kg/ha, 100.000 lei/kg) and for the following years it will be lower because, , the necessary for grass seeds consists only in completion of the parts without grass and maintenance ( 15 kg/ha, 100.000 lei/kg). - In order to compensate the lack irrigations, the manure quantity has been increased. - Due to later growing start the yields in organic production has been decreased with 25% lower comparing with the usual practice (2.267 kg/ha) - The manual organic fertilizer spreading determinates 30% higher labour cost under agri-environment practice

comparison with usual practice for grass (2.780 thou. Ro Lei/ha) - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic

information used in the calculations lies within the Department of Rural Development of the MAFRD.



290

A1 Transformation of arable into pastures (grassland) - year 2-5 Usual Practice Conventional way of maize production

Agri-environment practice transformation of arable land in grassland (year 2-5) hay production recovered, seed and fertilizer reduced to maintenance level




Maize 3.500 kg /ha (4.200 lei/kg)


Hay 2.500 kg/ha (3.000 Lei/kg)



Total difference


Seeds for maize


Seeds for grass




Fertilisers organic for grass


Irrigation for maize

0 Irrigation

0


895 thou. Ro Lei/ha

Plant protection

0

Machinery for maize


Machinery for hay harvesting


Labour for maize


Labour for hay (30% more)


Total variable costs / ha for maize


Total variable costs /ha for grass








Assumptions; - Due to the characteristics of selected pilot areas (soil erosion) the hay price is 3.000 lei/kg, lower than the average from the rest of the country (4000 lei/kg); - The selected pilot areas are not designed with irrigations; - The average yield for maize is of 3500 kg/ha being in areas affected by soil erosion and lack of irrigations. - For first year when the grassland is established, the grass seeds necessary was reanalyzed (30 kg/ha, 100.000 lei/kg) and for the following years it will be lower because, the necessary for grass seeds consists only in completion of the parts without grass and maintenance ( 15 kg/ha, 100.000 lei/kg). - In order to compensate the lack irrigations, the manure quantity has been increased. - The manual organic fertilizer spreading determinates 30% higher labour cost under agri- environment practice

comparison with usual practice for grass (2.780 thou. Ro Lei/ha) - Reduced costs of seed and fertilizer for maintenance level of grassland. - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




291

A2 Establishment of grass strips on sloping land - year 1 Usual Practice Conventional way of maize production (unfavourable conditions) Although irrigation for maize is usual practice, it is not in the areas where this measure is applied

Agri-environment practice establish organic grass strips on sloping land (year 1) strips are established and grass (expensive seed) is sown for coverage (anti erosion) but no fertilizer used as production is not a purpose




Maize (unfavourable conditions) 2.000 kg /ha (4.200 lei/kg)


There is no income derived from the grass strips used for erosion control

Total difference


Seeds for maize


Seeds for grass 4.000 thou. Ro Lei/ha



Fertilisers 0


0

Plant protection

0 Plant protection 0

Machinery for maize


Machinery for establishing strips


Labour for maize


Labour for establishing strips


Total variable costs / ha maize


Total variable costs /ha



Total difference of variable costs -1.168 thou. Ro Lei





Assumptions; - The average yield for maize is of 2000 kg/ha in unfavourable conditions (land inclination is bigger than 8%). - In the first year, the works concern that grass strips setting up. There is no income derived from the grass strips

used for erosion control - Strips are established and grass (expensive seed) is sown for coverage (anti erosion) but no fertilizer used for

production purpose - Labour cost consists in works for establishing the strips - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




292

A2 Establishment of grass strips on sloping land - year 2-5 Usual Practice Conventional way of maize production (unfavourable conditions) Although irrigation for maize is usual practice, it is not in the areas where this measure is applied

Agri-environment practice establish organic grass strips on sloping land (year 2-5) maintenance of grass strips; sowing need is reduced to a amount for maintenance




Maize (unfavourable conditions) 2.000 kg /ha (4.200 lei/kg)


There is no income derived from the grass strips used for erosion control

Total difference


Seeds for maize


Seeds for grass




Fertilisers organic

0

Irrigation for maize

0 Irrigation

0


0 Plant protection

0

Machinery for maize


Machinery for strip maintenance


Labour for maize


Labour for strip maintenance


Total variable costs / ha maize




882 thou. Ro Lei/ha

Total difference of variable costs 882 thou. Ro Lei





Assumptions; - The average yield for maize is of 2000 kg/ha in unfavourable conditions (land inclination is bigger than 8%). - Starting with the second year, the works concern maintenance works. There is no income derived from the grass

strips used for erosion control - Labour costs consist in maintenance work of grass strips; - Sowing need is reduced to a amount for maintenance - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




293

A3. Establishment of green cover crop on arable land after harvesting Usual Practice

Agri-environment practice establish green cover crop on arable land after harvesting




There is no income lost from establishing a winter cover crop used for erosion control

There is no income gained from establishing a winter cover crop used for erosion control

No income difference

Total difference

No income difference

Shallow cultivation (disk)

450 thou. Ro Lei/ha

Seeding green cover crop

600 thou. Ro Lei/ha

Seed: 25 kg/ha x 160 thou. Ro lei/kg


Total variable costs / ha




Total difference of variable costs 5.050 thou. Ro Lei/ha

Total difference of income 0 thou. Thou. Ro Lei/ha

Compensatory premium required in Ro Lei 5.050 thou. Ro Lei/ha



Assumptions; - There is no income gained from establishing a winter cover crop used for erosion control - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




294

Sub measure B: Preservation of biodiversity through traditional agriculture methods

B1 Maintenance of temporary flooded areas by the traditional cultivation of rice Usual Practice Conventional way of production of rice

Agri-environment practice Organic way of production of rice more flooding (8 times in stead of 6); 20% loss of yield




Rice 4.800 kg /ha (13.500 lei/kg)


Rice 3.840 kg/ha (14.000 Lei/kg)



Total difference


Seeds 6.000 thou. Ro Lei/ha


Fertilisers 4.140 thou. Ro Lei/ha

Fertilisers (green fertilisers)


Irrigation (6 times)


Irrigation (8 times)


Plant protection


Plant protection

0

Machinery costs


Machinery costs


Labour costs 2.074 thou. Ro Lei/ha

Labour costs (30% more)


Total variable costs / ha rice


Total variable costs/ ha rice








Assumptions; - The average yield for rice is of 4800 kg/ha. - No use of chemical fertilizers and plant protection the yield has been decreased with 20 %, - Using of more flooding (8 times in stead of 6); - 30% higher labour costs because of manual fighting against weeds and alga - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




295

B2 Preservation of mountain and intra-Carpathians hilly pastures and meadows Usual Practice Conventional way of natural meadows

Agri-environment practice Organic way of natural meadows 25 % loss of yield, 25% lower price, 20% more labour




Hay 2.500 kg /ha (4.000 lei/kg)


Hay 1.875kg/ha 3.000 lei/kg)



Total difference


Seeds for grass 0 Seeds for grass

800 thou. Ro Lei/ha

Fertilisers for grass


Fertilisers organic

0

Irrigation for grass

0 Irrigation

0

Plant protection for grass

0 Plant protection

0

Machinery costs for grass


Machinery costs for hay


Labour costs for grass


Labour costs for hay (39 % more)


Total variable costs / ha grass




681 thou. Ro Lei/ha

Total difference of variable costs 681 thou. Ro Lei





Assumptions; - The average yield for mountain natural pastures is of 2500 kg/ha. - No use of chemical fertilizers the yield has been decreased with 25 % - 39% higher labour works concern the bigger number of specific operations (manure manual spreading, land

levelling, hay handing for natural drying, loading, transport with specific alpine means and storage) - 25 % lower price due to the lower nutritive value - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




296

Sub measure C: Organic farming

C1 Vegetables - conversion period Usual Practice Conventional vegetable production

Agri-environment practice Organic vegetables production conversion period 10% loss of yield; normal prices; 20% higher labour




Tomatoes (0,3 ha) 30.000 kg/ha (6.000 lei/kg)


Tomatoes (0.3 ha) 27.000kg /ha (6.000 Lei/kg)



Peppers (0.2 ha) 25.000 kg/ha (10.000 Lei/kg)


Peppers (0.2 ha) 22.500 kg /ha (10.000 Lei/kg)



Cucumbers (0.2 ha) 30.000 kg/ha (6.000 Lei/kg)





Potatoes (0.3 ha) 25.000 kg/ha (7.200 lei/kg)





Organic fodder leguminous (0.2 ha) 15.000 kg/ha (3500 lei/kg)


+10.500 thou. Ro Lei/ha

Total difference


Seeds for tomatoes


Seeds for tomatoes


Fertilisers for tomatoes


Fertilisers 0

Irrigation for tomatoes


Irrigation 2.500 thou. Ro Lei/ha

Plant protection for tomatoes


Plant protection

0

Machinery costs for tomatoes


Machinery costs


Labour costs for tomatoes


Labour costs for tomatoes (20% more)

52.151 Thou. Ro Lei/ha

Total variable costs for 0.30 ha tomatoes

173.673 thou. Ro Lei/ha x 0.3 ha = 52.102 thou. Ro Lei


165.370 thou. RO lei/ha x 0.3 ha = 49.611 thou. Ro Lei


Seeds for peppers


Seeds for peppers


Fertilisers for peppers



0

Irrigation for peppers




Plant protection for peppers



0

Machinery costs for peppers




Labour costs for peppers


Labour costs for peppers (20 % more)

37818 thou. Ro Lei/ha

Total variable costs for 0.2 ha peppers

188.783 thou. Ro lei/ha x 0.2 ha = 37.757

Total variable costs for production

186091 thou. Ro lei/ha x 0.2 ha = 37218 thou.

539 thou. Ro Lei/ha



297

thou. Ro lei of 0.2 ha peppers

Ro lei

Seeds for cucumbers


Seeds for cucumbers


Fertilisers for cucumbers

3.694 thou. Ro lei/ha


0

Irrigation for cucumbers




Plant protection for cucumbers



0

Machinery costs for cucumbers




Labour costs for cucumbers


Labour costs for cucumbers (20 % more)


Total variable costs for 0.2 ha cucumbers

114.705 thou. Ro lei/ha x 0.2 ha = 22.941 thou. Ro lei




Seeds for potatoes


Seeds for potatoes


Fertilisers for potatoes



0

Irrigation for potatoes




Plant protection for potatoes



0

Machinery costs for potatoes




Labour costs for potatoes


Labour costs for potatoes (20 % more)


Total variable costs for 0.3 ha potatoes



100.668 thou. Ro lei/ha x 0.1 ha = 10.067 thou. Ro Lei


Seeds for leguminous fodder


Seeds for organic fodder


Fertilisers for leguminous fodder

0 Fertilisers for organic fodder

0

Irrigation for leguminous fodder

0 Irrigation for organic fodder

0

Plant protection for leguminous fodder

0 Plant protection for organic fodder

0

Machinery costs for leguminous fodder


Machinery costs for organic fodder


Labour costs for leguminous fodder

33 thou. Ro lei/ha

Labour costs for organic fodder (20% more)

40 thou. Ro lei/ha

Total variable costs for 0 ha leguminous fodder*

8.523 thou. Ro lei/ha for 0 ha = 0 thou. Ro lei *)

Total variable costs for 0.2 ha organic fodder




Total difference of income -41.300 thou. Ro Lei/ha




298



*) The costs of conventional way for leguminous fodder was indicated only for comparison with the organic production cost

Assumptions: - The conversion period for vegetables is of 2 years. - The average yield for tomatoes is of 30000 kg/ha; for peppers of 25000kg/ha; for cucumbers of 30000 kg/ha; for

potatoes of 25000 kg/ha and for leguminous fodder of 20000 kg/ha. - No use of chemical fertilizers the yields in organic production has been decreased with 20% lower comparing

with the usual practice - 20% higher labour force costs for manual fighting against weeds - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




299

C1 Vegetables - certified situation Usual Practice Conventional vegetable production

Agri-environment practice Organic vegetables production certified 20% loss of yield; higher price for tomatoes; 15 % higher labour for most vegetables there is no organic market to set a higher price




Tomatoes (0,3 ha) 30.000 kg/ha (6.000 lei/kg)


Tomatoes (0.3 ha) 24.000kg /ha (7.000 Lei/kg)



Peppers (0.2 ha) 25.000 kg/ha (10.000 Lei/kg)


Peppers (0.2 ha) 20000 kg /ha (10.000 Lei/kg)













Organic fodder leguminous (0.2 ha) 15.000 kg/ha (3500 lei/kg)


+10.500 thou. Ro Lei/ha

Total difference


Seeds for tomatoes


Seeds for tomatoes


Fertilisers for tomatoes


Fertilisers 0

Irrigation for tomatoes


Irrigation 2.500 thou. Ro Lei/ha

Plant protection for tomatoes


Plant protection

0

Machinery costs for tomatoes


Machinery costs


Labour costs for tomatoes


Labour costs for tomatoes (20% more)



173.673 thou. Ro Lei/ha x 0.3 ha = 52.102 thou. Ro Lei


165.370 thou. RO lei/ha x 0.3 ha = 49.611 thou. Ro Lei


Seeds for peppers


Seeds for peppers





0








0





Labour costs for peppers


Labour costs for peppers (20 % more)


Total variable costs for 0.2 ha peppers


Total variable costs for production of 0.2 ha peppers


539 thou. Ro Lei/ha



300

Seeds for cucumbers


Seeds for cucumbers





0








0





Labour costs for cucumbers


Labour costs for cucumbers (20 % more)







Seeds for potatoes


Seeds for potatoes





0








0





Labour costs for potatoes


Labour costs for potatoes (20 % more)





100.668 thou. Ro lei/ha x 0.1 ha = 10.067 thou. Ro Lei


Seeds for leguminous fodder


Seeds for organic fodder


Fertilisers for leguminous fodder

0 Fertilisers for organic fodder

0

Irrigation for leguminous fodder

0 Irrigation for organic fodder

0

Plant protection for leguminous fodder

0 Plant protection for organic fodder

0

Machinery costs for leguminous fodder


Machinery costs for organic fodder


Labour costs for leguminous fodder

33 thou. Ro lei/ha

Labour costs for organic fodder (20 % more)

40 thou. Ro lei/ha

Total variable costs for 0 ha leguminous fodder*

8.523 thou. Ro lei/ha for 0 ha = 0 thou. Ro lei *)

Total variable costs for 0.2 ha organic fodder










301

*) The costs for conventional way for leguminous fodder was indicated only for comparison with the cost for organic production

Assumptions: - The average yield for tomatoes is of 30000 kg/ha; for peppers of 25000kg/ha; for cucumbers of 30000 kg/ha; for

potatoes of 25000 kg/ha and for leguminous fodder of 20000 kg/ha. - No use of chemical fertilizers and plant protection in organic production has been decreased with 20% lower

comparing with the usual practices - 15 % higher price for tomatoes; for potato, cucumbers and peppers and organic fodder the price has the same level, - 20% higher labour force costs for manual fighting against weeds - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




302

C2 Fruits - conversion period Usual Practice Conventional way of fruit production (apples)

Agri-environment practice Organic fruit production (apples) conversion period 20% loss in the yield; normal price; 20% higher labour




Apples 15.000 kg/ha (9000 Lei/kg)


Apples 12000 kg/ha (9000 Lei/kg)



Total difference


Seeds 0 Seeds

0


Fertilisers

0


0

Plant protection


Plant protection

0

Machinery costs


Machinery costs


Labour costs 11.878 thou. Ro Lei/ha



Total variable costs / ha apples


Total variable costs /ha apples





Compensatory premium required in Ro Lei 12.467 thou. Ro Leiha



Assumptions: - The conversion period for fruits is of 3 years. - The average yield for apples is of 15000 kg/ha; - No use of chemical fertilizers and plant protection in organic production has been decreased with 20% lower

comparing with the usual practices - Using in the calculation of normal price for apples; - 20% higher labour force costs for manual manure spreading - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




303

C2 Fruits - certified situation Usual Practice Conventional way of fruit production (apples)

Agri-environment practice Organic fruit production (apples) certified 20% loss of yield; 5% higher price, 20% higher labour




Apples 15.000 kg/ha (9.000 Lei/kg)


Apples 12.000 kg/ha (9.450 Lei/kg)



Total difference


Seeds 0 Seeds

0

Fertilisers 2.633 Thou. Ro Lei/ha

Fertilisers

0


0

Plant protection


Plant protection

0

Machinery costs


Machinery costs


Labour costs 11.878 Thou. Ro Lei/ha



Total variable costs / ha apples


Total variable costs /ha apples








Assumptions: - The average yield for apples is of 15000 kg/ha; - No use of chemical fertilizers and plant protection in organic production has been decreased with 20% lower

comparing with the usual practices - 5 % higher price for apples; - 20% higher labour force costs for manual manure spreading - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




304

C3 Aromatic/medicinal plants - conversion period Usual Practice Conventional way of coriander production

Agri-environment practice Organic way of coriander production conversion period 5% loss of yield due to no fertilizer use; normal price; 20% higher labour




Coriander 14.000 kg/ha (18.000 lei/kg)


Coriander 13.300 kg/ha (18.000 Lei/kg)



Total difference





Fertilisers

0


0

Plant protection

345 thou. Ro Lei/ha

Plant protection

0

Machinery costs


Machinery costs


Labour 70 thou. Ro Lei/ha

Labour costs (20% higher)

84 thou. Ro Lei/ha

Total variable costs / ha coriander


Total variable costs /ha coriander








Assumptions: - The conversion period for medicinal and aromatic plants is of 2 years. - The average yield for coriander is of 14000 kg/ha; - No use of chemical fertilizers and plant protection in organic production has been decreased with 5% lower

comparing with the usual practices - Normal price; - 20% higher labour costs for manual fighting against weeds - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




305

C3 Aromatic/medicinal plants - certified situation Usual Practice Conventional way of coriander production

Agri-environment practice Organic way of coriander production certified 10% loss of yield; higher price with 7% and 20% higher labour




Coriander 14.000 kg/ha (18.000 lei/kg)


Coriander 12.600 kg/ha (19.300 Lei/kg)



Total difference





Fertilisers

0


0

Plant protection

345 thou. Ro Lei/ha

Plant protection

0

Machinery costs


Machinery costs


Labour costs 70 thou. Ro Lei/ha

Labour costs (20% higher)

84 thou. Ro Lei/ha

Total variable costs / ha coriander


Total variable costs /ha coriander








Assumptions: - The average yield for coriander is of 14000 kg/ha; - No use of chemical fertilizers and plant protection in organic production has been decreased with 10% lower

comparing with the usual practices; - 7 % higher price; - 20% higher labour force costs for manual fighting against weeds - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




306

C4 Fodder crops (forage barley) - conversion period Usual Practice Conventional way of fodder barley production

Agri-environment practice Organic way of fodder barley production conversion period 25% loss of yield; normal price; other plant protection, 20% higher labour




fodder barley 4.000 kg/ha (4.000 lei/kg)


fodder barley 3000 kg/ha (4000 Lei/kg)



Total difference -4.000 thou. Ro Lei/ha




Fertilisers organic

0


0

Plant protection 1.192 thou. Ro Lei/ha

Plant protection (sulphur)


Machinery costs 7.263 thou. Ro Lei/ha

Machinery costs



Labour costs (20 % higher)

317 thou. Ro Lei/ha

Total variable costs / ha fodder barley


Total variable costs /ha fodder barley


-785 thou. Ro Lei/ha

Total difference of variable costs -785 thou. Ro Lei/ha





Assumptions: - The conversion period for fodder barley is of 2 years. - The average yield for fodder barley is of 4000 kg/ha; - No use of chemical fertilizers in organic production has been decreased with 25% lower comparing with the usual

practices; - Normal price; - 20% higher labour costs for manual fighting against weeds; - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




307

C4 Fodder crops (forage barley) – certified period Usual Practice Conventional way of fodder barley production

Agri-environment practice Organic way of fodder barley production certified 25% loss of yield, higher price with 10%, other plant protection, 20% higher labour




fodder barley 4.000 kg/ha (4.000 lei/kg)


fodder barley 3.000 kg/ha (4.400 Lei/kg)



Total difference





Fertilisers organic

0


0

Plant protection


Plant protection (sulphur)


Machinery costs


Machinery costs



Labour costs (20 % higher)

317 thou. Ro Lei/ha

Total variable costs / ha fodder barley


Total variable costs /ha fodder barley


-785

Total difference of variable costs -785 thou. Ro Lei/ha





Assumptions: - The average yield for fodder barley is of 4000 kg/ha; - No use of chemical fertilizers in organic production has been decreased with 25% lower comparing with the usual practices - 10 % higher price for fodder barley; - 20% higher labour costs for manual fighting against weeds - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




308

C5 Natural pasture - conversion period Usual Practice Conventional way of natural pastures production

Agri-environment practice Organic way of natural pastures production conversion period 35% loss of yield, normal price; 20% higher labour




natural pastures 20.000 kg/ha (360 lei/kg)


natural pastures 13.000 kg/ha (360 Lei/kg)




Seeds 0 Seeds 0


Fertilisers organic

0

Irrigation 0 Irrigation 0

Plant protection 0 Plant protection (sulphur)

0


Machinery costs



Labour costs (20 % more)

724 thou. Ro Lei/ha

Total variable costs / ha natural pastures


Total variable costs /ha natural pastures


1.179






Assumptions: - The conversion period for natural pastures is of 3 years. - The average yield for natural pastures is of 20000 kg/ha; - No use of chemical fertilizers in organic production has been decreased with 35% lower comparing with the usual practices; - Normal price for natural pastures; - 20% higher labour costs for manual spreading of manure; - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




309

C5 Natural pasture - certified situation Usual Practice Conventional way of natural pastures production

Agri-environment practice Organic way of natural pastures production, certified 35% loss in the yield; higher price with 5%, 20% more labour




natural pastures 20.000 kg/ha (360 lei/kg)


natural pastures 13.000 kg/ha (378 Lei/kg)




Seeds 0 Seeds 0


Fertilisers organic

0

Irrigation 0 Irrigation 0

Plant protection 0 Plant protection (sulphur)

0


Machinery costs




724 thou. Ro Lei/ha

Total variable costs / ha natural pastures


Total variable costs /ha natural pastures


1.179






Assumptions: - The average yield for natural pastures is of 20000 kg/ha; - The decrease in yields in organic production are assumed 35% less - 5 % higher price for natural pastures; - 20% higher labour force costs for manual spreading of manure - The source of the used data is the Romanian Agro-Economic Institute in Bucharest and of the MAFRD. The basic




310

MEASURE 3.4.

DEVELOPMENT AND DIVERSIFICATION OF ECONOMIC ACTIVITIES,

PROVIDING FOR MULTIPLE ACTIVITIES AND ALTERNATIVE

INCOMES

1.BACKGROUND

• Sustainable development is based upon the introduction of new integrated economical systems that need to be implemented in rural areas.

• The economical and social development is also based upon the setting up of production activities and secondary alternative services (other than the main activity) which will contribute to:

- remove the processes and phenomena caused by the restructuring of the social and economical systems; - stop the depopulation of rural area; - improve life conditions.

• The diversifying of economic activities will bring force multi-activity, new work placements, additional non-agricultural incomes and a higher involvement of youth and of the women.

• The need of setting up and/or extend the services for the population and for the agricultural production using, in an efficient manner the human, material and financial local resources.

• The special tourist potential, due to various climate and relief conditions may afford new jobs and thus additional incomes.

• Valorisation of Romania’s fishery potential by developing aqua-culture

• Valorisation and development of traditional handicraft skills.

• In the rural area there are issued the prerequisites for activating rather many traditional occupations which, in their turn, may contribute to improving the incomes of the farmers, fish breeders and forest owners (bee-keeping, sericulture, mushrooms cultivation).

• The organic farming has a major contribution to sustainable development of the agriculture and Romania has an important potential for development. The surfaces farmed using organic methods of production have considerably increased during last years, thus in 2004 this surface has reached 75,500 ha, being 4,3 times higher than in 2000.

To this potential are added the natural grasslands from mountain area, placed over 800 m altitude and which covers an area of 1562 thousands ha, representing 32 % of the total grassland surface. These areas are mainly used for grazing or mowing. - In 2004, the number of animals in mountain area was of 719.3 thousands cattle,

17,5 thousands buffalos, 1 860,3 thousands sheep, 130,4 thousands goats, 821,6 thousands pork and 138,2 thousands bees family (operational data MAFRD, NAMA). Out of the total surface of the country, the mountain area represents 1/3. In this area, the organic farming has a high potential (surfaces with very fertile and non polluted soil). In the mountain areas of Romania, due to the fact that mechanization of the



311

agricultural production could not be applied, and during 1950-1990 collective production exploitations could not be organized, the traditional production systems remained unchanged. As a result, this part of the country is preserving the cultural heritage, having a great importance in preserving the nature, the landscape, the culture, the traditional handicrafts and traditional processing products related to the farms. The most representative activity for this area is sheep breading. In certain regions, dairy cow milk and mixed dairy products from sheep and cow milk are traditionally produced. Processing of these cheeses is performed with specific tools, usually made of wood, using different coagulation, pressing, maturing and storage methods and sometimes using some natural plants additives, specific to the region.

- At present, in the countryside there are obtained products using traditional recipes. The quantities are small and have limited marketing possibilities. Supporting the processing of traditional food products will contribute to a better marketing presentation, a better valorisation of local resources and market organization addressed to domestic consumers.

During 2005 in Romania have occurred the most severely floods from the past 20 years which affected all the country’s counties. The periods when the floods have been occurred are the following: 10th -30th of April, 1st – 31st of May, 1st – 7th and 11th – 17th of June, 14th – 25th of August, 19th – 25th of September. In many cases there are localities affected more than once. The current estimation of the total damages produced by floods during April – September 2005 had been evaluated at 5.975 millions lei RON (1,6 billion EURO), representing about 3,4% from GDP (2003 level). In order to support the economic activities in the flooded areas and to ensure the legal framework needed for applying the provisions of article 16 Section A, of the MAFA, the Romanian authorities approved by Government Decision no.1512 on 29th of November 2005 the list of localities (villages) affected by floods during the period April - September 2005 and their damage degree . In order to determine the physical damage degree, an evaluation fiche was drawn-up for each locality (village) and the calculation method, having in view the following scoring : houses (15 points), outbuildings (10 points), rural infrastructure (35 points), agriculture and forestry surface (20 points), public buildings (10 points), forestry and flood prevention infrastructure (10 points). The existent data shows that 3755 villages were affected, out of which 1277 commune’s covering all the counties, with the following damage degree:

Damage degree %

5% -10% 27,1

10%-30% 29,6

Higher than 30% 3,1



312


• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA , shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree higher than 30% (Chapter VIII from NPARD, Annex no. 77).

• The provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied to potential beneficiaries of the measure which carry out project in the village with a damage degree between 10 and 30% and which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD, Annex no. 76.

*Local Committee for Emergency Situations is set up according with provisions of the Government Decision no. 1491/2004 for approval of the Standing Order – Framework, regarding the organisational structure, tasks, functioning and endowment of the committees and operational centres for emergency situations.

2. OBJECTIVES

General objective

• To support creation and/or maintenance of employment and to generate alternative incomes by diversifying rural activities related to agriculture and forestry through rural tourism and other types of tourism in the rural space, aquaculture, breeding and processing of frogs and snails, traditional handicrafts, sericulture, bee keeping, processing of fruit of berries and bushes and medicinal and aromatic plants, snails and frogs and as well as support and develop the processing at farm level of traditional attested and/or certified organic food products.

Specific objective

• To diversify agricultural and forestry activities and close to agriculture to provide multiple activities.



313

• A better valorisation of existing potential for processing at farm level of traditional attested and/or certified organic food products, maintaining and continuation these specific and existing activities with multi-functional role.


• To sustain the agricultural activities in the rural area through the accomplishment of specific services;

• To sustain the activities which are specific to the rural tourism, forest tourism and ecological tourism;

• To preserve and to develop traditional handicraft activities;

• To increase the alternative incomes and employment opportunities of youths and women from rural space;

• To develop aqua-culture;

• To develop bee keeping, sericulture, mushrooms, processing of fruit of berries and of bushes and medicinal and aromatic plants, snails and frogs;

• To develop an integrated system for production and processing of traditional attested and/or certified organic food products of vegetal and animal origin.

• To support projects initiated by youth and women for all activities mentioned above. 3. CORRELATION WITH OTHER MEASURES

With the view of accomplishing the integrated rural development this measure will be correlated with the measures: - investments in agriculture holdings; - agricultural production methods aimed to protect the environment and maintain the

rural landscape; - development and improvement of the rural infrastructure; - forestry; - improving the vocational training; - processing and the marketing of agricultural and fishery products; - sanitary veterinary control - technical assistance 4. FIELD OF ACTION OF THE MEASURE Agricultural Services- “Agricultural machines rings “

Non profit organisations named “Agricultural machine rings”, created on voluntary basis for the purpose of protecting individual farmers in order to avoid non economical investments and for the rational use of agricultural machines by its members, consisting of:

• Procurement of agriculture machines and equipment;

• Building or modernisation of: overhaul, storing and maintenance spaces for own agricultural machines and equipment;



314

Rural tourism

• Financial support for -tourism in the rural areas regarding: - Building or modernisation of rural tourist pensions; - Increasing investments and development of services in the leisure field (camping areas, sports and entertainment grounds, horsemanship, mountain bicycling etc);

Other types of tourism activities in the rural space Financial support will be granted for: - mountain tourism, tourism for fishing, equestrian tourism, bicycling tourism - farms breeding game in semi-freedom in view of repopulating, for hunting parks and other activities connected to this field, respecting the environmental protection and hygiene norms regarding the life environment of the population . Handicraft activities Revitalising of handicraft by setting up or extension of handicraft units as: wood processing, manufacture handicrafts things, ceramics manufacture tailor, embroidering, knitwear, leather processing, processing rush and osiers, musical instruments . Aquaculture Financial support to develop and modernise aquaculture activities: - Building and modernisation of aquaculture farms; - Investments for the creation or modernisation of aquaculture farms, mechanisation of fodder, mechanised harvest, storage, processing and marketing at the aquaculture farm level;

Other activities: sericulture, bee keeping, mushrooms cultivation and processing,

processing of fruit of berries and of bushes and medicinal and aromatic plants, snails

and frogs:

• Financial support for developing: a) Sericulture - plantation of mulberry trees ; - setting up and/or modernisation the farms for silk worms breeding and of storage and processing units; b) Bee-keeping - setting up and/or modernisation of bee farms, as well as storage and processing units. c) Production and processing of mushrooms - purchase of biological material only for the first setting up; - new investments and/or modernisation of mushrooms farms, including units for storage/refrigerate and processing ; d) New investments and/or modernisation of collection, storage/refrigeration, processing and marketing of fruit berries and of bushes on farm’s level; e) New investments and modernisation of collection, storage and processing of medicinal and aromatic plants ;



315

f) Snails and frogs

- new investments and/or modernisation of breeding farms of snails and frogs, including

units for storage/refrigeration and processing;

Processing at farm level, traditional attested and/or certified organic food products

- new investments for buildings, machinery and equipments, and/or modernization of some existing spaces for storage, sorting, conditioning, refrigeration, freezing, processing, packing and marketing;

- Investments for improving products quality and hygiene; - Investments for environment protection.


General

• The project will be placed in the rural area, defined according to the national legislation in force;

• The project shall demonstrate the economic financial viability*; * By economic viability it is understood the obtaining of efficient financial performances and the ability to operate without recurring to public support in the operational activity of the project. The beneficiary shall prove that he/she is able to accomplishing regularly his/her- obligations and duties, without producing any risk to the normal carrying out of the-economic agent’s activity and that it generate a significant net - income (at least 5% profit).

• The investments concerning processing should comply with EU standards;

• The existence of co-financing must be certified;

• It shall not be eligible the applicant who has financial losses and unpaid fiscal, financial obligations to the state, to the social insurance budget and to the banks (other than those for which the repayment schedule is observed), according to the latest fiscal statements or other statements issued by fiscal authorities.

• The beneficiaries (natural persons and/or technical expert responsible)must prove professional competence related to the project they wish to initiate by a document issued by the competent authorities certifying that the beneficiary has professional knowledge in the field: diploma or training certificate, or a statement on own responsibility that will attend to a training course until the end of the project, before the last payment of the aid;

• For projects for rural tourism and other types of tourism from rural space, handicraft and agricultural machines rings the project should have access to basic infrastructure (rural roads, water supply, electricity).

• For processing products, at farm level, of traditional attested and/or certified organic food products, at least 50% of the raw material comes from own production. In the villages where the damage degree higher than 30% (Chapter VIII from NPARD, Annex no. 77) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

• Modernization and new investments for all beneficiaries under this measure;



316

• In the villages where the damage degree is between 10% and 30% (Chapter VIII from NPARD, Annex no. 76) the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA, shall be applied and the following types of investments are eligible:

• Modernization and new investments for all beneficiaries under this measure which submit a document proving that they have been affected by flood damages. The document shall be issued by Local Committee for Emergency Situations*, at the commune level. The Local Committee for Emergency Situations proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005.

Specific

Agricultural services – “Agricultural machines rings”

• The project must contain the functioning status of the non profit organisation “Agricultural machines rings”;

The projects must demonstrate their necessity and opportunity.

Rural tourism

• Special endorsement issued by Ministry of Tourism ( MT) for modernisation or construction, if requested;

• Commitment made by the beneficiary in his/her own responsibility that will introduce in the tourist circuit the objective in the context of a tourism agency authorised by the Ministry of Tourism;

• The beneficiary shall submit for the project to be promoted, a strategy of marketing for tourism, according to the model presented in the Applicant Guide.

