ROMANIA’S PREMIER BUSINESS WEEKLY JUNE 30 - JULY 6, 2014 / VOLUME 18, NUMBER 24

INTERVIEW: Howard Johnson Grand Plaza Bucharest increased its business by about 4 percent last year, and hopes todouble the growth in 2014, Sonia Nastase, the hotel’s generalmanager, told Business Review »page 8

NEWS

Wind of changeThe big rush in the re-newable energy sectoris over, says LouisBorgo, senior bankerat the EBRD, whichhas lent over EUR 360million to the sector» page 4

CITY

All that jazzMajor names from thelocal and internationaljazz scenes are prepar-ing to sing, swing andscat at the BucharestJazz Festival, curatedby pianist Lucian Ban» page 14

CLUJ SUPPLEMENT

MAYOR EMIL BOC SAYS THAT CLUJ IS ACITY OF SERVICES,ONE OF THE REASONS WHY THETRANSYLVANIANTOWN IS BECOMINGAN ALTERNATIVEHUB TO BUCHAREST » SEE INSIDE

CHINA SEEKSTO GAIN

FINANCING GROUND

Shutterstock

The government last week

announced that the

Industrial and Commercial

Bank of China was planning

to back the construction of

two nuclear reactors,

requiring an investment of

EUR 6.4 billion, alongside

other energy and

infrastructure investments

» page 10

NEW S 3www.business-review.eu Business Review | June 30 - July 6, 2014

NEWS in briefNEW S 3

BANKINGRomania to join ECB’s SingleSupervisory Mechanism nextyearRomania is aiming to overhaul its bank-ing legislation this year so as to join theSingle Supervision Mechanism of theEuropean Central Bank (ECB) in 2015,said Bogdan Olteanu, vice-governor ofthe National Bank of Romania (BNR).According to Mediafax newswire, Ol-teanu commented that Romania wouldbe the first non-Euro zone member tobe part of the mechanism. He addedthat Romania needed to change its bank-ing and guarantee fund laws and otherprovisions regarding the interventionand stabilization mechanisms to bringthem in line with EU standards. TheSingle Supervisory Mechanism will beenforced from November 4, and theBNR will work directly with the ECB onthis project. Olteanu suggested it wasbetter for Romania to join the bankingunion before adopting the euro becauseit would help the country fill its eco-nomic gaps compared to strongereconomies in the EU and help it get ac-cess to cheaper financing.

ENERGYRompetrol to buy last 26 percent of Petromidia for USD200 mlnRompetrol Rafinare Constanta will pur-chase the remaining 26 percent of Petro-midia stock from the government forUSD 200 million. The official announce-ment will be made in September, withthe deal likely to be done in October.The state and Rompetrol Group signeda memorandum allowing the company,controlled by KazMunaiGas, to buy26.69 percent of Petromidia, the largestrefinery in the country. However, in or-der to comply with European legislation,the Romanian state will have to organizean international auction to sell the stock,even though another investor is notlikely to emerge.

ITSoftvision ups headcount,opens new unitsIT company Softvision has boosted itsheadcount by 12 percent in the first halfof the year, reaching the threshold of1,000 employees, after expanding itsportfolio of customers and its collabo-ration with existing customers duringthis period. The company signed new

partnerships with companies fromhealthcare, agriculture, transportation,e-commerce, security, tourism and otherdomains. In the first half of the year,the firm opened new units locally inCluj-Napoca and Timisoara, and a USheadquarters, in New York. By the endof the year, Softvision plans to opentwo further bases in Romania, and ex-pand the team at the same growth rateas in the first half of 2014.

ONLINEMediafax Group and BACInvestment Banking enterFlorideLux shareholdingMediafax Group, a top-ranking mediacompany in Romania, and BAC Invest-ment Banking, one of the biggest play-ers on the local consultancy market,have joined the shareholding structureof FlorideLux, as of June 20, accordingto company officials. FlorideLux rep-resentatives said negotiations with thetwo investors had lasted a year, havingbegun at 2013′s VentureConnect event.After the necessary discussions, BACInvestment Banking bought a 25 per-cent share in the company and Medi-afax Group a 10 percent stake. Thebusiness includes online storesfloridelux.ro, brazidecraciun.ro,coroane.ro and cosuridelux.ro.FlorideLux also runs several bricks-and-mortar flower shops.

PROPERTYFabryo-Atlas Paints to buildmortar factory in Popesti-LeordeniPaint producer Fabryo-Atlas Paints hasstarted construction of a mortar factoryon the platform it owns in Popesti-Leordeni, Ilfov county, according toMediafax. The new production unit,work on which began earlier this year,should become operational in October.

“Our investments were up to EUR500,000 in 2013, and in the near futurewe will build a mortar factory, whichwill double our capacity,” said DragosMilitary, CEO of Fabryo-Atlas Paints.Fabryo has extended its portfolio ofconstruction finishes in the last fewyears, especially in the mortar and ad-hesives category, according to companyofficials. In 2014, the firm predicts thatturnover will increase by 5 percent.

State seeks constructor tobuild 37 km of TransylvaniahighwayThe National Road Authority (CNADNR)

is looking for a contractor to constructa 37.2 kilometer segment of the Ogra-Campia Turzii route, part of theTransylvania highway. The project has a total estimated cost of RON 2.33billion (EUR 531.5 million), includingVAT. The design and execution projectwill be awarded through an open auc-tion, based on the lowest price. CNADNR will pay up to EUR 14.27million/kilometer. The work is esti-mated to cost between RON 1.56 billionand RON 1.88 billion (a level that in-cludes eventual additional works),without VAT. The auction winner will have 64 months to finish the project. Requests to participate in the auction can be submitted untilAugust 11.

STOCK EXCHANGEForeign investors no longerneed fiscal representative totrade on BVBThe government amended the FiscalCode last Monday, eliminating non-residents’ obligation to register witha local representative before tradingstock, provided that they are originallyfrom an EU member state or one thatRomania has a convention with thatallows information trading, reportsMediafax. Until recently, any foreigninvestment fund that traded shareson the Bucharest Stock Exchange (BVB)was obliged to have a fiscal represen-tative on the payroll, which, at a costof up to EUR 2,000 per month, servedas a deterrent effect. The governmenthas also introduced into the new FiscalCode the possibility of electronic com-munication between the taxpayer andthe fiscal authority for various proce-dures and requests.

TELECOMVodafone expands 4G networkto nine more citiesTelecom operator Vodafone Romaniahas announced that it has expandedits 4G network to nine further cities –Baia Mare, Botosani, Buzau, Braila,Oradea, Pitesti, Ploiesti, Sibiu andTirgu Mures – effective by the end ofJuly. These towns join the ten-stronglist of Bucharest, Arad, Bacau, Brasov,Cluj-Napoca, Constanta, Craiova, Iasi, Galati and Timisoara that alreadyhave access. Vodafone now offers its users 4G speeds of up to 150 Mbpsin the 19 cities. The operator had8,185,680 mobile customers on March 31.

MOST READ www.business-review.eu

1 Anti-corruption prosecutors detain President Basescu’syounger brother

2 Movie review: Edge of Tomorrow

3 AFI Europe signs record EUR 220mln refinancing loan for Bucuresti mall

4 China nears decision on nuclearinvestment in Romania, sayseconomy minister

5 Government approves social security tax cut

WEEK AHEAD

July 1

Minimum wage The gross minimum wage will beincreased to RON 900 per monthfor a full-time work schedule of 168hours. Paying a lower salary underan individual labour contract will beconsidered an offense, punishablewith a fine of between RON 1,000and RON 2,000.

