97813 Project Prioritization for 2014-2020 Romania The City of Alba Iulia Regional Development Program 2 Project Prioritization for 2014-2020 The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views and position of the Executive Directors of the World Bank, or the Municipality of Alba Iulia. Romania The City of Alba Iulia Regional Development Program 2 Table of Contents Acknowledgements ....................................................................................................................................................... 4 The Citizens’ Priorities .......................................................................................................................................... 73 List of Acronyms ........................................................................................................................................................... 6 Applying an integrated approach to the choice of projects ............................................................. 75 What This Report Is About .............................................................................................................................. 9 Availability of funding sources .......................................................................................................................... 76 Framework for Assessing Local Projects ......................................................................................................... 11 Final priority list ....................................................................................................................................................... 76 The City as a Part of a City System .......................................................................................................... 12 The City Pyramid of Needs ................................................................................................................................... 13 Priority projects for 2014-2020 ............................................................................................... 79 The City Operational Budget ................................................................................................................................. 19 Institutional frameworks for project implementation ....................... 109 Institutional set-up for the Vauban Citadel ............................................................................................... 110 LOOKING BACK: The Alba Iulia 2007-2013 Projects ........................... 21 Institutional set-up at the municipal level ................................................................................................. 114 Institutional set-up at the functional urban zone level ...................................................................... 115 MOVING FORWARD: The Alba Iulia 2014-2020 Projects ...............41 The GENERAL URBAN PLAN 2012-2022 ......................................................................................... 43 Analysis of the competitive advantages and the The DEVELOPMENT STRATEGY 2014-2022 ...................................................................................... 45 ANNEX 1: innovation potential of Alba Iulia ...............................................................................122 The macro-economic overview of the local economy ............................................................................................... 122 PRIORITIZING PROJECTS for 2014-2020 .................................................. 51 The sector analysis of the local economy and the mapping of the economic agglomerations .............................. 132 Implementation timeline ............................................................................................................................. 51 Conclusions and recommendations for improving the competitiveness of the local economies .......................... 139 Operational budget ......................................................................................................................................... 51 Project Prioritization ...................................................................................................................................... 52 Preparing a project short-list .................................................................................................................... 54 A quantitative approach to prioritizing projects .................................................................................. 59 4 5 List of Acronyms AIDA The Alba Iulia Association for Intercommunity Development CHM Citadel Heritage Management CLLD Community-Led Local Development CNADNR National Highways and Roads Company CR County Road CT Thermal Power Station (Centrală termică) DN National Road EU European Union GDP Gross Domestic Product GUP General Urban Plan HORECA Hotel/Restaurant/Café ICT Information and Communications Technologies IDA Inter-Community Development Association IDP Integrated Development Plan IT&C Information Technology and Communications MRDPA Ministry of Regional Development and Public Administration NGO Non-Governmental Organization NIS National Institute of Statistics OECD Organisation for Economic Co-operation and Development OP Operational Programme PNDL National Programme for Local Development PPP Public-Private Partnership RDI Research, Development and Innovation RES Renewable Energy Sources ROP Regional Operational Programme UAT Territorial Administrative Units ZUP Zonal Urban Plan 6 7 What This Report Is About This report comes following a request by the Municipality of Alba Iulia for the World Bank to assist with the following activities: Assessment of the projects included in the general and sectoral, local, intercommunity, county and regional urban planning and strategic documents in effect or coming into effect throughout the years 2014 – 2015, valid until at least 2020; Accommodation of the projects with the eligibility criteria set forth in the EU financing regulations, the Partnership Agreement, the Operational Programmes, other strategic and funding documents, in order to maximize the chances to access funds allocated for the local public administrations and/or their eligible partners; Analysis of Alba Iulia City’s capacity to ensure the financial and functional sustainability of such projects; Preparing recommendations concerning the improvement of performances of the project management teams; Recommendations concerning the improvement of the internal work procedures and instruments specific to externally funded projects; Recommendations concerning the risks associated to future projects and related contingency measures. The aforementioned request followed a number of recommendations made by the World Bank in a technical assistance program for the Ministry of Regional Development and Public Administration (MRDPA), between 2012 and 2014. These proposed ways in which the MRDPA, as well as beneficiaries of EU funds, could better prepare for the 2014-2020 programming period. The City of Alba Iulia is also getting ready for the 2014-2020 programming period and local authorities are aware that the city’s development will continue to be dependent, to a large degree, on the efficient absorption of EU funds. To this end, the City Development Strategy has been updated for 2014-2020, along with the General Urban Plan, and along with the finalization of the 9 Framework Local Development Agenda 2014-2040. The task at hand will be to identify from these strategic documents priority projects that will be undertaken between 2014 and 2022, using available resources in a judicious and efficient manner. Consequently, this report will not duplicate the analysis carried out in the already completed strategic documents, but merely look to see how the proposals made in these documents could be best operationalized for the 2014-2020 programming period. Where for Assessing Local Projects necessary, additional analysis is undertaken to justify particular project choices. An analysis of strategic and programmatic documents has to start from the reality that some strategic documents are normative, while others are not. For example, the Alba Iulia General Urban Plan (GUP) is a normative document that provides the zoning for the City of Alba Iulia (i.e., what type of construction is permitted in different areas of the city) along with proposing major projects in the area. The fact that a project is in the GUP does not mean that the project will actually be implemented in the time-period for which the GUP is valid. However, once a particular land area is designated a particular function in the GUP (e.g., a new road), no other project than can be done there. Ideally, a GUP should only propose projects that can realistically be achieved within the GUP’s validity period. Moreover, whenever changes do occur in terms of planned projects, the GUP should be updated accordingly. For example, the current GUP includes an expressway that will by-pass Alba Iulia, connecting Turda with Sebeș and the A1 Highway. However, in the meantime national authorities have decided to develop a highway instead of an expressway, which means the Alba Iulia GUP has to be updated. Development strategies are not normative documents and as such place few binding constraints on local authorities to follow them. Almost every major local authority in Romania has a development strategy, but the way these strategies are put into practice varies from case to case. In some situations (e.g., when a political administrative change takes place), a locality may choose to focus on another set of projects than the ones listed in the strategy. An exception is made in the case of development strategies that come with funding constraints. For example, Integrated Development Plans (IDPs) enable access to EU funds for local authorities, but once approved, local authorities have to follow the list of projects included in the IDP. Moreover, while development strategies are used widely across the globe, they often have a number of shortcomings that hamper their effectiveness, including in Romania: For one, development strategies are often inward-looking, paying relatively little attention to outside factors that may have a significant importance. For example, the Zipf rule indicates that in countries that develop organically (i.e., countries that are not centrally planned), there is a certain inertia in the way cities develop. Thus, the primate city (usually the largest city in the country) rarely loses its rank to other cities, regardless of how badly mismanaged it might be. Moreover, smaller cities may overtake in development cities of their size, but they will rarely overtake cities that are much larger in size. Consequently, local development strategies need to see the target city as being part of a larger system of cities rather than analyzing it in an insulated fashion. Second, local development strategies are often unclear about how to achieve local development. They almost invariable have a vision and a list of objectives, but there are no mechanisms to assess the performance or effectiveness of the strategy. Third, development strategies usually climax with a list of proposed projects, to be implemented within the validity period of the strategy. More often than not, only a few of the proposed projects are actually completed. Ideally, each strategy should allocate a clear budget for a well-defined programming period, and it should identify the priority projects that are hoped to be completed within the available timeline, with the available budget. In addition, every development strategy should take into consideration limited foresight, and allocate a certain percentage of the estimated budget for expenditures that have not been foreseen at the time the strategy was elaborated. 10 11 In what follows, we discuss how some of these shortcomings can be addressed. This discussion will also form the backdrop for the The City actual project prioritization for the 2014-2020 programming period, discussed later in the report. Pyramid of Needs The City as a Part of a The same way people define for themselves the issues that are most poignant for their personal development, so can city leaders define the priorities that are critical for their locality. Abraham Maslow has defined a pyramid of needs that has been used in the City System social sciences for over 70 years. In a similar fashion, we define a city’s pyramid of needs, which includes the key building blocks for a city’s development. In effect, we discuss three types of pyramids of needs. Philip Kotler indicated that local authorities address local policies and investments to three types of constituents: citizens; the private sector; tourists. In what follows we discuss how cities can identify needs, and ultimately priority projects, by looking at the needs of these three constituent groups. In 2013, the World Bank elaborated a report (“Competitive Cities: Reshaping the Economic Geography of Romania”) that discusses the Romanian system of cities in great detail, including a set of recommendations that are relevant for the City of Alba Iulia. The local authorities already have this report, so the information will not be repeated here. The Citizens Pyramid of Needs A city’s citizens are without a doubt its main constituent group. Citizens elect the mayor and the local council, and local authorities are directly responsible to them. Citizen needs can largely be clustered in the following five categories: opportunities; housing and basic infrastructure; connectivity; effective and efficient administration; quality of life. These will be discussed in more detail below. Opportunities The main attraction of cities are the opportunities they offer. People usually flock Quality to cities because that is where they can of Life find jobs, where they can get education, healthcare, or where they can access larger Effective and markets. Usually, the more opportunities a city Efficient Administration Climate Change offers, the larger it will be. And, conversely, the Social Inclusion larger a city is, the more opportunities it tends to attract – in a virtuous cycle. Consequently, Connectivity city leaders have to identify ways to attract (roads, highways, airports, rail, etc.) and generate opportunities in their city, to make it more attractive to people – both from Housing and Basic Infrastructure outside and from within the city. (water, wastewater, sanitation, etc.) Housing and basic infrastructure The many slums of the world are a testament Opportunities to the magnetic pull of cities. Many people (jobs, markets, education, healthcare, etc.) chose to live in squalor so they can have access to the opportunities the city offers. Figure 2. The Private Sector Pyramid of Needs 12 13 However, city leaders are aware that such a situation is neither desirable nor sustainable. As such, one of the key functions of local The Private Sector Pyramid of Needs governments is to provide basic infrastructure and to allow housing markets to function properly. The private sector is a city’s source of economic dynamism, and an active local economy is a magnet for people. Without an active Connectivity private sector, cities often wither away. For local authorities it is therefore important to identify ways to address some of the key For a city to thrive, it has to be well connected. The largest cities in the World are former port cities situated on the coastline of major needs of the private sector. These can be grouped in the following categories: qualified labor force; land and basic infrastructure; continents. Good connectivity means that people will have easier access to more opportunities in the area (e.g. it will be easier for connectivity; effective and efficient administration; clusters. them to find another job), while firms will have easier access to a larger labor pool and to larger markets. Qualified Labor Force Effective and efficient administration The key source of a company’s productivity are Once a city provides opportunities, basic infrastructure, and connectivity, people will expect and demand a good administration. its people. It is people that think and design They will want to be able to get to work without a hassle, to have their streets cleaned, to be able to obtain licenses and permits products and services, it is people that ultimately easily, and so on. This requires continuous improvement on the part of local administrations, as well as open communication produce these products and services, and it Clusters channels to the general population and the engagement of local communities. is people that market and sell products and services. Thus when a company decides where Quality of life to locate, or where an entrepreneur decides Effective and Cities from the developed world largely provide all of the four ingredients described below. This in essence means that people have where to start a business, the availability of Efficient Administration Climate Change Social Inclusion a range of options to choose from. In order to attract and keep people, cities increasingly resort to quality of life measures. Among qualified labor force is one of the first things they other things this translates into a burgeoning cultural life, entertainment opportunities, places for people to meet and greet, an active take into consideration. Connectivity restaurant and bar scene, access to green spaces and water bodies, beautiful buildings, good urban planning and good urban Land, Office Space and Basic (roads, highways, airports, rail, etc.) design. A recent study has shown that aesthetic beauty is one of the things people valued most about a city. 1 Infrastructure In addition to these key building blocks of the City Pyramid of Needs, there are to cross-beams