• The boarding capacities envisaged to be respected by tourist pensions will respect the selection criteria foreseen in Annex 1.5 of Norms for selection of tourist reception structures, respectively, will have minimum 4 rooms (8 beds) and up to 10 rooms ( 20 beds);

• For new investments and for modernisation, the comfort level and quality of services rendered must be equivalent of minimum 3 flowers;

• The projects aiming to set up new capacities must be in accordance with the provisions the existing Urbanism Master Plan and Zone Urbanism Plan ;

• For modernisation of rural tourist pension is necessary the certificate of classification issued by Ministry of Tourism for the specific pension.

Other types of tourism activities from rural space

Mountain tourism, tourism for fishing, equestrian tourism, bicycling tourism

• Special endorsement issued by Ministry of Tourism (MT) for modernisation or construction, if the case, for tourist reception structures;

• Commitment made by the beneficiary in his/her own responsibility that will introduce in the tourist circuit the objective in the context of a tourism agency authorised by the Ministry of Tourism;

• The beneficiary shall submit, for the project to be promoted, a strategy of marketing for tourism, according to the pattern presented in the Applicant Guide.

• For new investments and for modernisation, the comfort level and quality of services rendered must be equivalent of minimum 2 flowers;



317

• For modernisation of tourist reception structure is necessary the certificate of classification issued by Ministry of Tourism.

Hunting parks:

• The beneficiary must be the legal user of the land.

Handicraft activities

• The project shall demonstrate capitalisation of local resources (flax, hemp, reed, bulrush, wool, wood etc);

Aquaculture Existence of aquaculture licence;

• For aquaculture farms are eligible project which foreseen a minimum production of 500kg/ha/year.

• Pre/contract of purchase of biological input for the first population.


processing of fruit of berries and bush fruits and medicinal and aromatic plants, snails

and frogs

• The applicant must demonstrate capacity to be able to use at least 10 grams of silkworm eggs;

• The acquisition of minimum 20 hives/ bee families;

• The mushroom cultivation must have minimum 30 sq. meters of culture;

Snails and frogs

• The existence of a specific breeding technology.

• The existence of a pre/contract for 30% of the production for sales. For processing products, at farm level, of traditional attested and/or certified organic

food products

• The project dimension must depend on specific technology applied and must ensure the economic – financial viability of the investment, but cannot exceed:

- 12,000 hl/year raw material processed for milk and diary products - 250 t/year raw material processed for meat and meat products - 100 t/year raw material processed for fruit and vegetables - 500 t/year grapes (only noble varieties)/harvesting campaign, for wine; - 100 t/year raw material processed for fish and fish products.

• To obtain organic food product, the entire processed raw material must be certified as organic product; Only projects for processing of certified organic products will be financed and the producer should be registered and attested in the Unique Register of Operators from Organic Farming and should have a contract concluded with an attested Inspection and Certification Body. (MAFRD Order no. 527/2003 for approval of the Rules regarding the system for inspection and certification and conditions for accreditation of the inspection and certification bodies in organic farming, published in the Official Journal of Romania, First Part, no. 613/29 of August 2003).



318

• To obtain traditional products, the processed raw material must fulfil the quality conditions provided by the EU legislation, and the final product must be attested as traditional product. Only the projects for obtaining the attested traditional products included on the Official List for Traditional Products approved annually through MAFRD Order (as it is stipulated in MAFRD Order no. 690/2004 for approval of the norms regarding the conditions and criteria for attesting the traditional products, published in the Official Journal of Romania, First Part, no. 938/14 October 2004), will be financed.


General

• All the investment provided for at paragraph 4 – “Field of action of the measure”.

• The eligible expenditures could be: a) Construction of new buildings and installations and modernization of the existing ones; b) New equipment and machinery, software for computer, including expenditures for assembly and mounting costs based on contracts with third parties; c)That part of costs representing the pay for architects, engineers and consultants, legal fees, feasibility studies, acquisition of licence and patents, for preparing and/or implementing the project, directly related to the measure, which do not exceed 12% of total eligible cost of the project, except the cases when no construction are foreseen when it should not exceed 5% d) Acquisition of specialised new transportation means as a result of their identification in the feasibility study/justifying report.

• For investments in diversification Art. 64, item 4 (b) from the EUROPE AGREEMENT establishing an association between the European Economic Communities and their Member States, of the one part, and Romania, of the other part, must be respected. Only expenditures paid by SAPARD Agency from the accreditation date for this measure or from date/dates mentioned in this regard shall be eligible for Community support. In order that the project should be eligible for community support all services, equipments and acquisitions must originate in the European Community or other states mentioned in Section B, art. 4 from MAFA with subsequent modifications and completion; Specific

Agricultural services - “Agricultural machines rings”:

- Purchasing of equipments and machines; - Building or modernisation of operational buildings; - Endowment of buildings for own machines and equipments (hangars, sheds), maintenance workshops and storing of agricultural machinery inputs (greases, oils, spare parts, etc.) Rural tourism

- Building, modernisation and endowment of rural pensions; - Building and modernisation of camping areas, sports and entertainment grounds, horsemanship and other types of leisure services



319


- Building and modernisation of tourist chalets, hunting and fishing chalets, forestry shelters, halting places, holiday villages, camping, encampment places set up in households, places for fishing tourism, outbuildings in fishing tourist resorts: platforms, car parks, toilets, shelters

- Acquisition or modernisation (replacement of engines and air conditioning system) of river ships and pontoons equipped and licensed for tourists accommodation and transport (two or three star level);

- Building and modernisation of project specific infrastructure (forestry paths, water catchments, energy and thermo power stations, fire pickets, observatories, marking, guide posts);

Hunting parks:

- Building or modernisation of farms breeding game in semi-freedom, including purchasing of wild animals in view of repopulating the hunting parks; - Building of shelters, salt sheds, fences, feeding and watering places, etc. Handicrafts activities

- Building or modernisation and endowment of workshops as: wood processing, manufacture handicrafts things, ceramics, manufacture tailor, embroidering, knitwear, leather processing, processing rush and osiers, musical instruments.

Aquaculture

- Construction or modernisation of farms, spaces and utilities for aquaculture processing and marketing of fish and other aquatic animals produced in the farm; - Purchasing of machinery and equipment for aquaculture production and processing; - Purchase of road specialised means of transport (equipped with refrigeration tanks,

oxygenation equipment) - Purchase of small boats for farm use or their modernisation (replacement of engines) and floatable fishponds; - Purchasing of biological material for the first population;


processing of fruit of berries and of bushes and medicinal and aromatic plants, snails and

frogs

- Purchasing of planting material and plantation of mulberry trees; - Purchasing of equipment for silkworm breeding, storage and processing units; - building capacities for storage, processing and packing of bee products; - Purchase of selected queens for first population; - Purchase of bee hives/ bee families; - Purchase of specialised bee hives transportation means, (tracks attachments); - Equipment for analysing the quality of honey and beekeeping products; - Building and modernisation of resorts for mushrooms cultivation (spaces for

cropping, processing and packing); - Installations for producing compost and purchasing of necessary equipments for

mushrooms farms;



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- Building or modernisation and endowment of spaces for collection, storage/conditioning, processing and marketing of fruit of berries and of bushes and medicinal and aromatic plants;

Snails and frogs - Construction or modernisation of farms, spaces and utilities for breeding, processing

and marketing of frogs and snails; - Purchasing of machinery and equipment for production and processing and of

specialised transportation means;

Processing, at farm level, traditional attested and/or certified organic food products

• Constructing or modernizing spaces and utilities for processing, storing, conditioning and marketing of traditional and/or organic certified food of milk and dairy products, meat, meat products, fish and fish products, fruits and vegetables;

• Purchasing of equipments and installations specific for processing

• Purchasing of specialized transport vehicles for transport of food products of its necessity and capacity is proved through feasibility study.

There are not eligible:

• Eligible and non-eligible investments are in accordance with Art.4, Section B, from MAFA, with subsequent modifications and completions are detailed in the Applicant Guide.

• Investments at retail level

6. SELECTION CRITERIA The project will be selected according to the following criteria:

No. Criteria for project assessment Score (if yes)

1 Projects which promote other activities compared to basic activity. 20

2 Investment projects consisting in: - New investments

15

3 Projects promoted by women 10

4 Projects promoted by youth (under 40 years old) 10

5 The beneficiary/responsible person has already obtained a qualification certificate for the proposed activity.

10

6. The project beneficiary is: authorized natural person (ANP) - an association/commercial company

Max. 20 10 20

7. The investments will be place in less developed economic areas. 15

Total 100

Note:

The selection criteria do not apply in the case of the potential beneficiaries which fulfill

the accession conditions of Article 16(1) and 16(1)(a), Section A, from MAFA.

7. BENEFICIARIES

• Beneficiaries of the projects will be from the private sector, as follows:



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- Natural persons, - Registered family associations, associations and producer groups, - NGOs (agricultural machine rings) - companies with private capital at least equal/more than 75%; - Consumption cooperatives - Handicraft cooperatives For “Processing, at farm level, traditional attested and/or certified organic food

products”, the beneficiaries will be: - Natural authorised persons - Registered family associations - Associations and producer groups

- Companies with private capital at least equal/more than 75% 8. NATIONAL LEGISLATION IN FORCE

The legislation undergoing harmonisation and the national legislation in force are indicated in Chapter “Legislation Appendix”.


• The projects within this measure are considered to be profit generating

• Within this measure shall be financed projects for which the total eligible cost is between 5,000 – 200,000 EURO and till 500 000 EURO for sub-measures Aquaculture and processing, at farm level, traditional attested and/or certified organic food products. Indicative budget of this measure divided by years is found in Chapter VI – Financial Allocation for SAPARD measures, page 356.

INDICATIVE BUDGET BY SUB MEASURE / MEURO (Constant prices 2000)


Agricultural services 2

Rural tourism 25

Other types of tourism activities 20

Handicraft 10

Aquaculture 8

Other activities 10

Processing, at farm level, traditional attested and/or

certified organic food products 25

TOTAL 100

The degree of intervention for the projects of private interest:

- 50% private contribution - 50% public contribution, out of which:

-75% is EU contribution -25% from the national budget



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The payment of the financial support will be made on the base of justifying documents, which prove the accomplishing of the activities and them eligibility. Taking into consideration the options of the beneficiaries, the payment can be made as a single payment at the end of the project or in maximum three instalments. For investment projects located in villages identified in Chapter VIII from NPARD, Annex no. 76 and 77, the intervention rate is: 25% private contribution, 75 % public contribution

For the public contribution, the intervention rate is: -85% EU contribution -15% national budget contribution These provisions will be applied to projects approved until 31st of December 2006.

10. GEOGRAPHICAL COVERAGE The entire rural area of Romania defined according to the national legislation in force. Projects where the provisions of Article 16(1) and 16(1)(a), Section A of the MAFA are applied shall be located in villages affected by floods in accordance with Chapter VIII from NPARD, Annex no. 76 and 77. The projects financed within this measure do not overlap with projects financed from national or foreign funds of the Ministry of Environment, Waters and, Ministry of Transport, Constructions and Tourism and Ministry of Administration and Interior. 11. OUTPUT, RESULT AND IMPACT INDICATORS

Output indicators Number of projects: 7 150 Number of beneficiaries: 7 150

Agricultural services- “Agriculture machines rings”

Number of projects: 1 000 Number of beneficiaries: 1 000 new investments: 90% modernisation: 10%

Rural tourism

Number of projects: 2 200 Number of beneficiaries: 2 200 new investments: 30%

room number: 1 900 bed number: 3 800

modernisation: 70% room number: 4 700 bed number: 9 400



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Number of projects: 1 500 Number of beneficiaries: 1500

new investments : 60% modernisation: 40%

Handicraft

Number of projects: 1 300 Number of beneficiaries: 1 300

new investments: 60% modernisation: 40%

Aqua-culture

Number of projects: 400 Number of beneficiaries: 400

new investments: 30% modernisation: 70%

Other activities: sericulture, bee-keeping, mushrooms cultivation and processing,

processing of fruit of berries and bushes and medicinal and aromatic plants, snails and

frogs

Number of projects: 600 new investments : 60% modernisation: 40%

Number of beneficiaries: 600

Processing, at farm level, traditional attested and/or certified organic food products

Number of projects: 150 Number of beneficiaries: 150

new investments: 75% modernizations: 25%

Result indicators - Fish production/(tones)/year 250 - Frogs production/ (tones) /year 10 - Crabs production (tones) /year 3 - Oysters/production/ (tones) /year 2 - Shells production/ (tones) /year 3 - Snails production/ (tones) /year 5 - Honey and other beekeeping products production/(tones) /year 150 - Silk worms production /(tones) /year 0.5 - Mushrooms production /(tones) /year 30 - Number of new capacities with fruits of berries and bush fruits processed at the farm level 20 - Number of modernised capacities with bush fruits and berries processed at the farm level 25



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- Number of new capacities with aromatic plants processed at the farm level 20 - Number of modernised capacities with aromatic plants processed at the farm level 10

Impact indicators Income’s improving

• Share of gross income off farm beneficiaries generated by the assistance (Euro/beneficiary): 20%, of which:

- relating to tourism (12%) - relating to crafts and local products (8%)

• Share of rural non-farming population having an income from transactions/employment generated by off-farm assistance (agricultural mechanics and service suppliers in agriculture (%) Increase (5%) of tourist accommodation Increase (7%) of fish production Increase (7%) of honey production Increase (5%) of silkworm production Increase (5%) of mushrooms production Increase (7%) of fruits of berries and bush fruits processed production Increase (7%) of aromatic plants processed production Employment and social impact

• Number of full-time equivalent jobs (FTS’s): 35 000

• Maintained in better conditions: 14 200

• created: 21 300 12. PROGRAMME PROMOTION The potential beneficiaries will be informed about the existence / conditions of the eligibility of the present measure through:

• Public announcement in media

• Distribution of information leaflets

• Seminaries

• Meetings with the potential beneficiaries

13. SUPPORTING DOCUMENTS

The potential beneficiary shall attach the following documents to the financing application:

• The justifying report for projects which foreseen only purchasing goods and services;

• Feasibility study for projects which foreseen also construction or modernisation of buildings, drawn up in accordance to the joint Order No 1013/873/2001 of Minister of Public Finance and Minister of Public Works, Transports and Housing for approval of the structure, content and mode of use of Standard Documentation for elaboration and



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presentation of offer for public procurement of services, including general estimate drawn up according to Government Decision 1179/2002;

• Copy of the ownership deed over the land and water surface, the leasing contract, concession contract or of any other document justifying the right of using the land , and the ownership deed over other real estate, goods, according to the legislation in force, for projects which foreseen acquisition of construction works;

• Certificate of urbanism for projects which foreseen constructions and/or modernisation;

• Technical sheet (annex to the Urbanism Certificate) regarding the conditions for environment protection necessary for obtaining the unique endorsement, on which if the case stamp A or B is applied, which might contains in annex, if the case the environmental endorsement issued by competent authorities for activities with relevant impact over the environment, defined according to national legislation consistent with EU legislation;

• Certificate of trader registration (copy) for private companies;

• The business plan demonstrating the viability of the project for projects above 50.000 Euro;

• For commercial companies the latest annual balance sheet prior to the year of projects submission. If the beneficiary has not undertaken an activity prior to project submission, he/she will attach a document in proof of this, issued by the fiscal authorities;

• The certifying attesting that the beneficiary of the project has no unpaid obligations to the state budget, the state insurance budget and banks other than those for which the repayment schedule is observed;


• Certificate showing that the person responsible for the project has an honest judiciary;

• The existence of own financial contribution of the beneficiary shall be proved through a document issued by the bank, and/or other authorised financial institutions in which it is certified the existence of co-financing and the way of its insurance;

• Vocational training in the field, proved through a copy of the diploma, training certificates, or statement on own beneficiary responsibility showing that the beneficiary and /or responsible of the project will attend a vocational training course until the end of the project, before the last payment of the aid;

• Sanitary-veterinary notification, issued by the competent institution attesting that the project is in compliance to the national legislation, except for investments in processing for which the sanitary-veterinary notification have to be in compliance with EU standards.

• For processing investments at farm level, of traditional attested (licensed) and/or certified organic food products to prove the existence of at least 50% raw material from own production.

• For processing investments at farm level, of organic certified food will be submitted, before the first payment the following documents:

- The Fiche of registering as processor in organic farming; - Copy of the contract concluded with the Inspection and Certification Body; - Organic product certificate, issued by the Inspection and Certification Body .



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• For processing investments at farm level, of attested (licensed) traditional food products, a certificate proving that the product meets the traditional elements will be submitted before the first payment.

• For potential beneficiaries with projects located in a village with a damage degree between 10% and 30%, a document issued by Local Committee for Emergency Situations*, at the commune level which proves that potential beneficiary has been affected by flood damages as a result of the floods occurred during April – September 2005 and shall carry out the project in a village included in the Chapter VIII from NPARD, Annex no. 76.

*Local Committee for Emergency Situations is set up according with provisions of the Government Decision no. 1491/2004 for approval of the Standing Order – Framework, regarding the organisational structure, tasks, functioning and endowment of the committees and operational centres for emergency situations.


• Beneficiaries shall be able to identify in their bookkeeping all operations regarding the concerned investment, to prepare an annual income statement and to provide information, if they are asked to by the authorities entitled;

• The beneficiary may receive support two times within the 7 years period up to the maximum amount set up in financial disposition of the measure.

• The beneficiary will collaborate and will submit any information required by authorized institutions to check and audit the project implementation;

• The eligible expenditures under the project shall be paid only after the date the applicant was informed by the SAPARD Agency about the eligibility of the project, except for the expenditures related to the preparation of the project, which may be reimbursed only if the beneficiary had observed instructions for private acquisition within the limits provided for in the measure..


• If the cost of the service or of a good exceeds the total value of 10,000 Euro, the beneficiary shall submit offers from at least 3 suppliers;

• All the payments made by the beneficiary under the project shall follow the provisions of MAFA, section A, art. 14, with subsequent modifications.

• The disbursement of the financial aid shall be made based on payments supporting documents, in one to three instalments throughout the project execution timetable.

• Double financing is not accepted in the programme.

• For investments in diversification must Art. 64, item 4 (b) from the EUROPE AGREEMENT establishing an association between the European Economic Communities and their Member States, of the one part, and Romania, of the other part, must be respected.



• Technical delegated bodies of MAFRD.



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Control System Checking the quality and food safety of products is performed by authorised bodies.

Attested (licensed) traditional food products

Ministry of Agriculture, Forests and Rural Development through its offices for traditional products set up at national and county level, controls the conformity of traditional elements for the attested products and the result of control is recorded in a finding report. The control is performed, before the first payment and annually for a period of five years. Certified organic food products

The control of entire production flow for organic food products is performed by Inspection and Certification Bodies attested by Ministry of Agriculture, Forests and Rural Development. The control is performed in order to ensure the transability, according with inspection and certification procedure elaborated by each inspection and certification body. Ministry of Agriculture, Forests and Rural Development, as responsible authority, through Organic Farming Office controls the activity of the Inspection and Certification Bodies attested.



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MEASURE 3.5

FORESTRY 1. BACKGROUND

• At present, almost one-third, 26,7 % (6.4 million ha.), of the surface of the country is covered by forests. The spatial distribution of forests is not uniform (7% in the plains area, 28% on the hills and 65% in the mountain area).

• Of the total surface of the forest fund3 of about 6,4 million hectares - 5 million hectares

belong to the state and the rest of 1,4 million hectares (21% from aggregate) are privately owned or owned by the communes. According to Law no. 1/2000, an area of about 1 million hectares will be returned to the former owners (public owners – communes and their associations and private owners - natural persons and their associations).

• The inherited state of affairs, as well as the new forms of ownership require the restructuring of the forestry sector, mainly in what regards the forestry resources management, in accordance with the concept of sustainable management of the natural resources in the conditions of diversification of ownership over the forestry lands.

• The most representative national legislation in force regarding forest protection comprises: Law of the Forest Code no. 26/1996 and the Ordinance no. 96/1998 – on the regulation of the forestry regime4 and management of the national forest fund.

• In the study performed , in co-operation with the World Bank “Policy and development strategy for the forestry sector in Romania (2000-2010) aiming to increase its contribution to the improvement of the quality of life, based on sustainable management of the forest resources” there have been grounded on objectives and actions the provisions of the Acquis Communautaire.

• Support for forest land owners with a view to sustainable forest managementit is envisaged that at least 50% of the surfaces which will be retroceded (over 1 million hectares) will benefit of the chance of an administration in forestry regime, according to the legislation in force.

• Strategic actions for the afforestation on medium and long term of productive and non-productive agricultural lands (approx. 2 million ha) by granting facilities and incentives for the land holders for: - to increase the forest area; - to support the establishment of forest plantations on those agricultural lands no longer used for agricultural production, provided that such planting is adapted to local conditions and is compatible with the environment;– to support the afforestation of lands in areas with low forest coverage by providing technical support and supply of the planting

3 National Forest Fund = forests, tracts of land designated for afforestation, those serving the needs of timber culture and production, or forest administration, ponds, brook beds, as well as unproductive plots of land included in the forest planning, regardless of the nature of the property right, under the terms established by law (quoted from the Law of Forest Code no. 26/ 1996) 4 Forestry Regime = system of technical, economic and legal rules regarding the arrangement culture, exploitation, protection and safety of the National Forest Fund, aiming to ensure the sustainable management of the forest eco-systems



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material; to support the establishment of shelter belts, alignments and other categories of plantations, except the existing forest fund ; - Supporting measures for increasing the degree of protection of forests against fire, by executing prevention facilities and endowments with equipment and installation for fire extinguishing.

As compared to the production potential of the forests (the wooden mass that could be harvested), in 2002 established through the forest management plans, was situated at 16.5 million cubic meters, of which 1.9 million cubic meters are located in the inaccessible forest areas - t he volume that was harvested in the last years was only of 13 million cubic meters.

• The production of processing industry has a decreasing trend due to the loss of some traditional markets, exportation of row material (logs) and to the old technologies used.

• The access network within the forests is low developed. The density index of the transport infrastructure is presently of 6,5 m/ha. More than 2 million hectares of forests are inaccessible; in which the harvesting and regeneration works cannot be carried out according to the economic efficiency principle.

• In Romania, the reference documents for setting the priorities of this field are The Governing Plan for 2001 – 2004 and The Action Plan for Governing during 2001 – 2004 approved by Government Decision No. 455/ 2001.

The SAPARD Program will substantially contribute to the achievements of the following objectives:

- Modernising the existing nurseries and creating new ones in view of supporting the afforestation effort of private and public forest owners;

- Afforestation of both productive and unproductive agricultural lands, by private owners or their associations or municipalities or their associations;

- Enhancing the access to forests by modernisation, rehabilitation of the forestry roads and by creating new ones;

- Increasing the value added into the wood first processing.

• Financial support for the forestry sector is motivated by the need for a sustainable forest management in the rural areas by bringing forest resources in the economical circuit and by the fulfilling of the commitments that Romania agreed on as signatory country of all the Resolutions of the Pan-European Conference on Forests Protection(Strasbourg 1990, Helsinki 1993, Lisbon 1998, Vienna 2003). 2. OBJECTIVES

General objectives

• Maintenance and development of economic, ecological and social functions of forests in rural areas, according to the provisions of European Council Regulation no. 1268/1999 and the Article 7 of European Commission Regulation no. 2759/1999

• Promoting the sustainable forest management and development of forestry, maintenance of forest resources. (The list of the species accepted for afforestation is mentioned in Appendix no. 1)



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• Achievement of the objectives set out in the National Development Plan and Governing Programme 2001 – 2004.

Specific objectives

• Increasing the accessibility of forests within the existing forest fund, in order to increase the economic efficiency of wood harvesting, to reduce the environmental impact and caring out of maintenance works.

• Enlargement of the afforested area, increasing the added value for forestry products and private forests owners income; creation of new jobs; obtaining of profit; establishment of the population in the area; development, modernisation and technological upgrading of the equipments specific to the activities of the sub-measures; reducing the social pressure onto the existent forests.

• Increasing the role of forests in environmental stability and amelioration, afforestation of productive and non productive agricultural lands, diminishing the effects of drought and limiting of desertification through specific forestry technical measures, including setting up of forest shelter-belts.

• Better use of agricultural lands, protection of the agricultural crops, the communication means and rural human settlements, the hydro-power works of waters management and other social and economic objectives by setting up of forest shelter-belts (against winds, snow, sliding and floods through decreasing of the soil erosion).

• Encouragement of investments made by private owners associations, and associations of communes, aimed to decrease the forest management costs. Operational objectives

• Financial support for natural persons, local authorities and associative structures, as well as private owners of forests and of lands and private companies dealing with harvesting, primary processing of wood and the resulted waste.

• Support for the investments in forest exploitations owned by private owners or communes.

• Improvement of the wood harvesting, transportation of wood and wooden products, primary processing and marketing of forestry products.

• Investments for improving the ecological, economic and social value of the forest;

• Supporting of the costs of planting and maintenance of forest plantations

• Support for the investments made by associations of the private owners of forests; 3. CORRELATION WITH OTHER MEASURES This measure, through its specific actions will be complementary to other SAPARD measures: Measure3.4: “Development and diversification of economic activities in order to generate multiple activities and alternative incomes”; Measure2.1: “Development and improvement of the rural infrastructure”; Measure3.3: “Agricultural production methods designed to protect the environment and maintain the countryside” ;



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Measure4.1: “Improvement of vocational training” Measure4.2: “Technical assistance“ Measure3.2: “Setting up the producers groups“ 4. FIELD OF ACTION OF THE MEASURE Support for the forestry sector refers to the following sub-measures:

Afforestation Investments for afforestation of productive and non productive agricultural lands and also creating the forest shelter belts (on any type of agricultural land) owned or legally used by natural persons, their associations and communes and their associations. The support will be provided under the following limitations, to:

- private beneficiaries for setting up new plantations and maintenance works for a period of maximum 5 years;

- public beneficiaries (communes), only for plantation ;

Nurseries Investments for creating new nurseries and/or modernisation of the existing nurseries including endowment with specific equipments and machineries.

Investments for the improvement of primary wood processing and marketing of forest

products - Construction and/ or modernisation of operational processing buildings , and offices.- Modernisations or new investments in machineries, equipments and installations for: first processing of wood, storing and marketing of the forestry products and using/processing of the wood wastes, made by forests owners and private companies.

Forestry roads Investments for: construction and/or modernisation of private and/or public forestry roads, including art works and primary storage areas, construction of marking systems, signalization and warning horizontal and vertical systems. Forest exploitations (Wood harvesting included) Investments for protection of forests against fire (belts, basins and equipments); Investments in operational buildings, computers, software, communication means, special machineries and equipments, specialised transportation means, made by forest owners associations in order to support their members to improve the sustainable and efficient management of their forests.

For wood harvesting:

− The endowment with equipments, machineries and installations for wood handling and transportation.

− Construction and/or modernisation of the sheds for machineries and equipments and repairing workshops.



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General - The projects have to be located in rural areas defined according to the national legislation in force; - The beneficiary should submit the necessary documents to prove the ownership legal right or legal using of the land on which the project is to be implemented, valid for a period of minimum 10 years from the date of the application submission to the SAPARD Agency.

- The existence of co-financing should be certified. - The applicant who has financial losses or unpaid fiscal debts, or financial obligations to the state, to the social insurance budget or to the banks (other than those for which the reimbursement schedule is observed), according to the latest fiscal statements issued by fiscal authorities, is not eligible.

•The beneficiaries (natural persons and/or technical expert responsible) shall prove professional skills related to the project they wish to initiate by a document issued by the competent authorities certifying that the beneficiary has professional knowledge in the field: the diploma or training certificate or a statement on own responsibility, that will attend a training course, till the end of the project, before the last payment of the aid or through a technical assistance contract with a specialised consultant, to be submitted before the first payment under the project.

- The project should observe the legislation in force, regarding the protection of environment. Specific

Afforestation The existence of a decision of the Local Council deciding the afforestation of the respective area – in case of public beneficiaries (communes or their associations) - The project will observe the methodological norms regarding the schemes and the technology of afforestation and maintenance of the plantation until maturity.

- The used species and technical solutions will be adapted to the local ecological conditions and compatible with the environment (according with the appendix no. 1) - The saplings acquisition should be made according to the MAFA provisions regarding the three offers for private beneficiaries and, for public beneficiaries, according to the public procurement procedures;

- The beneficiary will present a notification on changing the land utilisation category (from agricultural to forest) issued by a competent authority. - The projects have to prove the utility and efficiency of the investments regarding the environment protection (improving the soil quality, regulation of hydro regime,



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improvement of air quality) through a feasibility study, drafted according to the law, for project containing constructions, or through a technical explanatory report according to a model included in the Applicant’s Guide.

- The afforestation of the lands situated on slopes above 250 is not eligible; excepting the case when the project includes complementary works, in accordance with the applicable technology (execution of terrace, fencing, fencing with wooden pillars and hurdles, torrent bed lining, weirs, construction of rapids). - The bio-diversity preservation, specific to the area will be accomplished by using the local species for afforestation (shown in the appendix no.1)

- The number of saplings for afforestation depends by their framing in the ecological group and varies between 625 and 10,000 pieces/ha.

Nurseries - Minimum surface of the nursery:

- 3.0 hectares for nurseries that mainly produce broadleaves - 1.5 hectares for nurseries that mainly produce mixed species - 0.5 hectares for nurseries that mainly produce conifers.

- The beneficiary should submit a commitment that he will use the forest reproductive material from approved sources, according to the law. - The water source should be secured for nursery irrigation.

Investments for the improvement of primary wood processing, harvesting and

marketing of forest products

- The beneficiary (company) should prove that is fully private

-The projects should prove utility and *economic viability through a feasibility study (if constructions are concerned) or a technical explanatory report, and a business plan (the business plan is required only for projects more than Euro 50,000).

* Economic viability (efficiency): the beneficiary’s ability to obtain financial performances, without public aid in the operational activity. Beneficiary should prove that could pay regularly his obligations and debts, without any risk for normal activity, which generates a significant profit (not less than 5%).

Forestry roads

- The projects will be executed only on lands belonging to private beneficiaries or communes and their associations organized to this purpose.

- The projects will prove the utility of the investment through a feasibility study (particularly indicating: the need for improving area accessibility)



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- The project should present a written agreement of all land owners (natural and legal persons) on whose land the road will pass through for the execution of construction and maintenance works by the beneficiary, unrestricting the population or owners access, as the case may be, who respect the technical traffic rules (i.e. weather conditions, weight of transportation means).

Forest exploitations (Wood harvesting included)

- The associations will prove the ownership right over the land on which the project will be implemented;

- The associations between owners whose individual ownership right has been restored will conclude associative contracts valid for minim 10 years from date of submission the financing application.

- Projects will prove the utility of the investment through a technical explanatory report.

- There should be submitted authenticated copies regarding of the establishment for the existing associations (associations are set up in accordance with the Law no 21/1924, the Government Ordinance no 26/2000 with further completion and modifications, or the Law no.1/2000) .

- Projects should prove cumulative attainment of the following conditions for realising the investment:

- Forest area within an association should be of minimum - 100 hectares

- Compact forest area5 within an association should be of minimum: - 10 hectares in the plain area - 30 hectares in the hill areas - 100 hectares in the mountain area

- Submitting the forest planning map (from the last management planning) with delimitation of the properties participating on setting up of the association (scale 1:10,000 or 1:20,000 or 1:5,000) - The projects with a value more than 50,000 euro will prove economic efficiency (profit generating) through a business plan. The eligible investments are: - all the investment provided for at chapter 4 – “Field of action of the measure”

- The eligible expenditures may be: a) Construction of new specific buildings and/or modernisation of the existing ones;

b) Acquisition of new specific installations, machineries, equipments, and tools, IT equipment and software, including their installing and fitting costs; c) That part of expenditures representing the payments for architects, engineers, consultants, legal fees, feasibility studies, acquisition of licenses and patents,costs for the preparation and/or implementation of the project, directly connected with the measure

5 compact forest area = the forest area created by jointly placing of more properties that have in common at least one side



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(including costs for elaboration of the cadastral plans and updating the forest management plans), which will not exceed 12% of the total eligible cost of the project, excepting the cases where the constructions are not included, when these expenditures will not exceed 5%. d) Acquisition of specialised new transportation means, as a result of their identification in the feasibility study /technical explanatory report. e) Investments for specific constructions, installations and equipments for protection against fire, concerning the buildings protection (pickets against fire, water basins, equipments and tools for fire extinguishing).

The expenditure will be considered eligible for aid, if they accomplish the art.4 Section B requirements mentioned in MAFA, with subsequent amendments. Only expenditure paid by SAPARD Agency from the accreditation data for this measure, or specified dates, will be eligible for Community support. In order to be eligible for the Community support , all services, works and goods procurements will originate from the European Community or from the countries mentioned in Article 4, Section B from MAFA, with its subsequent amendments . Specific

Afforestation - Purchase of saplings - Execution of technological roads to access the afforestation sites - Transporting the materials, saplings and work force to the site and putting the saplings into the groove - Preparing the land and soil for afforestation by specialised third parties (preparing of the land also includes the execution of land improvement works, such as: terraces, drying works, wattle-works, brush head plugs) - Plantation execution (staking, saplings direct transport, digging, saplings planting, cutting of saplings) - Performing of a surrounding fence of the plantation and of a hedge –which do not have to exceed 20% from the total value of the investment - Only for private beneficiaries: execution of plantation maintenance (revisions, manual and mechanised mobilisation, removing of weeds and of another wooden species, etc.) and completion works, until the phase of forest mass has been reached, but maximum 5 years. The costs of these works, depending by local condition of the afforested zone and species used for afforestation, are refunded 50%, and must not exceed 200 Euro/hectare, for the second and third year after plantation, respectively 150 Euro/hectare for the forth and fifth year. The support will be granted based on real market costs, in accordance with the invoices paid for the purchased goods and for the works and services supplied by the specialised third parties, according to the specific methodology, approved by the legislation in force.

