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BRASOV Romania. BRASOV HISTORY & INDUSTRY. Brasov. Center of Romania, surrounded by Carpathian Mountains Old Saxon Citadel and main commercial center of Romania in the 12-18 centuries. 285000 inhabitants Multicultural and multiethnic city
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Brasov • Center of Romania, surrounded by Carpathian Mountains • Old Saxon Citadel and main commercial center of Romania in the 12-18 centuries • 285000 inhabitants • Multicultural and multiethnic city • (8 % Hungarians, 2.5 % Germans, 89 % Romanins) • A very active and involved community
Brasov • Main tourist center of Romania: Poiana Brasov winter sports resort, Tampa natural reservation park, natural landscape and resources 25 km around, Bran Castle 12 km from Brasov, Peles Castle at 50 km • University Center – Forestry Engineering Faculty (the only one in Romania), Faculties of Mechanics, Electro-techniques, Electronics, New Faculties: Tourist Industry, Economics and Business Administration, Social Sciences, Environment and Energy efficiency Engineering, Industrial design
Brasov – History & Industry • Very important industrial center during communist period: tractors, ball-bearings, trucks, machine-tools, car spare parts, rubber parts for machines and equipment, electric enginesfor industry, oil and sub-products refinery, army equipment and copper products • Textiles, food industry, agriculture (potatoes), tourist industry, services • Brasov can be a pioneer for Romania in using the investment development funds, a pilot city for Jessica implementation in the newest member states
Brasov – History & Industry Industry collapsed in three years after the popular revolution of 1989 Reconversion to new industries and new economic development directions was slow and hesitant because: • Lack of expertise on: • Market economy • Competition ethics and rules • Capital investment planning and management • Private entrepreneurship • Financial management
Brasov – History & Industry Lack of experience on: • Strategic planning • Regional and integrated development • International cooperation and partnerships • Capital investment and support financial instruments Lack of culture on: • Community development based on transparency, accountability and public participation • Vertical and horizontal cooperation between the governance layers • Devolution of power from central to local/regional
Brasov – History & Industry Brown fields regeneration and/reconversion to new functions became an issue • Tractorul Coresi Economic Development Area • Hidromecanica Hypermarket in the new Civic Center • Metrom Logistic Park and recreation facilities • Refinery residential area
Brasov – History & Industry Tractorul Coresi Economic Development Area • TRACTORUL – Coresi regeneration project-144 ha • Proposed funding: private funds & public / local budget
Brasov - Industry A BUSINESS DISTRICT in the south contains a new business park, expo and congress hotel incorporating the former entrance building and hangar. A NORTH-SOUTH PEDESTRIAN ROUTE will link the existing Tractorul Park with the retail and leisure destinations at the north, whilst linking a series of new squares.A NEW CIVIC SQUARE at the heart of the quarter creates the link between business and residential zones with public service offices and a community building. RESIDENTIAL DISTRICTS are banded across the middle of the quarter, buffered by linear buildings and the green park from roads and neighboring plots. • LINEAR OFFICE BLOCKS form the urban edges of several zones and ensure a variety of office space provision and location around the development.