that local authorities should use as Every business requires a place to operate from. Some companies simply rent out or purchase an Land, Office space and Basic Infrastructure a filter for all the projects they propose: social inclusion and climate change. (electricity, gas, water, etc.) existent office space, some require a new plot of Social inclusion land to develop their facilities on. It is therefore Regardless of how developed a city is, it will always have to deal with social inclusion issues – i.e. there will always be a share of important for local authorities to have a good Qualified Labor Force the local population that will be less fortunate than the rest, or which will be directly or indirectly discriminated against. Actively grasp of the availability of office space (i.e., promoting social inclusion not only helps achieve social desiderates, but is also a critical tool for achieving economic goals. For vacancy rates) and land parcels in the area (e.g., example, a World Bank study indicates that if the estimated Roma population in Romania would work at the average productivity brownfields or greenfields). A dearth of office Figure 2. The Private Sector Pyramid of Needs level in the country, the overall GDP would be boosted by 3%.2 Consequently, whenever devising a new project, local authorities space and developable land may restrict private should think how that particular project could also help address social inclusion issues. sector development. Climate change Connectivity The more cities develop, the more they tend to pollute. In fact, cities are responsible for around 70% of global GHG emissions. Since Connectivity is paramount to the private sector. On the one hand, private companies require easy access to a large enough labor they are a major part of the problem, they should also be a major part of the solution. Initiatives, such as the Covenant of Mayors or pool of qualified labor. On the other hand, private companies need easy access to markets – internal and external. Easy access ICLEI (Local Governments for Sustainability), have started to bring together city leaders from all over the world, to kick-start a joint to a qualified labor pool implies well developed local and regional infrastructure, to allow easy commuting to the city for a large effort towards solving the global climate change problem. Local authorities should therefore think their projects through a climate number of people in the region. Easy access to markets may require a well-developed highway network, good airport, rail, and naval change lens, assessing whether that projects helps address climate change issues or whether it makes matters worse. infrastructure, as well as the availability of a well-develop (information and communication) ICT infrastructure. Effective and Efficient Administration 1 Richard Florida, „Beautiful Places: The Role of Perceived Aesthetic Beauty in Community Satisfaction”: Beautiful Places: http://www.creativeclass.com/rfcgdb/ Private companies require both public policies and public infrastructure to function effectively. Some require that construction articles/Beautiful%20places.pdf permits be made available in a timely fashion, some may require a road connection to major infrastructure in the area, and some 2 World Bank. 2014. Diagnostics and Policy Advice for Supporting Roma Inclusion in Romania may require appropriate tax policies. 14 15 Clusters Accommodation As counterintuitive as it may sound, private companies need other companies in the same sector to be effective. There is a wide If tourists do decide to visit a particular city, they literature, starting from the Alfred Marshall’s description of industrial districts in 19th century England that show the benefits of co- have to have a place to stay. Local authorities location. Having other similar companies around allows an easier flow of ideas, a more seamless access to qualified labor force, are not in the hotel business (this is an area that and higher productivity driven by local competition. is almost exclusively covered by the private Quality sector), but they can identify creative ways Services When attempting to attract businesses local authorities should also have in mind the two cross-beams mentioned for the citizens to encourage the development of the sector pyramid of needs: social inclusion and climate change. Attracting any business, just because it creates local jobs, may not be the – e.g., concession of land/buildings or the best long-term strategy. Accomodation development of business associations. In many Romanian cities, the hotel infrastructure is not Climate Change Social Inclusion Social Inclusion yet properly developed, so even if these cities Most local authorities know that they cannot sustain growth if they only manage to attract low-wage businesses. At the same have something worth visiting they are not Connectivity time, high-profile examples like Silicon Valley show that neither is it sustainable to attract only high-wage businesses. A healthy prepared to receive tourists. business mix includes both high-wage sectors (which are usually the source of a city’s long-term growth) and business sectors that allow access to jobs for people with lower skills. In addition, local authorities can encourage the location of businesses in poor Quality Services neighborhoods and marginalized areas. To have a sustainable source of revenue from Information Climate Change tourism, it is important to continuously offer Since cities are the place where most businesses are located, they are also the place where most green-house gases are generated. quality services – this includes not only services As such, local authorities have an obligation to address climate change challenges. Among other things this may imply requiring offered by the private sectors, but also services offered by the public sector (e.g., quality public Attractions higher environmental standards and stewardship from businesses. infrastructure, good public transport, a safe environment). This ensures that the tourists that Figure 3. Tourist Pyramid of Needs get there may consider coming back, or may The Tourist Pyramid of Needs consider recommending the place to someone The large majority of cities are not a tourist attraction, even if they may be visited regularly by people. However, for some, tourism else. represent a significant source of revenue. Cities with a clear tourist potential should look for ways to meet the needs of tourists. These needs can be grouped in the following five categories: attractions; information; connectivity; accommodation; quality services. These will be discussed in more detail below. Attempting to meet the needs of tourist should also take issues pertaining to social inclusion and climate change into consideration. Attractions Social Inclusion Tourists go where there is something to visit. Many local authorities like to fashion their cities as tourist meccas, but when they look Cities that have significant social inclusion issues also tend to have a number of traits that make them less attractive to tourists - e.g. at the numbers they see that they did not manage to generate a lot of revenues from tourism, nor did they manage to attract a lot of tourists. Even cities that continuously have their hotels full, may in fact be visited by business travelers, not by people who were criminality, begging, loitering. Tourism development can often deepen those social cleavages - e.g. pushing poor people outside there to just visit the city. As such, local authorities have to be very clear about what attractions they can offer tourists (e.g., historic historic neighborhoods. It is therefore critical that tourism development projects be done with a social inclusion lens in mind. sites, cultural heritage, entertainment, gastronomy, culture) and find the best ways to showcase those attractions. Climate Change Information Issues pertaining to climate change should also permeate tourism development decisions. For example, local authorities may Even the best attractions will remain unvisited if there is no information about them. If local authorities determine that they have develop a public transport network that allows tourists to seamlessly go from attraction to attraction, rather than rely on cars to fill something that is worth visiting, they also have to find creative ways to market those attractions to a well-defined target market. in this need. Connectivity The easier it is to get to an attraction, the more visitors it is likely to enjoy. Easy access to airports, major road infrastructure, rail and naval hubs is critical in this respect, although it is not always within the means of just one local authority to provide this connectivity. 16 17 The City Operational Budget The simplest and most efficient tool for the prioritization of the proposals in a development strategy is a clear operational budget. Once city leaders have an estimate of the budget they could rely on to implement projects in a given timeline, they will also be in a better position to identify the priority projects they would want to fund with that budget. By contrast, having no realistic budget planning leads to long wish lists of projects that may be started and completed in some cases, but in the vast majority of cases they may be started and left unfinished for a long period of time or they may remain only on paper. The World Bank has developed a simple methodology for estimating prudent capital expenditure margins for local authorities. The methodology starts from the premise that public authorities should not spend more than 30% of their non-earmarked revenues on capital expenditures, year on year. Capital expenditures, such as the development of new infrastructure, bring with them operation and maintenance costs, and the larger the sum spent on capital expenditures the larger the operation and maintenance costs are likely to be. Thus, even when capital expenditures are done with grant money, they often require fixed costs that will be a burden on the local budget once the investment is completed. Non-earmarked revenues were calculated using the formula below: Non-Earmarked Revenues = (Own Revenues) + (Shared Personal Income Tax) + (Non-Earmarked Grants) + (Other Revenues) 3 See: World Bank. 2014. Identification of Project Selection Models for the Regional Operational Programme 2014-2020. 18 19 Looking back: The Alba Iulia 2007-2013 Projects Alba Iulia has been one of the most dynamic localities in Romania in terms of absorption of EU funds. Overall, it has managed to absorb or leverage in cooperation with other local/regional stakeholders over 150 million Euro in EU funds – a remarkable achievement. While Alba Iulia is only the 33rd largest city in Romania by population, it was 7th in terms of contracted projects under Axis 1 (on Urban Integrated Development Plans) of the Regional Operational Programme 2007-2013, with around 60 million Euro committed to urban development projects. In what follows, we provide an overview of the major infrastructure projects undertaken by the Municipality in Alba Iulia between 2007 and 2013. This overview will help identify the key priorities of the Alba Iulia municipality in the previous programming period, which in turn will provide an idea about what priorities could be pursued in this programming period. Often, investments in one particular sector are carried over several programming periods. The analysis of the 2007-2013 portfolio of projects will be done using the Pyramid of Needs framework introduced earlier. 20 21 Opportunities The Vauban Fortress Rehabilitation and restauration of the historic centre Looking back: The Alba Iulia 2007-2013 Projects • • European funds 76% • State budget 9% • Local budget 15% • Total investment funds Rehabilitation and restauration of the historic centre 17% Projects financed from the local Projects financed from the state Projects financed from budget budget European funds (ROP) The Vauban Fortress Restoration / equipment Restoration / equipment Restoration / equipment The most important public investment that has helped generate opportunities in the City of Alba Iulia is the restoration of the Vauban Fortress. The transformation of the fortress in the past years is nothing short of remarkable, and while the restoration project may Cycle lanes also be considered a Quality of Life project, it is also a project that has helped generate jobs and extra revenues in the city (e.g., by bringing in more tourists and by prompting business formation within and outside the fortress). Rehabilitation of urban infrastructure 22 23 Opportunities Rehabilitation and Educational Infrastructure modernization of education infrastructure Projects financed from the local budget Rehabilitation of the existing infrastructure Looking back: The Alba Iulia 2007-2013 Projects Improvements / equipment Capital repairs New constructions / reconstruction Projects financed from the state budget Rehabilitation / repairs / extensions Projects financed from European funds (ROP) • • State budget 37% Rehabilitation of the • existing infrastructure Local budget 16% • Internal line of credit 2% • Revolving fund 21% • European funds 24% • Total investment funds Educational infrastructure 10% Educational Infrastructure Educational units may be considered both under the “Opportunities” category and the “Basic Infrastructure” category. Normally, an educational unit may be considered a creator of opportunities when it acts as a magnet for people. For example, a university attracts a student body from a wide area (the best universities in the world have a global student base). A primary school, on the other hand, usually services a certain community. However, good schools act as a magnet for parents who want to ensure that their children get the best education possible. This is certainly the case in the United States, where parents seek the best school districts in the area where they work. 24 25 Opportunities Rehabilitation and Social Infrastructure modernization of social infrastructure Projects financed from the local budget Rehabilitation/ conversion of the existing infrastructure Looking back: The Alba Iulia 2007-2013 Projects Rehabilitation of the infrastructure Equipment of the infrastructure Projects financed from European funds (ROP) Rehabilitation of the existing infrastructure/ new buildings • • Local budget 31% • Internal line of credit 24% • Revolving fund 18% • European funds 27% • Total investment funds Social infrastructure 2% Social Infrastructure Social infrastructure, similar to educational infrastructure, may also be considered under the “Basic Infrastructure” category. However, when such infrastructure is not widely available (e.g., a center for elderly care), it becomes a draw for people in the region. For example, elderly people may move to the city to benefit from the existing infrastructure, or families that have children with disabilities may move to an area that offers them the appropriate social infrastructure. 26 27 HOUSING and BASIC INFRASTRUCTURE Rehabilitation and Housing modernization of housing infrastructure Projects financed from the local budget Rehabilitation of the existing infrastructure Looking back: The Alba Iulia 2007-2013 Projects Viability of the existing infrastructure Documentation ready for new investments Projects financed from the state budget Social housing • • Local budget 50% • Internal line of credit 8% • Revolving fund 19% • State budget 20% • External line of credit 3% • Total investment funds Housing infrastructure 6% Housing Housing is to a large extent provided by private developers, but public funds are often used for providing social housing. In addition, a large thermal insulation program was started with both EU and state-budget funds. The thermal insulation program requires local authorities and end beneficiaries to provide part of the funding needed to finalize the projects. 28 29 HOUSING and BASIC INFRASTRUCTURE Rehabilitation and Water Infrastructure modernization of the drinking water supply network Projects financed from the local budget New water supply system Looking back: The Alba Iulia 2007-2013 Projects Rehabilitation of the existing infrastructure/ new infrastructure Extension of the existing infrastructure Equipment Drinking water supply network Projects financed from the state budget Rehabilitation of the • existing infrastructure • Internal line of credit 71% • Projects financed from Local budget 20% European funds (ROP) • Revolving fund 9% New pumping station • for drinking water Total investment funds Water infrastructure 4% Water Infrastructure Although the population of Alba Iulia has been decreasing in the past years, the city’s urban mass is expanding with new housing units going up on the outskirts of the city. The municipality has managed to provide water service to the entire population in the territorial administrative unit (including adjacent villages). It has also worked on rehabilitating and modernizing the existing water infrastructure. 