Nurseries - Construction of irrigation systems, water supply and the greenhouses or plastic foil protected ditches for the production of seedling in controlled area, spaces for preservation and storing of seeds, sorting and storing of the seedlings, installations for



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humidity control, greenhouses and construction of operational buildings, nursery field arrangement works; - Construction of fencing - Purchasing of machines, equipments and installations, etc. Investments for the improvement of primary wood processing and marketing of forest

products - Purchase of equipments and machines for wood first processing (drying, splintering, splitting, treating) and for using/processing of the wood waste (burning, briquettes);

Forestry roads - Construction of new roads and improvement of the existing ones, including the art works, signalisation and warning systems. Forest exploitations (Wood harvesting included)

For wood harvesting:

Procurement of equipment for wood harvesting (mechanical sows) machines, animals and equipments for wood cutting and transporting (winches, forest tractors, forest combines, cable ), equipments for wood loading and transportation (forest self-propelling trains, frontal loaders), including the building up and modernisation of hangars and/or garages.

There are not eligible:

The entire cost mentioned at article 4 “eligibility of expenditure” paragraph 2 from section B “management, monitoring and programme evaluation” from the appendix of the Multi-annual Financing Agreement, to which there will be added: - Investments that directly support the selling by retail; - Investments for the building and the modernizing of dwelling houses; - Expenditures regarding the promotion of products by means of exhibitions, advertisements and publicity; - Procurement of transportation means excepting the specialized ones; - Procurements of lands; - Plantation of Christmas trees; - Afforestation of the lands with forestry destination . - Afforestation with fast growing species.

6. SELECTION CRITERIA

Specific

Afforestation

N° Criteria for project assessment Score (if yes)

1 Afforested surface �for private beneficiaries : 3 points for each land area of 5 ha �for public beneficiaries 1 points for each land area of 10 ha

Max 30



337

2 Number of species in the composition: �at least 2 species (5 points for every species)

Max 30

3 Location of project in one of the following areas: - plain and meadow - hill

Max 20 20 10

4 Plantation that have the function of shelter - belts for protection against erosion

20

TOTAL 100

Nurseries


1 Saplings production by a diverse species assortment ( 10 pt /species)

Max 60

2 The applicant is an owners association 40

TOTAL 100


products


1 The project provides technology and equipment s for wood high processing efficiency and for wood waste using:

- for wood waste using (producing briquettes or burning)

- for wood processing

Max 50

20

30

2 Setting up of a storehouse out of the forest for wood marketing 20

3 The beneficiary is an association of forest owners or a company of wood processing where the association of forest owners is majority shareholder

20

4 The beneficiary is the owner or the legal user of minimum 50 ha of forest

10

TOTAL 100



338

Forestry roads

N° Criteria for project assessment Score(if yes)

1 The project will be located in one of the following areas - isolated forest basin (without accesses) in the mountain area - forest basin in the mountain area

Max 40 40 20

2 Multifunctional character, more than forest character (proved by submitting a forest planning map), may consist in:

a) rural infrastructure (access of rural population to various facilities – schools, entertainment places, exhibitions, fairs, purchasing, stores etc.)

b) tourism infrastructure (tourists access to the area tourist points – chalets, tourist routes etc.), giving priority to:

- the existing of 2 both functions - the existing of a single function

Max 40

40 20

3 Number of inhabitants and served owners over 50 persons up to 50 persons

Max 20 20 10

TOTAL 100

Forest exploitations (Wood harvesting included)

N° Criteria for project assessment Score

(if yes)

1 For promoting the ecological technology for wood harvesting, the applicant will use through the project the following:

a. cable ways

b. forestry combines

Max 40

30

10

2 The beneficiary is a forest owner or legal holder:

- of 10-50 hectares of forest

- of 51-100 hectares of forest

over 100 hectares of forest

Max 30

10

20

30

3 The beneficiary is an associations of forest owners or a company of wood processing where the association of forest owners is majority shareholder

10

4 The beneficiary is an association of forest owners with:

♦ 10-20 members

♦ over 20 members

Max 20

10

20

TOTAL 100



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7. BENEFICIARIES The final beneficiaries will be:

- Natural persons, owners/holders of forestry or agricultural lands Legal persons, owners/holders of forestry or agricultural lands out of which:

- religious units* (churches, monasteries) - educational units** (schools); - associative forms or owners associations in the field; - local councils of communes or municipalities and their associations;

- Private economic agents in the field. Religious and educational units shoul be limited only for afforestation.

* Religious units are legal persons (according to the Article 186 of The Statute of the Romanian

Orthodox Church Organisation and Functioning No. 4593/1949, approved by Decree No.

233/1949, amended by Decision of The National Church Congregation No. 8576/10 July 1973),

with private funding;

** Educational units are legal persons (excepting those schools having only I-IV classes, according to

the Article 7, (8) Item, of Law No. 84/1995, The Educational Law, with subsequent completions

and modifications), financed by local budgets.

8. NATIONAL LEGISLATION IN FORCE The list of the national legal rules in force, on this measure is shown in Chapter “Legislation Appendix”.

9. FINANCIAL DISPOSITIONS The indicative budget of Measure 3.5, containing the annual allocations, is depicted in the Chapter 6 of the National Plan for Agriculture and Rural Development, page no. 358.



Afforestation 10

Nurseries 5

Investments for the improvement of primary wood processing and marketing of forest products

15

Forestry roads 20

Forest exploitation (wood harvesting included)

50

TOTAL 100

The support for the communes or their associations projects, only for Forestry roads with public access, will be 100% of the total eligible cost.

The intervention rate for these projects is:

-75% EU contribution -25% national budget



340

In all the cases, on all sub measures, with exception of the forestry roads, realized by communes or their association, the support will be 50% from the total eligible cost of the project. The intervention rate for these projects is: -50% private contribution -50% public contribution, out of which: -75% EU contribution -25% national budget Afforestation Maximum amount of the total eligible cost: EURO 500,000

Minimum amount of the total eligible cost: EURO 10,000 The costs for the execution of the plantation maintenance and completion works, in the afforestation private projects, are eligible costs, which are not included in the calculation of the limits amount of the total eligible cost of the project. Reimbursement of the 50% from the total annual costs for the execution of these works, will be made based on real market costs, in accordance with the invoices paid for the purchased goods and for the works and services supplied by the specialised third parties, according to the specific methodology, approved by legislation in force, until the phase of forest mass has been reached, but maximum 5 years.. These costs must not exceed 200 Euro/hectare, for the second and third year after plantation, respectively 150 Euro/hectare for the forth and fifth year. Nurseries Maximum amount of the total eligible cost: EURO 500,000 Minimum amount of the total eligible cost: EURO 10,000


products Maximum amount of total eligible cost: EURO 500,000 Minimum amount of total eligible cost: EURO 10,000

Forestry roads

Maximum amount of the total eligible cost: EURO 1.000.000 Minimum amount of the total eligible cost: EURO 50,000 Forest exploitation ( wood harvesting included)

Maximum amount of the total eligible cost: EURO 800.000 For wood harvesting the maximum amount of the total eligible cost is 500,000 Euro. Minimum amount of the total eligible cost: EURO 6,000



341

The value of the aid requested must reflect real costs, calculated on the basis of paid invoices. 10. GEOGRAPHICAL COVERAGE

The project will be located in the rural areas, defined according to the law. Will be prioritized for afforestation the projects located in the plain and meadow areas, as there was established in the specific selection criteria. 11. OUTPUT, RESULT AND IMPACT INDICATORS

Output indicators

General indicators Number of projects: 2 400 Number of beneficiaries: 2 400

Afforestation Number of ha:40.000 Number of beneficiaries 1290, from which:

private: 860 public: 430

-Number of projects: 1290

Nurseries Number of ha 60 Number of projects: 40 Number of beneficiaries: 40 Investments for the improvement of primary wood processing and marketing of forest

products Number of projects: 400 Number of beneficiaries: 400

Forest roads

Number of km.: 450 Number of projects: 200 Number of beneficiaries: 200

Forest exploitation ( wood harvesting included) Number of projects: 470 Number of associated owners: 2,000

Result indicators

- increase the surface of afforested agricultural land – 40.000 hectares; - increase the number of seedlings obtained in the private nurseries- 8.000 thousand

pieces;



342

- increase the capacity of wood first processing which observe technical environment protection conditions – 20%

- increase the lengths of forestry roads- 5% - increase the surface of forests managed by forest owners associations- 10% - increase the number of forest owners in the association 20% Impact indicators

Maintenance and development of employment and other socio-economic functions - Increasing the afforested areas by SAPARD projects against the existing afforested

areas (private and public-communes): 2%; - Increasing the number of localities served by forest roads, with 200; - Increasing of total area of private owned forests managed on the basis of management

plans with 10%

- Increasing of productivity in the wood harvesting sector with 3%; - Increasing of number of jobs created with 3%. 12. PROGRAMME PROMOTION The potential beneficiaries will be informed about the existence/conditions of eligibility of the present measure through: Mass-media communication Distribution of information leaflets Seminars Meetings organized 13. SUPPORTING DOCUMENTS

General The potential beneficiary will attach the following documents to the financing application:

- Technical explanatory report or feasibility study drawn up in accordance to the Joint Order no.1013/873/2001 of the Minister of Public Finances and of the Minister of Public Works ,Transports and Housing, approving the structure, content and mode of use of the Standard Documentation for elaboration and presentation of the offer for public procurement of services, including the project general estimated budget, drawn up according to the Government Decision no.1179/2002; - Copy of the ownership deed over the land, or any other document justifying the right of using land, or the ownership deed over the other real estate, goods, according to the legislation in force, if the case; - Certificate of urbanism, if the case; - Technical sheet regarding the conditions for environment protection necessary for obtaining the unique endorsement, on which, if the case, stamp A or B is applied, which might contains in annex, if the case, the environmental endorsement issued by competent authorities for activities with relevant impact over the environment, defined according to national legislation, in accordance with EU legislation.



343

- The existence of own financial contribution of the private beneficiary will be proved through a document issued by the bank, and/or other authorized financial institutions, in which it is certified the existence of co-financing and the way of its insurance;

- Local Council Decision to ensure proper financial conditions for the fulfilment of the project according to the proposed execution time schedule, for the public beneficiaries (communes or associations of communes);

- Copies of the beneficiary legal registration documents, as the case may be;

- If the case,the latest annual balance sheet prior to the year of project submission. If the beneficiary has not undertaken an activity prior to project submission, he/she will attach a document in proof of this, issued by the fiscal authority; - The endorsement of the financing directorate, certifying that the beneficiary of the project has no debts to the state budget, the state insurance budget and banks, other than those for which the reimbursement timetable is observed, if the case may be; - The statement on own responsibility showing that the applicant does not benefit of financing through other EU programmes for the projects that makes the object of the SAPARD assistance; - Certificate showing that the person responsible of the project has a honest judiciary criminal record; - Documents of the beneficiaries (natural persons or technical project responsible) proving the vocational training in the field, through a copy of diploma, training certificates or a statement on his own responsibility, showing that beneficiary/responsible of the project will attend a vocational training course before the last payment of the aid, or through a technical assistance contract with a specialised consultant, to be submitted before the first payment under the project. - Endorsement for the change of the land using category, as the case may be; - Copy of the forest site map (since the latest management planning), with marks of the boundaries of ownership, if applicable;

- Copy of the cadastral plan of the ownership, if applicable. 14. FINANCING CONDITIONS

The beneficiaries shall draw up monthly balances detailed by current investment accounts, the balance sheet at the half of the year and the balance sheet at the end of the year; A beneficiary may receive grant maximum two times throughout the 2000 – 2006 period, within the measure , but the total eligible cost of each project must not exceed the limit of maximum amount of the eligible sum of the respective submeasure The beneficiary may ask financial assistance for a new project after the completion of the previous project; The beneficiary will collaborate and will provide all information required by the structures authorized to check and audit the project implementation; The support granted will be recovered, if the supported objectives are not used according to the declared purpose, or if the respective objectives were sold or leased within a period of 5 years after the completion of the project (the date of the last instalment);



344

If the cost of the service or of a good exceeds the total value of 10,000 EURO, the private beneficiary will submit offers from at least 3 suppliers; The public procurement of goods, services and works within the project will be made according to the public procurement rules; The payments under the project will be made only after the date when the applicant was informed by the SAPARD Agency about the eligibility of the project, excepting the expenditures related to the project preparation, which may be reimbursed to the beneficiary by the SAPARD Agency, within the limits provided for in the measure.

All the payments made by the beneficiary under the project will be made following the MAFA provisions, section A, art. 14, with subsequent modifications.

The disbursement of the financial aid will be made based on payments supporting documents, in one to five installments throughout the project execution timetable.



• Technical delegated bodies of the Forest Regime and Hunting Territorial Directorates, within the MAFRD (Ministry of Agriculture, Forests and Rural Development).



Appendix no. 1

LIST

with trees and bushes used for forestation

Nr.

crt.

Latin name Romanian name Forma

0 1 2

1 TAXUS BACCATA Tisa Tree

2 ABIES ALBA Brad alb Tree

3 ABIES CONCOLOR Brad argintiu Tree

4 PSEUDOTSUGA MENZIESII Duglas verde Tree

5 PICEA EXCELSA Molid Tree

6 PICEA PUNGENS Molid înţepător Tree

7 PICEA ENGELMANNI Molid de Arizona Tree

8 PICEA ORIENTALIS Molid de Caucaz Tree

9 PICEA OMORIKA Molid sârbesc Tree

10 LARIX DECIDUA Larice Tree

11 LARIX LEPTOLEPIS Larice japonez Tree

12 PINUS SYLVESTRIS Pin silvestru Tree

13 PINUS MONTANA Pin de munte Tree

14 PINUS NIGRA Pin negru Tree

15 PINUS PONDEROSA Pin galben Tree

16 PINUS STROBUS Pin strob Tree

17 PINUS EXCELSA Pin de Himalaia Tree

18 PINUS CEMBRA Zîmbru Tree

19 TAXODIUM DISTICHUM Chiparos de baltă Tree

20 THUJA OCCIDENTALIS Tuie Tree

21 THUJA PLICATA Tuie gigantică Tree

22 THUJA ORIENTALIS Biota Tree

23 CUPRESSUS SEMPERVIRENS Chiparos Tree

24 CHAMAECYPARIS Chiparos de California Tree

25 JUNIPERUS COMMUNIS Ienupăr Bush

26 JUNIPERUS SIBIRICA Ienupăr pitic Bush

27 JUNIPERUS SABINA Cetină de negi Bush

28 JUNIPERUS VIRGINIANA Ienupăr de Virginia Tree

29 CARPINUS BETULUS Carpen Tree

30 CARPINUS ORIENTALIS Cărpiniţă Bush

31 CORYLUS AVELLANA Alun Bush

32 CORYLUS COLURNA Alun turcesc Tree

33 BETULA VERRUCOSA Mesteacăn Tree

34 BETULA PUBESCENS Mesteacăn pufos Tree

35 BETULA NANA Mesteacăn pitic Bush

36 ALNUS GLUTINOSA Anin negru Tree

37 ALNUS INCANA Anin alb Tree

38 ALNUS VIRIDIS Anin de munte Bush

39 FAGUS SILVATICA Fag Tree



40 FAGUS ORIENTALIS Fag oriental Tree

41 CASTANEA SATIVA Castan bun Tree

42 QUERCUS BOREALIS Stejar roşu Tree

43 QUERCUS PALUSTRIS Stejar de baltă Tree

44 QUERCUS CERRIS Cer Tree

45 QUERCUS PETRAEA Gorun Tree

46 QUERCUS ROBUR Stejar Tree

47 QUERCUS PEDUNCULIFLORA

Stejar brumăriu Tree

48 QUERCUS FRAINETTO Gârniţă Tree

49 QUERCUS PUBESCENS Stejar pufos Tree

50 JUGLANS REGIA Nuc comun Tree

51 JUGLANS NIGRA Nuc american Tree

52 JUGLANS CINEREA Nuc american cenuşiu Tree

53 POPULUS ALBA Plop alb Tree

54 POPULUS TREMULA Plop tremurător Tree

55 POPULUS CENESCENS Plop cenuşiu Tree

56 POPULUS NIGRA Plop negru Tree

58 SALIX ALBA Salcie albă Tree

59 SALIX FRAGILIS Salcie fragedă Tree

60 SALIX PENTANDRA Salcie Tree

61 SALIX CINEREA Zălog Bush

62 SALIX VIMINALIS Răchită Bush

63 SALIX INCANA Răchită albă Bush

64 SALIX PURPUREA Răchită roşie Bush

65 SALIX ROSMARINIFOLIA Salcie târâtoare Bush

66 SALIX HERBACEA Salcie pitică Bush

67 MORUS ALBA Dud alb Tree

68 MORUS NIGRA Dud negru Tree

70 MACLURA AURANTIACA Maclură Tree

71 ULMUS FOLIACEA Ulm de câmp Tree

72 ULMUS PROCERA Ulm de câmp Tree

73 ULMUS MINOR Ulm mărunt Tree

74 ULMUS MONTANA Ulm de munte Tree

75 ULMUS LEVIS Velniş Tree

76 ULMUS PUMILA Ulm de Turkestan Tree

77 BUXUS SEMPERVIRENS Merişor Bush

80 TAMARIX RAMOSISSIMA Cătină roşie Bush

83 RIBES ALPINUM Coacăz de munte Bush

87 ELAEAGNUS ANGUSTIFOLIA Salcie mirositoare Tree

88 HIPPOPHAE RHAMNOIDES Cătină albă Bush

89 SPIRAEA ULMIFOLIA Cununiţă Bush

90 COTONEASTER INTEGERRIMA

Bârcoace Bush

91 CYDONIA OBLONGA Gutui Tree

92 PIRUS PYRASTER Păr pădureţ Tree



93 MALUS SYLVESTRIS Măr pădureţ Tree

94 SORBUS AUCUPARIA Scorus de munte Tree

95 SORBUS DOMESTICA Scoruş Tree

96 SORBUS TORMINALIS Sorb Tree

97 CRATAEGUS MONOGYNA Păducel Tree

101 ROSA CANINA Măceş Bush

102 ROSA GALLICA Măceş de câmp Bush

104 PRUNUS SPINOSA Porumbar Bush

105 PRUNUS CERASIFERA Corcoduş Tree

106 CERASUS FRUTICOSA Cireş pitic de Bărăgan Bush

107 CERARUS AVIUM Cireş pădureţ Tree

109 PADUS MAHALEB Vişin turcesc Tree

110 PADUS RACEMOSA Mălin Tree

111 PADUS SEROTINA Mălin american Tree

112 GLEDITSIA TRIACANTHOS Glădiţă Tree

113 SOPHORA JAPONICA Salcâm japonez Tree

114 LABURNUM ANAGYROIDES Salcâm galben Bush

115 CYTISUS NIGRICANS Drob Bush

116 AMORPHA FRUTICOSA Salcâm mic Bush

117 ROBINIA PSEUDACACIA Salcâm Tree

118 ROBINIA HISPIDA Salcâm roşu Tree

119 ROBINIA VISCOSA Salcâm roşu vâscos Tree

122 TILIA CORDATA Tei de deal Tree

123 TILIA PLATYPHYLLOS Tei cu frunza mare Tree

124 TILIA TOMENTOSA Tei alb Tree

125 AILANTHUS ALTISSIMA Cenuşer Tree

126 COTINUS COGGYGRIA Scumpie Bush

127 RHUS TYPHINA Oţetar roşu Bush

128 ACER PSEUDOPLATANUS Paltin de munte Tree

129 ACER PLATANOIDES Arţar Tree

130 ACER CAMPESTRE Jugastru Tree

131 ACER MONSPESSULANUM Jugastru de Banat Tree

132 ACES TATARICUM Arţar tătărăsc Tree

133 ACER NEGUNDO Arţar american Tree

134 AESCULUS HIPPOCASTANUM

Castan porcesc Tree

135 ILEX AQUIFOLIUM Laur Tree

136 EUONYMUS VERRUCOSA Salbă râioasă Bush

137 EUONYMUS EUROPAEA Salbă moale Bush

140 RHAMNUS FRANGULA Cruşin Bush

141 CORNUS SANGUINEA Sânger Bush

142 CORNUS MAS Corn Bush

146 FRAXINUS ORNUS Mojdrean Tree

147 FRAXINUS EXCELSIOR Frasin comun Tree

148 FRAXINUS PALLISAE Frasin pufos Tree

149 FRAXINUS OXYCARPA Frasin de Turkestan Tree



150 FRAXINUS PENNSYLVANICA

Frasin de Pensilvania Tree

151 SYIRINGA VULGARIS Liliac Bush

152 SYIRINGA JOSIKAEA Liliac transilvănean Bush

157 VIBURNUM LANTANA Dîrmox Bush

158 VIBURNUM OPULUS Călin Bush

159 PLATANUS CCCIDENTALIS Platan american Tree

160 PLATANUS ORIENTALIS Platan oriental Tree

161 CERCIS SILIQUASTRUM Treele Iudei Tree

162 GYMNOCLADUS DIOICA Roşcov de Canada Tree

NOTE: The estimated density of saplings for afforestation depends by their framing in the ecological group and varies between 625 and 10.000 pieces/ha, according to the legislation in force. The real density of the used species must be presented in the feasibility study/technical explanatory report of the project.



MEASURE 4.1

IMPROVEMENT OF VOCATIONAL TRAINING

1. BACKGROUND

•In the existing conditions in Romania, where the market economy is being implemented and where radical structural changes are taking place, the investments in human resources are essential for both the implementation of the National Plan for Agriculture and Rural Development (NPARD) and for the evolution of the rural area.

•A third part of the rural population graduated only the primary school; another third part graduated the gymnasium school and 3.1% (level 2000)6 did not graduate any form of education.

•The absence of diversification of agricultural and fishery activities, the non-appliance of modern and performance technologies, the precarious hygiene-sanitary situation also asks for the improvement of vocational training. ●A poor training of agricultural and fishery producers in the field of non agricultural and fishery activities.

•The number of the graduates of agricultural schools is smaller compared to the current and future needs of the Romanian agriculture.

•Further to the appliance of Land Law no. 18/1991 and of Law no. 1/2000, rural area has concentrated a big number of persons which has started practising agricultural activities and other complementary activities, with any speciality training, relying themselves only on the traditional practice of these activities.

•The necessity of training the agricultural, fishery and forestry producers in the field of environment protection, in the field of non-pollution technologies, and in the field of ecological practices processing of the products, represents a real need for the Romanian rural area.

•The vocational training of the adults, an integrand part of the permanent education, register a new extension towards the agricultural producers and is addressing to the persons that did not make the object of compulsory schooling.

•The new reform of the vocational educational system (started in 1999), requires its organisation and extension in the rural area.

•The continuous vocational training of adults in Romania is regulated through the Government Ordinance no 129/2000 and approved by Law 375/2002.

2. OBJECTIVES

General objective

• assistance is granted to the vocational training in order to contribute to the improvement of knowledge and professional competencies of the farmers and other persons involved in agricultural and in forestry fishery and aqua-culture activities, the processing of

6 Study initiated by the Ministry of Education and Research in 1998 and approved by Government within the program for re-launching the rural education, 1999-2000;



agricultural, fishery and aqua-culture products, as well as to their conversion towards non-agricultural activities. This objective is in accordance with Article no. 2 of the Council Regulation (EC) no. 1268/1999, with Article 5 of the Commission Regulation (EC) no. 2759/1999 and with the provisions of the Chapter III, Title II of the Council Regulation (EC) no. 1257/1999.

Specific objectives

•Improving the vocational training of the agricultural and forestry, fishery and aqua-culture producers as well as of employees of agricultural and fish processing units for the qualitative re-orientation of production.

•Improving the vocational training of the agricultural, forestry, fishery aqua-culture producers for applying the production methods complying with the conservation and improvement of the landscape.

•Improving the vocational training of the agricultural and forestry and fishery producers for applying the methods of environmental protection and the norms regarding the hygiene and welfare of animals.

•Improvement of the vocational training of the agricultural producers and private forest owners as well as of the heads of agricultural and forestry, fishery and aqua-culture holdings, to increase the level of their management and marketing knowledge needed for the management of a holding viable from the economic, social and environmental view point.

•Training the private forest owners and other persons involved in forestry activities for applying the practices of forestry management enabling the improvement of the economic, ecological and social functions of the forest.

•Training of agricultural producers and of private owners of forest, fishermen in view of diversifying or re-conversion of their basic agricultural or forestry activities in order to practice other occupations and/or jobs (agri-tourism, handicraft, bee keeping, aqua-culture etc).

•Training of agricultural producers, fishermen and forest owners, in order to stimulate setting up producer groups and the improvement of the knowledge of the members of existing producer groups as well as the training of the members in order to their official recognition.

•Training of agricultural producers in order to stimulate setting up of water users associations and the improvement of knowledge of the members of existing water users associations to ensure a sustainable management of agricultural water resources, in correlation with the restoring and conservation of environmental quality in the rural areas. Operational objectives Support for the training through vocational training courses in the following fields:

•Qualitative reorientation of production, including setting-up producer groups;

•Production practices in compliance with the maintenance of the landscape, the protection of the environment, hygiene standards and animal welfare;

•The improvement of the management of economically viable agricultural and forestry holdings, in order to ensure their viability from economic, social and environmental view points;



•Other vocational training: forestry, diversification of rural activities etc.

• Other activities in sectors which are covered by measures under SAPARD Program. 3. CORRELATION WITH THE OTHER MEASURES This measure is compulsory for the successful implementation of other measures provided for in the program, namely:

• Improvement of processing and marketing of agricultural and fishery products;

•Investments in agricultural holdings;

•Agricultural production methods designed to protect the environment and maintain the countryside;

•Development and diversification of economic activities, providing for multiple activities and alternative incomes;

•Setting up producer groups;

•Agricultural water resources management (beyond holdings);

•Forestry, including afforestation of agricultural areas, investments in forest holdings owned by private forest owners;

•Technical assistance. 4. FIELD OF ACTION OF THE MEASURE

This measure is applied in view of the vocational training of the agricultural, forestry, fishery and aqua-culture producers, employees of agricultural and fishery processing units and of other diversification activities who carry out their activity in rural areas, such as:

•Improving the vocational training of agricultural, fishery, aqua-culture, forestry producers, as well as the managers of farms in the production management products marketing, application of competitive non-polluting technologies and observance of sanitary- veterinary, phyto-sanitary, hygiene and animal welfare norms, environment protection and products quality standards

•Training in order to stimulate the setting-up of producer groups.

• Improvements of vocational training of agricultural producers and of the private forest owners, for the recurrence of some traditions and crafts that use local resources.

•Improvement of vocational training of the members of water users associations for the appliance of efficient and non-polluted technologies, compatible with the preservation of soil quality and for the insurance of a sustainable management of water resources with agricultural destination. Within this measure the following types of training could be financed, depending on the field and objective of training:



•training in the field of agricultural, fisheries and aqua-culture production practices (for the plant and animal sectors) and forestry production practices, as well as in the processing of agricultural and fishery products in compliance with the specific technologies ;

•training in the field of farm production practices compatible with the environment protection and preservation of natural landscape, as well as the training related to the conversion to organic agriculture

•training in view of qualitative re-orientation of production

•training in view to comply with hygiene, animal welfare and plant health norms

•training of private forest owners in view of forest management, for the improvement of their economic, ecological and social functions

•training in the fields of management and marketing of holdings viable from economic, social and environmental point of view

•training in the field of information systems, technology transfer and know how

•training of the managers of agricultural and forestry holdings in the economic, technical, legal, fiscal and environment protection fields

•training of the agricultural producers for setting up producer groups and for promoting the aims, principles and modalities of their functioning, as well as the training of the members of recognised producer groups, in order to improve their activities

•training the young in the phase of instalment and/or handing down the agricultural, forestry and fishery holding within the family

•training of the private agricultural and forestry holding owners in order to diversify or to reconvert these activities in the rural area (agri-tourism, aqua-culture, bee keeping etc.). Training courses can be organised by modules, with duration of maximum three weeks and a maximum number of 50 students by module . The training courses can be organised in order to acquire theoretical and practical knowledge of the measures and sub-measures under SAAPRD Program, or as specialised courses for management, marketing, etc. For the preparation of the contents of training courses, specific activities through the measure "Technical assistance" of the SAPARD Programme shall be financed.




• Training providers must be legal entities involved in science, studies, education, consulting - which should be entitled to provide training and should have an authorisation of training provider issued to that end by a competent authority in Romania or EU member states or applicant countries;

• Training project proposed must be included in the objectives and measure field of action;

• The support for vocational training provided under this measure shall not include courses of instruction or training which form part of normal programmes or systems courses of instruction or training of agricultural, forestry or fishery education at secondary or higher levels.

• The degree of territorial coverage for implementation of a training project should relate to minimum a region. Eligibility specific criteria and the types of eligible expenditures will be specified in the terms of reference that will constitute the basis of the call for proposals and shall comply with the provisions of the Multi-annual Financing Agreement with subsequent modifications and completions. Eligible expenditures:

• Training actions shall consist in training services as detailed in the specifications of competent authorities and/or TOR, which are consistent with the applicable public procurement procedures.

• The cost for the selection and approval of training actions shall be consistent with the provisions of the Multi-annual Financing Agreement, the Program and the applicable public procurement rules;

• The expenditures pertaining to the participation of trainees in the training courses. The ratio of grant for the above-mentioned activities can be of 100%. Motivation of elements for the tender dossiers shall be made through studies drawn up within measure 4.2 Technical Assistance. 6. SELECTION CRITERIA

The selection criteria for training suppliers shall be specified in the tender dossier. 7. BENEFICIARIES The beneficiary of this measure is the Ministry of Agriculture, Food and Forestry. Through this measure providers of vocational training, public or private legal persons (independent experts and Romanian/foreign legal persons, or joint ventures) are eligible.



The providers of vocational training will be appointed following a tender organised by the Ministry of Agriculture Food and Forestry based on tender dossiers elaborated by it Training courses can be carried out for all measures under SAPARD Program except for measure 4.2 “Technical Assistance” and measure 4.1 “The improvement of vocational training”. Ministry of Agriculture, Food and Forestry shall organise tenders for procurement of training services according to the provisions of the procedure of public procurement elaborated in compliance with community regulations which are stipulated in the European Commission’s Manual of Instructions “Contracts for Works, Supplies and Services concluded in the framework of Community co-operation with third countries” referred to at point 2.6, Art 14, Section A of the Multi-annual Financing Agreement, with subsequent modifications and completions..

8. NATIONAL LEGISLATION The projects financed in the framework of this measure must respect the provisions of the Multiannual Financing Agreement with subsequent modifications and completions, including the specific legislation related to public procurement. The continuous vocational training of adults is stipulated in the Government Ordinance no.129/2000, approved by Law no.375/2002.

9. FINANCIAL PROVISIONS

•The projects within this measure are non profit generating;

•The public aid for this measure is up to 100% of total eligible expenditures, out of which 75% represents EU contribution and 25% national budget contribution;

•Within this measure could be financed projects of a minimum total eligible value of 50,000 Euro.

•The financial plan and the total financing sources allocated to this measure are presented in the Chapter Financial Allocations for SAPARD measures, page 361. The eligible project activities can be started after the signature of the contract withthe training provider. 10. GEOGRAPHICAL COVERAGE The measure shall be implemented at the level of the entire country.

11. OUTPUT, RESULT AND IMPACT INDICATORS

Output indicators

General indicators

Number of tenders for training courses

• Number of training actions (25 –200 participants/training actions): 305

• Number of participants35000, of which:



- number of young and women participants: 7000 Average number of days of training per participant: 15 working days

• Number of participants by type of training:

Short training/(regional level)

• Number of training actions: 280

• Number of participants: 30000

Long duration vocational training courses (national level)

• Number of training actions: 25

• Number of participants: 5,000 Result indicators

• The share of trainees who have projects financed under SAPARD in the total number of trainees is >=70%.

•The share of young farms people in the total number of trainees is >=30%.

•The share of women in the total number of trainees is >=30%. Impact indicators

•The share of graduates of training courses who submit projects under SAPARD in the first year of the graduation (%).

12. PROGRAMME PROMOTION The potential trainees and providers shall be informed about the participating conditions for SAPARD Programme through:

• Public announcement in media,

• Distribution of information leaflets,

• Workshops,

• Meetings with the potential trainees and attendants. 13. SUPPORTING DOCUMENTS

The list contains the documents to be sent to tenders will be included in the Terms of Reference and will refer to the skills of trainers, experience in the field, administrative capacity to ensure: the courses, accommodation, meals and access to pilot projects and demonstrative farms etc.

For trainers All tenderers shall present within the tender dossier the document proving their authorisation as training providers, issued by competent authorities according to legal requirements in force. Foreign tenderers shall provide certified translations of documents, which attest their authorisation as training providers.



For attendants. The applicant shall provide: an application, copy of birth certificate, copy of the latest training graduation diploma and a medical certificate attesting the state of health. When the case, the proof that the trainee is the beneficiary of a project financed under SAPARD”. 14. FINANCING CONDITIONS The training courses must contribute to the assimilation of theoretical knowledge and practical skills for all sectors covered by measures under SAPARD Program, with the exception of TA and training measures. Support for vocational training shall not include courses of instruction or training which form part of normal programs or systems of agricultural, forestry, fishery and aqua-culture education at secondary or higher levels. 15. IMPLEMENTING AUTHORITY Technical and Financial evaluation of offers will be made according to criteria established by the Ministry of Agriculture, Food and Forestry. For designation of attendees to the training courses others than those who have projects financed under SAPARD Program a series of selection criteria (age, rural area they are from, possession of a holding, etc.) will be used. Measure implementation shall be ensured at the MAFF level by the General Directorate for Rural Development (GDRD) and the National Agency for Agricultural Consultancy (NAAC).

• GDRD shall coordinate the implementation of the measure, elaborate the administrative procedure for measure implementation, establish the total amount allocated for each training course as well as the objectives of the training program, draw up the standard project fiches, participate in tenders evaluation.