Brasov - Industry • HIGHSTREET RETAIL is located at the ground floor of the residential districts either side of the pedestrian axis, leading up to the North Square. THE SHOPPING CENTRE & RETAIL PARK are placed at the North Square where the central pedestrian axis meets the new East-West connection road. THE NEW PARK INCORPORATES A LEISURE FACILITY and buffers the residential zones to the undeveloped neighboring areas. TWO NEW EAST-WEST VEHICULAR CONNECTIONS will link the development into the existing road network. A HEALTHCARE RESEARCH FACILITY or similar use will be prominently places at the eastern gateway and signal the new quarter. • LIGHT INDUSTRIAL functions are placed on 25ha in the north-east of the site, well connected to the existing service road and future Eastern Access More on: www.coresibrasov.ro
Brasov – History & Industry • Hidromecanica Hypermarket in the new Civic Center • HIDROMECANICA regeneration project- 4 ha • Proposed funding: private funds & public / local budget
Brasov - Industry Service area: restaurant, conference & exhibition facility, business center, hotel, etc. Mall, Clubs, Cinema City Parking lots Parks & recreation Banks, Offices Retail
Brasov – History & Industry • Metrom Logistic Park and recreation facilities • METROM logistic and recreation park regeneration project- 85 ha • Proposed funding: private funds & public / local budget
Brasov - Industry • METROM INDUSTRIAL PARK Business Centre • Land owned by MIP: 2,5 ha • Infrastructure available : water, sewer, gas, electric power 380v • Total built area: 10.500 sqm • Target results: 400 jobs, 53 businesses to be located in the area • Total costs: 5.3 Mil. Euro • Period: 32 months More on: www. mipbrasov.ro
Brasov – History & Industry • Refinery residential area • OLD REFINERY regeneration project-18 ha • Proposed funding: private funds & public / local budget
Brasov – History & Industry Brownfield financing opportunities Regional Operational Program Axis 4 – Support the local and regional business environment Domain 4.2 – Rehabilitation of polluted industrial sites/brown fields and preparation for new functions • Phase 1> Decontamination (allocation 98 %) • Phase 2>Create the infrastructure in support of business environment (allocation 50 %, under State Aid scheme) Financing: 235,4 Million Euro from which 200,1 Million Euro from ERDF
Brasov – History & Industry Conditions • Both Phase 1 (98 % allocation) and Phase 2 (50 % allocation state aid) are compulsory • The local government is the applicant • The local government has to be the owner of the Brownfield (property, concession, administration) • The partner should be a structure supporting business development NOT Feasible because: • Very few local governments own brown fields • Partnerships in the past had week results/collapsed due to the lack of confidence and of expertise • Impossible for the local government to cover 50 % of the financing for the second phase from local budget
Brasov – History & Industry CONCLUSION: • The government proposed to transfer the money from axis 4.2 to other axes!!! EU said it is not appropriate • Brown fields remain brown !!! • Local governments sell brown fields for low prices to get rid of them and push them on the market in order to become profitable!!! • PROBLEM NOT SOLVED ! Just PENDING !
Brasov – History & Industry What we have • 7 growth poles in Romania: Brasov, Cluj, Constanta, Craiova, Iasi, Ploiesti, Timisoara • 7 Integrated Development Plans: one per each growth pole • A total allocation of 695,58 mil Euro, from which the ERDF contribution is 591,24 mil Euro • The integrated and individual projects financed through the Regional Operational Program • Formal regional structure: 7 development regions + Bucharest area = 8 development regions established on geographical and political criteria (Law 315/2004). • Documents: National Strategic Development Plan 2007-2013, Regional Strategic Development Plans • (Too) many governance layers: local, county, region, central • Unbalanced power and responsibilities between governance layers • Very active and informed population, open to the participative process
Brasov – History & Industry What we have: BRASOV Urbact Local Support Group • Aware of the principles and criteria to create and operate the urban development funds (UDF) in Brasov metropolitan area • Identified the integrated urban development projects for Brasov metropolitan area • Participate to the activities of Jessica for Cities project • Free access to URBACT information • Contribute with local and organizational expertise to select projects to be financed by UDF • Support the promotion of the financial instrument to the national government (lobby to create the UDF and use them for urban sustainable development)
Brasov – History & Industry What we have: Integrated projects Integrated Urban Development Plan for Brasov • Metropolitan Public transportation system • Metropolitan Parking System • Metropolitan Green Belt • Metropolitan bicycle belt • Metropolitan historical and heritage trail
Brasov – History & Industry What we have Local governments • Very limited experience in producing sound urban development projects for their communities • There is no real culture of partnership and no mutual confidence between the public authorities, private sector and banks • Consultation and cooperation with private sector and civil society is more often only ,,for façade” • Are not familiar with managing and budgeting on projects Managing Authorities • Not willing to devolving authority and cooperate effectively with the local governments • Want to keep control of the money allocation to the central level, no interest to transfer responsibility to the local level • Poor communication and cooperation with the Authority for Structural Funds Coordination • Reluctant to put structural funds money into financial structures supporting sustainable integrated development
