European Union        Government of Romania       Ministry for Regional Development and Public Administration       2007-2013 Structural Instruments

Call for Proposals for Works to Increase Energy Efficiency of Housing Blocks, Financed by European Funds, to Be Launched this Autumn

12 July 2012

From this autumn, housing blocks in the municipalities that are county capitals will benefit from complex works to increase energy efficiency, aided by European funds.

The Ministry of Regional Development and Tourism has finalised negotiations with the European Commission for financing, in the current financial year, under the Regional Operational Programme, activities to increase energy efficiency of housing blocks, and the memorandum to that effect was approved in the Government meeting of yesterday, 11 July.

The financing scheme will apply to housing blocks built by projects elaborated during the period 1950-1990, inhabited by vulnerable social categories and families with low income from municipalities that are county capitals (over 50% of the owner families in the building have a monthly net income of maximum 500 euros per family member).

 

The budget of the financing scheme is 304 million euros, of which 150 million euros from the European Regional Development Fund (ERDF), respectively 154 million euros resulted from the national contribution (co-financing from the state budget, contribution of the local authorities and of the owners' associations).

The beneficiaries will have to participate financially in this works through a 40% co-financing. The remaining funds necessary for each work (60%) will be provided from non-reimbursable European money from the ERDF and the state budget. The rates of co-financing of the local public authorities and the owners associations will be modulated depending on the proportion of low-income families in the building, as follows:

30% - the contribution of the local authority and 10% - the contribution of the owners' association, when more than 50% of the families that own flats in the building have a monthly net income below 150 euros per family member;
20% - the contribution of the local authority and 20% - the contribution of the owners' association, when more than 50% of the families that own flats in the building have a monthly net income below 350 euros;
10% - the contribution of the local authority and 30% - the contribution of the owners' association, when more than 50% of the families that own flats in the building have a monthly net income below 500 euros.

Given that the program will close in 2013, the proposed scheme has a pilot character for the current programming period, and the gained experience can substantiate investments in energy efficiency of the housing blocks for the programming period 2014-2020.