• NAAC shall draw up the Terms of Reference and the tender dossier for each training course, organise the tenders, participate in tenders evaluation, check the documents and carry out field checking, ensure the verification of training programs implementation and the payment documents.

MAAF shall ensure, in accordance with the contracts concluded with SAPARD Agency, the payment of providers of training and shall draw up the payment request to the SAPARD Agency. SAPARD Agency shall check for each stage the fulfilment by MAFF of procedural requirements and shall authorise the payments.



MEASURE 4.2

TECHNICAL ASSISTANCE

1. BACKGROUND The Measure covers the provision of the service of technical assistance. This service is justified to support costs associated with implementation of the Programme as set out in paragraph 4 below. The measure concerns only technical assistance provided for on the basis of Article 2, 15th indent of Council Regulation (EC) No 1268/ 1999 (i.e. does not concern that pursuant to article 7(4) of the same Regulation). 2. OBJECTIVES The aim of this measure is to assist in particular in implementation and monitoring of the Programme and its possible subsequent modification. In support of this aim, the objectives include :

• To provide support for monitoring;

• To ensure an adequate flow of information and publicity

• To support studies, visits and seminars

• To provide support for external expertise

• To provide support for the assessment of the Programme 3. CORRELATION WITH OTHER MEASURES This measure will provide coverage of technical assistance needs for all the measures of the Program. 4. FIELD OF ACTION OF THE MEASURE Under this measure the following actions are eligible, provided in all cases they are approved by the Chairperson of the Monitoring Committee: a). Expenditures on meetings of the Monitoring Committee, including the cost for all experts and other participants, in case that their presence is considered to be necessary to the effective work of the committee. b). Other expenditures necessary to discharge responsibilities of the Monitoring Committee which falls under the following categories: - expert assistance to consider and review programme baselines and indicators - experts to assist or advise the Monitoring Committee concerning implementation and functioning of the monitoring arrangements - expenditure associated with meetings and ancillary tasks of working groups - seminars



c). Expenditure on information and publicity campaigns, including costs for printing and distribution. d). Cost of translation and interpretation provided in response to requests by the Commission, not including those required pursuant to Article 5 (1), and 5 (2) first sentence of the Multi-annual Agreement e). Expenditure associated with visits and seminars which are not performed at the initiative of the Commission. Each visit and seminar shall require the submission of a timely written report to the Monitoring Committee. f). Expenditure associated with visits and seminars organised at the initiative of the Commission g). Expenditure associated with the preparation of measures in the programme to ensure their effectiveness, including those measures where application is foreseen at a later stage. h). Expenditure for mid-term evaluation required pursuant to the provisions of Article 10 of Section B of the Multi-Annual Financing Agreement This list is drawn up on the basis of the advice from the Commission. In the light of experience gained from implementation of the measure the Romanian authorities will review the above list of actions and may seek an extension, which would require further modification of the Programme. In all cases for expenditure to be eligible, it must respect the provisions of paragraph 5. 5. ELIGIBILITY CRITERIA Eligible expenditure shall be reported on in the context of the annual report. The expenditure may be based also on flat rate amounts (such as per diem), in accordance with the terms and rates applied in the public sector of Romania for similar actions where no Community co-finance is involved. All expenditure as regards experts and other participants will be limited to those from and going to applicant countries and Member States. In the framework of this measure, the actions financed or foreseen to be financed within twinning covenants or other Phare or ISPA projects will not be eligible. 6. BENEFICIARIES The final beneficiaries of activities under the measure for Technical assistance are the Managing Authority for the paragraphs a), b), d) and h) of section 4 and the Ministry of Agriculture, Food and Forests regarding the paragraph c), e), f) and g) of the same Section 4.



7. FINANCIAL DISPOSITIONS Although the amount for technical assistance in the table below is for greater amounts, the Community contribution to the expenditure under (a) to (e), and (g) shall be limited to 80% of total public expenditure and shall be limited for to a sum of 150,000 euro per annum plus 0.3% of the Community contribution provided in the concluded Annual Financing Agreement(s). The amount determined by the above formula may be adapted in light of experience in applying the measure on Technical Assistance and possible modifications paragraph 4. As regards expenditure under (h) the Community contribution shall be limited to 80% of total public expenditures. In the case of expenditure under (f), the Community contribution shall be 100% of total public expenditure within any limits and conditions, which may be set by the Commission for the particular initiative. Indicative financial table for Measure No 4.2.

National public financing

EU support

Total national

Central govern-ment R

egio

n

Oth

ers

Pri

vat

e co

ntr

ibuti

on

Years Total Cost Total public expenditures

Total Art. 7(4) R.1268/99

Art. 2 last dash R. 1268/99

% 2 last dash

Art. 2 last dash R1268/99

%2 last dash

Art. 2 last dash R. 1268/99

1 2=3+13 3=4+8 4=5+6 5 6

7= 6/6+8

8 9= 6/6+8

10 11 12 13

2000 761,250 761,250 609,000 0 609,000 80 152,250 20 152,250 0 0 0

2001 761,250 761,250 609,000 0 609,000 80 152,250 20 152,250 0 0 0

2002 3,658,096 3,658,096 3,505,846 2,896,846 609,000 80 152,250 20 152,250 0 0 0

2003 4,158,096 4,158,096 3,905,846 2,896,846 1,009,000 80 252,250 20 252,250 0 0 0

2004 3,658,096 3,658,096 3,505,846 2,896,846 609,000 80 152,250 20 152,250 0 0 0

2005 3,658,096 3,658,096 3,505,846 2,896,846 609,000 80 152,250 20 152,250 0 0 0

2006 3,658,096 3,658,096 3,505,846 2,896,846 609,000 80 152,250 20 152,250 0 0 0 Total 20,312,980 20,312,980 19,147,230 14,484,230 4,663,000 80 1,165,750 20 1,165,750 0 0 0



8. INDICATORS Some possible indicators:

•number of promotion materials for general information of all parties (leaflets, brochures, etc);

• number of publicity campaigns;

• number of experts assignments supported;

• number of seminars, conferences, workshops;

• number of meetings of the Monitoring Committee;

• number of studies on elaboration and implementation of Programme measures;

• number of Programme evaluation reports.



VI. FINANCIAL ALLOCATION FOR SAPARD

MEASURES



1. Financial Plan 2000-2006 (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices.)

Total cost Public Community contribution National public contribution Private

Measures expenditure Total State Local Others participation

% % %

1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

Axe 1: Improving the competitiveness of processed

agricultural and fisheries products 672.346.319 359.981.754 274.799.324 76,34 85.182.430 23,66 85.182.430 0 0 312.364.565 46,46

Processing and marketing of agricultural and fisheries products

631.147.338 318.782.773 243.900.088 76,51 74.882.685 23,49 74.882.685 0 0 312.364.565 49,49

in the areas affected by floods 64.173.445 48.130.084 40.910.571 85,00 7.219.513 15,00 7.219.513 16.043.361 25,00

in the areas not affected by floods 566.973.893 270.652.689 202.989.517 75,00 67.663.172 25,00 67.663.172 296.321.204 52,26

Improving the structures for quality, veterinary, and plant-health controls, foodstuffs and consumer

protection 41.198.981 41.198.981 30.899.236 75,00 10.299.745 25,00 10.299.745 0 0 0 0,00

Axe 2 : Improving infrastructures for rural

development and agriculture 720.698.542 720.698.542 555.262.795 77,05 165.435.747 22,95 165.435.747 0 0 0 0,00

Development and improvement of rural infrastructure 720.698.542 720.698.542 555.262.795 77,05 165.435.747 22,95 165.435.747 0 0 0 0,00

in the areas affected by floods 147.388.880 147.388.880 125.280.548 85,00 22.108.332 15,00 22.108.332 0 0 0 0,00

in the areas not affected by floods 573.309.662 573.309.662 429.982.247 75,00 143.327.415 25,00 143.327.415 0 0 0 0,00

Management of water resources 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 3 : Development of rural economy 751.567.410 419.211.039 321.273.818 76,64 97.937.221 23,36 97.937.221 0 0 332.356.371 44,22

Investments in agricultural holdings 452.975.286 253.562.129 195.661.401 77,17 57.900.728 22,83 57.900.728 0 0 199.413.157 44,02

in the areas affected by floods 73.197.395 54.898.046 46.663.339 85,00 8.234.707 15,00 8.234.707 0 0 18.299.349 25,00

in the areas not affected by floods 379.777.891 198.664.083 148.998.062 75,00 49.666.021 25,00 49.666.021 0 0 181.113.808 47,69

Setting up producers groups 4.139.975 4.139.975 3.104.981 75,00 1.034.994 25,00 1.034.994 0 0 0 0,00

Agri-environmental measures 16.223.851 16.223.851 12.167.888 75,00 4.055.963 25,00 4.055.963 0 0 0 0,00

Development and diversification of economic activities, multiple activities, alternative income 154.469.507 81.820.534 62.741.135 76,68 19.079.399 23,32 19.079.399 0 0 72.648.973 47,03



Forestry 123.758.792 63.464.551 47.598.413 75,00 15.866.138 25,00 15.866.138 0 0 60.294.241 48,72

Axe 4 : Development of human resources 11.044.423 11.044.423 8.449.755 76,51 2.594.668 23,49 2.594.668 0 0 0 0,00

Improving of the vocational training 7.715.673 7.715.673 5.786.755 75,00 1.928.918 25,00 1.928.918 0 0 0 0,00

Technical assistance 3.328.750 3.328.750 2.663.000 80,00 665.750 20,00 665.750 0 0 0 0,00

Technical assistance (CE) 0 0 0 0,00 0 0,00 0 0 0 0 0,00

TOTAL 2.155.656.695 1.510.935.759 1.159.785.692 76,8 351.150.067 23,2 351.150.067 0 0 644.720.936 29,91

Note: (*)For the years 2004, 2005 and 2006, indicative and include resources under Article 7.4 of Regulation 1268/1999 devoted to financing the measures taken on initiative of Commission for preliminary studies, exchange, visitis, evaluations and controls which can be made available for the programmes.



2. Budget repartition by measures (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices.)

Total cost

N˚ Measures %

1 2=3+11

Axe 1: Improving the competitiveness of processed agricultural and fisheries products 672.346.319 31,19

1.1 Processing and marketing of agricultural and fisheries products 631.147.338 29,28

in the areas affected by floods 64.173.445 2,98

in the areas not affected by floods 566.973.893 26,30

1.2 Improving the structures for quality, veterinary, and plant-health controls, foodstuffs and consumer protection 41.198.981 1,91

Axe 2 : Improving infrastructures for rural development and agriculture 720.698.542 33,43

2.1 Development and improvement of rural infrastructure 720.698.542 33,43



2.2 Management of water resources 0 0,00

Axe 3 : Development of rural economy 751.567.410 34,86

3.1 Investments in agricultural holdings 452.975.286 21,01



3.2 Setting up producers groups 4.139.975 0,19

3.3 Agri-environmental measures 16.223.851 0,75

3.4 Development and diversification of economic activities, multiple activities, alternative income 154.469.507 7,17



3.5 Forestry 123.758.792 5,74

Axe 4 : Development of human resources 11.044.423 0,51

4.1 Improving of the vocational training 7.715.673 0,36

4.2.1 Technical assistance 3.328.750 0,15

4.2.2 Technical assistance (CE) 0 0,00

TOTAL 2.155.656.695 100,00




3. 2000 – 2006 – Total cost (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices.)

Total cost Total cost Total cost Total cost Total cost Total cost Total cost

N˚ Measures 2000 % 2001 % 2002 % 2003 % 2004 % 2005 % 2006 %

1 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11

Axe 1: Improving the competitiveness

of processed agricultural and fisheries

products

110.542.497 42,20 113.652.099 42,45 65.984.000 20,58 70.255.410 21,76 89.825.366 27,63 119.771.252 38,76 102.315.695 29,37

1.1 Processing and marketing of agricultural

and fisheries products 110.542.497 42,20 113.652.099 42,45 60.078.667 18,74 62.467.235 19,35 82.002.559 25,23 109.929.919 35,57 92.474.361 26,55

in the areas affected by floods 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 31.915.231 10,33 32.258.213 9,26

in the areas not affected by floods 110.542.497 42,20 113.652.099 42,45 60.078.667 18,74 62.467.235 19,35 82.002.559 25,23 78.014.688 25,24 60.216.148 17,29


0 0,00 0 0,00 5.905.333 1,84 7.788.175 2,41 7.822.807 2,41 9.841.333 3,18 9.841.333 2,83

Axe 2 : Improving infrastructures for

rural development and agriculture 150.666.667 57,51 153.333.333 57,27 92.667.905 28,90 93.262.008 28,88 83.379.751 25,65 72.371.515 23,42 75.017.365 21,54

2.1 Development and improvement of rural

infrastructure 150.666.667 57,51 153.333.333 57,27 92.667.905 28,90 93.262.008 28,88 83.379.751 25,65 72.371.515 23,42 75.017.365 21,54


in the areas not affected by floods 150.666.667 57,51 153.333.333 57,27 92.667.905 28,90 93.262.008 28,88 83.379.751 25,65 0 0,00 0 0,00

2.2 Management of water resources 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00

Axe 3 : Development of rural economy 0 0,00 0 0,00 160.320.287 50,00 154.683.625 47,91 150.782.722 46,39 115.826.849 37,48 169.953.927 48,79

3.1 Investments in agricultural holdings 0 0,00 0 0,00 96.954.954 30,24 100.404.847 31,10 99.965.127 30,75 71.588.315 23,16 84.062.042 24,13


in the areas not affected by floods 0 0,00 0 0,00 96.954.954 30,24 100.404.847 31,10 99.965.127 30,75 36.199.432 11,71 46.253.531 13,28

3.2 Setting up producers groups 0 0,00 0 0,00 0 0,00 1.102.960 0,34 790.685 0,24 657.353 0,21 1.588.976 0,46

3.3 Agri-environmental measures 0 0,00 0 0,00 0 0,00 4.223.524 1,31 4.466.776 1,37 4.466.775 1,45 3.066.776 0,88

3.4 Development and diversification of

economic activities, multiple activities, alternative income

0 0,00 0 0,00 63.365.333 19,76 26.941.349 8,34 27.365.333 8,42 18.319.606 5,93 18.477.885 5,31



3.5 Forestry 0 0,00 0 0,00 0 0,00 22.010.945 6,82 18.194.800 5,60 20.794.800 6,73 62.758.247 18,02

Axe 4 : Development of human

resources 761.250 0,29 761.250 0,28 1.677.590 0,52 4.678.950 1,45 1.070.917 0,33 1.070.917 0,35 1.023.550 0,29

4.1 Improving of the vocational training 0 0,00 0 0,00 916.340 0,29 4.042.700 1,25 934.667 0,29 934.667 0,30 887.300 0,25

4.2.1 Technical assistance 761.250 0,29 761.250 0,28 761.250 0,24 636.250 0,20 136.250 0,04 136.250 0,04 136.250 0,04

4.2.2 Technical assistance (CE) 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00

TOTAL 261.970.414 100,0 267.746.682 100,0 320.649.782 100,0 322.879.993 100,0 325.058.755 100,0 309.040.533 100,0 348.310.536 100,0




4. 2000-2006 UE contribution (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices )

UE

contribution UE

contribution UE

contribution UE

contribution UE

contribution UE

contribution UE

contribution

N˚ Measures 2000 % 2001 % 2002 % 2003 % 2004 % 2005 % 2006 %

1 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11 2=3+11

Axe 1: Improving the competitiveness

of processed agricultural and fisheries

products 39.605.194 25,85 40.719.303 26,05 25.954.000 16,16 28.221.908 17,28 35.247.003 22,21 55.645.916 31,76 49.406.000 25,68

1.1 Processing and marketing of agricultural

and fisheries products 39.605.194 25,85 40.719.303 26,05 21.525.000 13,40 22.380.777 13,70 29.379.898 18,51 48.264.916 27,55 42.025.000 21,85


in the areas not affected by floods 39.605.194 25,85 40.719.303 26,05 21.525.000 13,40 22.380.777 13,70 29.379.898 18,51 27.918.956 15,93 21.460.389 11,16


0 0,00 0 0,00 4.429.000 2,76 5.841.131 3,58 5.867.105 3,70 7.381.000 4,21 7.381.000 3,84

Axe 2 : Improving infrastructures for

rural development and agriculture 113.000.000 73,75 115.000.000 73,56 69.500.928 43,27 69.946.506 42,82 62.534.813 39,41 61.515.788 35,11 63.764.760 33,15

2.1 Development and improvement of rural

infrastructure 113.000.000 73,75 115.000.000 73,56 69.500.928 43,27 69.946.506 42,82 62.534.813 39,41 61.515.788 35,11 63.764.760 33,15


in the areas not affected by floods 113.000.000 73,75 115.000.000 73,56 69.500.928 43,27 69.946.506 42,82 62.534.813 39,41 0 0,00 0 0,00

2.2 Management of water resources 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00

Axe 3 : Development of rural economy 0 0,00 0 0,00 63.878.936 39,77 61.629.637 37,73 60.098.184 37,87 57.238.296 32,67 78.428.765 40,77

3.1 Investments in agricultural holdings 0 0,00 0 0,00 40.116.936 24,97 39.066.177 23,92 38.895.088 24,51 36.135.200 20,62 41.448.000 21,55



3.2 Setting up producers groups 0 0,00 0 0,00 0 0,00 827.220 0,51 593.014 0,37 493.015 0,28 1.191.732 0,62

3.3 Agri-environmental measures 0 0,00 0 0,00 0 0,00 3.167.643 1,94 3.350.082 2,11 3.350.081 1,91 2.300.082 1,20

3.4 Development and diversification of

economic activities, multiple activities, alternative income

0 0,00 0 0,00 23.762.000 14,79 10.103.006 6,19 10.262.000 6,47 9.262.000 5,29 9.352.129 4,86



3.5 Forestry 0 0,00 0 0,00 0 0,00 8.465.591 5,18 6.998.000 4,41 7.998.000 4,56 24.136.822 12,55

Axe 4 : Development of human

resources 609.000 0,40 609.000 0,39 1.296.255 0,81 3.541.025 2,17 810.000 0,51 810.000 0,46 774.475 0,40

4.1 Improving of the vocational training 0 0,00 0 0,00 687.255 0,43 3.032.025 1,86 701.000 0,44 701.000 0,40 665.475 0,35

4.2.1 Technical assistance 609.000 0,40 609.000 0,39 609.000 0,38 509.000 0,31 109.000 0,07 109.000 0,06 109.000 0,06

4.2.2 Technical assistance (CE) 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00 0 0,00

TOTAL 153.214.194 100,0 156.328.303 100,00 160.630.119 100,00 163.339.076 100,00 158.690.000 100,00 175.210.000 100,00 192.374.000 100,00




5. Financial Plan by year

5.1. Year 2000 (For year 2000, figures are fixed by the AFA for that year concerned, € prices)


N° Measures expenditure % Total % State Local Others participation %

1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12



1.1 Processing and marketing of agricultural and fisheries

products 110.542.497 52.806.925 39.605.194 75,00 13.201.731 25,00 13.201.731 0 0

57.735.572 52,23

in the areas affected by floods 0 0 0 0,00 0 0,00 0 0 0 0 0,00


1.2 Improving the structures for quality, veterinary, and plant-

health controls, foodstuffs and consumer protection 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 2 : Improving infrastructures for rural development

and agriculture 150.666.667 150.666.667 113.000.000 75,00 37.666.667 25,00 37.666.667 0 0 0 0,00

2.1 Development and improvement of rural infrastructure 150.666.667 150.666.667 113.000.000 75,00 37.666.667 25,00 37.666.667 0 0 0 0,00



2.2 Management of water resources 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 3 : Development of rural economy 0 0 0 0,00 0 0,00 0 0 0 0 0,00

3.1 Investments in agricultural holdings 0 0 0 0,00 0 0,00 0 0 0 0 0,00


in the areas not affected by floods 0 0 0 0,00 0 0,00 0 0 0 0 0,00

3.2 Setting up producers groups 0 0 0 0,00 0 0,00 0 0 0 0 0,00

3.3 Agri-environmental measures 0 0 0 0,00 0 0,00 0 0 0 0 0,00

3.4 Development and diversification of economic activities,

multiple activities, alternative income 0 0 0 0,00 0 0,00 0 0 0 0 0,00



3.5 Forestry 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 4 : Development of human resources 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

4.1 Improving of the vocational training 0 0 0 0,00 0 0,00 0 0 0 0 0,00

4.2.1 Technical assistance 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

4.2.2 Technical assistance (CE) 0 0 0 0,00 0 0,00 0 0 0 0 0,00

TOTAL 261.970.414 204.234.842 153.214.194 75,02 51.020.648 24,98 51.020.648 0 0 57.735.572 22,04

Note: (*)Indicative and include resources under Article 7.4 of Regulation 1268/1999 devoted to financing the measures taken on initiative of Commission for preliminary studies, exchange, visits, evaluations and controls which can be made available for the programmes.



5.2. Year 2001

Financial plan by year (For year 2001, figures are fixed by the AFA for that year concerned, € prices)



1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 113.652.099 54.292.404 40.719.303 75,00 13.573.101 25,00 13.573.101 0 0

59.359.695 52,23




health controls, foodstuffs and consumer protection 0 0 0 0,00 0 0,00 0 0 0 0 0,00


and agriculture 153.333.333 153.333.333 115.000.000 75,00 38.333.333 25,00 38.333.333 0 0 0 0,00





Axe 3 : Development of rural economy 0 0 0 0,00 0 0,00 0 0 0 0 0,00

3.1 Investments in agricultural holdings 0 0 0 0,00 0 0,00 0 0 0 0 0,00






multiple activities, alternative income 0 0 0 0,00 0 0,00 0 0 0 0 0,00



3.5 Forestry 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 4 : Development of human resources 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

4.1 Improving of the vocational training 0 0 0 0,00 0 0,00 0 0 0 0 0,00



TOTAL 267.746.682 208.386.987 156.328.303 75,02 52.058.684 24,98 52.058.684 0 0 59.359.695 22,17




5.3. Year 2002




1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 60.078.667 28.700.000 21.525.000 75,00 7.175.000 25,00 7.175.000 0 0

31.378.667 52,23




health controls, foodstuffs and consumer protection 5.905.333 5.905.333 4.429.000 75,00 1.476.333 25,00 1.476.333 0 0 0 0,00


and agriculture 92.667.905 92.667.904 69.500.928 75,00 23.166.976 25,00 23.166.976 0 0,00






3.1 Investments in agricultural holdings 96.954.954 53.489.248 40.116.936 75,00 13.372.312 25,00 13.372.312 0 0 43.465.706 44,83






multiple activities, alternative income 63.365.333 31.682.667 23.762.000 75,00 7.920.667 25,00 7.920.667 0 0 31.682.667 50,00



3.5 Forestry 0 0 0 0,00 0 0,00 0 0 0 0 0,00

Axe 4 : Development of human resources 1.677.590 1.677.590 1.296.255 77,27 381.335 22,73 381.335 0 0 0 0,00

4.1 Improving of the vocational training 916.340 916.340 687.255 75,00 229.085 25,00 229.085


4.2.2 Technical assistance (CE) 0 0 0 0 0 0 0 0 0 0 0,00

TOTAL 320.649.782 214.122.742 160.630.119 75,02 53.492.623 24,98 53.492.623 0 0 106.527.040 33,22




5.4. Year 2003




1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 62.467.235 29.841.036 22.380.777 75,00 7.460.259 25,00 7.460.259 0 0 32.626.199 52,23






and agriculture 93.262.008 93.262.008 69.946.506 75,00 23.315.502 25,00 23.315.502 0 0 0 0,00









3.2 Setting up producers groups 1.102.960 1.102.960 827.220 75,00 275.740 25,00 275.740 0 0 0 0,00

3.3 Agri-environmental measures 4.223.524 4.223.524 3.167.643 75,00 1.055.881 25,00 1.055.881 0 0 0 0,00





3.5 Forestry 22.010.945 11.287.455 8.465.591 75,00 2.821.864 25,00 2.821.864 0 0 10.723.490 48,72

Axe 4 : Development of human resources 4.678.950 4.678.950 3.541.025 75,68 1.137.925 24,32 1.137.925 0 0 0 0,00

4.1 Improving of the vocational training 4.042.700 4.042.700 3.032.025 75,00 1.010.675 25,00 1.010.675 0 0 0 0,00



TOTAL 322.879.993 217.743.018 163.339.076 75,01 54.403.942 24,99 54.403.942 0 0 105.136.975 32,56




5.5. Year 2004

Financial plan by year (For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices.)



1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 82.002.559 39.173.197 29.379.898 75,00 9.793.299 25,00 9.793.299 0 0 42.829.362 52,23






and agriculture 83.379.751 83.379.751 62.534.813 75,00 20.844.938 25,00 20.844.938 0 0 0 0,00









3.2 Setting up producers groups 790.685 790.685 593.014 75,00 197.671 25,00 197.671 0 0 0 0,00






3.5 Forestry 18.194.800 9.330.667 6.998.000 75,00 2.332.667 25,00 2.332.667 0 0 8.864.133 48,72

Axe 4 : Development of human resources 1.070.917 1.070.917 810.000 75,64 260.917 24,36 260.917 0 0 0 0,00

4.1 Improving of the vocational training 934.667 934.667 701.000 75,00 233.667 25,00 233.667 0 0 0 0,00



TOTAL 325.058.755 211.577.583 158.690.000 75,00 52.887.583 25,00 52.887.583 0 0 113.481.172 34,91




5.6. Year 2005




1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 109.929.919 61.161.698 48.264.916 78,91 12.896.782 21,09 12.896.782 0 0 48.768.221 44,36






and agriculture 72.371.515 72.371.515 61.515.788 85,00 10.855.727 15,00 10.855.727 0 0 0 0,00









3.2 Setting up producers groups 657.353 657.353 493.015 75,00 164.338 25,00 164.338 0 0 0 0,00






3.5 Forestry 20.794.800 10.664.000 7.998.000 75,00 2.666.000 25,00 2.666.000 0 0 10.130.800 48,72





TOTAL 309.040.533 216.313.009 175.210.000 81,00 41.103.009 19,00 41.103.009 0 0 92.727.524 30,00

Note: (*) Indicative and include resources under Article 7.4 of Regulation 1268/1999 devoted to financing the measures taken on initiative of Commission for preliminary studies, exchange, visits, evaluations and controls which can be made available for the programmes.



5.7. Year 2006




1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12




products 92.474.361 52.807.512 42.025.000 79,58 10.782.512 20,42 10.782.512 0 0 39.666.849 42,89






and agriculture 75.017.365 75.017.365 63.764.760 85,00 11.252.605 15,00 11.252.605 0 0 0 0,00









3.2 Setting up producers groups 1.588.976 1.588.976 1.191.732 75,00 397.244 25,00 397.244 0 0 0 0,00

3.3 Agri-environmental measures 3.066.776 3.066.776 2.300.082 75,00 766.694 25,00 766.694 0 0 0 0,00





3.5 Forestry 62.758.247 32.182.429 24.136.822 75,00 8.045.607 25,00 8.045.607 0 0 30.575.818 48,72





TOTAL 348.310.536 238.557.578 192.374.000 80,64 46.183.578 19,36 46.183.578 0 0 109.752.959 31,51

Note: (*) Indicative and include resources under Article 7.4 of Regulation 1268/1999 devoted to financing the measures taken on initiative of Commission for preliminary studies, exchange, visitis, evaluations and controls which can be made available for the programmes.



6. Financial plan by measure (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion, 2005 € prices )

Total cost Public expenditure

Community contribution National public contribution Private participation

Year % Total % State Local Others %

Mesure 1.1 Processing and marketing of agricultural

and fisheries products 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 110.542.497 52.806.925 39.605.194 75,00 13.201.731 25,00 13.201.731 0 0 57.735.572 52,23

2001 113.652.099 54.292.404 40.719.303 75,00 13.573.101 25,00 13.573.101 0

0 59.359.695 52,23

2002 60.078.667 28.700.000 21.525.000 75,00 7.175.000 25,00 7.175.000 0

0 31.378.667 52,23

2003 62.467.235 29.841.036 22.380.777 75,00 7.460.259 25,00 7.460.259 0

0 32.626.199 52,23

2004 82.002.559 39.173.197 29.379.898 75,00 9.793.299 25,00 9.793.299 0

0 42.829.362 52,23

2005 109.929.919 61.161.698 48.264.916 78,91 12.896.782 21,09 12.896.782 0

0 48.768.221 44,36

2006 92.474.361 52.807.512 42.025.000 79,58 10.782.512 20,42 10.782.512 0

0 39.666.849 42,89

TOTAL 631.147.338 318.782.773 243.900.088 76,51 74.882.685 23,49 74.882.685 0 0 312.364.565 49,49



Total cost Public

expenditure

Community contribution National public contribution Private

participation


Mesure 1.2 Improving the structures for

quality, veterinary, and plant-health controls,

foodstuffs and consumer protection 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 5.905.333 5.905.333 4.429.000 75,00 1.476.333 25,00 1.476.333 0 0 0 0,00

2003 7.788.175 7.788.175 5.841.131 75,00 1.947.044 25,00 1.947.044 0 0 0 0,00

2004 7.822.807 7.822.807 5.867.105 75,00 1.955.702 25,00 1.955.702 0 0 0 0,00

2005 9.841.333 9.841.333 7.381.000 75,00 2.460.333 25,00 2.460.333 0 0 0 0,00

2006 9.841.333 9.841.333 7.381.000 75,00 2.460.333 25,00 2.460.333 0 0 0 0,00

TOTAL 41.198.981 41.198.981 30.899.236 75,00 10.299.745 25,00 10.299.745 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 2.1 Development and improvement of

rural infrastructure 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 150.666.667 150.666.667 113.000.000 75,00 37.666.667 25,00 37.666.667 0 0 0 0,00

2001 153.333.333 153.333.333 115.000.000 75,00 38.333.333 25,00 38.333.333 0 0 0 0,00

2002 92.667.904 92.667.904 69.500.928 75,00 23.166.976 25,00 23.166.976 0 0 0 0,00

2003 93.262.008 93.262.008 69.946.506 75,00 23.315.502 25,00 23.315.502 0 0 0 0,00

2004 83.379.751 83.379.751 62.534.813 75,00 20.844.938 25,00 20.844.938 0 0 0 0,00

2005 72.371.515 72.371.515 61.515.788 85,00 10.855.727 15,00 10.855.727 0 0 0 0,00

2006 75.017.365 75.017.365 63.764.760 85,00 11.252.605 15,00 11.252.605 0 0 0 0,00

TOTAL 720.698.542 720.698.542 555.262.795 77,05 165.435.747 22,95 165.435.747 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 2.2 Management of water ressources 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2001 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2002 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2003 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2004 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2005 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2006 0 0 0 0.00 0 0.00 0 0 0 0 0.00

TOTAL 0 0 0 0.00 0 0.00 0 0 0 0 0.00



Total cost Public

expenditure


participation


Mesure 3.1 Investments in agricultural

holdings 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 96.954.954 53.489.248 40.116.936 75,00 13.372.312 25,00 13.372.312 0 0 43.465.706 44,83

2003 100.404.847 52.088.236 39.066.177 75,00 13.022.059 25,00 13.022.059 0 0 48.316.611 48,12

2004 99.965.127 51.860.117 38.895.088 75,00 12.965.029 25,00 12.965.029 0 0 48.105.010 48,12

2005 71.588.315 44.641.378 36.135.200 80,95 8.506.178 19,05 8.506.178 0 0 26.946.937 37,64

2006 84.062.042 51.483.149 41.448.000 80,51 10.035.149 19,49 10.035.149 0 0 32.578.893 38,76

TOTAL 452.975.286 253.562.129 195.661.401 77,17 57.900.728 22,83 57.900.728 0 0 199.413.157 44,02



Total cost Public

expenditure


participation


Mesure 3.2 Setting up producers groups 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2003 1.102.960 1.102.960 827.220 75,00 275.740 25,00 275.740 0 0 0 0,00

2004 790.685 790.685 593.014 75,00 197.671 25,00 197.671 0 0 0 0,00

2005 657.353 657.353 493.015 75,00 164.338 25,00 164.338 0 0 0 0,00

2006 188.976 188.976 141.732 75,00 47.244 25,00 47.244 0 0 0 0,00

TOTAL 2.739.975 2.739.975 2.054.981 75,00 684.994 25,00 684.994 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 3.3 Agrienvironmental measures 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2003 4.223.524 4.223.524 3.167.643 75,00 1.055.881 25,00 1.055.881 0 0 0 0,00

2004 4.466.776 4.466.776 3.350.082 75,00 1.116.694 25,00 1.116.694 0 0 0 0,00

2005 4.466.775 4.466.775 3.350.081 75,00 1.116.694 25,00 1.116.694 0 0 0 0,00

2006 3.066.776 3.066.776 2.300.082 75,00 766.694 25,00 766.694 0 0 0 0,00

TOTAL 16.223.851 16.223.851 12.167.888 75,00 4.055.963 25,00 4.055.963 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 3.4 Development and diversification

of economic activities, multiple activities,

alternative income 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 63.365.333 31.682.667 23.762.000 75,00 7.920.667 25,00 7.920.667 0 0 31.682.667 50,00

2003 26.941.349 13.470.675 10.103.006 75,00 3.367.669 25,00 3.367.669 0 0 13.470.675 50,00

2004 27.365.333 13.682.667 10.262.000 75,00 3.420.667 25,00 3.420.667 0 0 13.682.667 50,00

2005 18.319.606 11.438.039 9.262.000 80,98 2.176.039 19,02 2.176.039 0 0 6.881.567 37,56

2006 18.477.885 11.546.487 9.352.129 81,00 2.194.358 19,00 2.194.358 0 0 6.931.398 37,51

TOTAL 154.469.507 81.820.534 62.741.135 76,68 19.079.399 23,32 19.079.399 0 0 72.648.973 47,03



Total cost Public

expenditure


participation


Mesure 3.5 Forestry 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2003 22.010.945 11.287.455 8.465.591 75,00 2.821.864 25,00 2.821.864 0 0 10.723.490 48,72