30 31 HOUSING and BASIC INFRASTRUCTURE Rehabilitation and Wastewater Infrastructure modernization of sewerage network and waste water treatment Projects financed from the local budget Rehabilitation of the existing infrastructure Looking back: The Alba Iulia 2007-2013 Projects Extension of the existing infrastructure Sewarage network Projects financed from the state budget Rehabilitation of the existing infrastructure Projects financed from • European funds (ROP) • European funds 47% • Rehabilitation of the State budget 17% existing infrastructure • External line of credit 3% • Extension of the Local budget 16% existing infrastructure • Internal line of credit 9% Retention basins/waste water • Revolving fund 8% treatment plant • Total investment funds Wastewater infrastructure 5% Wastewater Infrastructure The extension of the wastewater infrastructure was one of the priorities for the 2007-2013 programming period, and now almost 95% of the City’s population has access to a sewage system. In addition, local authorities have worked to rehabilitate and modernize the existent wastewater infrastructure. Additional wastewater projects were carried out by the Regional Water Company – Apa CTTA Alba. 32 33 HOUSING and BASIC INFRASTRUCTURE Rehabilitation and Street Lighting modernization of lighting infrastructure and energy power supply Projects financed from the local budget Rehabilitation of the infrastructure Looking back: The Alba Iulia 2007-2013 Projects New lighting networks Expansion of the existing network Electric power supply Infrastructure • • Local budget 50% • Internal line of credit 33% • European funds 17% • Total investment funds Lighting infrastructure and energy power supply 5% Pâclișa Street Lighting A proper street lighting infrastructure is key both from a safety point of view and from a quality life point of view. The Municipality has invested in 2007-2013 in the rehabilitation, modernization, and extension of the street lighting system. 34 35 CONNECTIVITY Rehabilitation and Roads modernization of county roads, urban streets, including construction / rehabilitation of ring roads Projects financed from the local budget Looking back: The Alba Iulia 2007-2013 Projects Capital repair of the infrastructure Rehabilitation of the infrastructure Refunctionalisation of the infrastructure Modernization / improvement of the infrastructure • • European funds 72% Roundabouts • State budget 11% Projects financed from • Local budget 7% the state budget • Internal line of credit 2% Modernizations / improvement of • Revolving fund 8% bridges and passages • Total investment funds Projects financed from Transport infrastructure 39% European funds (ROP) Capital repairs of the infrastructure Modernization / improvement Roads national roads / European roads Connective infrastructure is key in enabling people easier access to opportunities, and for a city the size of Alba Iulia, roads are critical. The city has invested significantly in the rehabilitation of its existent road infrastructure between 2007-2013, using EU funds, Road infrastructure local funds, and state-budget funds. Other major investments in connective infrastructure, which improve overall connectivity for the people in Alba Iulia, have been started by county and national authorities. The public transport system is operated by a private company, and it covers a larger metropolitan area. 36 37 QUALITY of LIFE Rehabilitation and Recreational Infrastructure modernization of leisure infrastructure Projects financed from the local budget Improvements / equipment of leisure infrastructure Looking back: The Alba Iulia 2007-2013 Projects Refunctionalisation / viability of leisure infrastructure Cycling lanes Projects financed from the state budget Improvement of environmental conditions by creating new parks • Projects financed from • European funds (ROP) Local budget 50% • Internal line of credit 30% Sustainable capitalisation of • natural resources European funds 14% • State budget 6% • Total investment funds Recreational infrastructure 27% Recreational Infrastructure Quality of life investments are increasingly important in an environment where people are more and more mobile and where more and more cities offer a basic package of opportunities (e.g., well-paid jobs, access to good education and healthcare). The local authorities in Alba Iulia have been able to engender an impressive transformation of the City Fortress. In the same vein, the local authorities have developed and rehabilitated sports infrastructure (e.g., an Olympic swimming pool, and a rehabilitated football field), have constructed new bike paths, and have rehabilitated several parks in the city. 38 39 Moving Forward: The Alba Iulia 2014-2020 Projects In preparation for the 2014-2020 programming period, the local authorities in Alba Iulia have prepared a number of normative and strategic documents. These documents present the key issues the locality plans to tackle in the coming years. The proposals made in normative documents, such as the General Urban Plan, are binding (e.g., they assign land-uses and infrastructure proposals that have to be respected). The proposals made in strategic documents, such as the development strategy, serve more of a guiding purpose. However, for Axis 4: Sustainable Urban Development of the Regional Operational Programme 2014-2020, local authorities have to propose a binding list of projects, for which funding will be pre-allocated. In what follows, we discuss some of the key proposals made by local authorities for the coming years. 40 41 Priority projects proposed in the GUP (2012) 2014-2020 Improving regional and The local conectivity General Urban Plan Modernization of the railway 2012-2022 Moving Forward: The Alba Iulia 2014-2020 Projects Express road / highway The General Urban Plan 2012-2022 sets out the zoning for the City of Alba Iulia and delineates the major interventions proposed Modernization, efficiency over the 10 years the PUG is valid. The PUG has to be correlated with higher level normative documents (e.g., the National Spatial and expansion of the urban Plan, the County Spatial Plan), and it usually also considers proposals made in operative documents (e.g., the national Transport traffic system Operational Programme). All the interventions proposed at the local level have to be justified through a thorough socio-economic analysis (i.e., the written part of the PUG). Modernization of transit / express / ring roads Closing ring roads / Some of the major interventions that are included in the PUG 2012-2022 include: modernization of major roads • the proposed expressway (which now will be a highway), connecting Turda to Sebeș Bridges and passages and Highway A3 to Highway A1, connected to the major infrastructure • the modernization of the railway line passing through Alba Iulia; • the extension of key road infrastructure; Improvement of intersections / roundabouts Velo-tourist trail • the modernization of a number of street intersections; Public utility infrastructure • new bike paths; Equipment of a culture centre • new recreational area; New Multifunctional Hall • new agricultural markets; and a Education Equipment of leisure areas • new cultural hall. New grocery markets Public parking 42 43 The Development Strategy 2014-2020 Moving Forward: The Alba Iulia 2014-2020 Projects The Alba Iulia Development Strategy 2014-2020 took into consideration the larger context of the AIDA Functional Urban Zone. It is acknowledged that Alba Iulia does not exist in a vacuum and it has to develop together with the localities around it. As such, the Development Vision is defined at the level of the AIDA, taking regional synergies and dynamics into consideration. In addition the strategy takes into consideration the development vision defined at the county level and at the regional level, with a focus on local development based on knowledge, environmental protection, and social inclusion. “become a more attractive city to The vision of the Alba Iulia Municipality is to live, work, and invest in by 2020.” Moreover, “the development of the Alba Iulia Municipality will be completed in close coordination with the development of the localities in the AIDA region, thus becoming a development engine, with a competitive economic environment and human resources adapted to socio-economic realities.” Four Strategic Objectives have been defined to help achieve this vision: Strategic Objective 1: Alba Iulia, a Smart, accessible, and cohesive city Strategic Objective 2: Alba Iulia, a Green City with efficient public services Strategic Objective 3: Alba Iulia, a Competitive and Creative city Strategic Objective 4: Alba Iulia, a European Cultural and Tourist Attraction. These Strategic Objectives in turn are correlated with the Thematic Objectives defined by the EU for the 2014-2020 programming period, and they form the building blocks for a number of sub-objectives, as follows: 44 45 Strategic Objective 1 Alba Iulia a Smart, accessible, and cohesive city Objective No. 1: The Development and Modernization of Regional and National Infrastructure 1 Transport Objective No. 2: The Development of an Efficient and Sustainable Public Transport System Objective No. 3: The Implementation of Intelligent Transport Systems Moving Forward: The Alba Iulia 2014-2020 Projects 2.1: High-speed Internet Infrastructure 2 ICT Infrastructure 2.2: Telecommunications 3.1: Pre-university Educational Infrastructure 3.2: Energy Efficiency 6.1: Cultural Infrastructure 3.3: Investments in Educational Infrastructure 6 Culture, Sport, and Recreation 6.2: Sports Infrastructure 3 Education 3.4: Tertiary and Research Infrastructure 3.5: Vocational Education Infrastructure Intervention Area 3.6: Adapting to Market Requirements 7.1: Urbanism 3.7: e-Education 7.2: Cultural Patrimony 3.8: Educational ICT Infrastructure 7.3: Archeological Sites Program 7.4: Public Monuments Intervention Area 4.1: Health Infrastructure 7.5: Urban Parking Program 4.2: Efficient, Safe, and Good Quality Medical Services 7.6: Rehabilitation and Modernization of the Common Space in Apartment Flats Neighborhoods 4 Health 4.3: Assistance to Family Medical Practices 7.7: Cemeteries 4.4: e-Health 7.8: Produce Markets Urban 4.5: Health ICT Infrastructure 7 Regeneration 7.9: Green Spaces 7.10: Public Residential Buildings 5.1: Improving the Quality of Social Services 7.11: Bike Paths 5.2: Multifunctional Complex in “Lumea Nouă” Neighborhood 7.12: Improved Access for People with Disabilities Social 5.3: Programs for People with Disabilities 7.13: GIS Infrastructure 5 Services Infrastructure 5.4: Multifunctional Complex for Young People 7.14: Alba Iulia Digital City 5.5: Elderly Care Infrastructure 7.15: Măgura Mamut Recreational Area 5.6: Social Canteen 7.16: Public Space in Măgura Mamut Area 5.7: PPP Arrangements for Social Services Delivery 7.17: Public Space in Centura Verde Area 5.8: Quality Management in Social Services 46 47 Strategic Objective 2 Alba Iulia a Green City with efficient public services 11.6: AIDA Administration Program 11.7: Lowering the Crime and Contravention Rate 11.8: Better Public Space Surveillance 11 Public Administration 11.9: Crime Fighting 8.1: More Housing 11.10: Infrastructure for Emergency Situations Quality 8.2: Better Quality Housing 8 Housing for All 8.3: Green Housing 11.11: Developing Urban Systems Moving Forward: The Alba Iulia 2014-2020 Projects 8.4: Improving the Existent Built Stock 9 Public Services Infrastructure 9.1: Water and Wastewater Infrastructure 9.2: Safe and Continuous Water Service 9.3: Thermal Insulation of Apartment Blocks Built before 1990 9.4: Modernized Public Lighting System 9.5: Modernized Art and Decorative Lighting System Strategic Objective 3 Alba Iulia a Competitive and Creative city 3.1: Research and Development, Innovation, and Technological Development Intervention Area 9.6: Energy Efficient Infrastructure (e.g., solar panels) 9.7: Green Energy Production 3.2: Cluster Creation in Key Economic Sectors Intervention Area 9.8: “Green House” Program 3.3: Using ICT Tools to Strengthen Local Trade Sector Program 10.1: Brownfields Redevelopment 3.4: Improving the Competitiveness of SMEs 10.2: Protection and Expansion of Municipal Forest Area 10.3: Management Plan for Protected Areas 3.5: Improving Competitiveness of Agricultural Sector in AIDA Region 10.4: Recycling Sustainable 10 Urban 10.5: Climate Change Environment 4 10.6: Build Dam on Mureș River 10.7: Finalize Dam on Sebeș River Strategic Alba Iulia a 10.8: Water Channel Works Objective European Cultural and Tourist Attraction 10.9: Lowering Water Supply Risks 10.10: Protective River Embankments 11.1: GIS Infrastructure Over 350 individual projects have been proposed under these objectives, with potential 11.2: Alba Iulia Digital City sources of funding and implementing agencies indicated in some of the cases. Obviously, 11 Public Administration 11.3: Human Resourcess only a fraction of these projects can actually be financed over the next programming period, 11.4: Efficient Public Services and it is important to prioritize those projects that are of utmost importance to the Municipality 11.5: Effective Governance of Alba Iulia. 48 49 Prioritizing Projects for 2014-2020 The large majority of development strategies end up with a long list of projects and no actual prioritization. This means that actual project implementation happens in a haphazard way and is often plagued by delays. Since local authorities have no clear priority list they tend to act in a reactive (e.g., pressure from the public) rather than a pro-active way. Proper prioritization requires that at least three elements are in place: an implementation timeline; an operational budget; and a framework/methodology for prioritizing projects. These elements were discussed above, and their application in the case of Alba Iulia will be discussed below. Implementation timeline A clear implementation timeline is critical for the establishment of an investment program. A hard deadline forces public authorities to think about what they would hope to realistically achieve within the set time period and also creates an incentive to finish set priorities within the respective time-period. For most EU-member countries, particularly the New Member Countries (which are to a large extent dependent on EU funds for critical infrastructure investments), it make sense to follow the EU program implementation cycles – in this case the 2014-2022. This not only allows a coordinated and harmonized approach of capital investments, but also ensures that different sources of funding are used in a complementary fashion to achieve key set goals. Operational budget The methodology for the elaboration of an operational budget was discussed earlier. The table below indicates the proposed 2014- 2022 operational budget for the Municipality of Alba Iulia, as well as the other localities that are part of the AIDA intercommunal development association, as well as the county council. Given the strong commuter dynamics in and around Alba Iulia, it is important that priority projects not be considered in an insular, locality-focused fashion. Moreover, investments done by one local authority, or the county council, can benefit several localities – in fact, the majority of projects have some form of spillover effects, benefiting neighboring localities as well. 50 51 Proposed Operational Budget The proposed operational budget in the table above should not be seen as a hard Options for the elaboration of a strategy and a list of priority projects cap on what investments can be done between 2014 and 2022. Rather it should for 2014-2022 be viewed by local authorities as an instrument to prioritize key investments. For Territorial Proposed one, such an upper threshold enables a local authority to determine whether Option 1 Option 2 Option 3 Option 4 it has taken on too many investments or too few investments in a particular Partnership and Administrative Unit Operational Budget programming period. Similarly, it will incentivize local authorities to think about the Internal External Partnership Community Alba Iulia € 68,558,201 operation and maintenance costs many capital investments entail. For example, a new road or a new park will also require operation and maintenance costs Consultant Engagement Sebeș € 26,961,798 once finalized. If a locality undertakes too many such investments, it may be put Teiuș € 4,535,789 in a position where it cannot adequately take care of those investments. At the Strategy is elaborated Community is involved in all Strategy is elaborated by a Strategy is elaborated by a same time, a locality can undertake investments that generate revenues or have exclusively by local stages of the process Vințu de Jos € 2,932,888 consultant partnership structure no operation and maintenance costs (e.g., assisting household associations to authorities (local groups) Sântimbru € 2,029,986 thermally insulate homes, or building for-pay parking garages). In some cases, Galda de Jos € 3,899,204 projects for the modernization/rehabilitation of existing infrastructure may also Investment priorities are Investment priorities are Joint investment priorities are Joint investment priorities are Ighiu € 3,005,667 actually reduce operations and maintenance costs. identified identified identified (public and private) identified (public and private) Cricău € 1,235,388 By and large, however, local authorities should ideally use a hard capital Berghin € 1,443,046 investment budget cap, like the one proposed above, for investments that are Local stakeholders are Intermediary versions Intermediary versions Intermediary versions are likely to require operation and maintenance costs once finalized. All investments consulted throughout the are discussed within the are opened to public Ciugud € 1,725,279 only circulated internally that go beyond the budget cap should either be for revenue-generating projects, process partnership structure consultation Prioritizing Projects for 2014-2020 Meteș € 1,263,624 projects that require no operation and maintenance costs, or projects that are financed and will be maintained by other entities (e.g., the county or central The final document is The final document is TOTAL AIDA € 117,590,870 Only the final document is The final document is opened government). Similarly, local authorities should give a priority to projects that discussed with stakeholders approved by the public (e.g. made public to public consultation Alba County Council € 49,575,409 may be financed with EU grants. Similarly, local authorities should give a priority and made public through a referendum) to projects that may be financed with EU grants. Source: The Ministry of Regional Development and Public Administration. 