The thermal rehabilitation program for Romanian homes will serve as a shot of oxygen for construction market players, as all prognoses indicate a deepening drop of the market.
According to the draft law, which was passed by the full Senate with no amendments, 50 percent of the financing will come from state budget allocations, on the basis of funds approved for this purpose annually by the Ministry of Regional Development and Housing (MDRL), while 30 percent to be approved annually for this purpose will be provided by local authorities, and the remaining 20 percent from the association of owners.
“The principal for the application of the program will be ‘first come, first served,’ so it is now difficult to say which cities will be at an advantage and which not,” according to a declaration for Business Standard by Razvan Murgeanu, State Secretary with the Ministry of Development and Housing.
Murgeanu further explained that the new law provides for the state to cover half of the cost, with the association of owners to contribute 20 percent, although if some of the members of the association refuse, the local authority can take over the costs, to be recovered subsequently. The program is estimated to cost €11 billion, so the €200 million are a drop in the bucket. “For us, this is a shot of oxygen,” said Marin Crutescu, General Manager of Amvic polystyrene producer. “The government injection means 11-12 percent of annual revenue. On a market worth €100 million, the rehabilitation contracts will bring in revenue worth €12-13 million for polystyrene producers,” according to Marian Serban, General Manager of Swisspor, producer with the largest local market share.