2004 18.194.800 9.330.667 6.998.000 75,00 2.332.667 25,00 2.332.667 0 0 8.864.133 48,72

2005 20.794.800 10.664.000 7.998.000 75,00 2.666.000 25,00 2.666.000 0 0 10.130.800 48,72

2006 62.758.247 32.182.429 24.136.822 75,00 8.045.607 25,00 8.045.607 0 0 30.575.818 48,72

TOTAL 123.758.792 63.464.551 47.598.413 75,00 15.866.138 25,00 15.866.138 0 0 60.294.241 48,72



Total cost Public

expenditure


participation


Mesure 4.1 Improving of the vocational

training 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2001 0 0 0 0,00 0 0,00 0 0 0 0 0,00

2002 916.340 916.340 687.255 75,00 229.085 25,00 229.085 0 0 0 0,00

2003 4.042.700 4.042.700 3.032.025 75,00 1.010.675 25,00 1.010.675 0 0 0 0,00

2004 934.667 934.667 701.000 75,00 233.667 25,00 233.667 0 0 0 0,00

2005 934.667 934.667 701.000 75,00 233.667 25,00 233.667 0 0 0 0,00

2006 887.300 887.300 665.475 75,00 221.825 25,00 221.825 0 0 0 0,00

TOTAL 7.715.673 7.715.673 5.786.755 75,00 1.928.918 25,00 1.928.918 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 4.2.1 Technical assistance 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

2001 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

2002 761.250 761.250 609.000 80,00 152.250 20,00 152.250 0 0 0 0,00

2003 636.250 636.250 509.000 80,00 127.250 20,00 127.250 0 0 0 0,00

2004 136.250 136.250 109.000 80,00 27.250 20,00 27.250 0 0 0 0,00

2005 136.250 136.250 109.000 80,00 27.250 20,00 27.250 0 0 0 0,00

2006 136.250 136.250 109.000 80,00 27.250 20,00 27.250 0 0 0 0,00

TOTAL 3.328.750 3.328.750 2.663.000 80,00 665.750 20,00 665.750 0 0 0 0,00



Total cost Public

expenditure


participation


Mesure 4.2.2 Technical assistance (CE)* 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2001 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2002 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2003 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2004 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2005 0 0 0 0.00 0 0.00 0 0 0 0 0.00

2006 0 0 0 0.00 0 0.00 0 0 0 0 0.00

TOTAL 0 0 0 0.00 0 0.00 0 0 0 0 0.00



7. Financial repartition (For years 2000, 2001, 2002, 2003, figures are fixed by the AFA for that years concerned. For the years 2004-2006, figures are fixed by the Romanian-Bulgaria Road Map for EU adhesion)

Total cost Public expenditure

Community contribution National public contribution Private participation


1 2=3+11 3=4+6 4 5=(4/3) 6=8+9+10 7=(6/3) 8 9 10 11 12

2000 261.970.414 204.234.842 153.214.194 75,02 51.020.648 24,98 51.020.648 0 0 57.735.572 22,04

2001 267.746.682 208.386.987 156.328.303 75,02 52.058.684 24,98 52.058.684 0 0 59.359.695 22,17

2002 320.649.782 214.122.742 160.630.119 75,02 53.492.623 24,98 53.492.623 0 0 106.527.040 33,22

2003 322.879.993 217.743.018 163.339.076 75,01 54.403.942 24,99 54.403.942 0 0 105.136.975 32,56

2004 325.058.755 211.577.583 158.690.000 75,00 52.887.583 25,00 52.887.583 0 0 113.481.172 34,91

2005 309.040.533 216.313.009 175.210.000 81,00 41.103.009 19,00 41.103.009 0 0 92.727.524 30,00

2006 348.310.536 238.557.578 192.374.000 80,64 46.183.578 19,36 46.183.578 0 0 109.752.959 31,51

TOTAL 2.155.656.695 1.510.935.759 1.159.785.692 76,76 351.150.067 23,24 351.150.067 0 0 644.720.936 29,91



VII. ADMINISTRATIVE SYSTEM AND PROCEDURES

REGARDING SAPARD PROGRAMME



1. Designation of the competent authorities and bodies responsible for SAPARD

Programme

In Romania for the implementation of the SAPARD Programme was established the following implementation system through which are indicated the authorities and the responsible bodies for this programme, as follows: 1.1 Competent Authority

In Romania, the National Fund within the Ministry of Public Finance has the role of the Competent Authority. The Competent Authority means the Romanian body which: (i) Issues, monitors and withdraws accreditation of the SAPARD Agency, (ii) Appoints a Certifying Body; Before accrediting the SAPARD Agency, the Competent Authority shall be satisfied that the administrative, accounting, payment and internal control arrangements of that Agency offer the following guarantees:

•The admissibility of claims and compliance with the SAPARD Multi-annual Financing Agreement are checked before payment is authorised;

•The commitments and payments effected are correctly and fully recorded in the accounts;

•The necessary documents are submitted within the time and in the form required;

•The eligibility of applications and compliance with the SAPARD Multi-annual Financing Agreement are checked before contracts with beneficiaries are signed and the commitment recorded;

•Shall be sure that the SAPARD Agency accounting system meets internationally accepted accounting standards. The Competent Authority shall examine the SAPARD Agency procedures and structures related to the administrative, accounting, payment and internal control arrangements. The examination shall, particularly, include the arrangements adopted to protect the Community's interests, in respect to transactions to be financed by the Programme, taking into account the following criteria:

•The execution of payments,

•The safeguarding of the treasury,

•The security of computer systems,

•The maintenance of accounting records,

•The division of duties and the adequacy of internal and external controls,

•Guarantees to be obtained,

•Amounts to be collected,

•The selection of projects, tendering, contracting and

•The respect of procurement rules. The Competent Authority may delegate the conduct of the examination to other bodies. In all cases the National Authorising Officer, on behalf of Romania, retains overall responsibility.



If the Competent Authority is satisfied that the SAPARD Agency examined compliance with all relevant requirements, it shall proceed with its accreditation. Otherwise, it shall address to the SAPARD Agency instructions relating to the administrative and accounting arrangements, and in particular to any conditions the Agency is required to fulfil before accreditation may be granted. Accreditation may be provisionally granted for a period to be fixed in relation to the seriousness of the problem pending the implementation of any required changes to the administrative and accounting arrangements. In instances where such a provisional accreditation is envisaged, there must be satisfactory compliance with the following criteria: (i) Written procedures, (ii) Segregation of duties, (iii) Pre-project approval and pre-payment checks, (iv) Payment procedures, (v) Accounting procedures, (vi) Computer security, (vii) Internal audit and, where appropriate, public procurement provisions. The Competent Authority monitors accreditation and in case a failure appears in meeting any of criteria set out in paragraph 4 (i) to (vii), Section A of the Annex to the SAPARD Multi-annual Financing Agreement by the SAPARD Agency's operations, it shall immediately withdraw accreditation. 1.2 Certifying Body The Certifying Body is the body, which is operationally independent in relation with SAPARD Agency, certifies the accounts, reports on the management and control systems and verifies co – financing elements. In Romania, the Certifying Body for SAPARD Program is the Romanian Court of Accounts. The Romanian Court of Accounts is attached to Romanian Parliament and functions independently, in compliance with the provision of Romanian Constitution and of the Law no. 94/1992, regarding organization and operation of the Court of Accounts, republished in 2000 and modified by the Law no. 77/2002 and in compliance with the provisions of the Emergency Ordinance no.101/27.06.2001. The Romanian Court of Accounts was appointed by the Competent Authority to act as Certifying Body, as it is stipulated in the correspondence between the two above mentioned institutions: the note no. 104438/11.10.2001 and the note no .2626/IC/31.10.2001. The tasks of the Certifying Body shall include:

•Delivery of an attestation on the annual account of SAPARD Agency as well as the SAPARD euro account;

•Reporting on an annual basis on the adequacy of management and control systems of the SAPARD agency as regards their capability to ensure conformity of expenditure with the provisions of Article 7 (1), Section A of Multi-annual Financial Agreement;



•Verification of the existence and correctness of the national co-financing element referred to in Article 8, Section A of Multi-annual Financial Agreement. The certificate referring to the annual account of SAPARD Agency as well as the SAPARD euro account shall be based on an examination of procedures and on a sample of transactions. The audit report shall state whether: - the SAPARD Agency's procedures, with particular regard to the criteria and functions in Article 4, Article 5 and Article 14 of Section A, are such as to give reasonable assurance that the operations charged to the Programme comply with the Multi-annual Financial Agreement, and what recommendations have been made for the improvement of systems, - the annual accounts referred to in Article 11 of the Section A from the Multi-annual Financial Agreement are in accordance with the books and records of the SAPARD Agency, - the declarations of expenditure as provided for in Article 9 of the Section A and Section D are a materially true, complete and accurate record of the operations charged to the Program, - the financial interests of the Community are properly protected as regards amounts to be collected and, where appropriate, guarantees obtained, recommendations on the improvement of systems addressed to the SAPARD Agency have been followed up, - any exceptional transactions or technical difficulties have been experienced regarding the financial year concerned, - any significant modification has been made since the previous report of the information. The Certifying Body shall conduct its examination according to internationally accepted auditing standards and to the guidelines set out in Section E of the Multi-annual Financial Agreement. The checks shall be performed both during and after the end of each financial year. The Certificate and the report shall be drawn up by 15 April at the latest of the year following the financial year concerned and communicated by the Competent Authority to the Commission by 30 April at the latest. The Monitoring Committee shall receive a copy of the report. 1.3 Managing Authority In Romania, the Managing Authority is set up within the Ministry of European Integration, in compliance with Government Decision No 339/2001. According to the provisions of Government Decision No 1075/2001 on organising and functioning the Ministry of European Integration, the Managing Authority for SAPARD Programme operates within the Directorate Co-ordination of ISPA and SAPARD Programme. In compliance with the provisions of the Multi-Annual Financing Agreement concluded between the Government of Romania and the Commission of the European Communities, signed at Brussels, on 2 February 2001 – ratified by Law No 316/2001, the Managing Authority is the body responsible for the efficiency and correctness of co-ordination and reporting on the monitoring and evaluation of the Programme.



Managing Authority shall:

•Set up a system of gathering financial and statistical information on progress of the Programme, if the setting up of such a system is not undertaken by the SAPARD Agency;

•Forward the data provided at point a) to the Monitoring Committee, in accordance with arrangements agreed between Romania and the Commission, using where possible computer systems permitting the exchange of data with the Commission; Propose amendment/review of the Programme to the Commission after consultation with the SAPARD Agency and following the agreement of the Monitoring Committee;

•Ensure that the relevant authorities are informed about the need to operate administrative changes, in case such changes are required in compliance with a Commission decision regarding amendment of the Programme;

•Draws up and, following consultation with the SAPARD Agency and after obtaining the approval of the Monitoring Committee, submits to the Commission the Annual Implementation Reports and the Final Report;

•Organises, in co-operation with the Commission and Romanian authorities, the mid-term and ex-post evaluation;

•Having prior approval of the Monitoring Committee consults and informs on yearly basis the Commission on the initiatives taken and on those to be taken, with regard to informing the general public about the role played by the Commission in the Programme;

•Together with the SAPARD Agency, ensures the effective monitoring of implementation of the Programme and reports to the Monitoring Committee on progress of the measures and, where appropriate, of the sub-measures;

•Consults and co-operates with SAPARD Agency, the Monitoring Committee and with the European Commission and calls for the approval of the Monitoring Committee for specific approaches and activities, as the case may be. 1.4 SAPARD Agency

In Romania the SAPARD Agency, set up through the Government Emergency Ordinance 142 / 21 September 2000 ratified by the Law 309/2001, modified by the Governmental Emergency Ordinance 142/2001, is responsible for the technical and financial implementation of the Special Pre-accession Instrument for Agriculture and Rural Development. The SAPARD Agency is a public institution with legal status, subordinated to the Ministry of Agriculture, Food and Forests. The SAPARD Agency structure comprises 8 Regional Offices for the Implementation of the SAPARD Programme, according to the development regions defined by the methodological application norms of Law 151/1998 regarding regional development in Romania. In accordance with 2 Art., Section A from the Multi-annual Financial Agreement, SAPARD Agency is the body established by the applicant country and operating under its responsibility in charge of fulfilling the following functions: an implementing function and a payment function. For both implementation and payment tasks will exist inside the responsible body structures responsible for the technical and financial control tasks. The functions and criteria for accreditation of SAPARD Agency are defined in 4 and 5 Art, Section A from the Multi-annual Financial Agreement.



The SAPARD Agency shall be responsible for: A technical implementation task, which comprises: - Call for proposals - Checking of applications for approval of projects against terms and eligibility

conditions, eligibility and against the content of the Programme, including, where appropriate, public procurement provisions,

- Project selection, in conformity with approved procedure and selection criteria,

- Laying down contractual obligations between the SAPARD Agency and potential beneficiaries and the issue of approval to commence work,

- Execution of on-the-spot checks both prior and following project approval, - Follow-up action to ensure progress of projects being implemented, - Reporting of progress of measure being implemented against indicators. A payment task, which comprises: - Checking of payment claims of the projects beneficiaries; - Execution of on-the-spot checks to establish eligibility for payment, - Authorisation of payment to the projects beneficiaries, - Execution of payment to the projects beneficiaries, - Accounting of commitment and payment to the projects beneficiaries, - Execution of controls on projects beneficiaries after payment of aid to

establish whether the terms and conditions of the non-reimbursable financial aids continue to be respected, any time is necessary.

Systems and procedures adopted by the agency shall ensure that there is documentary evidence for all checks performed by the delegated ministries and the relevant control requirements are satisfied. Functions of the SAPARD Agency shall reflect the requirement provided in the applicable regulations and guidelines. 1.5 Monitoring Committee In Romania, the Monitoring Committee for SAPARD Programme is set up on the basis of Decision No 271/2001 of the Prime Minister of Romania, and in compliance with the provisions of the Multi-Annual Financing Agreement concluded between the Government of Romania and the Commission of the European Communities, signed at Brussels, on 2 February 2001 – ratified by Law No 316/2001. The Monitoring Committee shall satisfy itself as to the effectiveness and quality of implementation of the Programme in order to attain the specific objectives. The activity of the Monitoring Committee is co-ordinated by the Minister of European Integration who is its chairperson. The Monitoring Committee is composed of members representing governmental and non-governmental institutions/bodies, as well as representatives of the European Commission (observer members). The Ministry of European Integration ensures the Secretariat of the Monitoring Committee. The Monitoring Committee shall:

•Give an opinion on the criteria for selecting and for ranking the projects under each measure;



•Periodically review progress made towards achieving the objectives set out in the Programme;

•Examine the results of the Programme in particular achievements of the targets set for the different measures and the progress on utilisation of the financial allocations to those measures and allocations to sub-measures within measures where the

•Programme includes such allocations;

•Examine and approve the mid-term evaluation referred to in Article 10 of Section B of the Multi-Annual Financing Agreement;

•Consider and approve the annual and final implementation reports before they are sent to the Commission;

•Consider and approve, where appropriate, any proposal to the Commission to amend the Program;

•Propose to the Commission, via the Managing Authority, any amendment or review of the Programme, which is likely to facilitate the attainment of the objectives of the Programme;

•When required by the Programme to give an opinion on any matter, act accordingly;

•Exercise the attributions comprised in the Multi-Annual Financing Agreement and the rules of procedures during the entire period of running of the Programme. 1.6 SAPARD Agency Structure

According to Art. 4 and Art 14 items 2.3.1-2.3.8, Section A form the Multi-annual Financial Agreement, the SAPARD Agency must have a technical service for checking data on the basis of which payments are made to beneficiaries. Technical services shall be provided by its own structures and by delegation to the centralised and decentralised services of the Ministry of Agriculture, Food and Forests, and the Ministry of Public Works, Transports and Housing and of other involved bodies pending on the specific features of the measures. The delegation the functions to the above mentioned public institutions is realised through institutional framework agreements between the SAPARD Agency and the respective institutions. The SAPARD Agency organisational structure has to ensure the performance of its functions, i.e. its tasks provided by its organisation and operation law, the Government Emergency Ordinance 142/2000, approved by Law 309/2001, modified by GEO 140/2001. The organisational structure contains two main segments:

•The organisation structure at central level;

•The organisational structure at regional level, consisting of 8 regional offices, each containing 2 divisions: Programme Implementation Division, and Payments Pre-authorisation Division.

The SAPARD Agency functional chart is presented below:



SAPARD Agency - FUNCTIONAL CHART

Office 5 Birou Regional de Implementare a

Office 1 Regional Office for the Implementation of SAPARD Programme

MAFF

MPWTH

Local Units

Local Units

TECHNICAL

DELEGATED

BODIES

Technical Checking

Technical Checking

Regional Office

SAPARD AGENCY

GENERAL DIRECTOR

Control and Anti-

fraud

Internal Audit Department

Programme Coordination Department

Selection and

Contracting Department

Projects Payments

Department

Technical Assistance and

Vocational Training

Department

Economical Department

Human Resources Department

Economical and Financial Implementation Function

Technical Implementation Function

Central Level



1.7 Technical Delegated Services In accordance with Article 5, point 3, Section A from the Multi-annual Financial Memorandum ratified through Law 316 / 2001, SAPARD Agency may delegate the financial and technical functions for implementation to other bodies ensuring complying of certain conditions. According to Framework Agreement No. 1 / 2001, concluded between the SAPARD Agency and the General Directorate for Rural Development (GDRD) within Ministry of Agriculture, Food and Forestry, for the implementation of Measure 1.1 “The improvement of processing and marketing of agricultural and fishery products” are delegated the following functions:

•Checking the eligibility of the application forms;

•Evaluation of the application forms in compliance with selection criteria;

•Checking the eligibility of the payment applications. On the basis of this Framework Agreement, through Ministry Order 338/04.09.2001 regarding the setting up, organising and functioning of delegated technical services within General Directorates for Agriculture and Food Industry at county City of Bucharest level, in the purpose of technical implementation of SAPARD Programme, have been set up and organised within General Directorates for Agriculture and Food Industry at County and in the City of Bucharest level, two offices within the Rural Development Department: Office for verification of projects’ eligibility, projects’ selection criteria for SAPARD Programme and Office for verification of payment applications for SAPARD Programme, through which technical implementation activities for SAPARD Program can be carried out. Through Ministry Order No. 337 / 04.09.200, regarding setting up, organising and functioning of delegated technical services for technical implementation of SAPARD Programme, have been set up and organised two departments, within General Direction for Rural Development: Department for verification of projects’ eligibility, projects’ selection criteria for SAPARD Programme and Department for verification of payment applications for SAPARD Programme, through which technical implementation activities for SAPARD Programme can be carried out. For the technical implementation of Measure 2.1 “Development and the improvement of the rural infrastructure”, a Framework Agreement was concluded between SAPARD Agency and MPWTH, on September 10 2001. On the basis of this Agreement, MPWTH has the following attributions:

•The checking of the eligibility of the application form on the basis of the eligibility criteria set by the Procedure;

•The evaluation of the application forms according to the selection criteria set by the Procedure;

•The checking and the approval of the physical phase of the execution and quality of the works in view of authorisation of the payments by the SAPARD Agency. For the accomplishment of these attributions, according to Order No 1043/18.07.2001 of the Minister of Public Works, Transport and Housing, were set up the SAPARD MPWTH Department and 8 Regional SAPARD Offices. The structure of SAPARD MPWTH Department consists of two offices:



•Evaluation and selection projects office

•Checking office for authorising the payments Through the same order were assigned the representatives of the MPWTH leadership, responsible with the achievement of the attributions incumbent to the Ministry. 2. Description of selection Procedure for Eligible Projects

The Eligibility Criteria and the Selection Criteria are established and clearly defined within each measure and sub-measure in the NPARD and after its approval by EC these criteria must be fully comply. Any modification has to be done only in an official way, with the approval of the Romanian Government and of the European Commission. The SAPARD Agency must respect exactly the Projects Implementation Procedures. The general principles of the implementation procedures are as follows: - The clarity and transparency of the selection and eligibility criteria and of eligible expenditures in conformity with the Financial Agreement - The accuracy of filling up the application forms; - Reducing the time period between the submission of the application and the final decision for giving financial support; - Cost efficiency; - Publicity and transparency; - Guaranteed free initiative and fair competition. SAPARD Agency, as implementing body, is responsible for the project evaluation and selection procedure (checking of the conformity and eligibility, selection criteria and on the spot checking). For measures 1.1 and 2.1 the evaluation of the projects is also delegated to centralised and decentralised technical services from Ministry of Agriculture and Food and Forestry, Ministry of Public Works, Transportation and Housing. Relevant sections will be put at disposal of the Applicants, in the form of an Applicant’s Guide containing the necessary and compulsory information for filling in the Application Form and drawing up projects. Evaluation and Selection Procedure of Projects

Calls for Project Proposals for each measure shall be launched by way of a public announcement of the terms and conditions for submitting and approving the grants. All measures shall be implemented by SAPARD Agency, which may delegate some technical functions to the centralised and decentralised services of Ministry of Agriculture, Food and Forestry, Ministry of Waters and Environmental Protection and Ministry of Public Works, Transportation and Housing. In case of delegation of functions, shall be ensured compliance with the provisions mentioned on 14 Art, items 2.3.1-2.3.8, Section A, from the Multi-annual Financial Agreement. Under no circumstances SAPARD Agency shall delegate its payment and accounting function.



Two types of selection procedures are set up in Romania, depending on the value of the grant: for projects <100,000 Euro, for the following measures:

Measure 1.1: Improvement in Processing and Marketing of Agricultural and Fishery Products Measure 3.1: Investments in agricultural holdings Measure 3.4: Development and diversification of economic activities, multiple activities, alternative income Measure 3.5: Forestry All the projects assessed at the regional level will be prioritised at national level taking into account the selection score achieved and the amount available for the respective period and measure.

for projects >100,000 Euro within the following measures: Measure 1.1: Improvement in Processing and Marketing of Agricultural and Fishery Products Measure 3.1: Investments in agricultural holdings Measure 3.4:Development and diversification of economic activities, multiple activities, alternative income, Measure 3.5: Forestry

and for all the projects within the following measures: Measure 1.2: Improving the structures for quality, veterinary, and plant-health controls, foodstuffs and consumer protection Measure 2.1 : Development and improvement of rural infrastructure Measure 2.2: Management of water resources Measure 3.2: Setting up producers groups Measure 3.3: Agricultural production methods designed to protect the environment and maintain the countryside Measure 4.1: Improving of the vocational training The selection procedure of the Measure 4.2 “Technical Assistance” has to be horizontal. Ministry of Agriculture Food and Forestry and Managing Authority will implement this measure. The selection procedure shall be established in accordance with the Multi-annual Financing Agreement. The administrative system for implementing the measure 4.1 – Improving the vocational training

Ministry of Agriculture, Food and Forestry should decide on the total amount to be allocated for each training course, program that would be subject to a tender, as well as on the Programme’s objectives, training duration, minimum and maximum number of participants, trainers, training curricula, description of preparatory materials and endowments with used equipment, evaluation procedure. For this purpose, Ministry of Agriculture, Food and Forestry shall elaborate the terms of reference and other necessary documents in order to launch the tender. Technical and Financial evaluation of offers will be made according to criteria established by the Ministry of Agriculture, Food and Forestry. For designation of attendees to the training courses others than those who have projects financed under SAPARD Program a series of selection criteria (age, rural area they are from, possession of a holding, etc.) will be used. Measure implementation shall be ensured at the MAFF level by the General Directorate for Rural Development (GDRD) and the National Agency for Agricultural Consultancy (NAAC).



• GDRD shall coordinate the implementation of the measure, elaborate the administrative procedure for measure implementation, establish the total amount allocated for each training course as well as the objectives of the training program, draw up the standard project fiches, participate in tenders evaluation.

• NAAC shall draw up the Terms of Reference and the tender dossier for each training course, organise the tenders, participate in tenders evaluation, check the documents and carry out field checking, ensure the verification of training programs implementation and the payment documents. MAAF shall ensure, in accordance with the contracts concluded with SAPARD Agency, the payment of providers of training and shall draw up the payment request to the SAPARD Agency. SAPARD Agency shall check for each stage the fulfilment by MAFF of procedural requirements and shall authorise the payments. The application forms and the Applicant Guide for fulfilling the application form, for each measure, will be distributed to the beneficiaries through the following institutions and bodies:

Regional Offices for the Implementation of SAPARD Programme The National Agency for Agricultural Consultancy and the County Offices for Agricultural Consultancy (Extension) SAPARD Offices of Ministry of Public Works, Transports and Housing Other structures decided by the implementation body

3. Financial Mechanism The financial mechanism to be applied by the SAPARD Agency shall be in accordance with Multi-annual Financial Agreement and be subject to accreditation by European Commission. 3.1 Payment Mechanisms and Declaration of Expenditure Pursuant to Multi-annual Financial Agreement, the implementation of the Programme shall be financed from the SAPARD instrument. The Commission shall make an initial payment, to the SAPARD Euro account. This payment, which may be made in more than one instalment, shall nor exceed 49% of the annual allocation to the applicant country concerned. The payment shall be made on condition that the SAPARD Agency accreditation has been issued through a decision referred to in Article 3, and after conclusion of the Multiannual and Annual Financing Agreements For contracts between the Agency and the project beneficiaries, the paying mechanisms include: - Checking the payment claims from documentary point of view and for ascertaining the

eligibility of payment - Payment authorisation - Payment execution - Accounting of commitments and payments - Controls of beneficiaries after payment of aid, to establish if the terms and eligibility

conditions of grants continue to be complied with Payment of financial assistance takes the form of payments against expenditure incurred and it does not take the form of advances.



3.2 Currency and exchange rate The SAPARD Agency will perform payments in accordance with the Multi-annual Financial Agreement and with the Regulations of the National Bank of Romania. The contract between the Agency and the beneficiaries of aid shall be concluded and signed in Lei The payments performed by the Agency to the beneficiaries are made in Lei, according to MAFA, without exceeding the contract value. Payment mechanism upon decision taken

4. Information and publicity The Multi-annual Financial Agreement states the information and publicity rules. The beneficiaries of activities under the Technical Assistance Measure are the Managing Authority and the Ministry of Agriculture, Food and Forests. Managing Authority for: Expenditures on meetings of the Monitoring Committee including cost of all experts and other participants, where their presence is considered to be necessary to the effective work of the committee. Other expenditure necessary to discharge responsibilities of the Monitoring Committee, which falls under the following categories: - expert assistance to consider and review program baselines and indicators - experts to assist or advise the Monitoring Committee concerning implementation and functioning of the monitoring arrangements - expenditure associated with meetings and ancillary tasks of working groups seminars - Cost of translation and interpretation provided in response to requests by the Commission, not including those required pursuant to Article 5 (1), and 5 (2) first sentence of the Multi-annual Agreement - Expenditure for mid term evaluation pursuant to the provisions of Article 10 of Section B of the Multi-Annual Financing Agreement

Ministry of Agriculture, Food and Forests for: - Expenditure on information and publicity campaigns, including costs of printing and distribution.

APPLICANT/ BENEFICIARY

SAPARD AGENCY (Paying Function)

NATIONAL FUND at the Ministry of

Finance

Community assistance

requests payment

payment

requests funding funding

funding

requests funding



- Expenditure associated with visits and seminars not made at the initiative of the Commission. Each visit and seminar shall require the submission of a timely written report to the Monitoring Committee. - Expenditure associated with visits and seminars made at the initiative of the Commission. - Expenditure associated with the preparation of measures in the program to ensure their effectiveness including those measures where application is foreseen at a later stage.

The information actions will be systematic and will consist in: - The elaboration of a Programme preparation and development strategy. The goal of this strategy is to ensure the total transparency concerning the information pertaining to conditions and rules to be complied with by the applicants when submitting a Application Form within the SAPARD Programme, the information contained in the Call for Project Proposals public notice and in the Applicant’s Guide. This information shall be disseminated through information materials made by the promotion communication division (leaflets, brochures etc.), through radio and TV programs, as well as seminars, workshops and conferences. - Creation and adoption of a specific logo SAPARD Romania; - Creating a web page for the presentation of the Agency and of the SAPARD Programme - Promotion of SAPARD Programme in media both at national and regional level (series of articles and interviews in the press, on radio and television); - Organising of press conferences; - Providing economic firms and private persons involved in agriculture, forestry and environmental protection with information regarding the capacity of SAPARD Programme to contribute to the development of these fields, by elaborating and disseminating informative materials such as leaflets and brochures presenting the main directions of the Programme as well as the technical fiches of the measures on specific topics so as to insure a professional presentation; - Participation in conferences, symposia, exhibitions, seminars, investment fairs; - Organisation of conferences having a general topic, as well as a specific one for each measures both at regional and national level; - Informing the applicants in writing, by phone or directly to the central office of SAPARD Agency, to the regional offices for the Implementation of SAPARD Programme as well as to the offices of the delegated services about the whole process of the Programme and the modality of filling in the application forms; - Elaboration and publishing of the notices regarding the call for project proposals;

All the bodies listed below will be involved for promoting the program:

•Ministry of Agriculture Food and Forests (MAFF)

•General Directorate for Rural Development and Programs and the decentralised structures of the MAFF at the Judet level, i.e. General Directorates for Agriculture and Food and the Agricultural Centres;

•National Agency for Agricultural Consulting and the decentralised structures: Judet Offices for Agricultural Consulting and the Agricultural Consulting Centres. According with MAFF tasks presented above at the first point, some of these may be delegated to other bodies, accordingly, (framework agreement), depending on the implemented measures without delegating the beneficiary quality of MAAF. During the accreditation process of the measures, amendments may be made concerning the beneficiary, within further Monitoring Committee meetings:



•Ministry of Public Works Transports and Housing ( MPWTH)

•Ministry of Water and Environment Protection (MWEP)

•Ministry of Development and Prognosis

•Ministry of Industry and Resources

•Ministry of Education and Research

•Ministry of Works and Social Solidarity

•Ministry of Tourism

•Social Partners.

5. Compliance with Community policies

Rules of competition The competition rules will be respected according to Section C from the Multi-annual Financial Agreement (after signing the Annual Financial Agreement 2002). Award of contracts Contracts will be awarded to item 2.6, Art. 14, Section A, from the Multi-annual Financial Agreement.