Tax exemptionTax exemption on reinvested profit comes into force through to the end of 2016 after the govern-ment approved the Emergency Ordinance amending Law 571/2003with respect to the Tax Code. Thenew regulation applies to compa-nies that reinvest profit in techno-logical equipment.

July 3

Electrica starts tradingAfter subscriptions began on June25, Electrica’s effective listing onthe Bucharest Stock Exchange andthe London Stock Exchange is dueto start today. The IPO of a 51 per-cent stake in Electrica is expectedto raise at least EUR 435 million.

July 4

Independence Day PartyAmCham Romania invites mem-bers, partners and friends to thisyear’s US Independence Day Cele-bration on July 4. The organizerspromise live music, tasty food, colddrinks, kids’ entertainment and amagnificent fireworks display. Ac-cess by invitation only.

Contact AmCham Romania at amcham@amcham.ro or by phoneat 021 312 48 34.

4 NEWSwww.business-review.eu

Business Review | June 30 - July 6, 2014

Louis Borgo, EBRD senior banker

ENERGY

EBRD hints at hiatus inlocal renewable financing

∫ OVIDIU POSIRCA

The EBRD has an exposure of overEUR 360 million in the local renew-able sector, mainly wind, according tofinancing deals announced since 2011.

Borgo said that there would bemore room for renewable as electric-ity demand in Romania will grow inthe coming years.

“I think we are in a pause and in thefuture we will see both a change indemand and in government policies.We can see renewables coming backbut for the moment the market is notdoing anything,” said Borgo. “We arealways open to looking at it but the in-vestor has to bring something to usethat makes sense for them and for us,and in the current climate it is verychallenging.”

Investors have expressed theiranger at the government’s move tochange the incentives scheme, andsome smaller projects are at seriousrisk of going into insolvency, warned

commentators. The renewable sector has attracted

around EUR 6 billion of investmentsin the past four-five years, and in-vestors are not sure whether they willrecover their money. Some are plan-ning to sue the government over itsdecision to defer the issuance of somegreen certificates last summer. Thecertificates generate the bulk of rev-enues for renewable producers, andthe price of electricity has beendragged down by the incentivesscheme.

This has primarily hurt large state-owned generators such as Nuclear-electrica. Daniela Lulache, thenuclear producer’s general manager,told BR in an interview earlier thismonth that the surge in renewable ca-pacities had led to “mutations” in themarket as renewable producers cansell electricity at very low prices.

In response to BR’s questionwhether the wind projects financedby the EBRD were having difficultiesrepaying their loans due to the change

What prompted the opening of your

Bucharest outlet?

As this is our tenth store, we consid-ered ourselves mature enough tomove beyond the Carpathian Moun-tains, so we decided to present ourproducts to the citizens of Bucharest,based on research we conducted inspring. The store in Unirii ShoppingCenter covers 200 sqm, consisting ofthe shopping area, a sewing workshopand also a small storage area. The in-vestment was EUR 30,000, excludingthe value of the goods inside. This isthe first step of a development planthat includes the opening of at leasttwo other stores in the capital, target-ing especially shopping centers andmalls. Moreover, for 2014 we have pro-jected a turnover increase of 35 per-cent, meaning over EUR 2.7 million.

Where do the products come from?

Most of the products are importedfrom different suppliers, but we alsohave a Romanian-made line – our ce-ramic vessels, which are made by alocal supplier with whom we haveworked since the beginning of ourbusiness, 15 years ago. Also, all theproducts that we have in the decorativetextiles section are made especially forus, such as décor pillows, curtains anddraperies, which can then be adjustedin store.

Which products are the best sellers?

Our shops are visited by almost 100-150 people a day, and the majority ofour customers buy products from theart table section such as cutlery,glasses, plates, bowls, table acces-sories, napkins, candlesticks, ceramiccups and porcelain cups. They alsopurchase items from the living roomsection, spending approximately RON100 on average.

oana.vasiliu@business-review.ro

3QAgnes Gundischcommercial directorof Nobila Casa

Louis Borgo, senior banker, power and energy, at the European Bank for Reconstruction and Development (EBRD), says the lender is not really looking atany projects in Romania at the moment, adding that the “big rush” in the renewablesector is over.

in the incentives system, Borgo said,“It is challenging at the moment.”

Energy needs more privateinvolvementIn the conventional sector, the bankersuggested that large energy projectssuch as the two nuclear reactors atCernavoda and the pumped-storagehydroelectricity plant at Tarnita-La-pustesti could be built through a pub-lic-private scheme as the risk forinvestors is high.

“Tarnita, for instance, would bevery interesting for the EBRD to lookat. The feasibility study I think wasdone many years ago, World Bank led,and now it is completely out of date.We do not know if it is relevant any-more, so a new feasibility study isneeded,” said Borgo.

“The EBRD cannot do nuclear.There was a lot of instability in nu-clear projects with the government,which has changed its mind over theyears, and a lot of the investors haveleft. You have to be consistent in whatyou are trying to do in order to keepthe investors interested,” he added.

The EBRD banker said that moreprivate sector investments are neededin the generation sector, but also inthe distribution field. He added thatthe initial public offerings in statecompanies help in this regard.

ovidiu.posirca @business-review.ro

EBRD’s renewable financing in Romania

Amount Date Project (EUR mln)

57* June 2014 Topolog-Dorobantu wind farm from Lukerg Renew

20 March 2014 Six solar farms (EDP Renovaveis)49 March 2014 Crucea North wind farm (STEAG GmbH)50** December 2012 Vutcani and Sarichioi wind farms (EDP

Renovaveis)91*** November 2012 Chirnogeni wind farm (Marguerite Fund,

EnerCap Power Fund and EP Global Energy)

36.7 July 2011 Pestera wind farm (EDP Renovaveis)57.4 June 2011 Cernavoda 1-2 wind farms (EDP

Renovaveis)

*A/B loans scheme, with EUR 38 mln under EBRD’s own account and the restthrough UniCredit**A-loan of EUR 20 mln from the EBRD and the rest syndicated to UniCredit BankAustria and Erste Bank on an equal basis***A/B loan scheme, with EUR 31 mln under EBRD’s own account and the restsyndicated to Erste Group Bank, ING Bank and UniCredit Bank Austria

Source: EBRD

Courtesy of O

MA Vision

Courtesy of N

obila Casa

NEW S 5www.business-review.eu Business Review | June 30 - July 6, 2014

IT

IFC and Black Sea Trade andDevelopment Bank becomeshareholders in Teamnet

∫ OTILIA HARAGA

Following the investment, the twonew investors will each hold 8.33 per-cent of the Teamnet Internationalshares by the end of the year.

In total, Teamnet has secured fi-nancing of EUR 25 million to supportits expansion strategy in Romania andthe region, according to company offi-cials.

“Romania is a country with high po-tential and remarkable opportunitiesfor innovation. Technology canchange and drive the development ofan economy; this is why we believethis industry is important and wesupport it all over the world,” said AnaMaria Mihaescu, head of the IFC mis-sion in Romania.

“The BSTDB has a strong invest-ment portfolio in Romania, based onagriculture, energy and SMEs, as wellas the micro-financing sector. Thebank is aiming to expand its opera-tional horizons by adding IT&C to thelist of investment priorities in Roma-nia. We are confident that our part-nership with Teamnet will providenew business opportunities that aremutually advantageous, both in Ro-mania and the Black Sea region,” saidMustafa Boran, vice-president of theBSTDB.

After the new investors’ entry intothe company’s shareholding structure,Bogdan Padiu’s direct and indirectparticipation in Teamnet groupstands at 51.69 percent, according toHotnews.ro.