2015. Ghid privind dezvoltarea și implementarea de politici urbane integrate. Getting to a final list of priority projects can be done as simply as having the mayor and the local council take an executive decision in Project Prioritization this respect. This is a prerogative of local elected officials, and while not perfect, it enables a swift conclusion of the prioritization process. This may be particularly appropriate in cases where local authorities have a limited operational budget to their disposal and only a The prioritization of projects is more art than it is exact science. Given the varying needs of cities and the eclectic nature of small number of projects that they can finance in an implementation period. Arguably, there is no need for a sophisticated prioritization implemented projects, it is difficult to identify a precise way to prioritize projects. It is hard to meet the needs of all citizens and mechanism if only 2 major projects can be financed with the available budget. stakeholders in a city, and time, money, human resources, and available information are all constraints that have to be taken into The larger the city and the larger its operational budget, the harder it will be to effectively prioritize projects. It thus may be required to consideration when elaborating a strategy and a priority list of projects. Depending on the availability of time, money, human involve external experts (e.g., for sectoral analyses), local stakeholders, and the community (to better understand their needs). resources, and information, several options are available for the elaboration of a strategy and a list of priority projects. Even when all the resources required are available, the process will still not be perfect. Whatever the final outcome of such a process will be, The prioritization of projects in Alba Iulia for the 2014-2022 implementation period has followed a number of key steps. These steps will there may always be someone who will not agree with the decisions taken. However, to the extent possible, it is recommended that be discussed in more detail below. a wide array of stakeholders and the community are involved in the process. 52 53 ROP 2014-2020; Preparing a project short-list 3 Lighting system expansion and upgrading. 7,436,574 Overall length = 75 km. Local Budget; System Operator It is neither easy nor practical to prioritize the over 350 projects currently listed in the Alba Iulia Development Strategy and the Thermal rehabilitation of collective housing ROP 2014-2020; General Urban Plan. The financial allocation required to finalize these projects is simply too big for what the Municipality of Alba Iulia 4 units (the areas of Revoluției – Transilvaniei, 3,168,167 1115 apartments. State Budget; the M’s Ampoi I). Local Budget can actually afford. Thus, it makes sense to identify a short-list of projects from the existent long-list – i.e., projects or grouping of projects the local authorities consider to be most needed for the city. Replacing the urban public transport fleet with 20 electric buses, with low floors, GPS, internet, air Romanian-Swiss Following a consultation of the local community (through an in-depth survey ) and together with a team of experts from the World 5 cleaner vehicles (electrical, environmental, 12,533,411 conditioning. Cooperation non-motorized), in partnership with the Programme; Bank, the local authorities in Alba Iulia have prepared a short-list of 40 projects, with a total estimated value of around 405 million Euro. carrier. Local Budget; Estimated project values were produced for all of these projects to allow the selection of the priority projects within the operational Transport Operator budget margin. At the same time, the potential funding source for these projects was added as a key piece of information. Some of the key priority projects for the Municipality of Alba Iulia are projects that will be financed by other entities, and their operation and Construction of cycle paths and modernization ROP 2014-2020; 6 of walkways. 8,000,000 Length = 5441 ml. Local Budget maintenance costs will also be covered by these entities. Consequently, the Alba Iulia operational budget should be used to prioritize the projects for which the Municipality of Alba Iulia is a Systems for video surveillance and for beneficiary, or projects for which the Municipality of Alba Iulia will cover operation and maintenance costs. In this respect, two key 7 increasing road traffic safety. 835,560 1 piece. Local Budget factors in the prioritization process should be the availability of outside funding (e.g., EU funds) and the extent to which the project generates revenues or requires little to no operation and maintenance costs. Setting up forest belts (e.g., Brandușei street, 8 Victoriei street). 83,556 20 km of forest belts made of energetic willows. Local Budget Prioritizing Projects for 2014-2020 Alba Iulia 2014-2022 Project Shortlist Rehabilitation of urban infrastructure in large Complete regeneration of interstitial public spaces housing complexes (urban renewal in the between blocks (alleys, parking lots, green areas, 9 Revoluției – Transilvaniei, the M’s Ampoi I 9,748,208 playgrounds, social spaces, waste collection platforms, Local Budget Estimated districts). public lighting, furniture, etc.). Project Potential Value No. Project (in Euro) – Short Description Funding Modernization of streets, including Modernization of about 30 km of roads, including ROP 2014-2020; Source 10 rehabilitation/modernization of public 23,674,221 rehabilitation / modernization of public utilities (water, PNDL; including utilities (Lalelelor – Furcilor Hill area, sewage, underground sewage), building sidewalks and Local Budget VAT Moților Way – Orizont – Emil Racoviță area, bike lanes. M.Kogălniceanu-Costache Negruzzi area). Setting up a Business Accelerator in Alba Acquisition and conversion of brownfield site, building ROP 2014-2020; Iulia (Alba Smart Business Accelerator) a minimum of 25 business offices, exhibition spaces, DIPIMMAT Local Budget 1 through the conversion of a brownfield site 6,266,705 common spaces (conference rooms, training rooms), Programme to 11 Construction of multi-purpose hall. 27,852,024 6.000 seats. and Public - potentially in the area of the former SUT. areas for business and innovation services (technology support business Partnerships transfer, consultancy etc.). incubators Multipurpose cultural center with theaters, show rooms, PNDL; Increasing the energy efficiency of education 12 Construction of a cultural center in the 9,469,688 conference rooms, concert halls, exhibition rooms, Alba County buildings (Kindergarten no. 7 and no. 11; ROP 2014-2020; downtown area. library, including a small square and green spaces. Council’s Budget 2 “Vasile Goldiș” School, School no. 5 and “Ion 2,582,292 Wall surface = 23000 m2. Local Budget Agârbiceanu” School, “Apulum” Technical College). Improving the quality of municipal parks’ 5 million Lei / year for the maintenance of green spaces ROP 2014-2020; 13 vegetation. 9,748,208 in the city, planting flowers, trees and shrubs. Local Budget 4 See: Marina, Lucian and Mihai Pascaru. 2015. Barometrul Comunității Locale – Municipiul Alba Iulia 2014 54 55 Alba Iulia 2014-2022 Project Shortlist (continued from previous page) Estimated Surface to be upgraded = 10,529 m2 (swimming pool, Project 22 Redevelopment of Olympic pool enclosure. 2,644,143 gym and administrative building, small pools, tennis CNI; Potential courts, playgrounds, parking lots, alleys). Local Budget Value No. Project (in Euro) – Short Description Funding including Source Changing the destination of CT10 into ROP 2014-2020; VAT 23 the Alba Iulia Social Center for alternative 418,989 Developed surface = 633 m2. Local Budget services (7C Revoluției Boulevard). Restoration/rehabilitation, revitalization and Project includes the urban regeneration in Lumea Rehabilitation solutions to be determined on a case by ROP 2014-2020; enhancement of buildings and public spaces Implementation of a pilot project for 14 in the historic area, including the Princes’ 8,146,717 case basis. Local Budget; 24 Community-Led Local Development (CLLD) 10,000,000 Noua district, inhabited by people at risk of social ROP 2014-2020; National Budget exclusion, primarily Roma. The project will have several Human Capital OP: Palace. for marginalized communities. components: social (multipurpose social center), Local Budget health, education, housing, and social economy. Preservation and revitalization of the caponier ROP 2014-2020; 15 between the bastions Saint Elizabeth and 1,723,901 Developed surface = 417 m2 Local Budget; Construction of social housing and Saint Charles – White Fortress Carolina. National Budget 25 integrated center for the Roma community in 334,224 Surface = 400 m2. Local Budget the Talcioc area. Restoration of bastions, of southern Conservation, restoration and reunification of ROP 2014-2020; 16 and eastern walls of the ravelin – White 12,533,411 Developing a nursery in Ampoi district by P+E+E partially. ROP 2014-2020; Fortress Carolina (including setting up an defensive walls on the south side of the Vauban-type Local Budget; 26 changing the destination of CT 29 thermal 1,059,040 Developed surface = 1,057 m2. Local Budget Fortification, on a surface of about 61,000 m2. National Budget amphitheater in the Trinitarians’ ravelin). power station. Prioritizing Projects for 2014-2020 Conservation, restoration and reunification of defensive ROP 2014-2020; Playing rooms with bedrooms, with a capacity of about Restoration of bastions and ravelins, 17 northern walls – White Fortress Carolina. 3,760,023 walls on the north side of the Vauban-type Fortification, Local Budget; 27 Construction of a nursery in Cetate (Fortress) 557,040 100 places, reception area, medical office, insulator, ROP 2014-2020 district - Romans Plateau area. kitchen, cloakroom, food storeroom, ancillary spaces on a surface of about 46,552 m2. National Budget * land acquisition is required + land. Restoration/rehabilitation/revitalization and Construction of the Kindergarten no. 8 Four classrooms, filter, insulator, toilets, multipurpose ROP 2014-2020; PNDL; enhancement of the perimetral fortification 18 system - Vauban bastion fortress Alba 6,451,921 Length = 3 km and restoration of walls. Local Budget; 28 (relocation from the historic area is required). 1,253,341 room, office, heating station + land, including Local Budget National Budget * land acquisition is required playground. Carolina. Complete overhaul of the Kindergarten no. 6 ROP 2014-2020; Rehabilitation of Batthyaneum library Rehabilitation of structural members, joinery, finishing 29 with standard functioning schedule. 562,248 Usable area = 627 m2 P+M. Local Budget 19 building. 4,177,803 elements, reconditioning decorations, roofing, ROP 2014-2020 electrical installations, heating, water and sewage, ventilation etc. Expansion and rehabilitation of Kindergarten ROP 2014-2020; 30 no. 12. 501,336 Usable area = 500 m2. Local Budget Upgrading 26 km of the 107A County Road, including PNDL Alba County Modernization/rehabilitation of 107A County 20 Road. 8,077,087 tubular and concrete culverts, repairing existing Council’s Budget; Complete overhaul at the “Liviu Rebreanu” Rehabilitation of façade + thermal system = 1,800 m2 bridges, building ditches, walls, safety parapets. ROP 2014-2020 31 School. 379,066 Covers = 1,580 m2. Local Budget Setting up the Schit (Hermitage) natural area, Setting up a natural pool, a sunbathing area with ROP 2013-2020; Rehabilitation/extension of public high 21 including cycling lanes for linking Mamut 5,138,698 gazebos, garden restaurants, terrace, paths, equipped Local Budget 32 schools in Alba Iulia (“Dionisie Pop Marțian” Ext = 538 m2 with furniture, sand pool, picnic area, green spaces, 2,615,296 Ext = 586 m2 (Music High School) Local Budget route and Transylvania Avenue. Economic College, “Horea, Cloșca și Crișan” bike trails. National College). Electrical installations = 19, 000 lm, with additions. 56 57 Ecological interurban public transport The project includes the design of public transport system – Expanding the single inter- routes at the level of AIDA, laying out and equipping Romanian-Swiss Alba Iulia 2014-2022 Project Shortlist (continued from previous page) 39 community public transport in the area 26,459,423 of stations, installing electronic information boards Cooperation of the Inter-Intercommunity Development and e-ticketing systems (integrated tariff), purchasing Programme; Association Alba Iulia (AIDA), including a and equipping 15 electric buses with low floor, air AIDA’s own Estimated single system of stations, related furniture, conditioning, GPS and video monitoring system, contribution Project charging and guiding. setting up stations for bus charging and a photovoltaic Potential Value park for supplying them with power. No. Project (in Euro) – Short Description Funding including Source Setting up a wholesale market in the Moara PNDR 2014-2020; VAT 40 (Mill) area. 1,880,011 Building a hall of approximately 1,000 m2, reception PNDL; areas, storage areas, including refrigeration and Public-private foodservice delivery. partnerships Extension of public primary and secondary Ext = 333 m2 33 education establishments in Alba Iulia 3,325,682 Ext = 383 m2 Local Budget (School no. 3 “Avram Iancu”, School no. 6 “Ion Agârbiceanu”). TOTAL € 405,132,473 The project envisages construction of a road junction in the north of the city (Bărăbanţ), on DN1 (National OP Large Setting up an interconnection infrastructure Road 1), at the intersection with A10, of a road junction Infrastructure 34 linking Alba Iulia city to the Sebeș-Turda 50,133,644 on A10, in the south of the municipality (Partoș) and 2014-2020; Highway (A10). of a connecting artery with DN1 (including setting up CNADNR; intersections with DN1), of about 3 km long (2nd class Local Budget Prioritizing Projects for 2014-2020 street), with connecting belts (3rd class street) towards the Ciugudului Way and Dumbravitei street. A quantitative approach to prioritizing projects The project involves the construction and upgrading Construction of the bypass in the northern of about 10 km of 2nd category road, making the 35 part of Alba Iulia (Bărăbanţ - DN 74/Sard). 60,160,373 connection between DN 74 and DN 1 in the Sard area, CNADNR To prioritize the projects included in the shortlist a simple quantitative methodology was used. In essence some of the key elements near the road junction with A10. discussed in this report were applied as part of the prioritization process. For one, starting from the City Pyramids of Needs (discussed above), each project was assessed based on the extent to which is could meet the needs of: citizens; firms; tourists. In the same vein, the projects were assessed based on the extent to which they met cross-sectoral themes, such as social inclusion The project involves the extension up to 4 lanes of Extension and rehabilitation of the bypass the existing ring road that connects the junction DN1 CNADNR; and climate change. Finally, each project was assessed on a financial sustainability dimension – i.e., the assessed size of operation 36 in the eastern part of Alba Iulia (Bărăbanţ - 37,600,233 - A10 in the north of the city with the road node DN1 Local Budget and maintenance costs or of potential revenues once the project is finalized. Partoș). - A10 and the bridge over Mureș in Partoș area; the development of intersections with DN1 is included. This methodology was applied to prioritize projects by staff of the Municipality of Alba Iulia (the City Manager, the Director of Programs, the Chief Architect, the Technical Director, the Head of the Public Procurement Office, and a joint prioritization done Strengthening and expanding up to 4 lanes the bridge OP Large by four technical staff) and by three experts of the World Bank. Nine individual priority lists were thus generated. The table below Rehabilitation and expansion up to 4 lanes of over the river Mureş on DN1, including developing bike Infrastructure 37 the bridge over Mureș, in the Partoș district 8,773,387 lanes and pedestrian walkways on both sides of the 2014-2020; includes, as an example, the priority list generated by one of the World Bank experts. on DN1. bridge. CNADNR Both the experts and the municipality staff were asked to assign weights to the individual categories independently – i.e., they were asked to indicate what was, from their point of view, more important for Alba Iulia. Thus, for some, the impact on the private sector The construction of approximately 3 km of 2nd class Developing a ring road in the West (Bărăbanț road with a minimum width of 24 m, 14 m wide CNADNR; was more important than the impact on tourists, while for other financial sustainability was more important than climate change 38 – Alba Iulia – DN74 – Pâclişa –DN1/E81). 25,066,822 carriageway (2 lanes), 3 m wide pavements and 2 m Local Budget; considerations. The scoring was also assigned independently, on a scale defined by each individual. Thus, some have used a scale wide green alignment, as well as the rehabilitation of Credits from 1 to 10, while others have used a scale from 1 to 5. about 5 km of streets (Ciocarliei – Bayonne). 58 59 Priority scores for shortlisted projects generated by one of the World Bank experts Estimated Estimated Estimated Estimated Impact Impact on TOTAL Weight impact Weight Weight Financial Weight Weight Weight No. Project project value impact for (%) for private impact for (%) Sustainability (%) on social (%) climate (%) SCORE (including VAT) citizens (%) tourists inclusion change sector Setting up a Business Accelerator in Alba Iulia (Alba Smart Business Accelerator) through the 1 conversion of a brownfield site - potentially in the 6,266,705 6 35% 10 25% 2 5% 10 15% 2 10% 7 10% 7.1 area of the former SUT. Increasing the energy efficiency of education buildings (Kindergarten no. 7 and no. 11; “Vasile 2 Goldiş” School, School no. 5 and “Ion Agârbiceanu” 2,582,292 8 35% 4 25% 0 5% 10 15% 8 10% 10 10% 7.1 School, “Apulum” Technical College). 