Protection of the environment Environmental assessment is an integral part of the investment plan and an Environmental Impact Assessment will be implemented where applicable. Equal opportunities for men and women Equal opportunities will be fully respected in the composition of the monitoring committee and technical committees for projects assessment and elsewhere, where necessary. 6. Procedure for amendment of the Programme

In the accordance with the provisions laid down in Article 7 item 10-12, Section B from the Multi-annual Financial Agreement , the programme may be revised and supplemented for the following reasons: - to facilitate the attainment of the objectives of the Programme; - to improve the implementation of the Programme;



LEGISLATION ANNEX



MEASURE 1.1

THE IMPROVEMENT OF PROCESSING AND MARKETING OF AGRICULTURAL

AND FISHERIES PRODUCTS

FIRST SECTION

NATIONAL LEGISLATION IN FORCE

Ordinance of Government no. 42/1995 regarding the production of food stuffs destined to commercialisation, with subsequent modifications and completions;

Order of the Minister of agriculture and food no. 357/2003, for the approval of the Regulation with regard to the granting, suspending and withdrawal (cancellation) of licenses of manufacturing, to the economic agents which carry out activities in the field of agricultural food production; Government decision no. 106/2002, regarding the labelling of food products, with the subsequent modifications; Government decision no. 1022/2002, regarding the regime of the products and of the services that may put in danger the life, health, labour security and protection of the environment; Order of the Minister of health no. 975/1998 for the approval of the norms of hygiene regarding the foodstuffs, and the sanitary protection for these, with the subsequent modifications. Order of the Minister of health no. 976/1998 for the approval of the norms of hygiene regarding the production, processing, storing, conditioning, transport and marketing of foods, with the subsequent modifications; Law no. 98/1994 regarding the establishing and penalisation of the contraventions to the legal norms for hygiene and public health with the subsequent modifications and completions; Ordinance of Government no. 39/1998 regarding the activity of National Standardisation in Romania, with the subsequent modifications and completions; Ordinance of Government no. 21/1992 regarding the protection of the consumers, with the subsequent modifications and completions; Ordinance of Government no. 42/2004, regarding the organization of the veterinary activity. Decisions of Government no. 1247/2002 regarding the establishing and punishment of the infringement to sanitary-veterinary norms, Order of the Minister of the agriculture, food and forestry no. 261/2003 for approval of the sanitary-veterinary norms regarding the sanitary-veterinary certification procedure of the units, and for the approval of export activity, as well as the defining of the units subject to the sanitary-veterinary control; Order of the Minister of agriculture, food and forestry no. 234/2001 for approval of sanitary-veterinary norms regarding the sanitary-veterinary conditions for the admittance of import of products of animal origin , with the subsequent modifications and completions; Order of the Minister of agriculture and food no. 70/1998 for the approval of the sanitary-veterinary norm regarding the conditions and the procedures of sanitary-veterinary certification of the import, export, transit with animals, animal products and by-products of animal origin,



feed and other products and materials that may influence the animal health and the human health, with the subsequent modifications and completions; Order of the Minister of agriculture and food no. 357/2001 for approval of the sanitary-veterinary norm regarding measures of surveillance and control of some substances and their residues for the in live animals and their products; Law no. 31/1990 regarding the trade companies with further modifications and completions; Law no. 36/1991 regarding the agricultural companies and other forms of association in agriculture; Government Decision 46/1991 regarding the setting up of the joint-stock companies, by reorganising the Fruit and Vegetables Enterprises; Order of the Minister of Health no. 1956/1995 for introducing and applying HACCP in the activities of monitoring of the hygiene conditions for foodstuffs; Law no. 192/2001 regarding fishery fund, the fishing and aquaculture with the subsequent completions; Law no.137/1995 for the protection of environment with the subsequent modifications and completions; Law no.244/2002 – Law of vineyards and wine in the common oraganization system of the vineyards market; Law no. 84/1998 regarding the trade marks and geographical indications; Decision of Government no. 833/1998 – for the approval of the Regulation for the applying of Law no. 84 regarding the trade marks and geographical indications; Order of the Minister of Public Finances and of the Minister of Public Works, Transport and Dwelling no. 1013/873/2001concerning the approval of standard documentation structure, content and utilisation for the drawing up and presentation of offers for the public procurement of services; Order of the Minister of Public Finances and of the Minister of Public Works, Transport and Dwelling no. 1014/874/2001concerning the approval of standard documentation structure, content and utilization for the drawing up and presentation of the public work acquisition offers; Order of the Minister of Finances no. 616/2000 for the approval of the methodological norms for the elaboration of the income and expenditure budget by the economical agents. Order of Minister of Waters, Forestry and Environment Protection no. 125/1996 regarding the approval of the regulation procedure for economic and social activities having impact over the environment; with the subsequent modifications. Order of Minister of Agriculture, Waters, Forestry and Environment no. 978/2003 regarding the accreditation regulation for the natural and judicial persons which set up evaluation studies of impact over the environment and environment surveys; Government Emergency Ordinance no. 97/2001, regarding production, circulation and trading regulation for food, with the subsequent modifications and completions; Order of Minister of Agriculture and Food Industry No. 189/2001, regarding the approval of sanitary veterinary norm regarding health conditions for the production and trading of the snail meat and frog legs fisheries ; Order of the Minister of Agriculture, Food and Forestry No. 540/2002 for approving the sanitary-veterinary norms regarding treating methods for milk and milk products for human consumption, originating from countries or regions with risk of foot and mouth disease;



Order of the Minister of Agriculture, Food and Forestry No. 80/2003 for approving the sanitary-veterinary norm regarding the establishment of methods for analysing and testing milk thermally treated, for the direct human consumption; Order of the Minister of Agriculture, Food and Forestry No. 389/2002 for approving the sanitary-veterinary norm regarding conditions for the production and trading of non-pasteurized milk, thermally treated and of milk products; Order of the Minister of Agriculture, Food and Forestry No. 425/2002 for approving the sanitary-veterinary norm regarding protection of farm animals during slaughtering or killing, with the subsequent completions and modifications; Order of the Minister of Agriculture, Food and Forestry No. 278/2001 for approving the sanitary-veterinary norm regarding sanitary self controlEs of fish products; Order of the Minister of Agriculture, Food and Forestry No. 190/2001 for approving the sanitary-veterinary norm regarding detection of fish products parasites by visual inspection; Order of the Minister of Agriculture, Food and Forestry No. 277/2001 for approving the sanitary-veterinary norm regarding microbiological criteria applicable for the production of boiled shell and molluscs. Law No.778/2001 regarding inter-professional organisations on agrofood products. Law no. 15/1990 regarding re-organisation of the state economic units as autonomous regies and commercial companies, with the subsequent modifications. Order of the Minister of Health No. 536/1997 for approving the hygiene norms and Recommendation regarding the style of life of the population , with the subsequent completions. Order of Minister of Health and Family No. 117/2002 regarding the approval of Procedures for sanitary regulation for placement, building, arrangement projects and sanitary regulation for the operation of objectives and activities carried out within these projects, other than those subject to registration in the Trade Register, and of Procedures for sanitary regulation for placing on the market of substances and new products or for the first time imported products and designed for using or human consumption, with further modifications. Government Decision 918/2002 on the establishment of the Framework Procedure for evaluating the impact over the environment and for the approval of the list of private or public projects which may be the subject of this procedure Order of Minister of Waters and Environment Protection no. 860/2002 for approval the evaluation procedure of impact over environment and for issuing the environmental endorsement. Order of Minister of Waters and Environment Protection no. 863/2002 regarding the approval of the methodological guides applicable to the stages of standard procedure in the evaluation procedure of impact on the environment. Order no. 173/160/93/2004 of the Minister of Agriculture, Forestry and Rural Development

, the Minister of Administration and Internal Affairs, and the Minister of European Integration , regarding the defining and characterization of the term “ rural area”. Government Decision no.1512/2005 to declare as calamitous zones the localities affected by the floods in the period April – September 2005



SECOND SECTION

NATIONAL LEGISLATION PARTIAL OR TOTAL HARMONISED

For sanitary-veterinary

Harmonised legislation

• Emergency Ordinance of Government no. 113/2002 regarding the identification and registration of the cattle in Romania (harmonising with the Directive 92/102 and 91/496/EEC), with the subsequent modifications;

• Order of the Minister of Agriculture, Food and Forestry no. 322/2003 for approving the sanitary veterinary Norm regarding the health conditions that regulate the production and trading of the meat products and of other products of animal origin ;

• Order of the Minister of Agriculture, Food and Forestry no. 401/2003 for approving the sanitary- veterinary Norm regarding the production and trading of the fresh meat.

For environment protection Partial harmonised legislation

• Law of environment protection no. 137/1995, with the subsequent modifications and completions;

• Order of the Minister of Water, Forests and Environment Protection no. 125/1996 regarding the approval of the regulation procedure for economic and social activities having impact over the environment, with the subsequent modifications and completions;

• Order of Minister of Agriculture, Waters, Forestry and Environment no. 978/2003 regarding the accreditation regulation for the natural and legal persons which set up evaluation studies of impact over the environment and environment surveys;



MEASURE 1.2

IMPROVING THE STRUCTURES FOR QUALITY, VETERINARY AND PLANT-

HEALTH CONTROLS, FOR THE QUALITY OF FOODSTUFFS AND FOR

CONSUMER PROTECTION

NATIONAL LEGISLATION IN FORCE 1. Sanitary-veterinary legislation

• Decision of Government no.42/2004 regarding the organization of the veterinary activity, approved by the Law no.215/2004.

• Decision of Government no.1247/2002 regarding the establishment and sanctioning the infringement to the sanitary-veterinary norms/republished with the number 837/2002.

• Order of Minister of Agriculture and Food no 45/1995 of approving the sanitary-veterinary norms regarding the measures of supervising and control of some substances and their residues in living animals and their products.

• Order of Minister of Agriculture and Food no 53/1997 regarding the authorisation of the sanitary veterinary laboratories.

• Order of the Minister of Agriculture, Food and Forestry no. 85/2001 approving the structure of the Commission for the operation of the sanitary veterinary authorization and endorsement for the state and private laboratories in the animal health and public health areas.

• Order of the Minister of Agriculture, Food and Forestry no. 234/2001 for the approval of the sanitary veterinary norm regarding the admittance for import of products of animal origin;

• Order of the Minister of Agriculture, Food and Forestry no. 539/2002 modifying of the Annex of the Order of the minister of Agriculture, Food and Forestry nr. 234/2001 for the approval of the sanitary veterinary norm regarding the admittance for import of products of animal origin;

• Law no. 592/2003 amending the Law by 160/1998 for the organization and practicing of the profession of veterinary.

• Order of the Minister of Health no 975/1998 for the approval of the norms of hygiene regarding the foodstuffs, and the sanitary protection for these.

• Order of the Minister of Health no 976/1998 for the approval of the norms of hygiene regarding the production, processing, storing, preserving, transport and marketing of food;

• Order of the Minister of Agriculture and Food no. 487/2003 modifying and completing of the Annex of the Order of the Minister of Agriculture, Food and Forestry no. 70/1998 approving sanitary-veterinary norms, regarding the conditions and procedures for import export and transit of animals and products and by products of animal origin of feed and other products that may affect the animal health and public health.

• Decision of Government no. 308/2004 regarding the organisation and functioning of the Veterinary and Food Safety Agency



• Order of the Minister of Agriculture and Food no 97/15.07. 1999 for the approval of the sanitary-veterinary norms regarding the sanitary-veterinary conditions of organising and functioning of the private veterinary units.

• Order of the Minister of Agriculture and Food no. 442/2001 amending the Order of the Minister of Agriculture, Food and Forestry no. 101/1999 for the approval of the sanitary-veterinary norms regarding the production, processing, storing, transport, trade and use of veterinary pharmaceutical products and of the products of veterinary use with subsequent amendments.

• Decision of Government no 446/1999 regarding the approval of leasing of several public sanitary veterinary activities of rational interest and of goods of public property of the state

• Order of the Minister of Public Finance ant of the Minister of Public Works, Transports and Housing no. 1013/873/2001 approving the structure, content and mode of utilization of the Standard Documentation for the elaboration and presentation of the offer for the public procurement of services, including estimate drawn up according to Government Decision no.1179/2002.

• Order 100/1999 for the approval of the sanitary-veterinary norm regarding measures of prophylaxis and combat of BSE, harmonized with the Community directives;

• Order 36/2000 for the approval of the sanitary-veterinary norm regarding the foot-and-mouth disease, harmonized with the Community directives;

• Order of the Minister of the Agriculture, Food and Forestry no. 389/2002 approving sanitary veterinary norms regarding the health conditions for the production, and marketing of the raw milk, of the thermic treated milk and of the milk products, with subsequent amendments;

• Order of the Minister of the Agriculture, Food and Forestry no. 329/2002 approving sanitary-veterinary norm regarding the sanitary veterinary conditions for the fish production and fishing products trading;

• Order of the Minister of the Agriculture, Food and Forestry no. 320/2002 approving sanitary veterinary norms regarding the detailed conditions for the implementing of the registration and identification system of the bovine concerning the holdings registration, ear tag, holding registers and bovine passports.

• Order of the Minister of the Agriculture, Food and Forestry no. 320/2002 approving sanitary veterinary norms regarding the detailed conditions for the implementing of the registration and identification system of the bovine concerning the holdings registration, ear tag, holding registers and bovine passports;

• Order of the Minister of Agriculture, Food and Forestry no. 322/2003 approving sanitary-veterinary norm regarding the health conditions which regulates the production and marketing of the meat, meat products and the other products of animal origin;

• Order of the Minister of Agriculture, Food and Forestry no. 402/2002 approving sanitary-veterinary norm regarding the health conditions which regulates the fresh poultry meat production and trading;

• Order of the Minister of Agriculture, Food and Forestry no 425/2002 approving the sanitary-veterinary norm regarding the protection of animals during slaughtering or killing;

• Order of the Minister of Agriculture, Food and Forestry no. 181/2001 concerning the interdiction of marketing and administration of bovine somatotrophin to the milk cows.



• Order of the Minister of Agriculture, Food and Forestry no. 189/2001 approving the sanitary veterinary norm regarding animal health and public health requirements for the production and marketing of the snail meat and the leg of the frog.

• Order of the Minister of Agriculture, Food and Forestry no. 190/2001 approving the sanitary veterinary norm relating to the visual inspection for the purpose of detecting parasites in fishery products.

• Order of the Minister of Agriculture, Food and Forestry no. 191/2001 approving the sanitary veterinary norm regarding the total volatile basic nitrogen (TVB-N) limit values for certain categories of fishery products and specifying the analysis methods to be used.

• Order of the Minister of Agriculture, Food and Forestry no. 228/2001 approving the sanitary veterinary norm regarding the establishment of the analysis methods, sampling plans and maximum limits for mercury in fishery products establishing.

• Order of the Minister of Agriculture, Food and Forestry no. 277/2001 approving the sanitary veterinary norm on the microbiological criteria applicable to the production of cooked crustaceans and molluscan shellfish.

• Order of the Minister of Agriculture, Food and Forestry no. 278/2001 approving the sanitary veterinary norms regarding health checks on fishery products.

• Order of the Minister of Agriculture, Food and Forestry no. 285/2001 setting the list of live animals, animal origin food products, by-products and other goods covered by veterinary control (including their codes) for the border inspection posts.

• Order of the Minister of Agriculture, Food and Forestry no. 298/2001 concerning the prohibition of placing on the market and administration of certain substances having a hormonal or thyreostatic action and of ß-agonists, on the farm livestock

• Order of the Minister of Agriculture, Food and Forestry no. 324/2001 approving the organization and function Regulation of the Commission for authorization and supervision of the veterinary medicinal products and the other veterinary use products.

• Order of the Minister of Agriculture, Food and Forestry no. 356/2001 approving the sanitary veterinary norm regarding maximum residues levels established for pesticides, medicines intended for veterinary use and other contaminants in animal origin products.

• Order of the Minister of Agriculture, Food and Forestry no. 357/2001 approving the sanitary veterinary norm regarding surveillance and control measures for certain substances and residues thereof in live animals and animal products.

• Order of the Minister of Agriculture, Food and Forestry no. 373/2001 approving the sanitary veterinary norm regarding the management of toxic and high-risk waste in sanitary veterinary laboratories.

• Order of the Minister of Agriculture, Food and Forestry no. 400/2001 approving the instructions on the organizations and operation of the sanitary veterinary personnel in the units provided in art.30 of the Law sanitary veterinary no. 60/1974, republished with the ulterior modifications and completions, as well as, regarding the approval of the tariffs perceived for the assistance activity, sanitary veterinary inspection and checks done by the state in the animal slaughter units, including for poultry, of the collection, processing, stocking and marketing of the animal products.

• Order of the Minister of Agriculture, Food and Forestry no. 414/2001 regarding the animal health requirements and veterinary certification for live animals for imports of the bovine and swine species from third countries.



• Order of the Minister of Agriculture, Food and Forestry no. 474/2001 approving the sanitary veterinary norm regarding the animal health requirements governing the trade of Romania with Member States and the import from third countries of poultry and hatching eggs.

• Order of the Minister of Agriculture, Food and Forestry no. 475/2001 approving the sanitary veterinary norm regarding the use of microscopic identification and estimation method of animal origin compounds in official control of feedstuffs.

• Order of the Minister of Agriculture, Food and Forestry no. 476/2001 approving the sanitary veterinary norm regarding the requirements for preparation, marketing and use of medicated feedstuffs on the territory of Romania.

• Order of the Minister of Agriculture, Food and Forestry no. 483/2001amending and completing Order of the Minister of Agriculture, Food and Forestry no. 373/2001 on the approval of the sanitary veterinary norm concerning the management of toxic and risk waste in the sanitary veterinary laboratories.

• Order of the Minister of Agriculture, Food and Forestry no. 486/2001 on the approval of the sanitary veterinary norm regarding compulsory sanitary veterinary activities in the field of animal health that have to be payed by the owners of animals.

• Order of the Minister of Agriculture, Food and Forestry no.487/2001 approving the veterinary norm regarding the obligatory veterinary supervision activities in the field of animal origin food products expertise in the establishments was elaborated. According to this order the companies have the obligation to pay the value of the laboratory analysis for the imported or exported food products of animal origin.

• Order of the Minister of Agriculture, Food and Forestry no. 494/2001 approving the sanitary veterinary norm regarding the animal health requirements governing the placing on the market of aquaculture animals and products.

• Order of the Minister of Agriculture, Food and Forestry no. 498/2001 approving the sanitary veterinary norm concerning certain protection measures with regard to trade in certain types of mammalian animal waste.

• Order of the Minister of Agriculture, Food and Forestry no. 504/2001 approving the sanitary veterinary norm laying down the sanitary veterinary rules for the disposal and processing of animal waste, for its placing on the market and for the prevention of pathogens in feedstuffs of animal or fish origin.

• Order of the Minister of Agriculture, Food and Forestry no. 20/2002 approving the sanitary veterinary norm prohibiting the use of certain animal by-products in animal feed.

• Order of the Minister of Agriculture, Food and Forestry no. 21/2002 approving the sanitary veterinary norm concerning certain protection measures with regard to transmissible spongiform encephalopathy and the feeding of animal protein.

• Order of the Minister of Agriculture, Food and Forestry no. 22/2002 approving the sanitary veterinary norm regarding supplementary control measures required for the implementation of the sanitary veterinary norm concerning certain protection measures with regard to transmissible spongiform encephalopathy and the feeding of animal protein.

• Order of the Minister of Agriculture, Food and Forestry no. 23/2002 approving the sanitary veterinary norm establishing a list of ingredients whose use is prohibited in compound fodders.

• Order of the Minister of Agriculture, Food and Forestry no. 37/2002 amending the Order of the Minister of Agriculture, Food and Forestry no. 487/2001 approving the sanitary



veterinary norm regarding compulsory sanitary veterinary measures in the field of animal origin products expertise and for surveillance of establishments, whose expenses are supported by companies and by natural and legal persons.

• Order of the Minister of Agriculture, Food and Forestry no. 65/2002 approving the sanitary veterinary norm regarding animal health conditions governing the movement between Romania and Member States and import from third countries of equidae.

• Order of the Minister of Agriculture, Food and Forestry no. 66/2002 approving the sanitary veterinary norm regarding the animal health conditions and veterinary certification governing the trade of Romania with Member States in ovine and caprine animals.

• Order of the Minister of Agriculture, Food and Forestry no. 67/2002 approving the sanitary veterinary norm establishing specific provisions for the control and eradication of blue tongue disease.

• Order of the Minister of Agriculture, Food and Forestry no 74/2002 approving the sanitary veterinary norm regarding the animal health conditions governing trade between Romania and the Member States and imports from third countries of embryos of domestic animals of the bovine species.

• Order of the Minister of Agriculture, Food and Forestry no. 131/2002 amending the Order of the Minister of Agriculture, Food and Forestry no. 285/2001 regarding the approval of the list of live animals and animal origin products and by products and other merchandise subject to veterinary controls at the border inspection post.

• Order of the Minister of Agriculture, Food and Forestry no.143/2002 approving the instructions on the carry out and sheltering of the animal used in scientifically or in other experimentally purposes.

• Order of the Minister of Agriculture, Food and Forestry no. 144/2002 on the approval of the sanitary veterinary norm laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathy.

• Order of the Minister of Agriculture, Food and Forestry no. 147/2002 approving the sanitary veterinary norm regarding the establishing protocols for veterinary tests and the conditions for the approval of animal markets, quarantine farms, or assembling centers in connection with the import of domestic animals of bovine and porcine species, originating from the third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 159/2002 approving the sanitary veterinary norm laying down animal health requirements governing the trade of Romania with Member States and imports from third countries of animals, semen, ova and embryos from species not subject to specific rules.

• Order of the Minister of Agriculture, Food and Forestry no. 241/2002 2002 approving the sanitary veterinary norm on the minimum measures for the control of certain fish diseases.

• Order of the Minister of Agriculture, Food and Forestry no. 243/2002 approving the sanitary veterinary norm on the veterinary health conditions for the production and the placing on the market of live bivalve molluscs.

• Order of the Minister of Agriculture, Food and Forestry no. 256/2002 approving the sanitary veterinary norm on minimum measures for the control of certain diseases affecting bivalve molluscs.

• Order of the Minister of Agriculture, Food and Forestry no. 259/2002 approving sanitary veterinary norm on the financing of veterinary inspections and controls at border post.



• Order of the Minister of Agriculture, Food and Forestry no. 294/2002 approving the sanitary veterinary norm on the maximum content accepted for the some substances and products in fodders.

• Order of the Minister of Agriculture, Food and Forestry no. 304/2002 approving Sanitary veterinary norm on the importation and trade of the fish meal and from other marine animals, excepted the mammals and their products, inclusive mixtures, other than the pet food, what content these products.

• Order of the Minister of Agriculture, Food and Forestry no. 325/2002 approving the sanitary veterinary norm on the animal health requirements and the veterinary certification for the import of animal casing in Romania.

• Order of the Minister of Agriculture, Food and Forestry no. 333/2002 approving the sanitary veterinary norm on the production, marketing and using of the mechanically recovered meat.

• Order of the Minister of Agriculture, Food and Forestry no. 343/2002 approving the sanitary veterinary norm laying down the procedures for veterinary checks at border inspection posts from Romania on products from third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 342/2002 approving the sanitary veterinary norm on the specific sanitary veterinary conditions applicable for the imports and export of the snails for the human consumption.

• Order of the Minister of Agriculture, Food and Forestry no. 344/2002 regarding the necessary documents for the past border for the live animals imported in Romania.

• Order of the Minister of Agriculture, Food and Forestry no. 345/2002 approving the sanitary veterinary norm establishing a system for the registration and identification system of bovine animals correlated with labelling of beef and of the beef products.

• Order of the Minister of Agriculture, Food and Forestry no. 346/2002 approving the sanitary veterinary norm on the general conditions of hygiene in the milk production holdings.

• Order of the Minister of Agriculture, Food and Forestry no. 356/2002 approving the sanitary veterinary norm on hygiene and health problems affecting the production and marketing of the eggs products.

• Order of the Minister of Agriculture, Food and Forestry no. 367/2002 approving the sanitary veterinary norm on the specific sanitary veterinary conditions applicable to the changes and imports of the frog legs intended for the human consumption.

• Order of the Minister of Agriculture, Food and Forestry no. 377/2002 approving the sanitary veterinary norm on the regarding Rapid System of Alert in the animal products and fodders.

• Order of the Minister of Agriculture, Food and Forestry no 391/2002 approving the sanitary veterinary norm regarding the animal health conditions governing Romania’s trade with the Member States and the import from the third countries of the fresh poultry meat.

• Order of the Minister of Agriculture, Food and Forestry no 404/2002 approving of the sanitary veterinary norm regarding the control measures for the control of classical swine fever.

• Order of the Minister of Agriculture, Food and Forestry no.469/2002 approving the sanitary veterinary norm providing for less frequent identity and physical checks on the temporary admission of certain equidae from Sweden, Norway and Finland.



• Order of the Minister of Agriculture, Food and Forestry no.471/2002 approving the sanitary veterinary norm on the sampling plans, diagnostic methods of detection and confirmation of presence of Viral Hemorrhagic Septicaemia - V H S- and Infectious Haematopoietic Necrosis - IHN – of fish.

• Order of the Minister of Agriculture, Food and Forestry no.476/2002 approving the sanitary veterinary norm concerning the porcine reproductive and respiratory syndrome (PRRS).

• Order of the Minister of Agriculture, Food and Forestry no 482/2002 approving the sanitary veterinary norm regarding the criteria to be applied when drawing up the contingency plan for the control of foot-and-mouth disease.

• Order of the Minister of Agriculture, Food and Forestry no 484/2002 approving the sanitary veterinary norm regarding diagnostic procedures, sampling methods and criteria for the evaluation of the results of laboratory tests for the confirmation and differential diagnosis of swine vesicular disease.

• Order of the Minister of Agriculture, Food and Forestry no. 490/2002 approving the sanitary veterinary norm regarding the conditions for production and marketing of the minced meat and prepared meat.

• Order of the Minister of Agriculture, Food and Forestry no. 535/2002 approving the sanitary veterinary norm regarding the health conditions governing the trade between Romania and Member States of EU with fresh meat.

• Order of the Minister of Agriculture, Food and Forestry no. 544/2002 approving the sanitary veterinary norm regarding the health and veterinary inspection problems upon the import from third countries of bovines, ovine, caprine animals and swine, fresh meat or meat products resulted from these.

• Order of the Minister of Agriculture, Food and Forestry no. 47/2003 amending and completing the Order of the Minister of Agriculture, Food and Forestry no. 491/2002 approving the sanitary veterinary norm establishing the criteria for vaccines used against Newcastle disease in the context of the routine program of vaccination.

• Order of the Minister of Agriculture, Food and Forestry no. 498/2002 approving the sanitary veterinary norm establishing rules for preventing, controlling and eradication of certain transmissible spongiform encephalopathy.

• Order of the Minister of Agriculture, Food and Forestry no. 514/2002 approving the sanitary veterinary norm on animal health conditions and veterinary certification for the re-entry of registered horses for racing, competition and cultural events after temporary export.

• Order of the Minister of Agriculture, Food and Forestry no 535/2002 approving the sanitary veterinary norm regarding the health conditions governing the trade between Romania and the Member States of the European Union in fresh meat.

• Order of the Minister of Agriculture, Food and Forestry no 540/2002 approving the sanitary veterinary norm concerning conditions for treatment of milk and milk-based products intended for human consumption from third countries or regions where there is a risk of foot-and-mouth disease occurrence.

• Order of the Minister of Agriculture, Food and Forestry no 558/2002 for the approval of the sanitary veterinary norm regarding diagnostic procedures, sampling methods and criteria for evaluation of the laboratory tests for the confirmation of classical swine fever.



• Order of the Minister of Agriculture, Food and Forestry no 559/2002 approving sanitary veterinary norm concerning public health and animal health problems governing the production and placing on the market of rabbit meat and farmed game meat.

• Order of the Minister of Agriculture, Food and Forestry no 578/2002 approving the sanitary veterinary norm regarding the criteria for the testing of poultry for slaughter originating in a surveillance zone for Newcastle disease, in application of Article 5 (3) of the sanitary veterinary norm regarding the animal health conditions governing the Romania’s trade with the Member States of the European Union and the import from the third countries of fresh poultry meat.

• Order of the Minister of Agriculture, Food and Forestry no. 579/2002 approving sanitary veterinary norm on animal health conditions and veterinary certification for imports of registered equidae for breeding and production.

• Order of the Minister of Agriculture, Food and Forestry No. 580/2002 approving the sanitary veterinary norm concerning veterinary and zoo technical checks applicable in trade between Romania and Member States in certain live animals and products.

• Order of the Minister of Agriculture, Food and Forestry no. 581/2002 approving the sanitary veterinary norm laying down the criteria for classifying third countries with regard to avian influenza and Newcastle disease, in relation with imports of live poultry and hatching eggs.

• Order of the Minister of Agriculture, Food and Forestry No. 582/2002 approving the sanitary veterinary norm implementing the provisions of the sanitary veterinary norm concerning veterinary checks applicable in trade between Romania and Member States in animal and products of animal origin on veterinary checks.

• Order of the Minister of Agriculture, Food and Forestry no.602/2002 approving the sanitary veterinary norm laying down the model of the health certificate referred to the Article 16 of the Sanitary veterinary norm concerning the animal health conditions governing the placing on the market of aquaculture animals and products (approved by Order of the Minister of Agriculture, Food and Forestry no. 494/27.12.2001).

• Order of the Minister of Agriculture, Food and Forestry no 603/2002 approving the sanitary veterinary norm establishing additional guarantees regarding Salmonella for consignments to Finland and Sweden of breeding poultry and day-old chicks for introduction into flocks of breeding poultry or flocks of productive poultry.

• Order of the Minister of Agriculture, Food and Forestry no 604/2002 approving the sanitary veterinary norm regarding special conditions for the approval of the re-wrapping centers referred to sanitary veterinary norm on health conditions governing the production and placing on the market of meat products and other animal products.

• Order of the Minister of Agriculture, Food and Forestry no 606/2002 approving the sanitary veterinary norm establishing the technique for the microbiological testing by sampling in the establishment of origin of poultry for slaughter intended for export to Finland and Sweden.

• Order of the Minister of Agriculture, Food and Forestry no. 607/2002 approving the sanitary veterinary norm laying down detailed rules for the application of Article 9.1 of the Sanitary veterinary norm concerning veterinary and zoo technical checks applicable in the trade between Romania and Member States in certain live animals and animal products.



• Order of the Minister of Agriculture, Food and Forestry no.616/2002 regarding the approval of the sanitary veterinary norm concerning certain products used in animal nutrition.

• Order of the Minister of Agriculture, Food and Forestry no. 619/2002 approving the sanitary veterinary norm regarding the criteria for the eradication and monitoring programs of certain animal diseases.

• Order of the Minister of Agriculture, Food and Forestry no.620/2002 approving the sanitary veterinary norm laying down animal health conditions and sanitary veterinary certificates for the importation of poultry and hatching eggs other than ratites and eggs thereof from third countries as well as animal health measures to be applied after such importation.

• Order of the Minister of Agriculture, Food and Forestry no. 629/2002 approving the sanitary veterinary norm determining the specimen animal health certificate for trade in semen of the equine species.

• Order of the Minister of Agriculture, Food and Forestry No. 640/2002 approving the sanitary veterinary norm on Program for surveillance, prophylaxis and control of animal diseases, preventing transmission of diseases from animals to human and environment protection for the year 2003.

• Order of the Minister of Agriculture, Food and Forestry no. 641/2002 approving the sanitary veterinary norm concerning animal health conditions and veterinary certification for imports of milk and milk-based products not intended for human consumption from third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 642/2002 approving the sanitary veterinary norm on recognizing rabies’ vaccines.

• Order of the Minister of Agriculture, Food and Forestry no. 644/2002 approving the sanitary veterinary norm laying down the animal health conditions and the certification requirements for the importation in Romania from third countries of Crassostrea gigas for relaying in national waters in order to purify them.

• Order of the Minister of Agriculture, Food and Forestry no. 645/2002 approving the sanitary veterinary norm on the reduced frequency of physical checks of consignments of certain products to be implemented from third countries under on the sanitary veterinary norm establishing the principles approving the organization of veterinary checks on animal origin products imported into Romania from third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 647/2002 approving the sanitary veterinary norm laying down pedigree and zoo technical requirements for the importation of semen of certain animals.

• Order of the Minister of Agriculture, Food and Forestry no. 648/2002 approving the sanitary veterinary norm laying down the methods of veterinary checks for products from third countries destined for introduction into free zones, free warehouses, customs warehouses or operators supplying cross border means of sea transport.

• Order of the Minister of Agriculture, Food and Forestry no. 655/2002 amending the Order of the Minister of Agriculture, Food and Forestry no.333/2002 approving sanitary veterinary norm on the production, marketing and using the mechanically recovered meat.

• Emergency Ordinance of Government no. 113/2002 regarding the registration and identification of bovine in Romania, approved by Law no. 25/2003.



• Decision of Government no. 463/2002 approving the procedures regarding the live animals export.

• Order of the Minister of Agriculture, Food and Forestry no. 4/2003 approving the sanitary veterinary norm on animal health conditions and veterinary certification for imports of equidae for slaughter.

• Order of the Minister of Agriculture, Food and Forestry no. 6/2003 approving the sanitary veterinary norm designating the specific institution responsible for establishing the criteria necessary for standardizing the serological tests to monitor the effectiveness of rabies vaccines.

• Order of the Minister of Agriculture, Food and Forestry no.7/2003 approving the sanitary veterinary norm designating the national reference laboratory for the identification of foot-and-mouth disease virus and the functions of that laboratory.

• Order of the Minister of Agriculture, Food and Forestry no. 11/2003 approving the sanitary veterinary norm establishing the additional guarantees regarding salmonella of laying hens intended for export to Finland and Sweden.

• Order of the Minister of Agriculture, Food and Forestry no.16/2003 approving the sanitary veterinary norm on the financing of veterinary inspections and controls on products intended for trade between Romania and Member States or for import from third countries.

• Order of the Minister of Agriculture, Food and Forestry no.17/2003 approving the sanitary veterinary norm laying down the animal health requirements and the veterinary certification for the import in Romania of birds, other than poultry and the conditions for their quarantine.

• Order of the Minister of Agriculture, Food and Forestry no.18/2003 approving the sanitary veterinary norm establishing the detailed rules for the application of Article 9 of the sanitary veterinary norm governing the organization of veterinary checks on animal origin products imported into Romania from third countries concerning the transhipment of products at a Border Inspection Post where the consignments are intended for eventual import into Romania and amending the sanitary veterinary norm establishing methods of veterinary checks for products from third countries and intended for free zones, free warehouses or custom warehouses, as well as during the transit in Romania of the transport from one third country to another third country.

• Order of the Minister of Agriculture, Food and Forestry No. 19/2003 approving the sanitary veterinary norm establishing detailed rules for the application of sanitary veterinary norm concerning the principles governing the organization of veterinary checks for animal origin products imported into Romania from third countries, regarding the transit of products of animal origin from one third country to another third country by road only across the Romania.

• Order of the Minister of Agriculture, Food and Forestry no.21/2003 approving the sanitary veterinary norm concerning veterinary checks in trade between Romania and Member States with animal and animal origin products.

• Order of the Minister of Agriculture, Food and Forestry no 43/2003 approving the sanitary veterinary norm on the criteria to be applied to establishments manufacturing meat products without having an industrial structure or an industrial production capacity.



• Order of the Minister of Agriculture, Food and Forestry no 44/2003 approving the sanitary veterinary norm regarding measures for the control of foot-and-mouth disease.

• Order of the Minister of Agriculture, Food and Forestry no 45/2003 approving the sanitary veterinary norm on the detailed procedures for carrying out checks regarding the observance of the freezing point of raw milk.

• Order of the Minister of Agriculture, Food and Forestry no. 46/2003 approving the sanitary veterinary norm on animal health problems affecting the trade in meat products between Romania and Member States.

• Order of the Minister of Agriculture, Food and Forestry no. 59/2003 approving the sanitary veterinary norm establishing uniform criteria for the grant of derogations to certain establishments manufacturing milk-based products.

• Order of the Minister of Agriculture, Food and Forestry no. 61/2003 approving the sanitary veterinary norm on animal health conditions and veterinary certification for temporary admission in Romania of registered horses.

• Order of the Minister of Agriculture, Food and Forestry no. 62/2003 amending the Annex of the Order of Minister of Agriculture, Food and Forestry no. 640/2002 approving the sanitary veterinary norm on Program for surveillance, prophylaxis and control of animal diseases, preventing transmission of diseases from animals to human and environment protection for the year 2003.

• Order of the Minister of Agriculture, Food and Forestry no. 63/2003 approving the sanitary veterinary norm on reference laboratories for monitoring bacteriological and viral contamination of bivalve molluscs.

• Order of the Minister of Agriculture, Food and Forestry no 66/2003 approving sanitary veterinary norm regarding animal health conditions and the veterinary certificates for the importation of fresh poultry meat from third countries.

• Order of the Minister of Agriculture, Food and Forestry no.69/2003 approving sanitary veterinary norm drawing up a provisional list of third countries from which Romania authorizes imports of semen, ova and embryos of the ovine, caprine and equine species, as well as imports of ova and embryos of the porcine species.