Brasov – History & Industry What we have Urban planners • Waiting to be involved in a real consultation process concerning the community projects and available to provide their expertise and advise • Have initiatives at the local level and promote procedures and rules at the national level through their associative structure, Order of Architects and Association of Chief Architects form local governments • Open to cooperation with private and public investors • Wait for local government to produce comprehensive, concrete and applicable development projects for the communities
Brasov – History & Industry What we have Private investors/entrepreneurs • There is no real culture of partnership and mutual confidence between the public authorities, private sector and banks • Public-private partnerships are known but not a very popular practice, due to the past failures • Consultation and cooperation with local government is more often only ,,for façade” • Wait for local government to produce comprehensive, concrete and applicable development projects for the communities Banks • Private banks have very limited experience in supporting development projects for communities (only SME development credits in operation) • Not very familiar with the public finance process • Operate with highest interest rate in Europe (6,7% mortgage and 9,8% consume credits) • Very limited experience and not much enthusiasm in working with local governments
Brasov – History & Industry What we do NOT have • Real regional structure created primarily on regional social, economic and demographic needs and opportunities and then on geographic structure • Real strategic planning on regions and then on the national level • Devolution of decision making and implementation responsibilities to the regional level • Real cooperation and interaction between the regions • Effective and efficient cooperation between the central and local authorities • Politicians encouraging the public participation and citizen real involvement in the community and regional planning and development
Brasov – History & Industry Discrepancies Urban planning • GUPs created in 2001 have been enlarged by force with ZUPs with little consideration to the urban sprawl prevention and environment protection (mix of residential with industrial no green areas) • No discipline in enforcing the GUP regulations and poor control of community development • One-stop-shops for building permits created by law in 2001 have been abolished in 2009 Economic burden • A company has to pay 113 taxes and fees/year taking 200 hours for the procedures • NO Anti-crisis National Plan in place • National economy contracted 38 % in 2010 • Structural funds absorption rate : 6 % • Politicians encouraging the public participation and citizen real involvement in the community and regional planning and development
Brasov – History & Industry • What we CAN DO • (national solutions) • Strategic planning • Elaborate sound development • policies • Consult citizens • Set up implementation plans • for the policies • Develop concrete projects • under the implementation plans • Create simple and effective laws and procedures to lowering and preventing the risk of corruption • Effective enforcement of the public sector transparency and accountability laws • What EU CAN DO • (European solutions) • Guideline development package for convergent countries • Strategic planning • Metropolitan management • Urban-rural connection and integrated • planning and management • Integrated development (principles , • procedures and best practices) • Economic schemes • Anti-crisis package (principles, economic • mechanisms and financial tools) • Budgeting on programs • Financial management of projects using • structural and alternative funds as UDFs, etc.
CONCLUSIONS MULTI-LEVEL APPROACH • More than necessary • Rarely feasible (gaps between governance levels mainly on vertical scale) • Never sufficient • Co-productive approach is good, as it could be more flexible and more result oriented.
CONCLUSIONS STRATEGIC PLANNING • Necessary (desperately) & Very useful • Enables efficiency and effectiveness of the governance HOW TO ENFORCE IT? • Making it really participative: encourage, organize, value and promote the stakeholders contributions • Produce a simple and operational matrix structure (horizontal and vertical structures of governance to be the knots) • Use the expertise and experience of actors through an organized process • Networking (at the local, regional and European levels, by sharing and using the best practice system)
CONCLUSIONS CONSTRAINTS to use integrated or co-productive app. • Top-down approach : top (government, Ministries) have a very general, vague, descriptive approach, not result oriented; little consideration to the very active changes happening to the local level (do not collect, process and use the local inputs) • Fear to make participative the integrated approach (politicians avoid citizens, experts avoid civil society, politicians neglect experts etc.) • Lack of culture to supporting and managing the integrated approach (low level of understanding, of expertise, of competencies, of enthusiasm and of authority/power of decision)
CONCLUSIONS RESULTS • Guide to integrated and multi-level approach(simple, specific, clear, easy to implement) • Elaborate and promote the Code of ethics for integrated approach • Best practice sharing and promotion(standard pattern for best practice presentation) • International support teams or task forces to coach, assist, supervise the integrated programs/ projects/ initiatives • An EU Info Point(office and site) on integrated programs/projects/initiatives
Thank you for attention and patience ! Contact: Kristina CREOSTEANU kcreosteanu@ yahoo.com Phone: 0040-731-302374 Fax: 0040-268-415033