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Law No. 113 Of 15 June 2011

Original Language Title:  LEGE nr. 113 din 15 iunie 2011

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LEGE no. 113 113 of 15 June 2011 on the ratification of Amendment no. 5 agreed by the exchange of letters signed in Bucharest on 24 March 2010 and 19 April 2010 and in Luxembourg on 31 March 2010, between Romania, the European Investment Bank and the General Council of Bucharest, at the Financing Contract between Romania, the European Investment Bank and the General Council of Bucharest for the financing of the Project on Urban Infrastructure in Bucharest, signed in Luxembourg on 18 December 2000 and in Bucharest on 19 December 2000, and for change Law no. 489/2001 on the ratification of this contract
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 481 481 of 7 July 2011



The Romanian Parliament adopts this law + Article 1 Amendment no. 5 agreed by letter exchanges *) signed in Bucharest on 24 March 2010 and 19 April 2010 and in Luxembourg on 31 March 2010, between Romania, the European Investment Bank and the General Council of Bucharest, at the Financing Contract between Romania, the European Investment Bank and the General Council of Bucharest for the financing of the Project on Urban Infrastructure in Bucharest, signed in Luxembourg on 18 December 2000 and in Bucharest on 19 December 2000, ratified by Law no. 489/2001 ,, as amended. ----- Note * *) Translation. + Article 2 Law no. 489/2001 on the ratification of the Financing Contract between Romania, the European Investment Bank and the General Council of Bucharest for the financing of the Project on Urban Infrastructure in Bucharest, signed in Luxembourg on 18 December 2000 and in Bucharest on December 19, 2000, published in the Official Gazette of Romania, Part I, no. 636 of 10 October 2001, as amended, shall be amended as follows: -Article 2 will read as follows: "" Art. 2. -(1) The financing of the project shall be carried out distinctly on the components set out in Annex A to the Financing Contract and shall be ensured throughout the execution period of the European Investment Bank loan and: a) until December 31, 2007, from funds from the state budget and other funds; b) after December 31, 2007, from funds allocated from the own budget of Bucharest. (2) Romania's contribution to the project provided in par. (1), representing the amounts necessary for the financing of the project, the payment of customs duties, unforeseen expenses and any related taxes and fees, due and payable in Romania, for the period until 31 December 2007 will be provided annually by the state budget law, within the global position on transfers from the state budget to local budgets for investments partially financed from external loans and other funds, and for the subsequent period December 2007 will be provided annually in the own budget of the city of Bucharest. (3) The foreign currency equivalent of the payment in lei representing the contribution of the Romanian part to the financing of the project is the one valid at the time of conclusion of the financing contract and can be modified during the execution from updating the total value of the project, depending on the evolution of the total consumer price index, communicated by the National Institute of Statistics. Additional expenses resulting from the update and possible overruns from the modification of some legal regulations in the field of taxes and fees related to the implementation of the project, for the period up to December 31 2007, is ensured from transfers from the state budget to the budget of Bucharest for investments financed partially from external loans and other funds, and for the period after December 31, 2007 shall be ensured from the budget own of Bucharest. ((4) The unused amounts of the European Investment Bank loan until 31 December 2007 for component A will be used for component B as defined in Annex A to the Financing Contract. '; + Article 3 Law no. 489/2001 on the ratification of the Financing Contract between Romania, the European Investment Bank and the General Council of Bucharest for the financing of the Project on Urban Infrastructure in Bucharest, signed in Luxembourg on 18 December 2000 and in Bucharest on December 19, 2000, published in the Official Gazette of Romania, Part I, no. 636 of October 10, 2001, as amended, as well as with the amendments made by this law, shall be republished in the Official Gazette of Romania, Part I. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (2) of the Romanian Constitution, republished. CHAMBER OF DEPUTIES PRESIDENT ROBERTA ALMA ANASTASE p. SENATE PRESIDENT, ALEXANDER PERES Bucharest, June 15, 2011. No. 113. EUROPEAN INVESTMENT BANK By DHL Ministry of Finance Str. Apolodor no. 17, Sector 5 RO-70060, Bucharest Romania To Mr. Bogdan Dragoi, State Secretary Bucharest City Hall Bd. Queen Elizabeth no. 47, Sector 5 RO-Bucharest To Mr Sorin Oprescu, primary Luxembourg, 31 March 2010 JU Ops/SEE/AIA no. EXP BEI-IT 003684 003684 31 March 2010 Subject: ROMANIA-BUCHAREST URBAN INFRASTRUCTURE Financing contract between Romania, the European Investment Bank and Bucharest City Hall, signed in 18/19 December 2000, with subsequent amendments (Financing contract) Amendment no. 5 Dear gentlemen, We refer to our recent dialogue, on the occasion of which the Bank was requested to extend the deadline for the completion of the Project in connection with the operation corresponding to it. We are pleased to inform you that the Bank accepts the modification of the Financing Contract, according to your request, based on the understanding that the Project will be completed in accordance with the revised implementation schedule. In this regard, please keep in mind that the Bank is not considering granting additional extensions of the