• Order of the Minister of Agriculture, Food and Forestry no.71/2003 approving the sanitary veterinary norm laying down the principles governing the organization of veterinary checks on products entering the Romania from third countries.

• Order of the Minister of Agriculture, Food and Forestry no 73/2003 approving the sanitary veterinary norm establishing the list of milk-based products in respect of which Romania is authorized to grant individual or general derogations pursuant to Article 8 (2) of sanitary veterinary norm concerning the health conditions for the production and placing on the market of raw milk, heat-treated milk and milk-based products, as well as the nature of the derogations applicable to the manufacturing of such products.

• Order of the Minister of Agriculture, Food and Forestry no.74/2003 approving the sanitary veterinary norm providing for the specimens of the health certificate for the

importation into Romania from third countries of heat-treated milk, milk-based products and



raw milk for human consumption intended to be accepted at a collection centre, standardization centre, treatment establishment or processing establishment.

• Order of the Minister of Agriculture, Food and Forestry no 76/2003 for the approval of the sanitary veterinary norm regarding the reference methods for detecting residues of heavy metals and arsenic.

• Order of the Minister of Agriculture, Food and Forestry no 77/2003 for the approval of the sanitary veterinary norm regarding measures for protection against specified zoo noses and specified zoonotic agents in animals and products of animal origin in order to prevent outbreaks of food-borne infections and intoxications.

• Order of the Minister of Agriculture, Food and Forestry no. 78/2003 approving the sanitary veterinary norm establishing exceptions from sanitary veterinary norm on health problems governing the producing and marketing of meat products and other animal origin products for certain products which contain other foodstuffs and only a small percentage of meat or meat product.

• Order of the Minister of Agriculture, Food and Forestry no. 79/2003 approving the sanitary veterinary norm laying down the health conditions for the approval of establishments situated in wholesale markets.

• Order of the Minister of Agriculture, Food and Forestry no. 80/2003 approving the sanitary veterinary norm laying down methods for the analysis and testing of heat- treated milk for direct human consumption.

• Order of the Minister of Agriculture, Food and Forestry no. 83/2003 approving the sanitary veterinary norm laying down principles governing the veterinary checks on animals entering in Romania from third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 119/2003 approving the sanitary veterinary norm regarding the animal and public health problems relating to the killing of wild game and the placing on the market of wild-game meat.

• Order of the Minister of Agriculture, Food and Forestry no.166/2003 approving the sanitary veterinary norm regarding the identification and registration of porcine, ovine and caprine.

• Order of the Minister of Agriculture, Food and Forestry no. 167/2003 for the approval of the sanitary veterinary norm regarding the identification of equine;

• Order of the Minister of Agriculture, Food and Forestry no 195/2003 approving the sanitary veterinary norm on taking over by central veterinary authority of Romania of the provisional approval by European Commission of residue plans sent by third countries according to SVN on control measures for certain substances and residues thereof in live animals and their products.

• Order of the Minister of Agriculture, Food and Forestry no 197/2003 approving the sanitary veterinary norm regarding animal health requirements and veterinary certification for imports of ova and embryos of the equine species from third countries in Romania.

• Order of the Minister of Agriculture, Food and Forestry no.198/2003 approving the sanitary veterinary norm laying down the principles relating to the zoo technical and genealogical conditions applicable to imports from third countries of animals, their semen, ova and embryos.



• Order of the Minister of Agriculture, Food and Forestry no. 199/2003 approving the sanitary veterinary norm laying down the zoo technical certificates of semen, ova and embryos from registered equidae

• Order of the Minister of Agriculture, Food and Forestry no 200/2003 approving the sanitary veterinary norm establishing the list of approved semen collection centers for imports of equine semen from third countries.

• Order of the Minister of Agriculture, Food and Forestry no.201/2003 approving the sanitary veterinary norm laying down the specimen pedigree certificates for the semen and embryos of pure-bred breeding animals of the bovine species and the particulars to be entered on those certificates.

• Order of the Minister of Agriculture, Food and Forestry no.202/2003 approving the sanitary veterinary norm on reference laboratories for the monitoring of marine bio toxins.

• Order of the Minister of Agriculture, Food and Forestry no. 212/2003 approving the sanitary veterinary norm laying down the rules for the microbiological testing by sampling of fresh beef and veal and pig meat intended for Finland and Sweden.

• Order of the Minister of Agriculture, Food and Forestry no. 214/2003 regarding the approval of the sanitary veterinary norm for the implementation of the surveillance and control measures of certain substances and their residues for live animals and their products regarding the performance of the analytical methods and interpretation of the results.

• Order of the Minister of Agriculture, Food and Forestry no. 223/2003 approving the sanitary veterinary norm establishing, as regards salmonella, additional guarantees for consignments to Finland and Sweden of certain types of eggs intended for human consumption.

• Order of the Minister of Agriculture, Food and Forestry no 231/2003 approving the sanitary veterinary norm on specific public health conditions for the placing on the market of certain types of eggs.

• Order of the Minister of Agriculture, Food and Forestry no 247/2003 modifying and completing the Order of Minister of Agriculture, Food and Forestry no. 640/2002 approving the Program for surveillance, prophylaxis and control of animal diseases, preventing transmission of diseases from animals to human and environment protection for the year 2003.

• Order of the Minister of Agriculture, Food and Forestry no.258/2003 approving the sanitary veterinary norm laying down animal and public health conditions and veterinary certification for imports of minced meat and meat preparations from third countries.

• Order of the Minister of Agriculture, Food and Forestry no. 322/2003 approving the sanitary veterinary norm on health conditions governing the production and marketing of meat products and other animal origin products.

• Order of the Minister of Agriculture, Food and Forestry no. 365/2003 approving The National Plan of Emergency for foot and mouth disease.

• Order of the Minister of Agriculture, Food and Forestry no. 367/2003 approving the sanitary veterinary norm on the certification of animals and animal products.

• Order of the Minister of Agriculture, Food and Forestry no. 368/2003 approving the sanitary veterinary norm on the official control of foodstuff of animal origin.



• Order of the Minister of Agriculture, Food and Forestry no. 412/2003 approving the sanitary veterinary norm on the marketing of the compound fodders.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 428/2003 approving the sanitary veterinary norm concerning protective measures regarding the import activities in Romania, of certain animal species and their products from Albania, Bulgaria, the former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia in relation to bleu tongue disease.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 433/2003 approving the sanitary veterinary norm establishing the minimum data required for the databases on animals and animal products brought into Romania.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 455/2003 approving the sanitary veterinary norm establishing interim safeguard measures with regard to import of products of animal origin for personal consumption.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 505/2003 approving the sanitary veterinary norm establishing the conditions and arrangements for approving and registering certain establishments and intermediaries operating in the animal feed sector.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 506/2003 approving the sanitary veterinary norm for the approval of border inspection posts in which sanitary veterinary controls are organised, the conditions for their approval and the attributions of the personnel.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 507/2003 approving the sanitary veterinary norm on the circulation and using of feed materials.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 525/2003 approving the sanitary veterinary norm establishing certain detailed rules regarding the veterinary checks on live animals to be imported from third countries into Romania.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 530/2003 approving the sanitary veterinary norm establishing derogations from the conditions of approval for border inspection posts located in ports where fish is landed.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 618/2003 approving the sanitary veterinary norm establishing a list of epizootic diseases according to the sanitary veterinary norm regarding the health problems and veterinary inspection after the import in Romania from third countries of the bovine, ovine, caprine, porcine and fresh meat provided from these.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 667/2003 approving the sanitary veterinary norm amending the Order of the Minister of Agriculture, Forestry, Waters and Environment no. 328/2003 approving the functions structure, organization chart and states of functions of the Ministry of Agriculture, Forestry, Waters and Environment.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 683/2003 approving the sanitary veterinary norm establishing detailed rules for implementing of the



sanitary veterinary norm concerning the registration and identification system of bovine correlated with the labelling of the beef and beef products with regard to the minimum level of controls to be carry out in this field.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 686/2003 approving the accelerated plan for eradication of infectious anaemia to equidae.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 710/2003 amending the Annex of the Order of the Minister of Agriculture, Food and forestry no. 486/2001 approving sanitary veterinary norm regarding obligatory sanitary veterinary actions in the health animals field, with the costs supported by the animals owners.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 717/2003 approving the sanitary veterinary norm regarding to the principles which establish the official inspections organizations in the animal nutrition field.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 723/2003 approving the sanitary veterinary norm establishing the health rules on the animal by products which are not intended for the consumption.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 724/2003 approving the national Plan for the necessity situations – EST.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 725/2003 approving the sanitary veterinary norm regarding to the immunological medicinal veterinary products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 726/2003 approving the sanitary veterinary norm regarding to the homeopathy medicinal products of veterinary use.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 727/2003 approving the sanitary veterinary norm concerning the national procedures for the authorization and supervision of the medicinal products of veterinary use.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 728/2003 approving the sanitary veterinary norm regarding the colouring agents for veterinary medicinal products

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 729/2003 approving the sanitary veterinary norm regarding to the creating of the supplementary protection certificate for the veterinary medicinally products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 730/2003 approving the sanitary veterinary norm on the electro – medical equipments used in veterinary medicine.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 731/2003 approving the sanitary veterinary norm regarding to the National Sanitary Veterinary Agency in pharmaceutical inspections field.



• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 739/2003 approving the sanitary veterinary norm establishing the categories of feed raw materials utilised for feed labelling for pets

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 740/2003 approving the sanitary veterinary norm authorizing, in some cases, the combined forage marketing in packages or unsealed containers.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 741/2003 amending the sanitary veterinary norm laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathy diseases approved by the Order of the Minister of Agriculture, Food and Forestry no. 144/2002.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 742/2003 amending the Annex of the Order of the Minister of Agriculture, Food and Forestry no. 640/2002 approving the sanitary veterinary norm on Program for surveillance, prophylaxis and control of animal diseases, preventing transmission of diseases from animals to human and environment protection.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 776/2003 approving the sanitary veterinary norm regarding to the introduction of the communitarian methods for sampling and analysis drawing for the foders official control.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 777/2003 approving the sanitary veterinary norm on the fodders used for special nutritional purposes.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 778/2003 approving the sanitary veterinary norm establishing the guidelines for the evaluation of certain products used in the animal nutrition.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 779/2003 approving the sanitary veterinary norm establishing the list of products which must be examined at the border inspections posts in compliance with the sanitary veterinary norm establishing the principles that regulated the sanitary veterinary controls regarding the products entering in Romania.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 780/2003 approving the sanitary veterinary norm for the interdiction of proteic products in feed.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 781/2003 approving the sanitary veterinary norm which prohibit the using of the protein products obtained in leavens Candida cultivated on n-alkanes in fodders.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 796/2003 approving the sanitary veterinary norm establishing the cooperation form between ANIMO center – host and Romania.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 805/2003 approving the sanitary veterinary norm establishing a tariff system in animal nutrition sector.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 806/2003 approving the sanitary veterinary norm regarding the protection measures for the animal origin products intended to the animal nutrition, imported from Ukraine.



• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 807/2003 approving sanitary veterinary norm establishing the standard document and certain rules for the fodders controls at the import in Romania from third countries.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 828/2003 approving the sanitary veterinary norm amending the Annex Order of the Minister of Agriculture, Forestry, Waters and Environment no. 686/2003 approving the accelerated plan for eradication of infectious anaemia to equidae.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 847/2003 approving the sanitary veterinary norm approving the necessary number of personnel for the carry on the activity of the border sanitary veterinary control and of the border inspection posts work program in which are organized sanitary veterinary controls.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 861/2003 approving the technical norms regarding the organization and functioning of the stations and local points for animal breeding.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 866/2003 approving the sanitary veterinary norm regarding the Programme of measures for the prevention of raw milk pollution with pesticides or substances utilised in agriculture and in animal treatments.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 868/2003 modifying the sanitary veterinary norm regarding the marking and certification of fresh meat intended for human consumption, approved by ministerial Order no. 117/1998, with subsequent modifications.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 869/2003 regarding the modification and completion of the Order of the Minister of Agriculture, Forestry, Waters and Environment no. 506/2003 approving the sanitary veterinary norm for the approval of border inspection posts in which sanitary veterinary controls are organised, the conditions for their approval and the attributions of the personnel.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 920/2003 regarding the modification and completion of sanitary veterinary norm regarding the sanitary veterinary obligatory actions in animal origin food expertise, covered by economic agents, approved by Order of the Minister of Agriculture, Food and Forestry no. 487/2001.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 924/2003 regarding the completion of the sanitary veterinary norm regarding animal protection during slaughtering, approved by Order of the Minister of Agriculture, Food and Forestry no. 425/2002.

• Law no. 524/2003 approving the Governmental Ordinance no. 83/2003 approving the border inspection posts organised in border passing points for import, export and transit of goods, as well as the approval of conditions for BIP’s.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.009/2003 regarding the modification of annex to the sanitary veterinary norm for financing the veterinary inspections and control sat border, approved by Order of the Minister of Agriculture, Food and Forestry no. 259/2002.

• Governmental Emergency Ordinance no. 127/2003 regarding the identification and registration of swine, ovine and caprine animals.



• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 967/2003 approving the sanitary veterinary norm establishing national analyses methods for determination of A, E vitamins and triptofan in feed.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 968/2003 approving the sanitary veterinary norm establishing analyses methods for feed official control for various substances.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.106/2003 approving the Action Programme for raw milk quality improvement.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.107/2003 approving the sanitary veterinary norm regarding the establishment of guidelines and principles for good manufacturing practice for veterinary medicinal products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.108/2003 approving the sanitary veterinary norm regarding the evaluation procedure for authorisation requests, granted according to the sanitary veterinary norm regarding the national procedures for veterinary medicinal products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.109/2003 approving the sanitary veterinary norm regarding the variations in authorisation for veterinary medicinal products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.110/2003 approving the sanitary veterinary norm regarding the procedure of report for unexpected, suspect adverse reactions, not evaluated as severe, of veterinary medicinal products officially authorised, appearing in Romania.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.111/2003 approving the sanitary veterinary norm regarding the code for veterinary medicinal products.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.113/2003 approving the sanitary veterinary norm regarding the Emergency Plan for classical swine fever.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.114/2003 approving the sanitary veterinary norm regarding the Contingency Plan and Instructions Manual for Newcastle disease.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 48/2004 regarding the modification and completion of annex 1 to the sanitary veterinary norm for the approval of border inspection posts in which sanitary veterinary controls are organised, the conditions for their approval and the attributions of the personnel, approved by Order of the Minister of Agriculture, Forestry, Waters and Environment no. 506/2003.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 98/2004 approving the sanitary veterinary norm establishing the animal and public health conditions for trade between Romania and European Union Member States and import in Romania of products not subjected to specific requirements.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 145/2004 approving the sanitary veterinary norm for emergency measures against bovine spongiform encephalopathy.

• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 170/2004 approving the sanitary veterinary norm regarding the swine animals identification and registration system.



• Order of the Minister of Agriculture, Forestry, Waters and Environment no. 171/2004 approving the sanitary veterinary norm regarding the ovine and caprine animals identification and registration system.

• Law no. 118/2004 approving the Governmental Emergency Ordinance no. 127/2003

regarding the identification and registration of swine, ovine and caprine animals.

• Law no. 60/2004 regarding the ratification of European Convention for pet animals’ protection.

• Order of the president of the Veterinary and Food Safety Agency no. 1/2004 approving the sanitary veterinary norm regarding the implementation of on the spot inspections linked to imports of swine and bovine animals and fresh meat of swine and bovine animals origin.

• Order of the president of the Veterinary and Food Safety Agency no. 3/2004 regarding the conditions of exit from Romania of animals for sports competitions and international exhibitions.

• Order of the president of the Veterinary and Food Safety Agency no. 7/2004 regarding the issuing procedure of visa for associations and foundations with veterinary and food safety activities.

• Order of the president of the Veterinary and Food Safety Agency no. 4/2004 approving the sanitary veterinary norm regarding the producing, processing, storing, transport, placing on the market and use of veterinary medicinal products and other veterinary products.

• Order of the president of the Veterinary and Food Safety Agency no. 11/2004 for the modification of annex to Order of the Minister of Agriculture, Forestry, Waters and Environment no. 1.106/2003 approving the Action Programme for raw milk quality improvement

• Order of the president of the Veterinary and Food Safety Agency no. 12/2004 for the modification of Order of the Minister of Agriculture, Food and Forestry no. 389/2002

approving the sanitary veterinary norm regarding the health conditions for producing and placing on the market of raw milk, heat treated milk and milk products, with subsequent modifications.

• Governmental Decision no. 860/2004 regarding the mutual recognition of veterinary qualification.

2. Plant-health legislation

• Law no. 5/1992 regarding the protection of cultivated crop plants and of the forests and the regime of pesticides.

• Law no. 266/2002 regarding the production, processing, control, and quality certified trades and use of seeds and propagation material, as well as the recording of kind plants;

• Ordinance of Government no. 4/1995 approved by the Law no. 85/1995 regarding the manufacturing, trade and use of products of phyto-sanitary products for contracting the diseases, the pests and the weeds in agricultural forestry.

• Decision of Government no. 1030/2001 approving detailed rules for implementing of the Ordinance of Government no. 136/2001, amended by the Decision of Government no. 1619/2003.

• Order of Minister of Agriculture, Forestry, Waters and Environment no. 511/2003 on the organization and function Regulation of the phyto-sanitary units.



• Order of Minister of Agriculture, Food and Forestry no. 257/2002 approving the regulation regarding the organisation of the quality control and of the phyto-sanitary control at the import and of the export of seeds and of the propagation material. Common Order of Minister of Agriculture, Food and Forestry, Minister of Health and Family and Minister of Public Administration no. 52676/591/462/1998 modifying for the approval of the Regulation regarding the organisation and functioning of the Inter-ministerial Commission of certifying the phyto-sanitary products and the procedures of their certification in view of their manufacturing, trading and use in agriculture and forestry;

• Law no. 206/2001 approving with amendments the Emergency Ordinance of Government no.17/2001 amending the Emergency Ordinance of Government no.71/1999, regarding the re-organisation of the activity of plant protection and phyto-sanitary quarantine

• Order of the Minister of Agriculture, Food and Forestry no.26/1999, regarding the measures for preventing the spreading and for the looses produced by Clavibacter mich. at the potatoes diminishing.

• Order of the Minister of Agriculture, Food and Forestry no.27/1999, regarding the measures for preventing the spreading and for looses produced by Globodera spp.at the potatoes diminishing.

• Order of the Minister of Agriculture, Food and Forestry no.28/1999, regarding the measures for preventing the spreading and for looses produced by Syn.endobioticum Perc diminishing.

• Order of the Minister of Public Finance ant of the Minister of Public Works, Transports and House no. 1013/873/2001 approving the structure, content and way of utilization of the standard documentation for the supply elaborating and presenting for the public procurement of services, including estimate drawn up according to Government Decision no.1179/2002;

• Order of the Minister of Agriculture no. 81/2000 regarding the measures for the prevention of spreading and diminution of damages caused by San Jose 2000 louse;

• Order of the Minister of Agriculture, Food and Forestry no. 163/2002 regarding the control of tortricides of pink leaves;

• Ordinance of Government no. 136/2000 on protection measures against the introduction and spreading into Romania of plant and vegetal product pests and their dissemination in Romania approved and modified by Law no. 214/2001

• Order of the Minister of Agriculture, Food and Forestry no. 503/2001 regarding the recording procedure of producers, collective warehouse, expedition centers and importers of plants, vegetal products or regulated articles;

• Order of the Minister of Agriculture, Food and Forestry no. 394/2002 regarding the liberation procedure of the plant-health passport used for the circulation of certain plants, vegetal products or regulated articles on the Romania’s territory;

• Order of the Minister of Agriculture, Food and Forestry no. 621/2002 regarding the extension of the recording of producers, or collective warehouses and delivery centers from the production zones for some plants unforeseen in Annex no.5, part A from Decision of Government no. 1030/2001;

• Order of the Minister of Agriculture, Food and Forestry no. 632/2002 regarding the control of Ralstonia solanacearum;



• Law no. 306/2001 approving the Emergency Ordinance of Government no. 262/2000 on laying down the establishing procedures of the maximum levels of pesticide wastes in plants and vegetal products;

• Common Order of the Minister of Agriculture, Food and Forestry, Minister of Health and Family and Minister of Public Administration no. 396/707/1944/2002 on the prohibition utilization in Romania of the plant-health use products containing certain active substances;

• Common Order of the Minister of Agriculture, Forestry, Waters and Environment and Minister of Health and Family no. 474/738/2003 regarding establishing of the maximum levels of pesticide wastes in plants and vegetal products, amended by the Common Order of the Minister of Agriculture, Forestry, Waters and Environment and Minister of Health and Family no. 80/27/2004;

• Order of the Minister of Agriculture, Food and Forestry no. 29/2001 approving the drawing methods of the plants and vegetal products samples for the laboratory analyses accomplishing determining level of the pesticide wastes.

• Order of the Minister of Agriculture, Food and Forestry no. 29/1999 establishing the notification procedures for the transport interception or of the quarantine organism at the plants, vegetal products and other regulate articles import, as a result of the Romanian phyto-sanitary regulations inobservance.

• Order of the Minister of Agriculture, Food and Forestry no. 199/2000 regarding to the authorization persons for liberating of the phyto – sanitary certificates for plants, vegetal products or regulated articles destined the export.

• Order of the Minister of Agriculture, Food and Forestry no. 80/2000 approving the norm regarding to the minimum necessary conditions for the phyto – sanitary control performing at border.

• Order of the Minister of Agriculture, Food and Forestry no. 502/2001 approving the minute models regarding to the phyto-sanitary control.

• Order of the Minister of Agriculture, Food and Forestry no. 89/2003 establishing the conditions in which some pests organisms, plants vegetal products or regulated articles, laying down in Annexes 1-5 of the Decision of Government no. 1030/2001 regarding to the protection measures against to the introduction and spreading of the quarantine organisms pests for plants or for vegetal products in Romania can be introduced in circulation in Romania or in the protected zones from Romania, for experiences, scientifically or experimental aims and works on the varietals selections.

• Order of the Minister of Agriculture, Food and Forestry no. 560/2002 establishing the rules for the performed monitoring in the recognition purpose of the protected zone.

• Order of the Minister of Agriculture, Forests and Rural Development no. 205/2004 regarding the establishing on the Procedure for taking samples within the phytosanitary inspection on import.

3. Legislation in the sector of food quality control and for consumer’s protection

• Decision of Government no. 409/2004regarding the organisation and functioning of the Ministry of Agriculture, Forests and Rural Development.

• Emergency Ordinance of Government regarding the regulation of manufacturing circulation and trade of the foodstuff, approved with amendments by the Law no. 57/2002.



• Ordinance of Government no. 42/1995 regarding the manufacturing of food products destined to trade, approved with amendments by the Law no. 123/1995 amended by the Ordinance of Government no. 33/1999, approved by the Law no. 183/2001.

• Order of the Minister of Agriculture, Food and Forestry no. 357/2003 approving the Regulation regarding the issuing, keeping or cancel of the manufacturing licences to the economic agents, which carry out activities in the field of food products manufacturing,.

• European Agreement marketing on association between Romania on one hand, European Committees and the Member States on the other hand.

• Order of the Minister of Health no 975/1998 for the approval of the norms of hygiene regarding the foodstuffs, and the sanitary protection for these.

• Order of the Minister of Health no 976/1998 for the approval of the norms of hygiene regarding the production, processing, storing, preserving, transport and marketing of foods.

• Ordinance of Government no 21/1992 regarding the protection of the consumers, approved through Law 11/1994,

• Ordinance of Government no. 58/2000 amending Ordinance of Government no. 21/1992

regarding the consumers’ protection, approved by the Law no. 37/2002.

• Ordinance of Government no. 39/1998 regarding the activity of national standardisation in Romania – approved by the Law no. 355/2002.

• Ordinance of Government no. 38/1998, regarding the accreditation and the infrastructure for conformity evaluation approved by the Law no. 245/2002.

• Order of the Minister of Public Finance and of the Minister of Public Works, Transports and Housing no. 1013/873/2001 approving the structure, content and mode of utilization of the Standard Documentation for elaboration and presentation of the offer for the public procurement of services, including estimate drawn up according to Government Decision no.1179/2002.

• Order of the Minister of Agriculture, Food and Forestry, Minister of Health and

Family and of the President of National Authority for the Consumers Protection no. 206/447/85/2002 approving the norms regarding to the poultry meat marketing.


Family and of the President of National Authority for the Consumers Protection no. 494/859/138/2002 approving the norms regarding to the pork meat marketing.


Family and of the President of National Authority for the Consumers Protection no. 495/997/202/2003 approving the norms regarding to the nature, content, origin, manufacturing, packing, labelling, marking, keeping and the oils quality of the vegetable fats, intended to the marketing for the human consumption .

• Order of the Minister of Resources and industries no. 354/2003 regarding the recognition of the Association of accreditation from Romania – RENAR as the national organism for accreditation.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 126/203/2001 approving the norms regarding to the manufacture, content, packing, labelling, and wheat flour quality, intended to the marketing for the human consumption.


Family and of the President of National Authority for the Consumers Protection no.



359/671/137/2002 approving the norms regarding to the nature, content, manufacturing, quality, packing, labelling, marking and keeping of the vegetable juices.


Family and of the President of National Authority for the Consumers Protection no. 232/313/130/2003 approving the norms regarding to the defining, description and presenting of the vinegar and of the acetic acid of alimentary quality.


Family and of the President of National Authority for the Consumers Protection no. 363/670/107/2002 approving the norms regarding to the content, manufacturing, quality, packing, labelling, marking and keeping of the tomato sauce and tomato paste.

• Decision of Government no. 106/2002 regarding foodstuff labelling, amended by the Decision of Government no. 511/2004.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 438/295/2002 approving the norms regarding the alimentary additives intended to be used in the food products for the human consumption, with subsequent amendments.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 83/90/2002 approving the norms regarding the aromas used in foodstuff and material sources for their production.

• Decision of Government no. 1197/2002 approving the norms regarding the materials and objects in contact with the foodstuff, with subsequent amendments.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 387/251/2002 approving the norms regarding the foodstuff with special nutritional destination.

• Order of the Minister of Health and Family no. 282/2001 approving the norms regarding the nutritive supplements.

• Order of the Minister of Agriculture, Food and Forestry, of the Minister of Health and

Family and of the President of National Authority for the Consumers Protection no.179/154/9/2003 regarding the marketing regime of the products presented as miraculous and of certain food products, with the aim of the life, healthy, safety and economic interests protection of the consumers.

• Decision of Government no. 1196/2002 approving the general norms regarding the official control of the foodstuff.

• Decision of Government no. 1198/2002 approving the hygiene norms of the foods products.

• Order of the Minister of Health and Family and of the Minister of Agriculture, Food and Forestry no. 84/91/2002 approving the norms regarding the certain contaminants in foodstuff, with subsequent amendments.

• Order of the Minister of Health and Family, Minister of Agriculture, Food and

Forestry and of the President of National Commission for the Nuclear Activities Control no. 855/98/90/2002 approving the norms regarding the foodstuff and food ingredients treated with ionizing radiations.

• Order of the Minister of Health and Family, Minister of Agriculture, Food and

Forestry and of the President of National Commission for the Nuclear Activities Control no. 856/112/91/2002 approving the norms regarding the foodstuff and the



combined fodders radioactive contaminated after an nuclear accident or other situation of radiological emergency.

• Order of the Minister of Health and Family and of the Minister of Agriculture, Food and Forestry no. 185/153/2002 approving the norms regarding the extractive solvents used in the foodstuff and food ingredients production.

• Order of the Minister of Health and Family and of the Minister of Agriculture, Food and Forestry no. 932/649/2002 approving the norms regarding the manufacturing, transport, keeping, marketing and control of the foods rapid frozen temperature destined for the human consumption.

• Law no. 458/2002 on quality of drinking water.

• Decision of Government no. 760/2001 approving the technical norms of exploitation and marketing of the natural mineral waters.

• Order of the Minister of Health no. 373/2004 approving the Hygiene norms regarding potable bottled waters, other than the natural mineral waters.

• Order of the Minister of Agriculture, Food and Forestry and the Minister of Health and Family no. 127/301/2001, approving the norms regarding the nature, content and labelling of lacto proteins – caseins and caseinates – intended for human consumption.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 388/252/2002 regarding the maximum level of the erucic acid in fats and oils destined the human consumption, as well as, and in food products with the fats and oils addition.

• Law 244/2002 regarding wines and vineyards in the common organized system for the wine and vineyard market.

• Decision of Government no. 1134/2002 approving the methodological norms for application of the Law 244/2002 regarding wines and vineyards in the common organized system for the wine and vineyard market.

• Law no. 312/2003 on producing and using of the field vegetables.

• Law no. 348/2003 – Fruit Growing Law.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 515/945/2002 approving norms regarding to the designating, defining, presenting and protection of the certain vineyard products.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no. 541/1025/2003 regarding the analyses methods applicable in wine sector.


Family and of the President of National Authority for the Consumers Protection no. 268/441/117/2003 approving the norms regarding to the defining, description and presenting of the alcoholic drinks.


Family and of the President of National Authority for the Consumers Protection no. 145/270/59/2002 approving the norms regarding to the nature, content, origin, manufacturing, packing and labelling, marking and the aromatized wine quality on the wine base and of the aromatized cocktails of vineyard products, intended to the marketing for the human consumption;


Family and of the President of National Authority for the Consumers Protection no.



498/731/289/2003 approving the norms regarding the communitarian methods of the neutral alcohol analyses used in the wine sector and in the spirits drinks, of the aromatized wines and of the drinks based on wine and of the aromatized cocktails obtained of the vineyard products.


Family and of the President of National Authority for the Consumers Protection no. 230/457/76/2002 approving the norms regarding to the denomination under which is marketed and the quality conditions of the consumption milk.


Family and of the President of National Authority for the Consumers Protection no. 524/958/2002 and 8/2003 approving the norms regarding to the denomination under which is marketed and quality conditions of the spreadable fats intended to marketing.


Family and of the President of National Authority for the Consumers Protection no. 555/1020/2002 and 1/2003 approving the analyses method of reference for the cow milk and the caseinates of the cow milk detecting in the sheep milk cheese, goat milk, buffalo milk or of the their mixture.

• Order of the Minister of Agriculture, Forestry, Water and Environment, of the

Minister of Health and of the President of National Authority for the Consumer Protection no. 522/798/317/2003 approving the norms regarding to the nature, content, origin, presenting, composition, quality and labelling of the honey.


Minister of Health and of the President of National Authority for the Consumer Protection no. 269/453/81/2003 approving the norms regarding to the nature, content, origin, labelling and marking of the sugars destined the human consumption.


Minister of Health and of the President of National Authority for the Consumer Protection no. 500/768/319/2003 approving the norms regarding to the nature, composition, manufacturing and labelling of the fruit juices and of the other similar products intended to the human consumption.


Minister of Health and of the President of National Authority for the Consumer Protection no. 523/808/351/2003 approving the norms regarding the nature, content, manufacturing and labelling of fruit jams, jelly, marmalade and sweetened chestnut purée.


Minister of Health and of the President of National Authority for the Consumer Protection no. 335/714/318/2003 approving the norms regarding the products of cocoa and chocolate intended to human consumption.

• Order of the Minister of Agriculture, Forestry, Water and Environment and of the Minister of Health no. 544/21/2003 approving the norms regarding the drawing methods of the samples and of analyses for the certain caseins and caseinates intended to human consumption.


Minister of Health and of the President of National Authority for the Consumer Protection no. 521/832/321/2003 approving the norms regarding the denominations under



which are selling and the quality conditions of certain partial or wholly dehydrated preserved milk intended to human consumption.


Minister of Health and of the President of National Authority for the Consumer Protection no. 515/824/320/2003 approving the methods of taking samples for chemical analysis performing for the preserved milk, partial or total dehydrated, destined to the human consumption.


Minister of Health and of the President of National Authority for the Consumer Protection no. 76/113/64/2004 for the approval of the Norms for implementing the chemical, physical, microbiological and sensory evaluation methods of analyses for milk and milk products and the description of some methods.

• Order of the Minister of Agriculture, Food and Forestry and of the Minister of Health and Family no.174/207/2003 for the approval of the Norm regarding quality requirements of the barley used for beer manufacturing.

NOTE: The amendments regarding national legislation have to be taken into account.



MEASURE 2.1

DEVELOPMENT AND IMPROVEMENT OF RURAL INFRASTRUCTURE

FIRST SECTION


• Law 50/1991 altered and in addition with Law 453/2001 regarding the authorising of performing building activities and several measures for building living houses (according to the provisions of this law, there were approved the Plan for the Arrangement of the Territory at the National level (PATN), the Plan of the Arrangement of the Territory at the Country level (PATC) and the Plan of General Urbanism (PGU)).

• Decision of Government no. 577/1997 for the approval of the program regarding the gravel paving of village roads, water supply of villages, connecting through of the villages to the electric and telephonic networks.

• Law 137/1995 – for environmental protection modified and completed with GEO 91/2002.

