In the Official Gazette (Part I) no. 624 of 7 July 2023 was published the Emergency Ordinance (OUG) 68 for the approval and financing of the National Programme for the development of domestic production of construction products and materials.
The National Programme for the development of domestic production of construction products and materials “CONSTRUCTPLUS”, aims at financial support of private investments for the establishment and/or development of production capacities for construction products and materials.
Budget:
The programme approved by this emergency ordinance is a multiannual programme, i.e. for the period 2023-2026, and is managed by the Ministry of Economy, Entrepreneurship and Tourism.
The granting of state aid is carried out within the commitment appropriations for the period 2023-2026 and the budget appropriations for the period 2024-2029, approved by the annual budget laws, through the budget of the Ministry of Economy, Entrepreneurship and Tourism.
The amount allocated to the Programme is the equivalent in lei of 596 million euro.
The amount allocated for the year 2023 is the equivalent in lei of 149 million euro, so only commitment appropriations are needed for the current year.
The actual disbursement of state aid is made by reimbursement of expenses incurred by the beneficiary within 60 working days from the date on which the request for payment of state aid is considered complete.
The last payment request submitted to the Ministry of Economy, Entrepreneurship and Tourism will not exceed 31 December 2028.
Objective:
The objective of the Programme through which financial support is provided is regional development and aims:
- reduction of the trade deficit from imports of building materials;
- stimulating investment in less developed counties;
- increasing domestic production of construction products and materials.
According to the normative act, the Programme finances the following types of investments:
a) initial investment as defined in Article 3 point 13;
b) initial investment for the new economic activity within the objectives of the Programme, as defined in Article 3, point 14.
The financial support for the types of investment referred to above consists of non-repayable regional State aid.
Please note that the regional non-reimbursable state aid granted under this scheme is a maximum of 50 million euro, but no more than 75% of the investment value and without exceeding the maximum state aid intensity provided for in the regional map authorised by the European Commission by Decision C(2021) 9750 final of 20. 12.2021, with subsequent completions, and approved by Government Decision no. 311/2022 on the maximum intensity of regional state aid in the period 2022-2027 for initial investments, with subsequent amendments, hereinafter referred to as the Regional Map for Romania.
Beneficiaries of non-reimbursable regional state aid under the Programme must provide a financial contribution of at least 25% of the total eligible costs of the investment project, from their own resources, in a form that is not subject to any other public aid, in compliance with the rules on the intensity of state aid set out in Annex no. 2 to this scheme.
For the calculation of aid intensity and eligible costs, all figures used are taken into account before any deduction of taxes or other charges.
Eligible costs must be supported by documentary evidence which must be clear, specific and contemporaneous with the facts
According to OUG 68/2023, investments made by beneficiaries under the Programme must cumulatively meet the following eligibility criteria:
a) be regarded as initial investment, i.e. initial investment in a new economic activity as defined in Article 3(13) and (14) and subject to the conditions set out in Article 18;
b) demonstrate their economic efficiency in relation to the objectives of the State aid scheme and their viability during the period of implementation of the investment, i.e. 5 years from the date of its completion in the case of large enterprises and 3 years in the case of IMMs;
c) to comply with the quantitative and qualitative indicators established by the Applicant’s Guide approved by Government Decision within 60 days from the date of entry into force of this Emergency Ordinance;
d) be carried out in the eligible fields of activity, as defined in Annex No 1.
An applicant that carries out its activity both in the eligible sectors/areas and in other sectors/areas may receive funding for the eligible areas of activity, provided that it submits accounting documents attesting to the separation of the records of these activities.
Costs excluding VAT relating to the realisation or purchase, as the case may be, of tangible and intangible assets are considered eligible expenditure;
Tangible and intangible assets must cumulatively meet the following eligibility conditions:
a) be operated exclusively by the enterprise receiving State aid to achieve the objectives of the investment for which financing was requested;
b) be included in the assets of the enterprise receiving State aid and remain associated with the investment for which the financing was granted for a period of at least five years from the date of its completion in the case of large enterprises and three years in the case of IMMs;
c) be purchased on market terms.
Tangible and intangible assets acquired must be new, except for IMMs.
Costs related to the rental of tangible assets can be taken into account in the following situations:
a) in the case of land and buildings, the lease must continue for at least 5 years from the expected date of completion of the investment for large enterprises and at least 3 years for IMMs;
b) in the case of the leasing of plant or machinery, the contract must be a financial leasing contract and must contain an obligation for the beneficiary of the State aid to purchase the asset at the date on which the contract expires.
Intangible assets are eligible for the calculation of investment costs if they cumulatively meet the following conditions:
a) must be used exclusively within the establishment receiving the State aid;
b) they must be depreciable;
c) they must be purchased under market conditions from third parties not connected with the buyer;
d) they must be included in the assets of the undertaking receiving State aid and must remain associated with the project for which the State aid was granted for a minimum period of 5 years or 3 years in the case of IMMs.
In the case of large enterprises, the costs of intangible assets are eligible only up to a limit of 50% of the total eligible costs of the initial investment. For IMMs, the costs of intangible assets are 100% eligible.
It is important to note that the investment must be maintained in the beneficiary region for a period of at least 5 years or, in the case of IMMs, at least 3 years after completion of the investment. This condition does not preclude the replacement of plant or equipment which has become obsolete or has been destroyed during this period, provided that economic activity is maintained in the region concerned for the minimum relevant period.
The applicant undertaking confirms that in the 2 years preceding the date of the State aid application it has not relocated to the establishment where the initial investment for which State aid is requested is to take place and gives an undertaking that it will not do so for a period of up to 2 years after completion of the initial investment for which State aid is requested.
Beneficiaries:
Beneficiaries are private legal entities, i.e. companies registered for tax purposes under the Companies Law no. 31/1990, republished, with subsequent amendments and additions.
State aid under the Programme may be granted to enterprises that cumulatively meet the following eligibility criteria at the date of registration of the application for funding:
a) undertakes to carry out an initial investment in Romania, in one of the CAEN fields listed in Annex no. 1;
b) does not fall into the category of “enterprises in difficulty” as defined in Article 3, point 18;
c) they are not in foreclosure, insolvency, bankruptcy, judicial reorganisation, dissolution, operational closure, liquidation or temporary suspension of activity, if they do not have restructuring and rescheduling plans;
d) they are not subject to decisions for the recovery of State aid or, if such decisions have been issued, they have been enforced and the aid has been recovered, including interest thereon, in accordance with the legal provisions in force;
e) they have not relocated to the establishment where the initial investment for which aid is requested is to take place in the two years preceding the registration of the application for financing and, at the time of registration of the application, give an undertaking that they will not do so for a period of up to two years after completion of the initial investment for which aid is requested;
f) they do not register outstanding tax liabilities and other budgetary claims administered by the central tax authority defined according to Article 1, point 31 of Law no. 207/2015 on the Tax Procedure Code, as amended and supplemented.
Legal basis:
– Emergency Ordinance (OUG) No 68/2023 for the approval and financing of the National Programme for the development of domestic production of construction products and materials.