A listing on the stock exchange ison the agenda over the next five-seven years, said company officials.

Teamnet announced that the com-pany’s turnover had grown by 35 per-cent in 2013, to EUR 71 million. By2016, the firm forecasts it will postrevenues of EUR 100 million.

Officials announced that the nextforeign branch that the firm will openwill be in Croatia.

Currently, Teamnet is rolling outprojects in another ten countries inthe region. Over the next four years, itplans to expand its footprint in Cen-tral and Eastern Europe, the Middle

East and North Africa. As part of thisstrategy, by 2018, Teamnet plans toexpand to 12 new markets includingPoland, Italy and Bulgaria, where itintends to develop projects in engi-neering, cloud, business process out-sourcing and unmanned aerialvehicles.

About 40 percent of the revenuesshould be generated by activities out-side the Romanian office by 2018.

Some 80 percent of Teamnet’stotal revenues come from IT projectsfor the public sector. The companyplans to grow the ratio of projects inthe private sector, so that the publicsector share will fall to 70 percentover the next five years.

Ymens, the cloud company be-longing to Teamnet group, has joinedforces with NEC Europe to delivercloud solutions to the public sector inRomania.

Teamnet has also relocated to anew headquarters in Green Gate,which hosts 600 employees, with lessthan 10 percent of the company’sheadcount working in other local andinternational locations. By the end ofthis year, the firm plans to reach 750employees.

otilia.haraga @business-review.ro

Two new shareholders, International Finance Corpora-tion (IFC), the investment division of the World Bank,and the Black Sea Trade and Development Bank(BSTDB), have acquired a minority share package inTeamnet, providing financing of EUR 5 million and EUR7.5 million respectively in long-term loans.

Bogdan Padiu, CEO of Teamnet Group

Courtesy of Team

net

6 NEWSwww.business-review.eu

Business Review | June 30 - July 6, 2014

STOCK EXCHANGE

Electrica IPO signals shift in nationalprivatization strategy

“We are talking about the biggestplan to list on the Romanian capitalmarket that has ever been carried out.I am satisfied with the subscription

level, which is a comfortable one,”said Razvan Nicolescu, delegate min-ister of energy, on Thursday morning.

The listing was carried out both inBucharest through shares and in Lon-don, through global depositary re-ceipts (GDRs).

“The Romanian state should aim tocollect more from privatizations,even though here (e.n. with the Elec-trica IPO) we are not talking aboutrevenues for the state,” said Nicolescu.

He explained that the capitalraised during the IPO will be used byElectrica to invest in the distributionbusiness, which generates the biggestshare of its revenues.

Nicolescu said he wanted to seeElectrica as the springboard for theimplementation of corporate gover-nance for all companies in which thestate has a controlling stake. The Eu-ropean Bank for Reconstruction andDevelopment (EBRD) is set to work

with the government on this process.

New privatization structureDumitrascu said that Electrica’s IPOwas something new for Romania, asup to now the biggest privatizationsin the electricity distribution havebeen done with strategic investors.

“I believe that the Electrica privati-zation will in time yield better resultsthan the previous privatizations,” hepredicted.

The government is now looking tolist the Oltenia Energy Holding, thecoal-based electricity giant, andHidroelectrica, the hydroelectricityproducer, which is currently in insol-vency.

Commentators noted that theElectrica IPO will take the local stockexchange one step closer to reachingemerging status.

ovidiu.posirca@business-review.ro

∫ OVIDIU POSIRCA

As BR went to press last week, it wasclear that the offering was oversub-scribed two times and that the gov-ernment was trying to increase thetranche for retail investors from 15percent to over 20 percent. The restwould be allotted to institutional in-vestors.

According to Gabriel Dumitrascu,head of the general department of pri-vatization and management of state-owned assets in the energy sector, 25percent of the subscriptions in thetranche of institutional investorswere from Romanian investors andpension funds, and for the first timefrom financial investment companies(SIFs). Investors in the UK had a 23percent share, while those in Polandand the US had 17 percent and 13 per-cent, respectively.

With the privatization of the Electrica Group, the state-owned power supplier and distributor, set to raise at leastEUR 435 million from an initial public offering that was concluded last week, the government has hinted it couldreplicate this model for the sale of controlling stakes in other companies.

Energetic: the IPO was oversubscribed

WHO’S 7www.business-review.eu Business Review | June 30 - July 6, 2014

Ovidiu Agliceru has taken over as general directorof Hidroelectrica, replacing MihaiStanculescu, who can no longerperform his duties for medicalreasons. Before the appointment,Agliceru was in charge of the com-pany’s energy production depart-ment. Agliceru, who graduatedfrom the Electro-technical Facultyat the Polytechnic Institute in Cluj-Napoca, has over 30 years of expe-rience in the energy industry.From 1999-2000 he was deputytechnical director at Hidroelec-trica’s HQ. In 2006 he was namedgeneral chief inspector and from2009 until 2013 he ran the internalaudit division. Between August andOctober 2013, Agliceru sat onHidroelectrica’s board of directors.

Theodor Alexandrescuformer CEO ofMetropolitan

Life Romania,will becomeCEO of MetLifeGolf, head-quartered inDubai, repre-senting fivecountries:Kuwait, Qatar,

Bahrain, Oman and the UnitedArab Emirates. Alexandrescu hasbeen part of Metropolitan Lifesince 1999, when he joined theteam as sales manager. He wenton to advance to chief marketingofficer and deputy chief executiveofficer until 2005 when he becameCEO of Metropolitan Life Romania.

Daniela Budureahas been re-appointed countrymanger of Western Union for Ro-mania and Bulgaria after a two-year stint in a senior managementposition for the company networkin Europe. Budurea will coordinateWestern Union operations on thetwo markets. She joined the firm in2012 in her current role, which sheheld for seven months before be-ing promoted to a regional level.Prior to joining the company,Budurea was group country man-ager at Angelo Costa Romania andled the Angelo Costa InternationalRomanian branch for over eightyears

Emilia Buneawill take over as CEO of Metropol-

itan Life Romania from TheodorAlexandrescu in July. Alexan-drescu has been running the localbranch of the insurance companyfor the past nine years. Prior to the

Czech Republic, Slovakia andKazakhstan.

Ioan Rusis the newtransport

minister. Heis replacingDan Sova, whoannounced hisresignationlast week. Rus,59, has been amember of the

Social Democracy Party (PSD)since 1994. Between 2000 and2004 he was an internal affairsminister in the Nastase govern-ment and in 2003 he served asdeputy prime minister. He was aprefect of Cluj county from 1996and in 2000 Rus became presidentof the county council, a position heheld until his appointment as in-ternal affairs minister.

Serban Stanoiuhas taken overas director ofacquisitionsfor Domo Re-

tail. With over15 years of ex-perience inacquisitionsand retail,Stanoiu is ex-

pected to develop the productportfolio according to market de-mands and Domo’s positioning.Stanoiu has worked for Domo be-fore, between 2005 and 2011, whenhe was chief product manager andthen retail manager.

Ivan Tomovis the newcountry man-aging directorof Baxter Ro-mania& Bul-garia, based inBucharest.The holder ofan MD degreefrom the Med-

ical University of Plovdiv, he had aten-year medical career in internalmedicine and gastroenterology,before joining the pharmaceuticalindustry some 15 years ago. Sincethen, he has held different posi-tions with increasing responsibili-ties at multinational pharmaceuti-cal companies. Tomov has workedas marketing manager with PfizerBulgaria, business unit managerfor oncology at Roche Bulgaria,and most recently, as of January2012, country manager of BaxterBulgaria.