• Law no. 2/1968 referring to the territorial administration of Romania;

• Law no. 107/1996 – Law of the Waters;

• Law no. 171/1997 – Law regarding the approval of the National Plan for Territorial Arrangement – Section II Water;

• Law no. 14/1995 – regarding the ratification of the Danube Convention on co-operation in the field of protection and sustainable use of Danube’s waters concluded on Sofia at June 29, 1994;

• Government Ordinance no. 188/2002 for approval of norms regarding the conditions for discharging of waste waters in water environment;

• Government Ordinance no. 43/1997 approved through the Law no. 82/1998, republished, regarding the legal regime of roads;

• Order of the Minister of Transports no. 44/1998 for approval the Norms regarding the Environment Protection as a follow up of the impact road-environment;

• Order of the Minister of Transports no. 45/1998 for approval the technical Norms, regarding the drawing up, construction and modernisation of roads;

• Order of the Minister of Transports no. 46/1998 for approval the technical Norms regarding the establishing of the technical class of public roads;

• Order of the Minister of Transports no. 50/1998 for approval the technical Norms regarding the drawing up and construction of streets in rural localities;

• Order of the Minister of Public Finance and of the Ministry of Public Works, Transport and Housing No. 1013/873/2001 regarding the approval of the structure, content and modality of using the standard documentation for the elaboration and submission of the offers for the public procurement of services;

• Law 71/1996 regarding the approval of the National Territorial Planning - Section I –Communications;



• OG 19/1997 regarding Transportation;

• Law 10/1995 regarding the quality standards in constructions;

• HG 273/1994 regarding the approval of the Regulations for reception of the construction works and the afferent installations;

• Government Ordinance no. 1179/2002 regarding the approval of Estimated Costs structure and methodology for elaboration of Estimated Costs for investments objectives and interventions works;

• Law 5/2000 regarding the approval of the National Territorial Planning - Section III – protected areas located along the route;

• Law 351/2001 regarding the approval of the National Territorial Planning - Section IV – network of the localities.

• Government Decision 918/2002 on the stage of Framework Procedure for EIA for some public and private projects and the list of public and private projects which may be the subject of EIA;

• Minister Order no. .860/2002 for approval of the evaluation procedure of impact over environment and for issuing the environmental endorsement.

• Minister Order no. 863/2002 for approval of the methodological guides regarding the stage of project framing in the evaluation procedure of impact on the environment, stage of defining the evaluation domain and of accomplishing the report on the study of evaluation and the stage of analysis of reports quality as regards the evaluation study of the impact on the environment.

• Government Decision no.1512/2005 to declare as calamitous zones the localities affected by the floods in the period April – September 2005

Public purchases within the SAPARD Programme are stipulated in the Multiannual Financing Agreement ratified with the Law 316/2001. LEGISLATION TO BE RESPECTED IN THE FIELD OF ENVIRONMENT In all infrastructure projects under Sapard, EU legislation concerning the Environmental Impact Assessment must be respected through use of similar standards and procedures consistent with those stipulated in Directive 85/337/CE, as amended by Directive 97/11/EC.



SECOND SECTION

LIST OF THE NORMATIVE DOCUMENTS REGARDING WATER TO BE

HARMONISED AND IMPLEMENTED IN ROMANIA

No. Directive Harmonisation Implementation

1. Drinkable water 98/83/EEC* 2000 2015

2. Urban waste water 91/271/EEC* 2000 2030

3. Surface water for drinkable water 75 / 440/EEC*

2000 2015

4. Dangerous effluents in underground water 80/68/EEC*

2001 2015

5. Dangerous effluents in surface water 76/464/EEC*

2000 2030

6. Access of the public to environmental information 90/313/EEC

2000 2002

7. Directive regarding the impact on the environment with subsequent modification 85/337/EEC

2000 2002

* To these Directives are added the Directives regarding the assessment of the impact on the environment (Romanian legislation stipulates the obligation of consulting the public, but less restrictively).



MEASURE 3.1

INVESTMENTS IN AGRICULTURAL HOLDINGS

FIRST SECTION


• Law no. 5/1982 regarding plant protection and forest protection and the conditions of operating with the pesticides with further modifications.

• Law no. 137/ 1995– Law of environmental protection, , with further modifications and completions

• Decision of Government no. 964/1998 regarding the approval of the classification and of the normal length of life of the fixed assets.

• Decision of Government no. 1308/1996 regarding the setting up of the National Institute for Research- Development for Machines and Installations Destined to Agriculture and Food Industry – INMA with further completions.

• Law no. 18/ 1991 – Law of land, with further modifications and completions;

• Law no. 1/2000 regarding the establishment of the ownership right over the agricultural and forestry lands requested according to the provisions of land Law no. 18/1991 and of the Law no. 169/1997 with further modifications and completions.

• Law no. 54/1998 regarding legal circulation of lands.

• Emergency Ordinance of Government no. 24/1998 regarding the less-favoured areas, with further modifications.

• Decision of Government no. 728/2001 regarding the approval of Methodological Norms for the appliance of Emergency Ordinance of Government no. 24/1998 regarding the less-favoured areas with further modifications

• Law no.72/2002 – Law of livestock with further modification.

• Government Ordinance no. 42/2004 regarding organising of sanitary veterinary activities

• Law no.14/1995 for the ratification of Agreement regarding cooperation for protection and durable use of the Danube River (Agreement for the Danube River protection) signed in Sofia on 29 of June 1994

• Decision of Government no. 1223/ 1996 regarding the re-organisation of the activity of co-ordination and development of the national genetic resources from animal breeding;

• Government Ordinance no. 21/1992 regarding consumers protection, with further modifications and completions.

• Government Ordinance no. 4/1995 regarding the producing, trading and using of phyto-sanitary products for controlling the diseases, the pests and the weeds in agriculture and forestry, with further modifications and completions;

• Order of the Minister of Health no. 536/1997 regarding the approval of norms of hygiene and of the recommendations regarding the life environment of the population, with further completions.

• Law no. 50/ 1991 regarding the authorising for the execution of buildings and several measures for house building with further modifications and completions.



• Law no. 266/2002 regarding the producing, processing, control and quality certification, trading of seeds and planting material as well as recording of plant varieties.

• Law no. 16/1994, - Law of leasing regarding the conditions of contracting of the lease with further modifications and completions;

• Law nr. 778/ 2001 regarding the inter-professional organisations by agro-food

products.

• Government Ordinance no. 13/2001 on the establishing, organising and performance of the common services for land register and agriculture with further modifications

• Law no. 73/2002 on organising and functioning of the markets for agricultural and agri-food products in Romania, with further modifications.

• Law no. 7/1996 - Law for land register and publicity for real estates with further modifications and completions

• Law no. 381/2002 on according indemnities in case of natural calamities in agriculture with further modifications.

• Law no. 646/2002 regarding the support granted by the state to youths from rural area

• Emergency Government Ordinance no. 168/2001 on the recondition of the animal stables, for growing, fattening and use of animals, and also the factory plants compound feed which were shut down , with further modifications.

• Order of the Minister of Agriculture, Food and Forests no. 219/23.05.2002 regarding the “Official Catalogue of varieties (Hybrids) of culture plants of Romania in 2002”

• Government Decision 918/2002 regarding the establishment of the EIA Framework Procedure for the approval of public and private projects list which may be the subject of EIA

• Order of Minister of Waters and Environmental Protection no. 860/2002 for approval the evaluation procedure of impact over environment and for issuing the environmental endorsement with further modifications and completions.

• Order of the Minister of Waters and Environmental Protection no. 863/2002 for approval of the applicable methodological guides regarding the stages of the evaluation framework procedure of impact on the environment.

• Order no. 173/160/93/2004 of the Minister of Agriculture, Forestry and Rural

Development , the Minister of Administration and Internal Affairs, and the Minister of European Integration , regarding the defining and characterization of the term “ rural area”.

• Government Decision no.1512/2005 to declare as calamitous zones the localities

affected by the floods in the period April – September 2005



MEASURE 3.2

SETTING UP PRODUCERS GROUPS


• Law no. 31/1990 regarding the commercial companies with the subsequent modifications and completions.

• Law no. 36/1991 regarding the agricultural companies and other forms of association in agriculture.

• Law no. 84/1998 regarding the trademarks and the geographical indications.

• Law no. 18/1991 Law of the land background, with the subsequent modifications and completions

• Law no.778/2001 regarding associations and foundations.

• Governmental Ordinance no. 409/2004 on the organization and the functioning of the Minister of Agriculture, Forestry and Rural Development, with the subsequent modifications and completions.

• Law no. 266/2002, regarding the production, the processing, control and the quality certifying, seed and plating supplies trading and plant sorts registration

• Law 192/20014, republished, concerning the fisheries resources and aquaculture resources, with the subsequent modifications and completions.

• Law no. 26/1996- Law regarding the Forestry Code

• Law no. 103/1996 of the hunting fund and products and products and of the hunting protection, with the subsequent modifications and completions.

• Order of the Minister of Agriculture, Food and Forestry no. 116/2002 on the approval of the instructions concerning the forestry personnel authorization, the notification of the setting up and the authorization of the functioning of forestry structures for administration of the forests as private and public properties belonging to the towns, cities and communes, with the subsequent modifications and completions.

• Law no. 244/2002 regarding wines and vineyard in the common organized system for the wine and vineyard market.

• Order of the Minister of Agriculture, Forestry, Waters and Environment,

Minister of Health and Family, National Association for Consumers Protection no. 510/944/174/2002 for the approval the trading Norms for fish and other aquatic animals.

• Government Emergency Ordinance no. 108/2001 regarding agricultural holdings, with the subsequent modifications and completions.

• Law no. 73/2002 on the organization and functioning of markets in agricultural and food products in Romania, with the subsequent modifications and completions.

• Government Emergency Ordinance no. 97/2001 on settling production, movement and trade in food products, with the subsequent modifications and completions;

• Law no. 312/2003 on producing and using field vegetables;

• Law no. 348/2003 – Fruit Growing Law;

• Order of the Minister of Agriculture, Food and Forestry no. 505/2001 regarding the registration procedure for producers, collective deposits, expedition centers, plant importers, vegetal products or regulated articles;

• Law no. 778/2001 on inter-branch organization for agri-food products;



• Law no. 150/2003 – Law of the agricultural loan for production, with the subsequent modifications;

• Order of the Minister of Agriculture, Food and Forestry, Minister of Health

and Family, National Association for Consumers Protection no. 206/447/85/2002 on approval of norms regarding the trade in poultry;


and Family, National Association for Consumers Protection no. 494/859/238/2002 on the approval of norms regarding the trade in pig meat;


and Family, National Association for Consumers Protection no. 230/457/76/2002 on approval of the Norm concerning the selling denominations and quality conditions for milk for human consumption;

• Order of the Minister of Agriculture, Food and Forestry no. 389/2002 on the approval of the Sanitary-Veterinary Norm concerning the health conditions for the production and the marketing of the cruel milk, thermically processed milk and milk products;

• Governmental Ordinance no. 90/2003 on the setting-up of the Romanian Agency for Food Safety, with the subsequent modifications and completions.

• Order of the Minister of Agriculture, Forests, Water and Environment no. 174/ 3 March 2004 for setting up the producers groups for the capitalization of the horticultural products

• Order of the Minister of Agriculture, food and Forests no. 418/ 24 June 2003 regarding the criterion for the recognition of the producers organisations from the fishery and aquaculture fields

• Order of the Minister of Agriculture, Forests, Water and Environment no. 143/2004 regarding the organisation of the state inspection for the technical control related to the production and capitalization of vegetables and fruits

• Government Ordinance no. 37/2005 regarding the recognition and operation of the producers groups and organisations to commercialize the agricultural and forestry products, approved with modifications and completions through Law no. 338/2005

• Order of the Minister of Agriculture, Forests and Rural Development no.171/ 13 march 2006 regarding the approval of the Norms of application of the Government Ordinance no. 37/2005 regarding the recognition and operation of the producers groups and organisations to commercialize the agricultural and forestry products, approved with modifications and completions through Law no. 338/2005



MEASURE 3.3

AGRICULTURAL PRODUCTION METHODS DESIGNED TO PROTECT THE

ENVIRONMENT AND MAINTAIN THE COUNTRYSIDE


• Law no. 18/1991 the Land Law, republished

• Law no. 137/1995 for the environmental protection

• Law no. 138/2004 for land reclamation

• Ordinance of the Government no. 81/1998 regarding afforestation of the degraded lands

• Law no. 24/1994 for ratification of the Framework Convention of the United Nations regarding climate changes for stabilising atmosphere gases having greenhouse effect at levels which do not dangerously damage the global climatic system

• Law no. 58/1994 regarding the ratification of the Convention on biological diversity

• Law no. 5/1991 regarding the Convention on humid areas of international importance, especially as habitat for aquatic birds

• Law no. 107/1996 regarding waters

• Law no.13/1993 regarding the ratification of Romania accession to the Conference for wildlife and semi-natural habitats maintenance from Europe, endorsement at Berne on September 19th 1979

• Law no. 5/1982 regarding the protection of plants and forests and the regime of pesticides

• Order of the Minister of Agriculture and Food, no. 27/1995 regarding the financing modality for the actions of protection and phyto-sanitary quarantine

• Order of the Minister of Agriculture and Food, no. 20/1985 regarding the ban on the use of organic-chlorinate insecticides based on DDT and technique HCH

• Ordinance of the Government No. 34/2000 regarding the ecological agro-food products, approved by Law no.38/2001 (OJ no.172/21.IV.2000)

• Law no.26/1996 of forest code

• Law no.5/2000 regarding the national territory fitting out – section III, protected areas

• Decision of Government no.230/2003 regarding the delimitation of biosphere reservations, national parks and their administrations establishment

• Order of Minister of Agriculture, Forest and Rural Development no.552/2003 regarding the internal delimitation approval for national and natural parks

• Ordinance of Emergency of the Government no. 236/2000 regarding the protected natural areas regime, natural habitats, wild fauna and flora preservation, approved by Law no.426/2001

• Decision of the Government no.917/2001 regarding the approval of methodological norms for Ordinance no. 34/2000 application

• Common Order no. 417/2002 and 110/2002 of the Minister of Agriculture, Forestry, Waters and Environment and President of National Authority for



Customers Protection, regarding the approval of specific rules for organic food products

• Order of the Minister of Agriculture, Forest, Waters and Environment no.527/2003 regarding the approval of rules for inspection and certification system and accreditation conditions of inspection and certification bodies for organic farming

• Order of the Minister of Agriculture, Forest, Waters and Environment no.721/2003 regarding the approval of rules for organic food products import and export

• Ordinance of the Government no. 129/2000 regarding the vocational training of adults

• Low no. 375/2002 regarding the approval of Ordinance of the Government no. 129/2000 regarding the vocational training of adults

• Decision of Government no. 661/2001 regarding the procedure of producer certificate release

• Low no. 36/1991 regarding the agricultural holdings and other association forms in agriculture

• Low no. 31/1990 regarding private companies

• Low no. 300/2004 regarding authorisation of physical persons and family associations to develop economical activities independently

• Low no. 347/2004 of mountain * The minimal list containing legislative packet necessary for the SAPARD Program (basic legislation in practice, existing draft laws and regulations which will be elaborated), is shown in Annex 71. The process of harmonization is in course and comprises all legal aspects for implementation.



MEASURE 3.4.

DEVELOPMENT AND DIVERSIFICATION OF ECONOMIC ACTIVITIES,

PROVIDING FOR MULTIPLE ACTIVITIES AND ALTERNATIVE

INCOMES

FIRST SECTION


• Law no.36/1991 agricultural companies and other forms of association in agriculture.

• Law no. 18/1991 – the Law of land with further completions and modifications.

• Law no. 31/1990 regarding the trade companies with further modifications and completions.

• Law no.109/1996 regarding the organisation and functioning of the consumer’s co-operatives and of the crediting co-operatives with subsequent modifications.

• Order of President of National Authority of Tourism no. 61/1999 regarding the approval of “Methodological norms and criteria on classifying of tourism structures” with further completions.

• Order no.170/2001 of Minister of Tourism for the approval of “Methodological norms regarding the criteria and methodology for issuing of licences and patents of tourism”, with further modifications.

• Government Ordinance no. 63/1997 regarding the establishment of some facilities to development the rural tourism, with further completions and modifications.

• Decision of Government no. 77/2003 regarding the institution of some measures to prevent mountains accidents and organisation of the rescue activities in the mountains.

• Order of Minister of Health no. 536/1997 for the approval of “Norms of hygiene and the recommendations regarding the living environment of the population”, with further completion.

• Law no.50/1991 regarding the authorising of performing buildings and several measures for building of dwelling houses with further completions and modifications.

• Law no.10/1995 regarding the quality in construction works with further modifications.

• Decree-Law no. 66/1990 regarding the organisation and functioning of the Handicraft Co-operation, with further modifications.

• Law no.507/2002 regarding the organisation and functioning of several economical activities by physical persons with further modifications.

• Law no. 137/1995 regarding the protection of the environment, with further completions and modifications.

• Government Decision no.409/2004, regarding the organizing and functioning of the Ministry of Agriculture, Forestry and Rural Development.



• Order of the Minister of Waters, Forestry and Protection of the Environment no. 125/1996 regarding the approval of Procedure of settlement of economical and social activities which have impact on environment , with further modifications.

• Law no. 5/1991regarding the adhesion of Romania to the Convention on the zones with humidity, of international importance, especially as habitat of aquatic birds.

• Law no. 13/1993 for the adhesion of Romania to the Convention with regard to the conservation of wide life and of natural habitats of Europe, adopted in Bern, on 19th September 1979

• Law no. 82/1993 with regard to the establishment of the reservation – the biosphere “Danube Delta”, with further completions and modifications.

• Decree no. 237/1950 for the protection of the natural monuments.

• Government Decision no. 230/2003 regarding the delimitation of biosphere reservations, the national parks and the natural parks and setting up of their administrations.

• Law no.89/1998 – law of bee-keeping with further modifications.

• Government Decision no. 1105/2003 regarding the reorganization of National “Regie” of Forests – ROMSILVA.

• Law no.215/2001 regarding the Local Public Administration, with further completions and modifications.

• Government Ordinance no.42/1995 regarding the production of foodstuffs destined to trade, with further completions and modifications.

• Order of the Minister of Agriculture, Food and Forests no.357/2003 for the approval of the Regulation regarding the granting, suspending or withdrawal (banning) of production licences to the economic agents which carry out activities in the field of foodstuffs production.

• Government Decision no. 106/2002 regarding the labelling of foodstuffs with further modifications.

• Government Decision no. 1022/2002 regarding the regime of products and of services that could endanger the life, health, labour security and the environment protection.

• Order of the Minister of Health no.975/1998 for the approval of hygiene and sanitary norms regarding the foodstuffs with further modifications.

• Order of the Minister of Health no.976/1998 for the approval of hygiene norms regarding the production, processing, storage, preservation, transportation and trading of foodstuffs with further modifications.

• Law no.98/1994 regarding determining and sanctioning of infringements to the norms of hygiene and public health, with further completions and modifications.

• Government Ordinance no.39/1998 regarding the activity of the national standardisation in Romania with further completions and modifications.

• Government Ordinance no. 21/1992 regarding the consumers protection, with further completions and modifications.

• Government Ordinance no. 42/2004 regarding the organizing of veterinary activity.

• Government Decision no. 1247/2002 regarding the determining and sanctioning of infringements to the sanitary-veterinary norms.

• Order of the Minister of the agriculture, food and forestry no. 261/2003 for approval of the sanitary-veterinary norm regarding the sanitary-veterinary



certification procedure of the units, and for the approval of export activity, as well as the defining of the units subject to the sanitary-veterinary control;

• Order of the Minister of Agriculture and Food No. 68/1997 for the approval of sanitary-veterinary norms regarding the sanitary-veterinary conditions for the admittance to import of the products of animal origin and of the feedstuffs.

• Order of the Minister of Agriculture and Food No.70/ 1998 for the approval of sanitary-veterinary norms regarding the conditions and the procedure of sanitary-veterinary authorisation of imports, exports, transit with animals, products and by-products of animal origin feedstuffs and other products and materials that could harm the human and animal health, with further completions and modifications.

• Order of the Minister of Agriculture and Food No.45/1995 for the approval of sanitary-veterinary norms regarding the detecting of the thread worm in fresh pork, venison ( wild boar ) and horses, and for the approval of the sanitary –veterinary norm comprising the measures of supervising and control of some substances and their residues in live animals and their products, with further completionsOrder of

the Minister of Health No.1956/ 1995 regarding the introduction and appliance of HACCP (Hazard Analysis Critical Control Point) in the activity of supervising the hygiene conditions in the food sector.

• Law no.192/2001 regarding the fishery fund, fishing and aquaculture, with further completions.

• Government Decision no.918/2002 regarding the establishment of frame procedure for evaluation of the impact over environment and for the approval of the list of public or private projects which are subject to this procedure.

• Order of the Minister of Waters and Protection of the Environment Protection no.860/2002 for approval of the evaluation procedure of impact over environment and for issuing the environmental endorsement with further completions and modifications.

• Order of the Minister of Waters and Protection of the Environmen no. 863/2002 for approval of the methodological guides applicable to the stages of project framing of the evaluation frame of impact on the environmentOrder of Minister of

Agriculture, Food and Forests no. 422/2001 for approval of the regulation regarding the conditions for carrying out of the activities of commercial fishing, in the Black Sea waters.

• Government Ordinance no. 26/2000, on the associations and foundations with further completions and modifications.

• Law no.1/2000 for restitution of property rights over the agricultural and forestry land requested according to the provisions of the Law no. 18/1991,the Land Law, and of the Law no. 169/1997, with further modifications and completions.

• Government Ordinance no. 2/2001, regarding the legal regime of infringements, with further completions and modifications.

• Government Decision no. 143/1999 on setting up of National Company PLAFAR SA.

• STAS Provisions 1631-79 and 1632-79 regarding rules and methods for quality control as well as of packing, marking, storing, transport, and the documents with reference to medicinal and flavour plants.

• Order of the Minister of Public Finance and the Minister of Public Works, Transports and Housing no. 1013/873/2001for approval of the structure, content



and mode of use of Standard Documentation for elaboration and presentation of offer for public procurement of service;

• Order of Minister of Public Finance and Minister of Public Works, Transports and Housing no. 1014/874/2001for approval of the structure, content and mode of use of Standard Documentation for elaboration and presentation of offer for public procurement of works .

• Order no. 173/160/93/2004 of the Minister of Agriculture, Forestry and Rural

Development, the Minister of Administration and Internal Affairs, and the Minister of European Integration, regarding the defining and characterization of the term “rural area”.





MEASURE 3.5

FORESTRY


• Law no.5/1991 - for Romania’s joining to the Convention on wetlands of international relevance, especially as water bird habitat

• Law no. 18/1991 - Land law, with subsequent amendments

• Law no.13/1993 - for joining of Romania to the Convention concerning the preservation of wildlife and natural habitats of Europe signed on September 19, 1979 in Berne

• Law no.82/1993 – concerning the establishment of “Danube Delta” Biosphere Reserve with subsequent amendments

• Law no.24/1994 – For Romania’s joining to the United Nations Convention on Climate Change signed on June 2, 1992 in Rio de Janeiro

• Law no. 58/1994 – For Romania’s joining to the Convention on biological diversity, signed in Rio de Janeiro, 5 June 1992

• Law no. 69/1994 - For Romania’s joining to the Convention on international trade with endangered flora and fauna species, signed on March 3, 1973 in Washington

• Law no. 10/1995 – Regarding the quality in constructions

• Law no. 137/1995 – Law of Environment Protection, republished, with subsequent amendments

• Law no.26/1996 – Law regarding the Forest Code with subsequent amendments;

• Law no. 103/1996- Law of Hunting Fund and Hunting Protection, republished, with subsequent amendments

• Law no. 107/1996– Law of Waters, with subsequent amendments

• Law no. 169/1997- regarding the amendments of the Law no. 18/1991

• Law no. 54/ 1998 – regarding the legal transmission of lands

• Law no. 13/ 1998 – For Romania’s joining to the Convention concerning the preserving of migratory wild species, approved in Bonn on 23 June 1979

• Law no. 107/1999 –approving the Government Ordinance no. 81/1998 regarding certain measures for improvement, trough afforestation of the degraded lands

• Law no. 141/ 1999 –approving the Government Ordinance 96/1998 on the regulation of the forestry system and the management of the national forest territory, with subsequent amendments

• Law no. 1/2000 – regarding the reconstitution of the ownership right over agricultural and forest lands, requested according to the Land Law 18/1991 and Law 169/1997, with subsequent amendments

• Law no. 31/2000 - concerning the establishing and applying of forestry contraventions and penalties

• Government Decision no. 248/1994 –adopting the measures necessary in the implementation of Law 82/1993 on the establishment of Danube Delta Reserve



• Government Decision no. 92/2000 - updating the compensation forms for damages on the hunting stock caused by illegal actions and penalties amount, stipulated by the Law of Hunting Fund and hunting protection no. 103/1996

• Government Decision no. 409/2004 – regarding the organisation and functioning of the Ministry of Agriculture, Forests and Rural Development

• Government Decision no. 997/1999 –Regarding the setting up, organization and running of the own forest structures necessary to administrate public property forests owned by administrative-territorial units and private property forests

• Government Ordinance no. 47/1994 – on the protection against disasters.

• Government Ordinance no. 81/1998 – concerning some measures for degraded land improvement by afforestation, approved by Law 107/1999

• Government Emergency Ordinance no. 71/1999 – regarding the re-organisation of plant protection and phyto-sanitary quarantine activity, with subsequent amendments

• Government Ordinance no. 70/ 1999 – on measures necessary for making the forest territory accessible through road construction in 2000-2010, with subsequent amendments

• Government Ordinance no. 96/1998 regarding the regulation of the forestry system and management of the national forestry territory, with subsequent amendments

• Government Emergency Ordinance no.26/2000 – Regarding the associations and foundations, with subsequent amendments

• Order of the Minister of Agriculture, Food and Forests no. 64/2001 - approving the Methodology for authorizing the specialized units in drawing up the forestry arrangements and studies for afforested pastures transformations.

• Order of the Minister of Waters, Forests, and Environment Protection no. 71/1999 approving the Rules on the manufacture and use of wood marking devices for the wood harvested and transported from the forest by certified commercial agents and units of the forestry administration for public forests owned by communes, towns or cities or private forests

• Order of the Minister of Waters, Forests and Environment Protection no. 109/1999 – regarding the privatisation of production capacities related to secondary activities of National Forest Administration

• Order of the Minister of Waters, Forests and Environment Protection no. 264/1999 – approving the Forestry Technical Norms concerning the management of forest vegetation outside the national forest territory

• Order of the Minister of Waters, Forests and Environment Protection no. 125/1996 – regarding the approval of regulation on the procedure for the economic and social activities with an impact upon the environment

• Law no. 31/1990 -Regarding the commercial companies, with subsequent amendments

• Government Emergency Ordinance no. 32/1997 - amending the Law no. 31/1990 regarding the commercial companies, approved by the Law no.195/1997.

• Government Decision no.786/1993 – approving the Regulations for establishment of the land cathegories included by the improvement areas and the constitution, functioning and functions of specialists committees, setting up for delimitation of improvement areas;

• Government Decision no.85/2004 approving the Regulation for wood selling by the holders of the public property forestry fund to the economic agents



• Government Decision no.427/2004 approving the Norms for wood products moving and their control and the control of the logs processing equipments

• Government Ordinance no. 11/2004 regarding production, trade and using of the forestry reproductive materials, approved with amendments by the Law no.161/2004;

• Government Ordinance no. 41/2004 regarding the establishment of the Territorial Directorates of Forestry and Hunting Regime, approved by the Law no.117/2004;

• Law no.5/1982 regarding plants and forests protection and pesticides regime, with subsequent amendments;

• Common Order of the Minister of Agriculture, Food and Forestry, Minister of

Health and Family and Minister of Waters and Environment Protection no. 52676/591/462/1998 modifying the Regulation regarding the organization and functioning of the Inter-ministerial Commission of certifying the phyto-sanitary products and the procedures of their certification in view of their manufacturing, trading and use in agriculture and forestry;

• Government Emergency Ordinance no. 102/2001 amending the Law no.1/2000– regarding the reconstitution of the ownership right over agricultural and forest lands, requested according to the Land Law 18/1991 and Law 169/1997 and the amendments of the republished Law no.18/1991, approved by the Law no.400/2002;

• Order of the Minister of Waters and Environment Protection no.860/2002 regarding the approval of the Procedure for the evaluation of the impact upon the environment and for issuing of the environment agreement;

• Order of the Minister of Waters and Environment Protection no.863/2002 approving the methodological guides applicable to the frame- procedure for the evaluation of the impact upon the environment;

• Order of the Minister of Agriculture, Forests, Waters and Environment Protection no.978/2003 – concerning the attestation Rules for natural and legal persons, which elaborate the evaluation studies of the impact upon the environment and the environment balance sheet.

• Order of the Minister of Waters and Environment Protection no.647/2001 approving the Procedure authorising the collection, capturing and purchasing of plant and animals from the wild flora and fauna

• Order of the Minister of Agriculture, Food and Forests no. 58/2003 approving the Methodology of calculation for taxes, guaranties, land price, land rental price, growth loss counter value, as well as of other financial obligations for the permanent or temporary removal of forest lands from the national forest fund and the Methodology of financing and execution of the works for the recovery of the forest plants and maintenance thereof until the phase of forest mass has been reached;

• Order of the Minister of Agriculture, Forests and Rural Development no.257/2004 regarding the members of the Commission for the certification of the economic agents involved in the forest harvesting denomination, and approving the Regulation regarding the organization and functioning of the Commission for the certification of the economic agents involved in the forest harvesting;



• Order of the Minister of Agriculture, Food and Forests no.319/2002 for the approval of the procedure for the approval, modifying and annulment of documents regarding the evaluation of wooden volume originating from the forestry fund other than the state public ownership, managed through own forestry districts;

• Order of the Minister of Agriculture, Food and Forests no.303/2002 for the approval of instructions regarding the establishment of the maximum areas that can be clear cut with the aim of attaining the objectives provided for at article 23, indent (1) letters b), c), and d) from the Government Ordinance no.96/1998, republished;

• Order of the Minister of Agriculture, Food and Forests no.224/2002 on the way of stating the deliver of the documents having special handling in what regards the transportation of the wooden material;

• Order of the Minister of Agriculture, Food and Forests no.116/2002 for the approval of Instructions regarding the authorizing of the forestry staff , the endorsement of setting up and authorizing the operation of forestry structures aiming at managing the private owned forests ,and of the forests in public ownership of the communes, towns and municipalities ,with its subsequent alterations;

• Order of the Minister of Agriculture, Food and Forests no.33/2002 for the approval of the Regulation regarding the manufacturing and use of forest hammer-seals in the endowment of forestry structures set up at the level of forest districts , needed for the management of forests found in private or public ownership of the communes, towns and municipalities;

• Order of the Minister of Agriculture, Food and Forests no.279/2001 regarding the empowerment of ITRSC of issuing authorizations for manufacturing and use of tools for marking the wooden material under processing ,which is operated and transported from the forest;

• Order of the Minister of Agriculture, Food and Forests no.146/2003 for the designation of the specialty directorate of the MAFF and of ITRSC as bodies responsible with the quality control of the forest reproductive materials in use;

• Order of the Minister of Agriculture, Food and Forests no.635/2002 for the approval of Norms on the establishing of terms, modalities and periods of wooden material harvesting from the forests and from areas outside the national forestry fund;

• Order of the Minister of Agriculture, Food and Forests no.636/2002 on the approval of technical forestry guides regarding the setting up, maintenance and management of forest plants of the protection forest belts;

• Order of the Minister of Agriculture, Food and Forests no.651/2002 on the approval of classifying the national territory depending on the degree of risk of forest fire;

• Order of the Minister of Agriculture, Food and Forests no 537/2002 for the approval of the average price of 1 cubic metre standing tree , based on which the value of indemnities for losses caused on the forestry fund and of the areas outside the forestry fund is calculated , and for the approval of the calculation for the financial obligations when taking possession of lands belonging to the national forestry fund;

• Order of the Minister of Agriculture, Food and Forests no.269/2001 for the approval of the National Catalogue of forestry sources for forest reproductive materials in Romania -2001-with subsequent amendments;



• Order of the Minister of Waters, Forests and Environment Protection no.1648/2000 approving the Technical Norms regarding the compositions, schemes and technology of the forests regeneration and regarding the a forestation of the degraded lands;

• Order of the Minister of Waters, Forests and Environment Protection no.1649/2000 approving the Technical Norms regarding the management and maintenance of the forest stands;

• Order of the Minister of Waters, Forests and Environment Protection no.1650/2000 approving the Technical Norms regarding the choosing and application of the forest treatments;

• Order of the Minister of Waters, Forests and Environment Protection no.1651/2000 approving the Technical Norms regarding the evaluation of the wood volume destined to trade;

• Order of the Minister of Waters, Forests and Environment Protection no. 1672/2000 approving the Technical Norms regarding the forest planning;

• Order of the Minister of Waters, Forests and Environment Protection no. 1653/2000 regarding the approval of the Technical Norms regarding the annual carrying out of the forests regenerations;

• Order of the Minister of Waters, Forests and Environment Protection no. 1654/2000 regarding the approval of the Technical Norms regarding the prevention and extinguishing of the forest fires;

• Order of the Minister of Agriculture, Food and Forests no. 454/2003 regarding the approval of the Technical Norms regarding the forests protection;

• Order of the Minister of Waters, Forests and Environment Protection no. 1184/2000 regarding the approval of the Technical Regulations “Methodological Guide regarding the issuing of the studies for impact evaluation upon the environment, as a part of Urbanism Plan – Indicative GM-008-2000;

• Order of the Minister of Public Finance no.1012/2001 regarding the approval of the structure, content and using mode of the standard documentation for elaboration and presentation of the offer for public procurement of goods;

• Order no. 1013/873/2001 of the Ministry of Public Finance and of the Ministry of Public Works Transportation and Housing regarding the approval of the structure, content and mode of use of Standard Documentation for elaboration and presentation of the offer for public procurement of services;

• Order no. 1014/874/2001 of the Ministry of Public Finance and of the Ministry of Public Works Transportation and Housing regarding the approval of the structure, content and mode of use of Standard Documentation for elaboration and presentation of the offer for public procurement of works;

• Government Decision no. 1179/2002 regarding the approval of the General Device Structure and of the Methodology regarding the elaboration of the general device for the investments objects and works;

• Common order of the Minister of Agriculture, Forests and Rural Development,

Minister of Administration and Internal Affaires, and the Minister of European Integration no.173/160/93 regarding the definition and references on the rural areas.

