The Three Seas Initiative Investment Fund has generated investments of approximately 255 million euro in the Romanian economy, and the cumulative impact on Romania’s GDP is estimated at 1.8 billion euro in the period 2020-2035, according to the Fund’s impact report, published on Tuesday.
“The first impact report on the Three Seas Initiative Investment Fund (3SIF) highlights its significant contribution to the economic development of the Central and Eastern Europe region, including Romania, by mobilizing investments and creating new jobs,” a statement quoted by Agerpres said.
The publication of the report follows discussions and priorities reaffirmed at the 11th Three Seas Initiative Summit, held in Dubrovnik, Croatia, where topics related to the development of infrastructure, connectivity and regional economic competitiveness were addressed, the cited source states.
“Starting with 2025, the Investment and Development Bank actively contributes, on behalf and for the account of the Romanian state, to the evolution and impact of the Three Seas Initiative Investment Fund in the region and in Romania,” the document also states.
According to the cited source, the IDB is currently involved in other investment vehicles developed under the aegis of the Three Seas Initiative, the Innovation Fund and the Infrastructure Fund of the Three Seas Initiative, respectively
“For Romania, the Three Seas Initiative Investment Fund represents an investment with solid results. Currently, the fund has generated investments of approximately 255 million euros in the Romanian economy (equity and additional capital), with a total potential impact estimated at approximately 1.24 billion euros in investments over the life of the fund. Compared to Romania’s contribution to the Fund, made through the IDB, of 20 million euros, these results highlight the fund’s capacity to transform limited public resources into a significantly higher volume of investments and economic activity,” the statement states.
According to an independent analysis by Ernst and Young, the Fund has already generated a cumulative impact on regional GDP of €1.7 billion over the period 2020-2025.
Estimates indicate that in the period 2020-2035, in 10 countries, the Fund will generate a cumulative impact on GDP of €9.4 billion, of which €1.8 billion in Romania. At the same time, the Fund will generate, according to the report, cumulative tax revenues of €2.3 billion over the period 2020-2035, in the Three Seas Initiative countries, the document shows.
The average annual contribution to job creation in the European Union member states is also estimated at over 10,000.
These results demonstrate the capacity of funds supported by development banks to mobilize private capital and generate significant investments, even with relatively low initial public contributions.
At the same time, the Fund shows that regional strategic objectives can be achieved in parallel with a solid investment mandate.
The Fund currently supports five companies active in strategic sectors such as energy, digital infrastructure and transport. Of these, three companies are present in Romania, contributing to the development of railway and energy infrastructure, including through renewable energy production projects and battery energy storage solutions (BESS).
The Investment and Development Bank is the only development bank 100% owned by the Romanian state, through the Ministry of Finance. Created at the end of 2023, through the National Recovery and Resilience Plan, the IDB contributes to the creation of a sustainable and prosperous economic environment, ready to face future challenges and changes.
The IDB’s mission is to support economic and social development, economic competitiveness, innovation, sustainable economic growth and achieving climate neutrality in order to remedy financial market failures.
The Three Seas Initiative is a political and economic platform that brings together 13 European Union Member States located between the Adriatic, Baltic and Black Seas. The basic principles of the Three Seas Initiative are to promote economic development, increase cohesion at European level, and strengthen transatlantic ties. Romania has been a member of the Initiative since 2016, hosting the first Business Forum of the Initiative in 2018.
The 13 Member States of the Initiative are: Austria, Bulgaria, Croatia, Czech Republic, Greece, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. The Initiative has the following associated Member States: Ukraine, the Republic of Moldova, Albania and Montenegro.