WHO’S NEWS

appointment,Bunea workedas chief financialofficer for INGGroup, on theING InsuranceEurope segment,headquarteredin Amsterdam.Bunea, 44,started working

for ING in 2007, before which shewas deputy general director and CFOfor Interamerican Group (now Eu-reko Romania) between 2000 and2007. She is CFA certified on behalfof the CFA Institute US and has anexecutive MBA diploma from Wash-ington University, Seattle.

Calin DanArtist and art critic Calin Dan is thenew manager of the National Mu-

seum of Contemporary Arts (MNAC),having won the contest the Ministryof Culture organized to award the job.Dan graduated from the NicolaeGrigorescu Arts Institute ofBucharest, History and Arts TheorySection, and is known as an artist,arts critic, curator and museogra-pher. He was also a member of thesubREAL artist duo, founded in 1990,with Josif Kiraly. As a curator, Danhas produced numerous exhibitionsand was appointed director of theSoros Foundation’s Center for Con-temporary Art in Bucharest in 1992.Before the appointment, the mu-seum had two interim directors following the death of the previousdirector, arts historian and curatorMihai Oroveanu: Raluca Velisar, who held the position from September 2013 until March 2014and Liviana Dan, who managed the institution from March until Dan’s appointment.

Catalina Dodu was namedcountry managerfor Atos Roma-nia, the IT inte-gration servicesprovider. Shehas over tenyears of experi-ence in IT projectmanagementand was leading

the company’s system integration di-vision prior to her appointment ascountry manager. Previously, sheworked as director of product man-agement for Bitdefender. In her newposition, Dodu will take over thecompany’s local strategy, includingsigning new partnership contracts and expanding the client portfolio.

Mihai Gongucreative director of GMP Advertising,and Laura Iane, co-creative di-rector and art director at Saatchi &Saatchi Romania, will be on the sin-gle channel jury at the 21st Golden

Drum festival. The president of thesingle channel jury at this year’sGolden Drum is Andreas Pauli, chiefcreative officer at Leo Burnett Frank-furt. Mihai Fetcu, creative direc-tor of Geometry Global Bucharest,will serve on the multi channel juryat the festival.

Alina Georgescu has been ap-pointed sales di-rector of cloudbroker Ymens.She is an experi-enced IT profes-sional, havingspent over tenyears in thebusiness.Georgescu pre-

viously coordinated business devel-opment and sales strategies forGlobal Business Services and IBMRomania and Moldova. The first or-der of business after Georgescu as-sumes her new responsibilities willbe to launch a new cloud computingsolution, Ymens ECM, meant for en-terprise content management. She will develop the company’s commercial strategy and consolidate Ymens’s position on the cloud market.

Mona Opranchief operating officer at CentradeSaatchi & Saatchi, will serve on theEuro Effie festival 2014 jury. Theawards are pan-European, judgingon the basis of effectiveness. SinceApril 2013, she has been COO ofthree affiliated companies: Saatchi &Saatchi, Saatchi & Saatchi X andPantone.

Henk PaardekooperCEO of RBS Ro-mania, has ex-tended his re-sponsibilities,having been ap-pointed head ofCentral andEastern Europefor RBS.Paardekooperhas been country

executive of RBS Romania since 2012.His career consists of 25 years of in-ternational experience in corporate,investment and consumer banking.The additional countries for whichPaardekooper will assume responsi-bility are Russia, Turkey, Poland,

BR welcomes information for Who’s News. Submissions may be edited fo r length and clarity.

Get in touch at simona.bazavan@business-review.ro

8 INTERVIEWwww.business-review.eu

Business Review | June 30 - July 6, 2014

Bucharest’s leisure market starts to pick up

Back in the good old days, so to speak,meaning 2007 and 2008, Bucharestwas not attractive for the leisure market in terms of rates. So touristspreferred other destinations whichwere more price-friendly. Over thefollowing years things changed aspromotion and lower rates, triggeredby competitiveness, started to pro-duce effects. Bucharest has becomemore affordable and has the advan-tage of being a new destination formany markets. Accommodation ismore affordable and there are moreand cheaper flights to and fromBucharest.

What about the contribution of busi-

ness travel?

We have registered a slight increasecompared to last year which meansthat the growth we have been seeingsince the beginning of the year is gen-erated mostly by leisure. For example,today (e.n. Wednesday, June 18) our occupancy rate is above 90 per-cent and this comes both from gueststravelling for business and severaltourist groups. It is promising. Over the summer we expect a similarevolution given the number of reservations we have for touristgroups. And summer is a slow

period for tourism in Bucharest.

Is Bucharest an actual destination

for leisure tourists, or are they in tran-

sit?

Bucharest continues to act as a hub. Itis included in tours for organizedtravel groups. They stay in the city for one or two days and the rest isspent in the country – travelling toBrasov, Sighisoara, Sibiu or themonasteries to give just a few exam-ples. The capital is also included intours to Bulgaria.

Bucharest is not yet a city-break destination for individual travellers.There is still room for some more support for this, but if the trend ismaintained at the level of the pasttwo-three years, we may find that in a year or two we will be on the map of European city-break destina-tions.

∫ SIMONA BAZAVAN

Have market conditions for four- and

five-star hotels in Bucharest changed

since the beginning of the year?

Yes, there have been changes, andthis became noticeable last Septem-ber when the George Enescu Festivalwas held. Actually since Septemberlast year occupancy rates have in-creased to levels we hadn’t seen inyears. We are once again seeing occu-pancy rates of above 80 percent onweekdays. As a result, last year’s over-all growth was mainly generated bygood results in the last months of theyear. And this came in addition to thefact that September, October and No-vember are generally good months forthe industry. Last year we saw rev-enues go up by approximately 5 per-cent, but growth in the last quarterwas more consistent.

The beginning of this year has alsobeen good for business in spite of thefact that January and February areslow months in this industry. We andthe entire market reported growth.Generally, the market posted growthof 5 percent in arrivals and 8 percentin accommodation nights in the firstfour months of 2014. The averagedaily rate still has some catching up todo but there is good news in terms ofoccupancy. There is a higher volumeof tourists and as of last year rates alsobegan to stabilize and I expect themto pick up over the next period.

And where is this growth coming from?

In our case, it has come from an in-creasing leisure segment. And I amtalking mostly about foreign touristscoming from countries such as Israel,Germany, Spain, Portugal, Japan andthe UK. There was a 10 percent in-crease in the first four months of thisyear compared to the same period oflast year, underlining that Januaryand February are slow months, soMarch, April – and May – were mostlyresponsible for this.

Why are more tourists coming to

Bucharest?

Mainly, it is the result of some long-term efforts that are now bearing fruit.

After the Howard Johnson Grand Plaza Bucharest increased its business by approximately 4 percent last year,in 2014 the target is to at least double the 2013 growth, Sonia Nastase, the hotel’s general manager, told BR.Business travel has remained constant, meaning that growth is coming from increased tourism to the capital.

Has served as GM of Howard JohnsonGrand Plaza Bucharest since 2009. Her career in the hospitality industry goes back over 15 years, both in the operational area and inconsultancy.

Nastase began her career at WorldTrade Center Bucharest in 1996, asevent and international fair organizer,then moved on to sales and marketingat Athenee Palace Hilton Bucharestbetween 1997 and 2003. She laterjoined Howard Johnson Grand Plaza Bucharest where she served asdirector of sales and marketing fromthe opening of the hotel until 2006.Nastase later entered consultancy as senior associate at Trend Hospitality.