3 Lighting system expansion and upgrading. 7,436,574 10 35% 6 25% 5 5% 8 15% 6 10% 9 10% 7.95 Thermal rehabilitation of collective housing units 4 3,168,167 8 35% 7 25% 6 5% 8 15% 7 10% 10 10% 7.75 Prioritizing Projects for 2014-2020 (the areas of Revoluției – Transilvaniei, the M’s Ampoi I). Replacing the urban public transport fleet with 5 cleaner vehicles (electrical, environmental, non- 12,533,411 8 35% 5 25% 6 5% 7 15% 4 10% 8 10% 6.6 motorized), in partnership with the carrier. Construction of cycle paths and 6 modernization of walkways. 8,000,000 6 35% 3 25% 6 5% 6 15% 7 10% 8 10% 5.55 Systems for video surveillance and for 7 increasing road traffic safety. 835,560 6 35% 4 25% 5 5% 5 15% 5 10% 2 10% 4.8 Setting up forest belts 8 (e.g. Brânduşei street, Victoriei street). 83,556 5 35% 3 25% 6 5% 8 15% 3 10% 8 10% 5.1 Rehabilitation of urban infrastructure in large 9 housing complexes (urban renewal in the 9,748,208 8 35% 6 25% 6 5% 6 15% 7 10% 6 10% 6.8 Revoluției – Transilvaniei, the M’s Ampoi I districts). 60 61 Priority scores for shortlisted projects generated by one of the World Bank experts Estimated Estimated Estimated Estimated Impact Impact on TOTAL Weight impact Weight Weight Financial Weight Weight Weight No. Project project value impact for (%) for private impact for (%) Sustainability (%) on social (%) climate (%) SCORE (including VAT) citizens (%) tourists inclusion change sector Modernization of streets, including rehabilitation/ modernization of public utilities (Lalelelor – Furcilor 10 Hill area, Moților Way – Orizont – Emil Racoviță 23,674,221 8 35% 7 25% 6 5% 6 15% 5 10% 5 10% 6.75 area, M.Kogălniceanu-Costache Negruzzi area). 11 Construction of multi-purpose hall. 27,852,024 6 35% 4 25% 7 5% 3 15% 3 10% 4 10% 4.6 12 Construction of a cultural center in the 9,469,688 7 35% 5 25% 8 5% 3 15% 4 10% 4 10% 5.35 downtown area. 13 9,748,208 8 35% 6 25% 8 5% 5 15% 6 10% 7 10% 6.75 Prioritizing Projects for 2014-2020 Improving the quality of municipal parks’ vegetation. Restoration/rehabilitation, revitalization and 14 enhancement of buildings and public spaces in 8,146,717 8 35% 7 25% 10 5% 7 15% 5 10% 6 10% 7.2 the historic area, including the Princes’ Palace. Preservation and revitalization of the caponier 15 between the bastions Saint Elizabeth and Saint 1,723,901 8 35% 6 25% 10 5% 6 15% 5 10% 6 10% 6.8 Charles – White Fortress Carolina. Restoration of bastions, of southern and eastern walls of the ravelin – White Fortress Carolina 16 (including setting up an amphitheater in the 12,533,411 8 35% 7 25% 10 5% 7 15% 5 10% 6 10% 7.2 Trinitarians’ ravelin). Restoration of bastions and ravelins, northern 17 walls – White Fortress Carolina. 3,760,023 8 35% 6 25% 10 5% 6 15% 5 10% 6 10% 6.8 Restoration/rehabilitation/revitalization and 18 enhancement of the perimetral fortification system 6,451,921 8 35% 6 25% 10 5% 6 15% 5 10% 6 10% 6.8 - Vauban bastion fortress Alba Carolina. 62 63 Priority scores for shortlisted projects generated by one of the World Bank experts Estimated Estimated Estimated Estimated Impact Impact on TOTAL Weight impact Weight Weight Financial Weight Weight Weight No. Project project value impact for (%) for private impact for (%) Sustainability (%) on social (%) climate (%) SCORE (including VAT) citizens (%) tourists inclusion change sector 19 Rehabilitation of Batthyaneum library building. 4,177,803 7 35% 5 25% 10 5% 7 15% 5 10% 4 10% 6.15 20 Modernization/rehabilitation of 107A County Road. 8,077,087 8 35% 10 25% 8 5% 6 15% 7 10% 6 10% 7.9 Setting up the Schit (Hermitage) natural area, 21 including cycling lanes for linking Mamut route 5,138,698 8 35% 7 25% 8 5% 6 15% 6 10% 8 10% 7.25 and Transylvania Avenue. 22 2,644,143 7 35% 4 25% 7 5% 5 15% 5 10% 4 10% 5.45 Prioritizing Projects for 2014-2020 Redevelopment of Olympic pool enclosure. Changing the destination of CT 10 into the Alba 23 Iulia Social Center for alternative services 418,989 8 35% 4 25% 4 5% 4 15% 10 10% 5 10% 6.1 (7C Revoluției Boulevard). Implementation of a pilot project for Community- 24 Led Local Development (CLLD) for marginalized 10,000,000 8 35% 6 25% 4 5% 4 15% 10 10% 5 10% 6.6 communities. Construction of social housing and integrated 25 center for the Roma community in the Talcioc area. 334,224 8 35% 6 25% 4 5% 7 15% 10 10% 6 10% 7.15 Developing a nursery in Ampoi district by changing 26 the destination of CT 29 thermal power station. 1.059,040 7 35% 8 25% 3 5% 8 15% 8 10% 6 10% 7.2 Construction of a nursery in Cetate (Fortress) 27 district - Romans Plateau area. 557,040 7 35% 8 25% 3 5% 8 15% 8 10% 6 10% 7.2 * land acquisition is required. 64 65 Priority scores for shortlisted projects generated by one of the World Bank experts Estimated Estimated Estimated Estimated Impact Impact on TOTAL Weight impact Weight Weight Financial Weight Weight Weight No. Project project value impact for (%) for private impact for (%) Sustainability (%) on social (%) climate (%) SCORE (including VAT) citizens (%) tourists inclusion change sector Construction of the Kindergarten no. 8 (relocation 28 from the historic area is required). 1,253,341 8 35% 6 25% 3 5% 6 15% 8 10% 6 10% 6.75 * land acquisition is required Complete overhaul of the Kindergarten with 29 standard functioning schedule no. 6. 562,248 7 35% 6 25% 3 5% 7 15% 6 10% 8 10% 6.55 30 Expansion and rehabilitation of Kindergarten no. 12. 501,336 7 35% 6 25% 3 5% 7 15% 6 10% 8 10% 6.55 31 379,066 7 35% 6 25% 3 5% 7 15% 6 10% 8 10% 6.55 Prioritizing Projects for 2014-2020 Complete overhaul at the “Liviu Rebreanu” School. Rehabilitation/extension of public high schools in Alba Iulia (“Dionisie Pop Marțian” Economic 32 College, “Horea, Cloșca și Crișan” National 2,615,296 7 35% 6 25% 3 5% 7 15% 6 10% 8 10% 6.55 College). Extension of public primary and secondary 33 education establishments in Alba Iulia (School no. 3,325,682 7 35% 6 25% 3 5% 7 15% 6 10% 8 10% 6.55 3 “Avram Iancu”, School no. 6 “Ion Agârbiceanu”). Setting up an interconnection infrastructure linking 34 Alba Iulia city to Sebeș – Turda highway. 50,133,644 9 35% 10 25% 10 5% 5 15% 8 10% 8 10% 8.5 Construction of the bypass in the northern part of 35 Alba Iulia (Bărăbanț - DN 74/șard). 60,160,373 8 35% 9 25% 8 5% 4 15% 6 10% 9 10% 7.55 Extension and rehabilitation of the bypass 36 in the eastern part of Alba Iulia (Bărăbanț - 37,600,233 8 35% 9 25% 8 5% 4 15% 6 10% 9 10% 7.55 Partoș). 66 67 Priority scores for shortlisted projects generated by one of the World Bank experts Estimated Estimated Estimated Estimated Impact Impact on TOTAL Weight impact Weight Weight Financial Weight Weight Weight No. Project project value impact for (%) for private impact for (%) Sustainability (%) on social (%) climate (%) SCORE (including VAT) citizens (%) tourists inclusion change sector Rehabilitation and expansion up to 4 lanes of the 37 8,773,387 8 35% 8 25% 7 5% 6 15% 4 10% 8 10% 7.25 bridge over Mureș, in the Partoș district on DN1. Developing a ring road in the West (Bărăbanț – 38 Alba Iulia – DN74 – Pâclişa –DN1/E81). 25,066,822 8 35% 9 25% 8 5% 4 15% 6 10% 9 10% 7.55 Ecological interurban public transport system – Expanding the single inter-community public 39 transport in the area of the Inter-Intercommunity Development Association Alba Iulia (AIDA), including a single system of stations, related 26,459,423 10 35% 10 25% 8 5% 4 15% 8 10% 10 10% 8.8 furniture, charging and guiding. Prioritizing Projects for 2014-2020 40 Setting up a wholesale market in the Moara (Mill) 1,880,011 8 35% 10 25% 3 5% 8 15% 7 10% 4 10% 7.75 area. In the example given above, the World Bank expert considered that the impact on citizens should be given the largest weight when scoring projects – i.e., a weight of 35%. Next, the expert assigned a weight of 25% for the impact on the private sector, 5% for the impact on tourists, 15% for financial sustainability; and 10% each for the impact on social inclusion and climate change. Using this the number one priority for the World Bank expert came out to be Project 39 on scoring system, the extension of the urban public transport system. The final score is a simple weighted score of the scoring given for each of the six individual categories – i.e., (10X0.35)+(10X0.25)+(8X0.05)+(4X0.15)+(8X0.1)+(10X0.1)=8.8. The other eight priority lists generated different end results. For one, each individual using this methodology used different weights for the different categories, and assigned different scores for each individual project. This in itself reveals the limitations of a purely quantitative approach to prioritizing projects. For one, different people have different views of what constitutes a priority. Also, the 6 categories included in this methodology may not be enough to describe what is important for a city. The table below includes the priority scores given by the nine individuals who used this methodology, and the final compounded total score for each individual project. The compounded scores were standardized on the same scale and used to generate the final priority list using this quantitative approach. 68 69 Priority scores for shortlisted projects using quantitative approach Prioritization by Prioritization by Municipality of Alba Iulia staff Technical Experts Prioritization by Prioritization by Estimated Project Total Priority Municipality of Alba Iulia staff Technical Experts value Estimated Al1 Al2 Al3 Al4 Al5 Al6 E1 E2 E3 Project Total Priority value Al1 Al2 Al3 Al4 Al5 Al6 E1 E2 E3 Restoration/rehabilitation, revitalization and enhancement of buildings and public Ecological interurban public transport system – Expanding the single inter- spaces in the historic area, including the € 8,146,717 Princes’ Palace. 25 11 14 1 17 28 35 9 13 17.00 10 community public transport in the area of the Inter-Community Development € 26,459,424 1 5 1 10 2 12 15 30 1 8.56 1 Thermal rehabilitation of collective housing Association Alba Iulia (AIDA), including a single system of stations, related furniture, units (the areas of Revoluției – Transilvaniei, € 3,168,168 the M’s Ampoi I). 14 24 18 12 29 14 2 38 6 17.44 11 charging and guiding. 12 Modernization/rehabilitation of 107A Rehabilitation of urban infrastructure in County Road. € 8,077,087 32 18 20 15 9 6 20 37 4 17.89 large housing complexes (urban renewal € 9,748,209 in the Revoluției – Transilvaniei, the M’s 8 26 6 6 7 3 7 3 19 9.44 2 13 Improving the quality of municipal parks’ Ampoi I districts). vegetation. € 9,748,209 7 2 7 24 14 15 34 39 23 18.33 Setting up an interconnection Setting up a Business Accelerator in Alba infrastructure linking Alba Iulia city to € 50,133,645 Sebeș – Turda highway. 31 3 7 16 1 5 8 25 2 10.89 3 Iulia (Alba Smart Business Accelerator) through the conversion of a brownfield site € 6,266,706 9 35 19 31 12 22 3 18 17 18.44 14 - potentially in the area of the former SUT. Prioritizing Projects for 2014-2020 Lighting system expansion and upgrading. € 7,436,574 10 3 2 7 21 23 6 32 3 11.89 4 Redevelopment of Olympic pool enclosure. € 2,644,143 14 9 28 8 12 19 32 8 36 18.44 15 5 Construction of cycle paths and Extension and rehabilitation of the bypass modernization of walkways. € 8,000,000 2 6 28 18 27 4 5 1 35 14.00 in the eastern part of Alba Iulia (Bărăbanț € 37,600,234 33 36 2 27 3 7 18 33 8 18.56 16 - Partoș). Replacing the urban public transport Rehabilitation and expansion up to 4 6 17 fleet with cleaner vehicles (electrical, environmental, non-motorized), in € 12,533,411 25 11 14 1 4 19 33 10 12 14.33 lanes of the bridge over Mureș, in the € 8,773,388 38 19 9 33 4 27 17 12 10 18.78 partnership with the carrier. Partoș district on DN1. 18 Construction of the bypass in the northern Modernization of streets, including part of Alba Iulia (Bărăbanț - DN 74/șard). € 60,160,374 33 40 2 27 6 7 12 36 7 18.89 rehabilitation/modernization of public utilities (Lalelelor – Furcilor Hill area, € 23,674,221 Moților Way – Orizont – Emil Racoviță area, 4 37 33 11 7 10 1 4 24 14.56 7 Restoration/rehabilitation/revitalization 19 and enhancement of the perimetral M.Kogălniceanu-Costache Negruzzi area). fortification system - Vauban bastion € 6,451,922 25 14 28 1 19 10 36 17 20 18.89 fortress Alba Carolina. Setting up the Schit (Hermitage) natural area, including cycling lanes for linking € 5,138,699 Mamut route and Transylvania Avenue. 17 10 11 17 24 1 16 26 11 14.78 8 Restoration of bastions and ravelins, northern walls – White Fortress Carolina. € 3,760,023 25 14 28 1 15 13 38 16 21 19.00 20 Restoration of bastions, of southern Preservation and revitalization of the 9 21 and eastern walls of the ravelin – White caponier between the bastions Saint € 12,533,411 3 34 13 19 10 15 9 14 26 15.89 € 1,723,901 25 14 28 1 15 15 39 15 22 19.33 Fortress Carolina (including setting up an Elizabeth and Saint Charles – White amphitheater in the Trinitarians’ ravelin). Fortress Carolina. 70 71 Priority scores for shortlisted projects using quantitative approach Prioritization by Prioritization by Municipality of Alba Iulia staff Technical Experts Prioritization by Prioritization by Estimated Project Total Priority Municipality of Alba Iulia staff Technical Experts value Estimated Al1 Al2 Al3 Al4 Al5 Al6 E1 E2 E3 Project Total Priority value Al1 Al2 Al3 Al4 Al5 Al6 E1 E2 E3 Construction of social housing and Developing a ring road in the West integrated center for the Roma community in the Talcioc area. € 334,224 30 38 37 23 28 30 31 5 16 26.44 34 (Bărăbanț – Alba Iulia – DN74 – Pâclişa € 25,066,822 –DN1/E81). 33 38 2 27 20 7 13 34 9 20.33 22 Implementation of a pilot project for Developing a nursery in Ampoi district by Community-Led Local Development € 10,000,000 5 26 33 37 37 39 29 6 27 26.56 35 23 (CLLD) for marginalized communities. changing the destination of CT 29 thermal € 1,059,040 33 26 24 20 10 25 25 7 14 20.44 power station. Changing the destination of CT10 into the Alba Iulia Social Center for alternative € 418,990 12 31 27 36 30 32 28 11 34 26.78 36 Construction of a cultural center in the downtown area. € 9,469,688 39 1 39 26 17 21 10 2 37 21.33 24 services (7C Revoluției Boulevard). Setting up forest belts (e.g., Brandusei street, Victoriei street). € 83,556 5 11 10 34 21 2 40 31 38 21.33 25 Complete overhaul of the Kindergarten with standard functioning schedule no. 6. € 562,249 19 20 21 38 38 35 26 19 30 27.33 37 38 Expansion and rehabilitation of Systems for video surveillance and for increasing road traffic safety. € 835,561 11 7 36 8 31 30 4 35 39 22.33 26 Kindergarten no. 12. € 501,336 19 20 21 38 39 35 27 20 31 27.78 Complete overhaul at the “Liviu Rebreanu” 39 Prioritizing Projects for 2014-2020 Construction of the Kindergarten no. € 379,066 19 20 21 38 39 35 30 21 32 28.33 8 (relocation from the historic area is € 1,253,341 19 24 11 20 36 33 24 13 25 22.78 27 School. required). 