The Romanian Government approved, in its meeting on Thursday, at the proposal of the Ministry of Finance, the draft Decision to supplement Government Decision no. 1204/2022 on the establishment, organization and operation of the Investment and Development Bank (IDB, BID), in order to authorize Romania’s participation, through the IDB, in the Infrastructure Fund of Funds of the Three Seas Initiative, with a contribution of 50 million euros. The priority areas of financing are energy and sustainability, transport, digital infrastructure and social infrastructure.
According to a press release from the Ministry of Finance, the normative act aims to strengthen Romania’s involvement in regional investment mechanisms dedicated to the development of strategic infrastructure and supporting economic growth.
In this regard, the project creates the necessary legal framework for the IDB to make, on behalf of and on behalf of the Romanian state, an investment contribution of up to 50 million euros to the new regional fund.
“Strengthening Romania’s presence in the Three Seas Initiative through the Investment and Development Bank is a strategic step. We aim to mobilize private capital and direct resources towards projects with major impact in energy, transport and digital infrastructure, while guaranteeing efficient management through the partnership with the EIF,” said Finance Minister Alexandru Nazare.
According to the cited source, the Three Seas Initiative Infrastructure Fund of Funds is designed as a “fund of funds” structure, managed by the European Investment Fund, with the aim of mobilizing private capital to finance infrastructure projects and reduce the investment deficit in the region.
The Ministry of Finance specifies that Romania’s participation in this financial instrument represents a continuation of its involvement in projects developed under the umbrella of the Three Seas Initiative, following the investments made through the IDB in the Three Seas Initiative Investment Fund and the Three Seas Initiative Innovation Fund.
According to the institution, Romania’s involvement in the new fund will contribute to the mobilization of additional financial resources for strategic infrastructure projects and will support the development of regional connectivity, economic competitiveness and the attraction of investments in the participating states, including Romania.
The management of the fund by the European Investment Fund ensures the application of high standards of governance, analysis and monitoring of investments, contributing to the efficient use of invested capital and the prudent management of investment risks, the Ministry of Finance also indicates.
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