She is a graduate of the PolytechnicUniversity of Bucharest and of the Romanian-Canadian MBA program.

CV Sonia Nastase

Photo: M

ihai Constantineanu

INTERVIEW 9www.business-review.eu Business Review | June 30 - July 6, 2014

What are the top Bucharest destina-

tions you would recommend to a for-

eign tourist visiting the capital for the

first time?

There are many places and a lot of ac-tivities to do. First of all, I would rec-ommend the Old Center, which looksgreat and is similar to what can befound elsewhere in Europe. Then, Iwould recommend the Romanian Vil-lage Museum and the Museum of theRomanian Peasant, which are greatplaces to see and there aren’t manysimilar ones abroad. The city bus touris also a good option. At the weekendI would recommend several clubs.There are art galleries to see, such asGalateca. And besides all this, thereare all sorts of events taking place – art,cultural and street events such as therecent Street Delivery. Marathons arealso popular among foreigners. Allthis gives Bucharest a dynamic andvibrant feel.

What is the ratio between leisure and

business travel in the hotel’s accom-

modation?

In the year-to-date, business travelgenerated 40 percent of the totalroom nights, events and conferencesgenerated 15 percent and the restcomes from leisure. Leisure has in-creased its share since last year. Again,this came from a higher number ofleisure tourists and not by drops inthe other segments. The market mix

is changing and the outcome is posi-tive. For example, at industry level,between January and May the aver-age daily rate was down by 4 percentdue to a higher number of leisuretourists, but occupancy was up 15percent. This led to the revenue peravailable room increasing by 10 per-cent.

As the contribution made by busi-ness travel is the highest and has lim-ited room to grow, the mainopportunity was for leisure and theMICE industry (e.n. meetings, incen-tives, conferences and events), twomarkets which have not yet reachedtheir full potential for growth.

Health tourism is another opportu-nity because of lower costs. We arecurrently looking into this. And weare also looking at new markets andtargeting Asia, Latin America and theNordic countries. We want to developthese markets by attending trade fairsand creating packages for agencieswhich are themselves focusing onthese markets. Already there are pos-itive signs.

The hotel industry is complaining that

the local MICE market is considerably

underdeveloped. Do you see things

changing?

It is very far from reaching its poten-tial. MICE represents a huge opportu-nity and there is room for growth.Someone travelling for an event such

as a conference will spend more thana tourist travelling for leisure. At EUlevel, a MICE participant spends anaverage of EUR 430 per day, whereasin Romania the figure stands at EUR250, according to some market re-ports.

There have been more events thanin previous years, but these werestrictly connected to EU affairs andwere mostly conferences organizedby the authorities. In the private sec-tor, there haven’t been events such ascompany-organized congresses aswas the case a few years back. Therearen’t high-capacity event halls inBucharest. The good news is thatlately there has been some promotionof Bucharest as a MICE destinationand several companies are relocatingadministrative activities to Romania.In time all this should produce effectsand we should see more MICE activ-ity.

What was the hotel’s turnover last year

and did it post a profit?

It was around EUR 8 million, up by 4percent against the previous year. Outof the total revenues, about 55-60percent was generated by accommo-dation and the rest by food & bever-age.

So far this year, revenues are up by8 percent and we expect this trend tocontinue to yearend. We won’t havethe George Enescu Festival this year

but given that growth has been stableso far, this should not be a problem.

Yes, we’ve been posting a profit.

How has the hotel’s occupancy evolved

so far this year?

In May and June, on weekdays, occu-pancy increased to around 80 percent.It drops to approximately 40 percentat the weekend. For the whole of 2013it stood at around 50 percent. Thisyear we are heading towards 60 per-cent.

To sum up, what are your objectives

this year?

To keep up the good work we’ve beendoing as a team, to strive for morevalue added in services delivered tocustomers and to continue to add in-novation and the personal touch inour hospitality services.

We will remain consistent in ourapproach to strategy in the last threeyears and we will keep focusing pri-marily on adaptability and prompti-tude in dealing with our customersand partners, as well as maintainingstandards of service delivery at the operational level. The prospect of profitability is still closely linked to our ability to develop new segments of customers, keeping and increasing the potential alreadyin the portfolio.

simona.bazavan@business-review.ro

10 FOCUSwww.business-review.eu

Business Review | June 30 - July 6, 2014

China aims to fill key local energy projects’ financing void The Industrial and Commercial Bank of China (ICBC), the world’s biggest lender with EUR 3.2 trillion in assets,last week signaled its interest in financing large energy and infrastructure projects in Romania following discussions with the government. The country has been struggling for years to find backers for these projects,worth over EUR 10 billion, following a lukewarm response from European banks.

∫ OVIDIU POSIRCA

Ovidiu Chiorean, the managing partnerof Crosspoint Investment Banking,pointed out that ICBC’s financing intention was a “natural step” given theinterest of Chinese companies in devel-oping Romania's infrastructure.

Romania intends to start buildingtwo more nuclear reactors seven yearsafter the second one became opera-tional in Cernavoda. Although the gov-ernment had managed to attract aconsortium of six large utility firms backin 2008, the investment agreement wasdropped at the end of 2013, when utilityfirm Enel and steelmaker ArcelorMittalannounced their withdrawal from theproject. They were the last ones to selltheir minority stakes in the project com-pany EnergoNuclear.

Chinese want firm guaranteesAccording to Robert Ghelasi, managingpartner of Energie Finanzierung undKapital (EFK), which specializes in in-vestment banking services for the en-ergy sector, European banks could havefinanced the reactors if the consortiumhad not disintegrated. He said that theutility firms would have worked withtheir own banks on the project.

“Whoever is investing now in energydoes not have all the elements. You can-not make a clear business plan. Themarket needs to stabilize and become

more predictable,” said Ghelasi. He sug-gested that the local market could be-come attractive to Western banks onceRomania fully deregulates electricityprices for households (which should becompleted by 2017) and further govern-ment stakes in energy companies aresold. Commentators noted that Chinesecompanies are tough negotiators, look-ing to obtain clear guarantees that theirinvestments will be recovered.

“The state does not grant any guaran-tees (e.n for any company) entering Ro-mania, so we do not have this conceptof guarantees for investors. In short,there are state aid schemes for variousindustries, including for renewable en-

ergy (green certificates), and this is whatthe state provides,” Georgiana Singurel,associate partner at Reff & Associates,the legal arm of professional servicesfirm Deloitte Romania, told BR.

So far Chinese energy companieshave ventured into the Western Balkans,investing in countries that are not EUmembers. These states can offer gov-ernment guarantees because there is norisk of them being declared illegal stateaid, according to Valeriu Binig, director,financial advisory services/energy & re-sources/corporate finance at DeloitteRomania.

British model for nuclear financingChina General Nuclear Power Corpora-tion (CGN) is the only potential investorthat has made public its interest in de-veloping two nuclear reactors at Cer-navoda, which would require aninvestment of around EUR 6.2 billion.The Chinese company has extended theletter of intent with state nuclear pro-ducer Nuclearelectrica for this projectuntil December 2014.

Dragnea said the new reactors wouldbe built using Canadian technology. Thetwo operating Candu 6 reactors have acombined capacity of 1310MW andcover close to 20 percent of Romania’sannual electricity consumption. Theproposed investment should double thecapacity.

Ghelasi said that Chinese banks lookto provide cheap finance to projects de-veloped by Chinese companies. “Theirequipment is usually financed at low in-

terest rates, close to 0. It is less based onefficiency, and more on the fact thatthey can export equipment from China.”