40 Rehabilitation of Batthyaneum library building. € 4,177,804 40 14 38 25 21 25 37 29 33 29.11 Rehabilitation/extension of public high schools in Alba Iulia (“Dionisie Pop Marțian” Economic College, “Horea, € 2,615,297 19 20 14 13 32 34 23 22 29 22.89 28 Cloșca și Crișan” National College). Setting up a wholesale market in the Moara (Mill) area. € 1,880,012 13 32 35 30 33 29 11 27 5 23.89 29 Increasing the energy efficiency of The Citizens’ Priorities education buildings (Kindergarten no. 7 and no. 11; “Vasile Goldiş” School, € 2,582,293 16 26 24 32 25 40 14 28 18 24.78 30 School no. 5 and “Ion Agârbiceanu” The quantitative approach above tried to provide some structure to the decision process of the experts and the local authorities. School, “Apulum” Technical College). In what follows, the report will discuss another step taken by the local authorities to ensure a better project prioritization – the engagement of citizens in the decision making process. Construction of multi-purpose hall. € 27,852,025 18 7 40 34 26 18 19 24 40 25.11 31 There are many ways in which citizens can be engaged, each with their pros and cons. For their purposes, the local authorities in Extension of public primary and Alba Iulia have decided to join forces with the “December 1st, 1918” University to elaborate and implement a citizen survey. Among secondary education establishments in Alba Iulia (School no. 3 “Avram Iancu”, € 3,325,682 19 33 14 13 33 35 38 23 28 26.22 32 other things, the survey also asked citizens to provide a list of their key priorities for their city. Given that it is was impractical to ask School no. 6 “Ion Agârbiceanu”). the over 700 respondents to prioritize a full list of projects, broader project categories and large projects were provided. The results of this survey are included below. Construction of a nursery in Cetate (Fortress) district - Romans Plateau area. € 557,041 33 26 24 20 35 24 21 40 15 26.44 33 72 73 Citizens’ Priority Projects for 2014-2022 Applying an integrated approach to the Share of respondents Share of respondents Project perceiving project as being Important or perceiving project as being Less Important No response provided or Priority choice of projects no position taken Very Important or Not Important In addition to the prioritization exercises carried out by local authorities, experts, and citizens, it is also important to take into consideration the integrated nature of the proposed project package. Particularly for projects that will receive EU funding, it is Rehabilitation of educational buildings (schools and kindergartens) 92.7 3.8 3.5 1 important to demonstrate that the projects chosen would have a bigger impact taken together than individually. Improvement of parks and green areas 92.3 5.1 2.7 2 An integrated approach can be taken both territorially and sectorally. For the 2007-2013 programming period, the Municipality of Alba Iulia took a territorial approach, with most of the EU funds being channeled, although not exclusively, to the rehabilitation of the city’s citadel. Rehabilitation/modernization of streets and development of parking spaces 90.6 5.9 3.5 3 For the 2014-2020 programming period, local authorities plan to finish 4 Construction of social centers for disadvantaged communities 87.2 7.3 5.5 the rehabilitation works started in the Citadel, while at the same time Extension and rehabilitation of street lighting system 86.2 10.0 3.8 5 commencing work in the areas surrounding the citadel. The same way the work on the citadel has helped 6 Continuation of restauration works in the Citadel 83.7 11.0 5.3 spur economic activity, the same way Prioritizing Projects for 2014-2020 it is hoped that the work on the area Construction of bike paths and modernization of pedestrian paths 81.3 13.4 5.3 7 surrounding the citadel will help spur similar initiative in the rest of the city. 8 Rehabilitation and/or construction of Culture House 79.0 14.2 14.2 In essence, four key territories can be defined for Alba Iulia: 1) the Vauban Citadel; 2) the area surrounding the Construction of multi-purpose hall 74.4 18.0 7.6 9 citadel; 3) the city as a whole; 4) the AIDA area. 10 Development of an industrial park between Alba Iulia and Sebeș 72.4 20.8 6.8 Rehabilitation of the Municipal Stadium 69.5 24.3 6.2 11 Areas of intervention for Alba Iulia city These citizen preferences can in turn be applied to the project shortlist discussed above. It has to be mentioned here that the fact that a project falls within a category favored by citizens, it would also get the same priority if citizens were asked an opinion about Alba Iulia Citadel that specific project. Also, not all projects in the shortlist fit within one of the categories discussed above. First road ring of Alba Iulia As indicated earlier though, the prioritization of projects is more art than exact science, and is influenced by a multitude of factors The city of Alba Iulia that are hard to control and measure (e.g., a person’s mood or predisposition on the day when they were asked to rate a particular project). AIDA area 74 75 Availability of funding sources 6 Rehabilitation of urban infrastructure in large housing complexes (urban renewal in the Revoluției – Transilvaniei, the M’s Ampoi I districts). € 9,748,209 Local Budget Finally, one last issue that can be taken into consideration in the prioritization of projects is the availability of funding sources, with 7 Construction of cycle paths and modernization of walkways. € 8,000,000 ROP 2014-2020; Local Budget a priority given to those projects that could benefit from EU funds. Given that many of the applicant guides for EU operational programs were not finalized at the time this document was being drafted, it was hard to make a clear triage in this respect. Increasing the energy efficiency of education buildings (Kindergarten Nonetheless, the existent draft programming documents provided enough information to make an educated guess for most of the 8 no. 7 and no. 11; “Vasile Goldiş” School, School no. 5 and “Ion € 2,582,293 ROP 2014-2020; Local Budget projects in the shortlist. Agârbiceanu” School, “Apulum” Technical College). Implementation of a pilot project for Community-Led Local ROP 2014-2020; ANL; Local Budget; It is also important to determine the projects that would be financed by higher levels of government (i.e., county councils or central 9 Development (CLLD) in Lumea Noua district. € 417,780 Human Capital OP government), and whose operation and maintenance would not fall within the responsibility of the Alba Iulia Municipality. These projects would basically not count against the municipality’s assigned operational budget (i.e., ~€69 million for 2014-2022). 10 Expansion and rehabilitation of Kindergarten no. 12. € 501,336 ROP 2014-2020; Local Budget The Municipality of Alba Iulia Final priority list 11 Developing a nursery in Ampoi district by changing the destination of CT 29 thermal power station. € 1,059,040 ROP 2014-2020; Local Budget Complete overhaul of the Kindergarten with standard functioning Using all the information presented above, a final list of priority projects was proposed. These projects fit within the assigned 12 schedule no. 6. € 562,249 ROP 2014-2020; Local Budget operational budget of €69 million. At this point it is important to mention that the €69 million do not represent an upper threshold for capital investments for the Municipality of Alba Iulia – it is meant more as a guiding post and as a prioritization instrument. Similarly, Setting up the Schit (Hermitage) natural area, including cycling lanes for 13 linking Mamut route and Transylvania Avenue. € 5,138,699 ROP 2014-2020; Local Budget this list of projects does not necessarily include all the priorities of the municipality. As indicated in the Development Strategy, the Prioritizing Projects for 2014-2020 list of needs for the municipality is long, and new needs may be added to this list in subsequent years. The projects in the final priority list above only include the projects that will be undertaken by the Municipality of Alba Iulia. In Municipality of Alba Iulia Project Priority List for 2014-2022 addition, there a number of projects of critical importance to the municipality that will be undertaken by another entity (e.g., the National Highways and Roads Company – CNADNR). Some of these priority projects are already part of a national/regional priority Estimated list, some should become the subject of lobbying activities carried out by local stakeholders. No. Project project value Potential Funding Source (including VAT) Priority Projects for Alba Iulia financed from other sources Integrated Territory 1 - Vauban Citadel Estimated Entity No. Project project value undertaking Justification Restoration of bastions, of southern and eastern walls of the ravelin ROP 2014-2020; Local Budget; (including VAT) project – White Fortress Carolina (including setting up an amphitheater in the 1 Trinitarians’ ravelin). € 12,533,411 State Budget The Sebeș-Turda Highway is under construction with Restoration/rehabilitation, revitalization and enhancement of buildings ROP 2014-2020; Local Budget Setting up an interconnection funding from the OP Transport 2007-2013 and will likely 2 € 8,146,717 1 infrastructure linking Alba Iulia city to € 50,133,644 CNADNR be finalized with funding from OP Large Infrastructure and public spaces in the historic area, including the Princes’ Palace. National Budget the Sebeș-Turda Highway (A10). 2014-2022. The two roads linking Alba Iulia to the Integrated Territory 2 - Ring around Vauban Citadel highway will be part of this larger project. Construction of the bypass in the This bypass is of critical importance as it provides a 3 Improving the quality of municipal parks’ vegetation. € 9,748,209 ROP 2014-2020; Local Budget 2 northern part of Alba Iulia € 60,160,373 CNADNR direct route from the highway and DN1 to the Apuseni (Bărăbanț - DN 74/Sard). Mountains around the City of Alba Iulia into DN74. 4 Lighting system expansion and upgrading. € 7,436,574 ROP 2014-2020; Local Budget The expansion of the bridge has been planned for a Rehabilitation and expansion up to 4 while and it is of critical importance given the daily 3 lanes of the bridge over Mureș, in the € 8,773,387 CNADNR Thermal rehabilitation of collective housing units (the areas of ROP 2014-2020; State Budget; commutes and the traffic in general between Alba 5 Revoluției – Transilvaniei, the M’s Ampoi I). € 3,168,168 Local Budget Partoș district on DN1. Iulia and Sebeș. 76 77 Priority projects for 2014-2020 Rationale for choosing priority projects The prioritization of an eclectic package of projects is more art than it is science. A multitude of factors need to be taken into consideration when deciding what projects are best for a community. There is no perfect methodology to achieve this desideratum and what is a priority today may not be a priority tomorrow. For the prioritization of projects in Alba Iulia a number of filters and methodologies were used. The simplest and arguably most efficient tool for the prioritization of projects is the clear definition of a clear implementation timeline and an OPERATIONAL BUDGET. In the case of Alba Iulia the defined timeline is the EU implementing cycle (2014-2020) and the proposed operational budget for capital investments is €69 million. This does not necessarily mean that local authorities in Alba Iulia cannot do capital investments in excess of €69 million between 2014 and 2022 (although they should not go over by too much), but it is very helpful in triaging a long list of projects. And indeed from over 350 projects outlined in the Development Strategy and the General Urban Plan, a final priority list of 13 was chosen, plus an additional 3 to be implemented by national authorities. 79 Getting to this final list of 13 priority projects was not a straight forward affair. For example, in the scoring of different projects by local authorities and external experts, Public Transport was identified as the number one priority. This project did not make it to the final priority list for two main reasons: • the project is not eligible for EU funding, since the public transport system is run by a private company; • projects the project has a large value (over €26 million) and if implemented would restrict the possibility to implement other of importance. The eligibility of a project for EU funding was a prime criterion used in the triage of the list of projects in Alba Iulia. While the availability of EU funding should not be the main driver of an investment plan (local authorities should fund projects that are likely to have the most significant impact locally, regardless of the funding source), it is hard to argue against it. Whenever possible, local authorities should take advantage of available grants (while also ensuring the financial sustainability of completed capital investments), because this way the budgetary space is created to complete other needed projects. Consequently, several projects that received a high score in the prioritization exercise undertaken by the local authority and external experts, did not make it to the final priority list. On the other hand, there were projects that received a lower score in the prioritization exercise, but were included in the final priority list. For example, the proposed CLLD project in the Lumea Nouă neighborhood was priority number 35 out of a short list of 40 projects. However, it was priority 4 out of 11 on the citizen’s priority list. Moreover, projects with a focus on social inclusion or climate change are often not considered a priority by local authorities, but may have a large and long-term impact. In what follows, a short justification is provided for every project that made it on the priority list. 80 81 1 Restoration of bastions, of southern and eastern walls of the ravelin – White Fortress Carolina (including setting up an € 12,533,411 amphitheater in the Trinitarians’ ravelin). The projects ranks 9th (out of 40) in the prioritization done by local staff and external experts and was ranked 6th (out of 11) in the citizen’s priority list. The projects continues the integrated approach undertaken in the 2007-2013 programming period, with several strategic investments undertaken in the City’ historic citadel. As such the city was given particular attention in the assessment undertaken and was put on the priority list. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.1. “Promoting CO2 reduction strategies for all types of territories, particularly urban area, including the promotion of sustainable mobility plans and of measures targeting climate resilience. 82 83 2 Restoration/rehabilitation, revitalization and enhancement of buildings and public spaces in the historic area, including € 8,146,717 the Princes’ Palace. The project is ranked 10th (out of 40) in the local staff and external experts prioritization exercise, and has rank 6 (out of 11) in the citizen’s priorities. The project is considered to be important for the city because it helps finalize the integrated territorial approach for the City’s Citadel (the centerpiece of the 2007-2013 Integrated Development Plan), and it complements all the projects undertaken in the area. The project is eligible for EU funding under Axis 5 of the ROP 2014-2020, Measure no. 5.1 on the “Conservation, protection, promotion, and development of cultural and natural heritage.” 84 85 3 Improving the quality of municipal parks’ vegetation. € 9,748,209 The project is among the second most important priorities for the citizens of Alba Iulia, and it is ranked 13th (out of 40) in the prioritization exercise done with local staff and external experts. The project primarily includes the parks and green areas in the Integrated Territory 2 – the Ring around the Vauban Citadel, helping to make this area a more liveable and attractive for citizens and tourists. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.3. “Solutions for marginalized communities.” However a significant part of the investment are likely to be done with funds from the local budget. 86 87 4 Lighting system expansion and upgrading. € 7,436,574 The project is ranked 4th (out of 40) in the prioritization exercise undertaken by local staff and external experts, and was ranked 5th (out of 11) by the citizens of Alba Iulia. The project will on the one hand help improve the quality of life for the citizens in Alba Iulia, while on the other hand it will help improve the carbon footprint of the city. The improvements brought to the public lighting system can also help reduce energy bills, freeing up budgetary resources for other investments. The project is eligible for EU funding under Axis 3 of the ROP 2014-2020, Measure no. 3.1 on “Encouraging energy efficiency, intelligent management and the use of RES in public infrastructures, including public and residential buildings.” 88 89 5 Thermal rehabilitation of collective housing units (the areas of Revoluției – Transilvaniei, the M’s Ampoi I). The project is ranked 11th (out of 40) in the prioritization exercise € 3,168,168 undertaken by local staff and external experts. Local authorities have undertaken a separate survey concerning the interest of citizens in a thermal rehabilitation project and their willingness to co-finance such projects. Over 80% of people indicated that such a thermal insulation project is useful, and more than 50% of those surveyed are willing to co-finance at least 20% of project costs. The project will not only help reduce energy consumption and energy bills for citizens, but will also help improve the quality of the urban space in the Municipality of alba Iulia, with a focus on apartment blocks in the Integrated Territory 2. The project is eligible for EU funding under Axis 3 of the ROP 2014-2020, Measure no. 3.1 on “Encouraging energy efficiency, intelligent management and the use of RES in public infrastructures, including public and residential buildings.” 90 91 6 Rehabilitation of urban infrastructure in large housing complexes (urban renewal in the Revoluției – Transilvaniei, € 9,748,209 the M’s Ampoi I districts). The project is ranked 2nd (out of 40) in the prioritization exercise undertaken by local staff and external experts, and was ranked 3rd (out of 11 priorities) by the citizens of Alba Iulia. The project will be implemented in an integrated manner together with the collective housing thermal rehabilitation project, focusing primarily on apartment blocks in the Integrated Territory 2. The project will help improve the quality of life for citizens and the visiting experience for tourists. The project will most likely be completed with funds from the local budget. 92 93 7 Construction of cycle paths and modernization of walkways. The project is ranked 5th (out of 40) in the prioritization exercise € 8,000,000 undertaken by local staff and external experts, and was ranked 7 (out of 11) in the priority list of the citizens of Alba Iulia. The project helps improve mobility and connectivity in the city through the promotion of green transport measures. The intervention helps reduce green-house gas emission in the city while at the same time improving the quality of life. A priority will be given to interventions undertaken in the Integrated Territory 2. The project is eligible for EU funding under Priority Axis no. 4 of the ROP 2014-2020, Measure no. 4.1. “Promoting CO2 reduction strategies for all types of territories, particularly urban area, including the promotion of sustainable mobility plans and of measures targeting climate resilience.” 94 95 8 Increasing the energy efficiency of education buildings (Kindergarten no. 7 and no. 11; “Vasile Goldis” School no. 5, “Ion Agarbiceanu” School, and “Apulum” Technical College). € 2,582,293 The project ranks 1st (out of 11) among citizen`s priorities options for 2014-2020 and 30 (out of 40) in the local staff and external experts prioritization. The integrated approach of the project comes from its consistency and complementarity with other previous local investments in the rehabilitation of educational infrastructure, but also with other projects foreseen for the 2014-2020 programming period: the thermal rehabilitation of the communist residential buildings (block of flats), the promotion of green mobility measures (bicycle lanes, pedestrian areas, sustainable public transportation) and the modernization of the public lightning system, all targeting the reduction of CO2 emissions at municipal level. The project is eligible for EU funding under Priority Axis no. 3 of the ROP 2014-2020, Measure no. 3.1. “Encouraging energy efficiency, intelligent management and the use of RES in public infrastructures, including public and residential buildings.” 