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August 1, 2021

Bucharest General Council gives principle agreement for setting up Municipality’s 19 joint stock companies

The General Council of Bucharest City Hall (CGMB) adopted on Tuesday the 19 decision projects that foresee the principle agreement for setting up joint stock companies belonging to the municipality.

Municipal Adviser of the National Liberal Party (PNL, opposition), Cristian-Marian Olteanu announced that PNL will vote “against” these projects. “Although from a legal point of view the principle agreement didn’t imply a public debate (…) it is so important, that something like this be voted after a debate, a consultation with all the political, economic actors, all the parties in a society involved in every domain. (…) PNL will start a debate as soon a possible on each of the 19 points,” declared Olteanu, before moving on to casting the vote on the projects.

The General Counsel Roxana Wring announced that Save Romania Union (USR, opposition) will also vote “against” the projects. “The information placed at our disposal are not in the least edifying. There are no opportunity studies, impact studies, domain analyses (…). We don’t see how we will have a more competitive management,” added Wring.

In the opinion of People’s Movement Party (PMB, opposition) general counsel Catalin Iliescu, the current coordination system has proven in many cases “deficient and defective”, therefore the party’s elected people with the CGMB agree with the projects. “We will vote in favour of the intent to create the 19 commercial companies (…) our vote will be yes,” said Ionescu.

Tudor-Tim Ionescu, general counsel from the Alliance of Liberals and Democrats (ALDE, co-rule) gave, in turn, the example of Hamburg town, which, in 2013, organised a referendum, whose outcome was that 60 percent of its citizens were in favour of setting up limited companies for electricity, gas and heating distribution.

General Mayor (with the Social Democratic Party, PSD, at rule) Gabriela Firea declared that the administrative model she proposes is “a European one, totally allowed and even encouraged by the law.” She called forth the legal provisions of the local public administration, the ones referring to the delegating of the public services but also to European directives. Firea also talked about the Bucharest people’s dissatisfaction as to the Capital’s appearance. At the same time, she requested that the general counsels who would vote against the 19 projects to specify, in each case, what companies will be affected by the setting up of the companies and what is the reason for insisting on keeping the respective contracts.

“It has been erroneously stated (…) that the goods, services and works’ procurement are carried out through direct allocation and do not respect the current legislation. The public procurement current legislation is one hundred percent observed and it submits to the annual control of the Court of Accounts. (…) If, instead of honorably representing Bucharest people, you defend some companies – a few – that stand to lose from the setting up of these joint stock companies, it means it is not alright, but I would like you to be partners in this administrative project,” said the City Mayor.

Firea announced that she will propose in an upcoming sitting of the General Council that a decision be made on (sanitation company) REBU, given that the German economic partner of the municipality in this company would like to withdraw. According to the mayor, the firm could continue to belong to the Bucharest City Hall.


The 19 companies having received the principle agreement would have the following scope:

* Production, electricity and thermal energy supply, energy services and maintenance

* The necessary activities to ensure the public lighting service

* Management and development of municipal sanitary units infrastructure

* Civil protection and specific volunteering activities

* Information technology services

* Construction, development and administration of sports fields and sports bases

* Enhancement and exploitation of sightseeing in the Capital, as well as promoting Bucharest as tourist destination

* Management of parks, public gardens, lakes and swimming places in Bucharest

* Management Service of the Bucharest leisure network

* Management of advertising spaces

* Maintenance of the timber located on green spaces on the public domain of Bucharest

* Ensuring the protection and safety of the public and private interest objectives

* Seismic strengthening of buildings at risk

* Coordination / consultancy services for Bucharest’s large infrastructure projects

* Unitary management of Bucharest’s real estate fund

* Road management

* Public parking management

* Dispatching local transport activity of people for trolley-buses, trams and buses

* Integrated Traffic management systems, public transport fleet management and passenger information.

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