He added that it was surprising thata Chinese lender was willing to financeprojects using Canadian technology.

CGN is also minority shareholder inthe Hinkley Point C nuclear project inthe UK alongside China National Nu-clear Corporation. The two reactors willbe built by France’s EDF Energy and areexpected to cost around EUR 20 billion.The deal is based on a contract for dif-ference, similar to a feed-in tariff. EDFis set to receive GBP 92.5 billion for eachMWh for 35 years. If wholesale electric-ity prices fall, the government will coverthe difference, and if they exceed thislevel, the investor will have to pay thesurplus back to the government.

“Romania is carefully watching howthe contract for difference proposalfrom Hinkley Point (e.n pans out),” saidBinig of Deloitte.

Last year, the European Commission,the executive arm of the EU, started aninvestigation into whether EDF’s con-tract for difference breached state aidlegislation. The Commission said thatEDF would receive as much as EUR 22billion in support above the buildingcosts during the lifetime of the project.

China seeks to build strategicrole in CEELast November, Bucharest hosted an in-vestment forum that gathered top-ranking Chinese officials, includingPrime Minister Li Kegiang, and hiscounterparts from 16 CEE-based coun-tries. China announced it had securedgovernment-related loan agreementsworth USD 10.9 billion with Romaniasince November, making it the biggestpotential investment destination in theregion.

Aside from the nuclear projects, theAsian country inked a raft of memo-randa with the Romanian governmenton projects such as the high-speed rail-way linking western Romania with Con-stanta, at an estimated cost of EUR 11billion, and the pumped-storage hydro-electricity plant in Tarnita-Lapustesti,which would require an investment ofaround EUR 1.2 billion. Since November,Romanian ministers have been on offi-cial visits to Beijing to negotiate the in-vestments.

ovidiu.posirca@business-review.ro

China investments in CEEdeal value (USD bln)

Source: Grisons P

eak

Valeriu Binig director, Deloitte Romania

Robert Ghelasi managing partner, EFK

Photo: M

ihai Constantineanu

FOCUS 11www.business-review.eu Business Review | June 30 - July 6, 2014

Cluj-Napoca leads regionaloffice market rankingOver 60,000 sqm of modern office space will be delivered this year outsideBucharest, the bulk of which, more than 50,000 sqm, will be in Cluj-Napoca.

∫ SIMONA BAZAVAN

With its large and well trained laborforce, good infrastructure and attrac-tive occupancy costs, Cluj-Napoca, Ro-mania’s second largest city, has grownto become the second most attractivehub after Bucharest for BPOs and SSCs,say real estate representatives. The of-fice market is keeping up with the risingdemand and this year should see thedelivery of more than 50,000 sqm ofmodern office space, which is theequivalent of almost half of the city'sexisting stock.

“Demand is coming from companies

that are already present in Cluj-Napoca,companies which are familiar with thecountry, the city, the local mentalityand legal system. So it is organic growth.They either expand their existing de-partments or they relocate new activi-ties here,” Romanian businessmanOvidiu Sandor told BR. This May, heand real estate investment fund NewEurope Property Investments (NEPI)delivered the first building of The Office,a class A project in the city's downtownarea. EUR 26 million was invested inthe first phase (in 19,000 sqm of builtarea) and the owners are now gettingready to start the second phase (18,000sqm). The total project will feature54,000 sqm and should be completedby 2016. Sandor, who is a shareholderand the president of Moda-Tim, is alsothe developer of the City Business Cen-tre office project in Timisoara, which hesold to NEPI in early 2012 for an esti-mated EUR 90 million.

In addition to The Office, 2014should also see the delivery of UnitedBusiness Centre Tower (10,000 sqm)from Iulius Group, the second phase ofLiberty Technology Park (13,400 sqm)by Fribourg Development and the sec-ond phase of Cluj Business Center(8,000 sqm) from Felinvest, accordingto JLL data.

Given the huge demand for officespace, from existing firms looking toexpand as well as from newcomers, themarket will absorb all this, believesSandor. And it is the attractiveness ofthe local labor pool that keeps bringingin new business. “Foreign companiescome to cities like Bucharest, Cluj-Napoca or Timisoara because of theirhuman resources. And Cluj-Napocahas 50 percent more college graduatesthan Timisoara, for example. This mat-

ters, as does the fact that according toa report, about half of these graduatesplan to remain in the city after com-pleting their studies, compared to only20 percent in Iasi, for example,” headded. In addition to this, the city hasgot a lot of good publicity over recentyears and has managed to earn itselfthe image of a dynamic business desti-nation.

And while the capital continues toget the lion's share in terms of newbusiness, there are signs that things arechanging. “Bucharest is no longer bydefault the first option for investors.And there are two reasons for this. Firstof all, the labor force is about 30 per-cent more expensive than in Timisoaraor Cluj-Napoca. Secondly, in thesecities staff turnover is lower than in thecapital. There is a different mentalityhere,” outlined Sandor.

In the future, the businessman ex-pects Cluj-Napoca and other cities inRomania to continue to attract compa-nies active in the IT sector and engi-neering, meaning all technical areasexcept IT. “The service sector is alsostrong in Cluj-Napoca. These are themain areas where we think we will seemore players. And I also think therewill be more American investors. Cluj-Napoca already has a stronger Ameri-can presence than Timisoara. Iwouldn’t be surprised to see moreAmerican investors come to Cluj-Npoca,” he concluded.

simona.bazavan@business-review.ro

Cluj moves: phase two of The Office in Cluj-Napoca, a class A project, is due to start soon

More on business opportunitiesin Cluj in this week’s dedicatedsupplement.

Cluj-Napoca office market l Modern office stock (class A and

B): 119,000 sqm*l Class A office space: 51% of total

modern stock, the rest is class Bl Modern office buildings: 19l Modern office space per 1,000

capita: 367 sqml 2014 pipeline: 4 projects totaling

over 50,000 sqm (GLA)l Headline rents: EUR 12-EUR

14/sqm/month (class A), belowEUR 10/sqm/month for lower quality office space

l Service charge: EUR 2-3.5/sqm/month

l Lease period: typically 3-5 yearsl Vacancy rent: below 10% for class

A office space*as of May 2014Source: JLL Romania

Photo: M

ihai Constantineanu

SMES

Business Review launchessecond edition of The PracticalGuide for SMEs

Business Review has launchedthe second edition of The Prac-tical Guide for SMEs, a 32-page

booklet designed to provide a collec-tion of helpful insights on the mainarea of interest for small and medi-um-sized enterprises.

This 2014-2015 edition of the guidecovers such topics as cash flow man-agement and financing options avail-able to this business sector; HR strate-gies with a focus on employee reten-tion and developing a company cul-ture; real estate solutions adapted tothe needs of SMEs; IT solutions; andthe benefits of getting involved in cor-porate social responsibility.

The guide features an introductoryinterview with Anca Laura Ionescu,state secretary at the Department forSMEs, outlining the main measuresthat should be taken in support ofsuch companies. Commenting onsome of the challenges facing localSMEs, the state secretary says, “Com-mon to both our country and otherEU members […] are: frequent changesin the legal and administrative frame-work; difficult access to financing,guarantees, markets and innovation;burdensome taxes, authorizations andlicenses, in addition to a long periodtaken to obtain them; lack of qualifiedworkers and an under-developed en-trepreneurial culture.”

The guide is available to BusinessReview subscribers. ∫

12 CITYwww.business-review.eu

Business Review | June 30 - July 6, 2014

Cooling off at Bucharest’sswimming pools

OANA VASILIU

The capital is not awash with placesto take a dip, so we have put togethera list of resorts which offer a goodsplash, where you can unwind with arefreshing cocktail or sate your post-swim hunger with a bite to eat.