96 97 9 Implementation of a pilot project for Community-Led Local Development (CLLD) in Lumea Noua district. The project ranks 4th (out of 11) in the citizen’s € 10,000,000 prioritization for the 2020 horizon, respectively 35 (out of 40) in the local staff and external experts ranking. The project is in complementarity with other projects targeting the improvement of the social service infrastructure and the promotion of social inclusion of different vulnerable groups (Roma, disabled, long- term unemployed etc.), including the extension and rehabilitation of nurseries, schools and kindergartens from disadvantaged areas of the city. The territorial integrated approach of the projects consists in continuing the basic urban infrastructure (roads, water and waste-water, public lightning) extension works carried out in the past years with EU funding, World Bank funding, and funding from the local budget. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.3. “Solutions for marginalized communities. Funding can also be ensured through the Human Capital Operational Programme, through Priority Axis 5.” 98 99 10 Expansion and rehabilitation of Kindergarten no. 12. € 501,336 The project ranks 4th (out of 11) in the citizen’s prioritization for the 2020 horizon, respectively 35 (out of 40) in the local staff and external experts ranking. The project is complementarity with other projects targeting the improvement of the social service infrastructure and the promotion of social inclusion of different vulnerable groups (Roma, disabled, long-term unemployed etc.), including the extension and rehabilitation of nurseries, schools and kindergartens from disadvantaged areas of the city. The territorial integrated approach of the projects consists in continuing the basic urban infrastructure (roads, water and waste-water, public lightning) extension works carried out in the past years with EU funding, World Bank funding, and funding from the local budget. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.4. “Investments in educational and training infrastructure. 100 101 11 Developing a nursery in Ampoi district by changing the destination of CT 29 thermal power station. The project ranks 1st (out of 11) among citizen`s priorities options for 2014- € 1,059,040 2020 and 23 (out of40) in the local staff and external experts prioritization. The integrated approach of the project consists of its complementary with both previous interventions supporting the rehabilitation, modernization and endowment of educational infrastructure, but also with other foreseen projects for the 2020 horizon targeting the same goal, such as the thermal rehabilitation of the kindergartens, schools and high-schools or the extension and upgrade of some existing kindergartens. Moreover the project is consistent with the measures aimed at promoting the social inclusion of different vulnerable groups, such as CLLD. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.4. “Investments in educational and training infrastructure.” 102 103 12 Complete overhaul of the Kindergarten with standard functioning schedule no. 6. € 562,249 The project ranks 1st (out of 11) in the citizen’s prioritization for the 2014-2020 programming period, respectively 37 (out of 40) in the local staff and external experts priority list. From an integrated approach, the project in complementary with a large number of previously implemented projects aimed at the rehabilitation, modernization and endowment of educational units (kindergartens, schools and high-schools) in all neighborhoods of the city. On the other hand, the proposal is consistent with other similar projects foreseen for the 2014-2020 programming period, such as the thermal rehabilitation of 6 educational units, the expansion and upgrade of two kindergartens or the establishment of a new nursery. The project is eligible for EU funding under Priority Axis no.4 of the ROP 2014-2020, Measure no. 4.4. “Investments in educational and training infrastructure.” 104 105 13 Setting up the Schit (Hermitage) natural area, including cycling lanes for linking Mamut route and Transylvania € 5,138,699 Avenue. The project ranks 7th (out of 11) among citizen`s priorities options for the 2014-2020 programming period and 8 (out of 40) in the local staff and external experts prioritization. The integrated approach of the project consists of its complementary with both previous and foreseen interventions supporting the CO2 reduction at municipal level: the thermal rehabilitation of the communist residential buildings (block of flats) and public buildings (educational units), the promotion of green mobility measures (bicycle lanes, pedestrian areas, sustainable public transportation) and the modernization of the public lightning system. The project is eligible for EU funding under Priority Axis no. 4 of the ROP 2014-2020, Measure no. 4.1. “Promoting CO2 reduction strategies for all types of territories, particularly urban area, including the promotion of sustainable mobility plans and of measures targeting climate resilience.” 106 107 Total amount contracted by the main Romanian cities for financing projects from external grants in the 2009-2012 period/inhabitant Institutional frameworks for project implementation The Municipality of Alba Iulia is already a top performer in terms of the absorption of EU funds, with the highest amount of EU funds absorbed per capita of all county capitals in Romania. This success can largely be attributed to the sounds institutional frameworks that have been put in place to help write, tender, and manage projects. As with any public institution however, there is always room for improvement. In what follows, a few ideas will be discussed regarding ways to improve local/regional institutional frameworks. Total amount of European funds contracted in the period 2009-2012/inhabitant under 10 lei/inhabitant between 50 and 99 between 500 and 990 lei/inhabitant lei/inhabitant Alba Iulia - 2708 lei/inhabitant between 10 and 49 between 100 and 499 between 1000 and 1500 lei/inhabitant lei/inhabitant lei/inhabitant 108 109 Given the size and complexity of the Citadel, given the substantial and valuable cultural heritage the Citadel represents, given Institutional set-up for the the spaces that are still available for leasing, as well as the public spaces available for events (concerts, festivals, celebrations, theatre plays), it is important to consider creating an entity in charge of the management of the Citadel. There are several options Vauban Citadel that can be considered in this respect, ranging from simply assigning the management task to existing employees of the Alba Iulia Municipality, to hiring additional people, to creating a separate unit in charge with the management of the Citadel. This last option, The rehabilitation of the Vauban Citadel with EU funds has been an accomplishment that was hailed internally and abroad, and is that of a Citadel Heritage Management (CHM), entity will be discussed in more detail below. This should be seen as just an option, largely recognized as being a success story when it comes to the absorption of EU funds in Romania. Following the rehabilitation of and it should be weighed carefully against other available option, particularly given resource constraints (i.e., a new unit will require the Citadel, the number of tourists in the city has grown from around 32,000 in 2007 to over 400,000 in 2014. Moreover, the number of significant funds from an already cash-strapped budget). businesses and organizations operating in and around the Citadel has grown substantially in recent years, employing over 1,500 people. Given the availability of necessary resources, the CHM can be designed a stand-alone unit with its own separate legal status, which Institutional frameworks for project implementation will operate as a public institution of local interest subordinated to the Alba Iulia Municipal Council. The CHM will operate exclusively Existing economic activities - Alba Carolina Citadel in the Citadel area and the buffer area defined within the Zonal Urban Plan (ZUP) for the Citadel. Special care should be given to avoiding potential conflicts of interest, as regulated by the laws applied by the National Integrity Agency.5 (according the ZUP Alba Iulia Citadel - elaborated in 2014) The CHM will administer tangible and intangible heritage, buildings and public spaces belonging to the public and private domain Tourism of the municipality. The CHM can be entitled to buy, build, renovate and maintain public and commercial spaces according to the existing legal framework. The unit would have a dedicated budget and will operate following clear internal management procedures. Culture All the activities undertaken by the unit would be coordinated with the activities undertaken by the other City Hall departments/ units, and the activities could be implemented by a number of services staffed with professionals according to the organizational Commerce / trade chart presented below: Food and restaurants Citadel Heritage Management - organizational chart Itinerant commerce Other public services Alba Iulia City Council Mayor Sports / leisure Vice Mayor Associations / NGOs Citadel Heritage Management - General Director Health services Legal services Education Financial services Human resources services Adminsitration Deputy Director (Curator) Private offices (medical, law, etc.) Land for concession, lease, joint ventures or Management of Communication and Tangible Heritage Management of Traffic management education which have already this Intangible Heritage (roads, parking, status (built environment: buildings (public relation, and public spaces, art lighting) (cultural and events) signalizations) help desk, training) *Data processed according to the Update of the Zonal Urban Plan of the Protected Area Alba Carolina Citadel, SC QUATTRO Design SRL, 2014 5 Similar situations have occurred with water/wastewater operators, where mayors present on these companies’ boards were considered to be in a conflict of 110 interest and risked sanctions. The Government and the Constitutional Court have been trying recently to clarify such situations. The CHM could use a number of management instruments that were developed by the Central Government a few years ago6: Legal regime of the properties - Alba Carolina Citadel 1. A system for recording properties according to urban functions: The system organizes properties according to the urban functions such as public domain (streets and squares), public services (according the ZUP Alba Iulia Citadel - elaborated in 2014) of general interests, cultural and religious uses, administrative buildings, dwellings, and spaces for commercial uses. The system records the annual total costs and revenues for each type of property accompanied by vacancy ratio. 2. Property dossier: The dossier contains information regarding ownership, technical information quantitative and qualitative of the property such Institutional frameworks for project implementation as zoning plan, urban infrastructure plans, property survey plans and facades, surfaces and volumes, energy consumptions per tenant and sqm, information about the tenant and the rental contract. 3. Property file: The file describes the state of the property to support monitoring the activities and necessary resources to operate, maintain and repair/rehabilitate. 4. Marketing plan: The plan formulates the market analysis, the demand and supply for spaces in the Citadel and in the surrounding area. The plan provides recommendations on the features of new urban functions present in the market in line with the Citadel Status. The plan presents the expected revenues in line with the existing municipal rental policy and market price. 5. Communication and education plan: The plan is to (1). Promote the value of the Citadel and the activities organized on yearly basis; (2). Build community interest and involvement in activities organized; (3). Implement training activities for young and adults in the field of cultural heritage and art and crafts connected to heritage. Public domain of Public domain of Land for concession, national interest local interest rent or joint venture or that already have *Data processed according to the Update of the Zonal Urban Plan of the Public domain of this statute Protected Area Alba Carolina Citadel, Private property county interest SC QUATTRO Design SRL, 2014 6 Detailed presentation are described by the document: 2003, Ministry of Transport, Constructions and Tourism, Methodology regarding the rehabilitation operations of built protected areas (IHS Romania study - July 2003) 112 113 Institutional set-up at the Institutional set-up at the municipal level functional urban zone level The Municipality of Alba Iulia already is amongst the most effective municipalities in Romania when it comes to the absorption of EU In areas that have urban dynamics that pass administrative boundaries, it is important to consider institutional frameworks that function funds per capita. Alba Iulia is quite a distance away from other county capitals – i.e., it has absorbed more than twice the amount at the periurban/metropolitan level. When looking at commuting patterns in the Alba Iulia County, it becomes obvious that Alba Iulia of EU funds per capital than the next second most efficient county capital, and it has absorbed more than five times as more per and Sebeș form an urban system that attracts commuters from all over the county. According to a methodology developed by OECD, capita than the country’s growth poles. The success of the Alba Iulia in absorbing EU funds can to a large extent be attributed to a functional urban zone is a contiguous area (without enclaves or exclaves) formed by several localities, where at least 15% of the Institutional frameworks for project implementation the institutional framework that has been put in place to help manage investment projects. workforce in a particular locality is commuting to another locality (usually the center locality). Of particular importance is the Programs Unit of the Municipality of Alba Iulia. The Programs Unit was established in 2004 as a Commuting at Functional Urban Area level: procentage of commuters and service directorate staffed by contractual personnel, with the staff largely coming from the NGO world. The chief mission of the unit is to write, manage, and monitor the projects (both with EU and local budget funding) undertaken by the Municipality of Alba Iulia. commuting balance 2014 Currently, the unit has a staff of around 20 project managers. Given that the staff is hired on a contractual basis (i.e., they are not European road public servants), they can supplement their base salary from other projects (e.g., a project manager may work as a consultant for national road another public or private entity). This allows the staff to earn salaries that are high enough to keep them motivated, with the turnover being quite low when compared to units staffed by public servants. Also, the unit has a relative autonomy that allows staff to be county road creative and innovate. The results can easily be measured in the amount of EU grants attracted to the city. communal road As it stands, the Programs Unit has proven its efficacy in driving development at the local level, and one should not change a thing that is working. Moreover, other local authorities in Romania could learn from the Alba Iulia example. Nonetheless, it does not hurt Procentage of commuters for the unit to do regular self-assessments and functional review to identify potential areas of improvement. Some key functions that may be considered given the complexity of EU funded projects include: in the total number of resident employees: • Public procurement: the Programs Unit may consider hiring a public procurement specialist that could help with the drafting of procurement document, and could keep the rest of the team abreast of the latest changes in procurement legislation; less than 15% between 15,1% and 30% • Engineering: it would be useful to have 1-2 engineers (specialized in civil works and public infrastructure) that could guide the team in the proper drafting of tender documents, terms of reference, and contracts; between 30,1% and 50% more than 50% • Urbanism: it is critical to have a good expert with an overview on how individual public and private investment projects help create a livable and sustainable city, and to provide inputs on the elaboration of terms of reference for urban development and redevelopment projects; Commuting balance: • Legal: a legal expert is particularly important in the drafting of tender documents and contracts, and they can help shorten the delays caused by bidding procedures (e.g., the challenging of decisions coming from losing bidders); positive balance negative balance • financial Financial: the Programs Unit already has financial specialists, but these should be trained continuously to keep abreast of procedures used for the management of EU funds, as well as other funding sources. *Data processed according to the Update of the Zonal Urban Plan of the Protected Area Alba Carolina Citadel, SC QUATTRO Design SRL, 2014 114 115 When it comes to Alba Iulia’s individual commuter shed, it becomes obvious that the municipality primarily attracts people from The most readily available institutional vehicle for management beyond administrative boundaries are the inter-communal localities to the North, East, and West of the Municipality. Over 10,000 people come to work in Alba Iulia every day, adding to a development associations. In this respect, such an inter-communal development association was created (AIDA – The Alba Iulia resident workforce of around 30,000. In turn, around 3,000 people from Alba Iulia commute to other localities – primarily Sebeș, Inter-communal Development Association), which includes 11 individual territorial administrative units (UAT) (Alba Iulia, Sebeș, Teiuș Galda de Jos, București, Vințu de Jos, and Cluj-Napoca. (urban areas), and Ighiu, Cricău, Galda de Jos, Sântimbru, Ciugud, Berghin, Meteș, Vințu de Jos (rural areas)), with a combined population of around 106,000 and covering an area of over 900 square kilometers. Commuters to and out of Alba Iulia city The Alba Iulia Inter-communal Development Association - AIDA European road As with most inter-community Institutional frameworks for project implementation national road development associations (IDAs) county road in Romania, the power of AIDA to implement projects at the communal road metropolitan level is rather limited, and it depends on the Procentage of residents budget that is assigned to it commuting: by each individual UAT. Since less than 15% budgets are tight and most administrations prefer to use between 15,1% and 30% these budgets for their own individual projects, IDAs tend between 30,1% and 50% on the whole to be not very Alba Iulia - efficient. commuting center However, in the case of AIDA, Total number of residents an early success was achieved commuting to Alba Iulia: through the establishment of a Other cities with residents metropolitan transport network, commuting from Alba Iulia: less than 250 residents which since 2012 services the between 251 and 500 Municipality of Alba Iulia and the Cluj-Napoca between 501 and 750 Communes of Sântimbru and Ciugud. Given that legislative Alba Iulia between 751 and 1000 Alba Iulia amendments are under way, Deva Sibiu - county capital making it easier for metropolitan Total number of residents cities public transport networks to be commuting from Alba Iulia: established (currently, transport București communes lines between two localities are less than 250 residents put up for bidding to private or < 100 residents between 251 and 500 other municipalities public transport companies by between 100 and 200 county councils), it is hoped that between 200 and 300 between 501 and 750 the public transport network between 300 and 400 between 751 and 1000 will be expanded to include the entire AIDA region. 