deadline for completion. As a result, point 3 of the Technical Description, entered in the schedule A of the Financing Contract, will have the following content: "" 3. Project schedule The project must be completed and fully operational by 31 December 2010. " At the same time, to avoid misinterpretations, (i) we confirm that the cost savings realized in the context of the component of the Urban Road Rehabilitation Project, sub-item 1.A) of the Technical Description, can be used to finance the composition of the Project for the metering of the sale of the heat and drinking water, sub-paragraph 1.B) of the Technical Description; and (ii) we understand that, for the period 2008-2010, the contribution of the Romanian part to the financing of the Project will be provided from "other funds" mentioned in 7 from the preamble of the Financing Contract (more precisely, the budget of the Bucharest City Hall). All other terms and conditions of the Financing Contract remain unchanged. (indecipherable signature) Bd. Konrad Adenauer 100, L-2950 Luxembourg, tel. +352 43 791, fax +352 43 77 04, e-mail: info@eib.org. www.eib.org The terms defined in the Financing Contract will have the same meanings when they will continue to be used, unless expressly mentioned a different meaning. To confirm your agreement to the above, please be kindly ((i) to initialize, sign and date each of the original three (3) of this letter; (ii) to transmit all three (3) original to the Bucharest City Hall for signature; and ((iii) to return a (1) original signed corresponding to the Bank by registered mail or courier. This Amendment No. 5 will enter into force on the date of receipt by the Bank of a (1) original copy duly signed of this letter. Sincerely, the European Investment Bank J.-C. Laloux (Indecipherable signature) M. Novo (Indecipherable signature) Agreed and accepted for and on behalf of Romania Bogdan Dragoi, Secretary of State (indecipherable signature) Date: 19 April 2010. Agreed and accepted for and on behalf of Bucharest City Hall Sorin Oprescu, Mayor (indecipherable signature) Date: 12 April 2010. ROMANIA MINISTRY OF PUBLIC FINANCE Secretary of State European Investment Bank Bd. Konrad Adenauer 100, Luxembourg-Kirchberg The Grand Duchy of Luxembourg Fax: +352 4379 67290; +352 4379 67291 To the attention of: Dlui Cormac Murphy, Head of Division Mr John McIIwaine, Senior Credit Officer 24 24 March 2010 Subject: Urban infrastructure in Bucharest Financing contract no. 20.882, dated 18/19 December 2000 Amendment no. 5 Dear gentlemen, At the request of the Bucharest City Hall, please be kindly to agrea some changes to the Financing Contract mentioned above, as follows: -in Article 6 of the preamble, the value of "82,900,000 euros (eighty-two million nine hundred thousand euros)" will be replaced by "88,706,149 euros (eighty-eight million seven hundred six thousand one hundred and forty-nine euros)." -Article 7 of the preamble will be replaced by the following: " The cost of the project will be financed as follows: Contribution from the state budget 22.658.719 euro Contribution from the local budget 24.597.430 euro Bank loan 450,000 euro TOTAL:88.706.149 euro " In the Financing Contract, Annex A, Technical Description, point 2 (Project cost) will have the following content: " The total investment cost of the project is estimated at 88.706.149 euros, of which about 42.5% correspond to the component of metering of the sale of heat and drinking water, and the rest of the component of rehabilitation of urban roads in Bucharest. " In the Financing Contract, Annex A, Technical Description, point 3 (Completing of the project) will have the following content: "It is estimated that the project will be completed and fully operational by December 31, 2010." In addition to the amendments presented above, in order to avoid any misinterpretation, it would be good to have the EIB's confirmation that the savings from the loan amounts and related to the component of the Road Rehabilitation Project urban, subsection 1.A of the Technical Description, can be used to finance the composition of the Project for the metering of the sale of heat and drinking water, subsection 1.B of the Technical Description. Motivating the requested changes The tender process for the adjudication of metering contracts lasted much longer than expected (open public auction, organised several times). For this reason, those contracts will be completed and the remaining amounts of the loan will be used until December 31, 2010. Upon completion of the project, the total value spent for the component "Contorization of sale of heat and drinking water" will be 26,654,817 euros (64.3% of the loan amounts), and for the component "Rehabilitation of urban roads in Bucharest" will be of 14,795,183 euros (35.7% of the loan amounts). The total value of the project cost will increase from 82.900,000 euros to 88.706.149 euros, of which about 42.5% corresponding to the component "Contorization of sale of heat and drinking water", and 57.5% corresponding to the component " Rehabilitation urban roads in Bucharest ", which will generate a change in the distribution of net costs of the project on financing sources: EIB loan 41.450,000 euros, state budget 22,658,719 euros and local budget 24,597,430 euros. Please note that in 2008-2010 the contribution of the Romanian side will be covered only from the local budget of the Bucharest City Hall. For your complete information, you find attached a detailed table showing the proposed financing structure of the project (Annex no. 2-Status of the project "Urban Infrastructure in Bucharest"). By expressing our hope that our request will benefit from your understanding and support, we look forward to receiving an answer as soon as possible. Sincerely, Bogdan Dragoi, State Secretary (indecipherable signature) --------