In south Bucharest, approximately6,000 pool lovers per year use thewellness facilities of Daimon Club,which has an indoor swimming poolinaugurated in 2005, and an outdoorone in use since 2008, says AncaIvanov, the club’s PR & marketing co-ordinator. The number is expected torise by another 500, for all facilities,including the wellness club, restau-rant, tennis court, football pitch andthe club zone, added Ivanov.

The other side of the city, in thenorth, at Pescariu Sports & Spa, theswimming pool was opened in 2012,and is considered one of the mostmodern and luxurious pools inBucharest, with various facilities andspecial sections, says ValentinaVasilescu, the club’s marketing man-ager. As summer season started laterthan expected, Pescariu Sports & Spaestimates growth of only 10-15 per-cent in the number of pool clients thisyear.

Moreover, the latest pool in townis also situated in the north. VitalityWellness Club, from Ramada Hotels,has already sold 300 subscriptions forthe whole facility, with another 500still available, says Ben Yehuda, gen-eral manager of Ramada Plaza andRamada Parc. At Vitality, the indoorsemi-Olympic pool is cleaned with or-ganic chlorine which club officials sayis made from salt and is not harmfulto the body. In mid-July the outdoorpool will also be opened.

Aqua Garden Militari ResidenceAddress: 70 Rezervelor Street, Rosu,Ilfov Over 900 sun beds await guestsaround the two outdoor swimmingpools near Bucharest, along with fa-cilities for children such as a play-ground and baby pool. The tropicalbar sells fruit juices and the restau-rant serves both Romanian andMediterranean food.

Club FloreascaAddress: 1 Mircea Eliade BlvdThe resort, situated in a quiet area ofBucharest, has an indoor poolequipped with a state-of-the-art waterfiltration and heating system. It has aspecial area for sun bathing, if you wanta natural tan, and there are also facili-ties for children. The entrance fee isRON 80 per day, and one, three, six-month and one-year subscriptions areavailable.

Club SnagovAddress: 1B Nufarului Street, SnagovSat, IlfovIf you want to be in water while you re-hydrate, try the palm tree-adornedSnagov Club Pool Bar. About 25 min-utes away from Bucharest, the barserves a range of cocktails which you can also enjoy on one of the chaise-longues, amid palms, music and fun.

Crowne Plaza HotelAddress: 1 Poligrafiei BlvdIn the north of the city, the hotel boastsa relaxing indoor heated pool, whichcomes with a summer terrace sur-rounded by greenery, and chaise-longues where you can sunbathe. Theentrance fee is RON 65 from Monday toFriday. Subscriptions also include ac-cess to the gym, sauna and massagearea.

Daimon Wellness ClubAddress: 10 Calea Piscului StreetThe club awaits its visitors with twoswimming pools, outdoor and indoor.A day pass costs RON 60 at weekends,or RON 40 from Monday to Friday. Ifyou want to get in shape for your sum-mer holiday, there is also fitness, spinand a sauna. Ask about the discountsfor family members and children.

DivertilandAddress: 1st Divertismentului Street,A1 Bucharest-Pitesti highway, km 13,077040, Chiajna, IlfovThis place promises food courts, inflat-able tubes, sun beds, lockers, cleanwater, a team of lifeguards and first aidunit, plus shops and an ATM.

Children can have some aquatic funat the Elephant Springs or the HippoPool, while adults brave the waterslides, the Rainbow Tower, Waterfalland Kilimanjaro.

If you’re in the mood for more ex-treme pursuits, try Bungee Dome – thejumper attraction. Entrance costs RON50 on weekdays, RON 80 at weekends.Subscriptions come with discounts.

Pescariu Sports & SpaAddress: 3 Glodeni StreetSince opening in 2012, this place has es-tablished itself as one of the most mod-ern and luxurious pools in Bucharest,with a Jacuzzi, fun jets and illuminationsystems, as well as a VIP area, restau-rant and bar zone and other facilities. Aday pass costs RON 60 on weekdays,and RON 100 at weekends, while theVIP zone charges RON 300 and RON450 respectively.

Saftica ResortAddress: DN 1 road, Saftica village,IlfovA three-ring swimming pool for totalrelaxation 10 km from Bucharest, theAqua del Mar pool offers leisure, play and swimming zones, but themost indulgent option is to get a cock-tail from the pool bar and enjoy it on aninflatable. Prices go from RON 20 toRON 40.

Strandul TineretuluiAddress: 1 Primo NebioloThe pool is situated in the Kiseleff zone,

Summer is officially here, although one might not think so judging by the weather over the last couple of weeks.But with the rainy period hopefully behind us, BR brings you a selection of better places to get wet as the mercury rises – Bucharest’s top swimming pools.

on a secluded street that leads you to asummer hot spot. Entry fees are prettylow for the area, at RON 20 from Mon-day to Friday and RON 30 at weekends.The swimming lessons are a popularoption.

Vitality Wellness ClubAddress: 3-5 Poligrafiei BlvdVitality Wellness Club is the latest facility to open up in the north ofBucharest from Trend Hospitality, in-cluding an indoor semi-Olympic pool, afitness room, dry sauna and wet sauna.In mid-July an outdoor pool, children’splayground, all-season Jacuzzi, relaxation zone with 80 sun beds and a terrace will join the mix. Membership packages run fromEUR110/daytime/month to EUR1,090/full-time/year.

WaterparkAddress: 255A Calea Bucurestilor,Otopeni, Ilfov, near Otopeni AirportOffering unlimited splashing fun, Racer,Twister, Turbo Slide, Kamikaze, SuperRide and Splash Crash are the tubes rec-ommended by Rino, the water park’smascot.

The ideal destination for a day ofwet and wild fun in the sun.

oana.vasiliu@business-review.ro

Going swimmingly: dive in and cool off in the capital

Courtesy of Vitality W

ellness Club

CITY 13www.business-review.euBusiness Review | June 30 - July 6, 2014

Chipping in: activists help revitalize Constanta’s casinoThe Art Nouveau building standing on a promenade beside the Black Sea looks grandiose, but as one gets closer,the home of Casino Constanta reveals itself in a sad and unexpected way: broken windows, curling paint andrusty railings, not to mention the dilapidated interior. BR found out how the NGO Calup is trying to spruce up themajestic edifice, with the help of the public through crowd-funding.

OANA VASILIU

Originally commissioned by KingCarol, it became a symbol of thecoastal city soon after 1910. But itsglory days were not to last. During theSecond World War, the building wasused as a hospital, then under thepost-war communist regime, it oper-ated as a restaurant. By 1990, the placewas too expensive to maintain and thebuilding has been closed ever since,deteriorating day by day.

But perhaps not for much longer. “Imet a local counselor in Constantawho showed interest in our idea, andthen I devised a project draft that wasapproved a few months later. We havea signed agreement with the munici-pality of Constanta where we get ac-cess to the space and the right toorganize a cultural event inside thecasino, besides support for reconnec-tion to water and electricity,” says Cris-tiana Tautu, co-founder of Calup.

A group of activists promotingurban regeneration, Calup has starteda crowd-funding campaign to save theedifice, opening the casino from Au-gust 1-10 for a packed indoor culturalprogram. The NGO wants to re-estab-lish the iconic status of the building fora wide audience, and show that its re-opening has strong public support. Itis seeking to provide a safe venue forpublic events and halt the further de-cline of the building, create an educa-tional and cultural platform, make thevenue an urban and social catalyst,and return to the casino its status as anational landmark.

The updated list of certified monu-ments, released by the Ministry of Cul-ture in October 2010, moved thecasino into category A, meaning that itis a national heritage building. “Thecity of Constanta, including also theresort of Mamaia, is home to 154 listedmonuments, according to the Ministryof Culture, but the number is surpris-ingly small for the age and the impor-tance of the town,” added Tautu.Additionally, she told BR that the min-istry was interested in a dialog withCalup NGO about the casino, but theNGO has not yet requested any type offunding.

The CaziNOU programFor ten days, activists will put thebuilding back on the cultural scene.

During the day, the casino will open itsdoors to the public, providing the set-ting for workshops and other activitiesfor visitors of all ages. In the eveningthere will be jazz concerts, film screen-ings, theater and ballet shows, classi-cal and electronic music, allaccompanied by projections on thecasino façade. Visitors will be able toenter the casino, where they will begiven information about its historyand learn the hidden stories of thissymbolic building, which will be toldin an alternative manner through artis-tic installations and interactive educa-tional material.

Costs of the faceliftAccording to Calup, essential works in-clude securing areas currently in a crit-ical state, fixing the holes in the floorsand roof and reconnecting the build-ing to electricity and water mains.

The costs of sanitization and halt-ing the deterioration of the structure reach about EUR 10,000. To help raise this sum, the public can donatethrough the crowd-funding platformwww.crestemidei.ro. By the time BRwent to print, the sum raised was al-most EUR 2,400 from 108 supporters.Individual donors can choose fromvarious packages offered by the organ-izers, from handbags and t-shirts toone’s name on a donor’s plaque at thecasino entrance.

oana.vasiliu@business-review.ro

Lucky streak: Casino Constanta opened its doors in 1910, and with its size, seasidelocation and marine-themed decor was a big hit with the well heeled

Shipshape: the CaziNOU project is seeking to restore the flagship coastal building to its former glory

Courtesy of C

alupC

ourtesy of Calup

14 CITYwww.business-review.eu

Business Review | June 30 - July 6, 2014

FOUNDING EDITOR Bill AveryPUBLISHER Anca IonitaEDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - seniorjournalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai ConstantineanuLAYOUT Beatric e Gheorghiu ART DIRECTOR Alexandru Oriean

EXECUTIVE DIRECTOR George MoiseSALES & EVENTS DIRECTOROana MolodoiSALES & EVENTS

Sales managers: Ana-Maria Nedelcu,Oana Albu, Raluca ComanescuMARKETING

Ana-Maria Stanca, Ana Maria Andrei,Iulia MizganPRODUCTION Dan MitroiDISTRI BUTION Eugen Musat

PUBLISHERBloc Notes Media ADDRESSNo. 10 Italiana St., 2nd floor, ap. 3Bucharest, Romania LANDLINEEditorial: 031.040.09.32Office: 031.040.09.31EMAILSeditorial@business-review.rosales@business-review.roevents@business-review.ro

ISSN No. 1453 - 729X

George Enescu Square,

Hanul Gabroveni

July 2-6

Curated by pianist Lucian Ban,Bucharest Jazz Festival (BJF) joins theinternational circuit this year, after itsmembership application to the pres-tigious Europe Jazz Network was ap-proved. The festival is produced by theCenter for Cultural Programs of theCity of Bucharest.

The network includes 93 organiza-tions in 29 countries that aim to en-courage, promote and support cre-ative improvised music in a broadEuropean perspective.

“From true legends of jazz such asthe Dave Douglas Riverside Quartet,to Carmen Lundy, one of the America'smost celebrated contemporarysongstresses, and John Scofield, oneof the three greatest jazz guitarists ofour times, BJF 2014 puts Buchareston the European jazz map. A highlightof our festival is a renewed focus on

the Romanian jazz scene featuringsome of the best local artists from allgenerations,” said Ban.

Legendary and contemporary masters of music are readying them-selves to take to the stage at thisyear’s festival. The famous trumpeterDave Douglas will be headlining aspart of his quartet Riverside Quartet,alongside other major names of mod-ern jazz, such as Lundy, John ScofieldÜberjam and the Julia HülsmannQuartet.

For five days, the main stage inGeorge Enescu Square will also begraced by some of the top musicianson the local jazz scene. SaxophonistAlex Simu, known for his world musicprojects (ARIFA), returns as the leaderof an authentic jazz combo.

A special Romanian project,Bucharest Jazz Orchestra is led by

trumpeter Sebastian Burneci. The fes-tival stage will also host a true post-punk jazz group, in the form of MihaiIordache’s septet.

Other highlights include RomanianJazz Collective, the first ensemblededicated exclusively to the Romanianjazz songbook, a modern reinterpre-tation of classical compositions by Richard Oschanitzky, Johnny Răducanu, Marius Popp and manyothers.

Bucharest Jazz Festival 2014 willalso feature special events, such asbook and disc launches, the jazz onfilm series, meetings and debates, anda jazz poster exhibition, which will takeplace at the recently restored locationof Hanul Gabroveni in the Old City Center.

oana.vasiliu@business-review.ro

DON’T MISS / BUCHAREST JAZZ FESTIVAL

July 2 20.00 – Iordache

Iordache plays jazz, funk and free improvisations,guided by the laws of hazard.Saxophonist Mihai Iordacheformed the band in 2003.

21.30 – Bucharest Jazz

Orchestra

Led by the trumpet player Sebastian Burneci, BucharestJazz Orchestra is an instrumental ensemble of topmusicians from all over Romania, as well as Italy \andthe Republic of Moldova.

July 320.00 - Mike Krstic TRIO feat.

Johnny Bota & Ioan Minda

Serbian pianist MikeKrstic, Romanianbass playerJohnny Botaand Austriandrummer

Ioan-Radu Minda make upthis much loved combo, giving jazz standards a classychamber refinement.

21.30 - Julia Hülsmann

Quartet

Pianist JuliaHülsmannand her trio,which includesbass playerMarc Muellbauer

and drummer Heinrich Köbberling, have been shaping German contemporary jazz for the past 17 years.

July 420.00 - Ana-Cristina Leonte

Quintet

This newgenerationquintet includessome of themost interestingnames on

today’s local jazz scene: saxophonist Alex Munteanu,pianist Albert Tajiti, doublebassist Michael Acker anddrummer Tavi Scurtu.

21.30 – Dave Douglas

Riverside

Quartet

The quartetis co-led bytrumpeterDave Douglas andChet Doxas,

on clarinet and tenor saxophone, with a rhythmsection comprised of bassist Steve Swallow and Jim Doxas on drums.

July 520.00 - Romanian Jazz

Collective featuring Sorin

Romanescu

Started by saxophonistCătălin Milea, the RomanianJazz Collective group explores the song book of local jazz, inspired by bothflagship compositions andlesser known national genres.

21.30 - Contemporary Jazz

Masters Carmen Lundy

With a career goingback overthreedecades,CarmenLundy is aclassic jazz

singer with an adventurousstyle and an imposing, fluidand mobile voice.

July 620.00 - Alex Simu Quartet

Romanianclarinet andsaxophoneplayer AlexSimu is oneof theyoungest innovators

of the music he creates andplays, as well as of his owninstrument. The Alex SimuQuartet channels a reflectionon the present, a perfume ofthe past, and a glance towards the future.

21.30 - Contemporary Jazz

Masters John Scofield

Uberjam

The artist isconsideredto be one ofthe threegreatest jazz guitarplayers ofour times,

along with Pat Metheny andBill Frisell.

Lucian Ban, curator of the festival

Program