116 117 Apart from the management of the public transport network, and the planning role it currently undertakes, the AIDA could take on Proposed zoning in the General Urban Plan - main areas of activity a number of additional key responsibilities: (according to Alba Iulia GUP - elaborated in 2012) • Spatial planning and urbanism: it is critical to not only elaborate a development strategy for the area (such a strategy is already available), but to also take on the responsibility for the elaboration of the Metropolitan Spatial Plan. • metropolitan Writing project: AIDA could be staffed with key people in charge of elaborating and implementing projects at the level. • national Lobbying for infrastructure investments: AIDA could have dedicated staff in charge of lobbying with regional and authorities for bringing needed infrastructure investments in the metropolitan area. For example, the Alba Institutional frameworks for project implementation County Council (which formally is part of AIDA) could be asked to help rehabilitate/modernize the network of county roads that services the AIDA region, to allow an easier and more seamless commute in the area. • Promoting the region to national and international investors: given the commuting patterns in the area, it is important to promote the region as a whole, rather than promoting individual localities. This brings several benefits to all localities that are part of the AIDA. A small rural locality will be more attractive to investors when it is presented as being part of an integrated region with over 100,000 people. Similarly, for larger urban areas like Alba Iulia and Sebeș, where available land for investments is in limited supply, it can be easier to attract investors when a menu of available land options is presented for all of AIDA. The promotion of the AIDA region to potential investors is of particular importance, given that a region cannot sustain its long term growth if it does not also manage to create opportunities for people. The Alba County Council has already created a unit in charge of promoting the county to investors. A platform has been developed (the Business Info Point - http://investalba.ro/4business/), which gives potential investors easily digestible information about the county and the investment opportunities in the county. However, the AIDA could have dedicated staff in charge of pro-actively attracting investors (e.g., going to trade shows, arranging direct meetings with private companies, doing presentations at conferences). Currently, AIDA is the most attractive area for business in Alba County. The available lands for investments with significant economic impact are mainly in private ownership. The utility infrastructure is good, most of the cities and communes having access to water, sewerage, and power (electricity and natural gas). Railway and related facilities area Economic activities area: industry, plot size (ha) storage, logistics, related facilities area city/commune infrastructure Production activities area: parks for new large size medium size small size technologies, mixt functions in an industrial area two plots of 2 ha Green areas for leisure and sports activities or Alba Iulia one plot of 14,9 ha one plot of 1 ha two plots 0,5 ha serviced land with specific / thematic role Sebeș one plot 2,3 ha - - serviced land except sewerage Land owned by the Ministry of Defence three plots of 0,275ha, Metes one plot of 12 ha - water and electricity available 0,7 ha and 0,9 ha Agricultural land Vințu de Jos one plot 27 ha - - no infrastructure *Data processed according to the Update of General Urban Plan Alba Iulia, BP Strajan SRL, 2012 118 119 Annex 1 includes a more in-depth discussion of the competitive advantages and innovation potential of Alba Iulia, which could with The performance of key economic sectors in AIDA between 2009 and 2013 a more efficient targeting of potential investors. The figures below indicate performance of the key economic sectors in Alba Iulia, 0.5 AIDA, and Alba County, between 2009 and 2013. The “Winners” represent the sector that have had growing employment both at the national level and local level, and they have grown at a faster rate at the local level. The “Questionable Winners” represent those BIG LOSERS Sawmilling and planning of wood WINNERS Machining 0.4 sectors that have registered a decline in number of employees at the national level, but a growth at the local level. The “Losers” are Manufacture of Beverage serving ice cream activities Manufacture of ceramic the sectors that have registered a decrease in employment both at the national and local level. The “Big Losers” are the sectors that household and Manufacture of 0.3 Freight transport by road ornamental articles have registered a growth in employment at the national level, but a decrease in employment at the local level. veneer sheets and wood-based panels Maintenance and Manufacture of footwear repair of motor Processing and Water collection, Raising of poultry Institutional frameworks for project implementation vehicles 0.2 preserving of meat treatment and supply The performance of key economic sectors in Alba Iulia between 2009 and 2013 Manufature of other builders’ carpentry and 0.1 Manufacture of joinery other furniture BIG LOSERS WINNERS Construction of Manufacture of residential and non- 0.5 Casting of iron ready-mixed concrete 0 residantial buildings -0.4 -0.2 Manufacture of -2 E15 0.2 0.4 0.6 Retail sale of clothing Machining underwear Manufacture of Operation of dairies and in specialised stores Manufacturing of ceramic household concrete products for cheese making and ornamental articles Beverage serving -0.1 construction purposes Taxi operation 0.3 Freight transport activities Water collection, by road Processing and Plumbing, heat and treatment and supply preserving of meat air-conditioning Manufacture of Retail trade of motor Other passanger -0.2 installation other outerwear Manufacture of Losers Questionable winners vehicle parts and footwear land transport accessories 0.1 Manufacture of bread, Construction -0.3 fresh pastry goods Manufacture of ready-mixed Casting of iron Manufacture of 0 and cakes concrete The performance of key economic sectors in Alba County between 2009 and 2013 -0.4 -0.2 0.2 0.4 0.6 Construction of roads underwear -2 E15 and motorways -0.1 Urban and suburban Architectural activities Plumbing, heat and air-conditioning installation passenger land transport BIG LOSERS 0.7 WINNERS Retail sale of second-hand -0.3 goods in stores Manufacture of luggage, handbags and the like, saddlery Mining of other and harness 0.5 non-ferrous metal Losers Questionable winners Machining -0.5 Sawmilling and Beverage serving Processing planning of wood activities and preserving 0.3 of meat Freight transport Water collection, Raising of poultry by road treatment and supply Manufacture of footwear Manufacture of other Manufacture of bear- 0.1 builders’ carpentry ings, grars, gearing Casting of iron Manufacture of other and joinery and driving elements 0 furniture -0.2 -2 E15 0.2 0.4 0.6 0.6 Manufacture of concrete Operation of dairies -0.1 and cheese making products for construction purposes Growing of grapes Plumbing, heat and -0.3 air-conditioning installation Losers Questionable winners -0.5 120 121 the end of 2011. Future statistical data will probably show that the recovery process only ended in 2013. At the same time, Alba is still one of the poorest NUTS 3 regions in Europe, reaching only 23.5% of the EU-28 average GDP/per capita (PPS) in 2011. ANNEX 1: ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia From the entrepreneurship point of view (number of active companies/1.000 inhabitants), Alba Iulia reports similar values with other county seats from the central and western parts of Romania. However, the city is still far behind the performances of Bucharest and Cluj-Napoca, both with a very dynamic business environment. At the moment, Alba Iulia concentrates 44% of the total companies Analysis of the competitive advantages and the based in Alba County, 6% of those from the Centre Region and less than 1% of the total enterprises in Romania. The total number of companies fell by 11% after 2008 as a direct consequence of the global economic and financial crisis, that led to the bankruptcy innovation potential of Alba Iulia of hundreds local businesses. The macro-economic overview of the local economy Active companies/1000 inhabitants The scope of this annex is to orient the efficient and effective investments in business support infrastructure and services and in R&D, in order to boost the competitiveness of the city of Alba Iulia. The aim is to switch from an economic model based on production 80 factors to a different one, focused on innovation, modern technologies and sustainable partnerships between the companies, 70 universities and R&D providers. This new models should be built on the competitive advantages of the local economy, more exactly on those economic sectors or clusters with high added-value, export potential and induction potential for other activities. 60 The territorial analysis of the GDP at current market prices by NUTS 3 regions 50 GDP evolution shows that Alba County’s economy was 40 8,000 performing much better in 2011 Romania 30 compared to 2000, with an 7,000 Macroregion increase in the GDP per capita 20 One (PPS) of 368%, the highest rate 6,000 10 in the Center Region (NUTS Alba Euro/inhabitant 2). Alba currently contributes 5,000 0 with 1.7% to the national GDP Brașov e eș va u d uc lia ov a a t es gh ar oc bi a 4,000 Iu ur De aș Ci Ar ar Si ișo and with 15.2% to the regional or ap M ba Br ch ea he m j-N u Al Bu ur one. A convergence trend is Ti rg G Covasna u rc 3,000 Tâ Cl tu ie also notable with regard to the ân M Sf national and regional average Harghita Data source: Borg Design Database 2,000 values. In 2000 the GDP per capita in Alba reached only 89% 1,000 Mureș of the national average and 84% Among the almost 2.800 companies based in Alba Iulia that submitted the financial statements for 2013, 99.7% are SMEs, this of the regional one, whereas in 0 Centru sector being the engine of the local economy. However, we have to note that 39.9% of the total companies reported no employee 2011 they have represented and 17.2% no revenues for the last financial year, meaning that the local economy is actually depending on no more than 1.500 00 01 02 03 04 05 06 07 08 09 10 11 95%, respectively 101%. 20 20 20 20 20 20 20 20 20 20 20 20 companies with employees and revenues of at least 25.000 Euro/year. Compared to 2011, the number of micro-enterprises declined However, the county economy by 12.3%, proving that these small companies, in general family businesses, are the most vulnerable to different economic cycles. has been affected by the global Data source: EUROSTAT, 2014 At the same time, medium and large enterprises, especially the ones with foreign capital, proved to be more stable and managed to crisis since 2008 and did not recover after the crisis, in general. managed to fully recover until 122 123 The business birth rate declined after 2010, reaching a minimum in 2014. In which regards the number of companies that have been Alba Iulia Alba County Center Region Romania radiated, dissolved or suspended, they have reached the peak in 2009 and 2010, as a direct result of the global crisis. However, Number of employees the number of companies in insolvency has continued to grow up to a maximum in 2014, showing that most local entrepreneurs ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia (type of enterprise) / are still facing difficulties in continuing and developing their businesses. The number of new companies established in Alba County Territorial level % of total active enterprises by business beginners (SRL-D) is only 222, representing 1.3% of total such businesses created in Romania since 2011, when the program started. 0-9 (micro) 90.7 85.8 85.9 87.1 10000 10-49 (small) 8.1 11.7 11.5 10.6 9000 50-249 (medium) 0.9 2 2.2 1.9 Suspended businesses Over 250 (large) 0.3 0.5 0.4 0.4 8000 Businesses in Data source: Borg Design and Tempo Online Databases 7000 insolvency The local economy went through a process of restructuring and market reorientation in the last two decades. Industry has played the 6000 Dissolved businesses central role before 1989, when more than 50% of the active population was occupied in this sector. The tertiary sector is currently 5000 driving the business environment of the city, with a share of 75.6% of the total number of companies, typical for an urban economy Radiated and bigger against the county and regional averages. However, after 2008 we can notice the decline of industry, construction and businesses 4000 retail enterprises with 16.3% to 24.7%, all three sectors being among the most affected by the shrinking demand on the internal and Newly external markets under the pressure of the global crisis, together with an increase in the number of companies active in agriculture 3000 registered and HORECA, both emerging sectors at local level. businesses 2000 100% 90% 1000 Services 80% 0 2008 2009 2010 2011 2012 2013 2014 70% Constructions Data source: National Trade Register Office 60% 50% The share of shareholders aged under 29 is bigger in Alba (11.15% of the total shareholder) compared with the national average Industry (10.90%), the same case being reported also for the ones over 50. Moreover, 21.1% of the self-employed person are also under the 40% age of 29. This shows that the young people in Alba have a relatively well developed entrepreneurial spirit that can be exploited in the future. However, most young entrepreneurs are facing problems such as the lack of initial capital, limited access to loans, client 30% Agriculture, forestry debts, lack of technology transfer and specialized human resources that are preventing the development of the newly established 20% and fishing businesses. 10% According to the 2011 Census, 47% of the city population is gainfully employed, the biggest percentage among all county seats in the region. According to the occupational status, 49.2% of the population is involved in economic activities, out of which 95% 0% are employees and the remaining ones are entrepreneurs, self-employed or unpaid family workers. Overall, the active population, Alba Iulia Alba County Center Region Romania including both employed and unemployed persons, reached 32.242 people, representing 50.7% of the total stable population. 124 125 However, almost half of the population is inactive, among which pensioners represent 21.2% of the population, pupils and students The number of unemployed was of only 2.402 in 2011, representing 7.45% of the total active people. This percentage is similar 14.3% and another 13.8% are persons supported by other persons (children, housewives) or by the state and private organizations. to the one reported in other county seats from the region, indicating that unemployment is not a stringent issue at local level. If we compare the occupational status of the population with its age structure, we can notice that only 70.7% of the population with Furthermore, according with the statistical data collected by the County Employment Agency, the official number of unemployed ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia the age between 20 and 64 were occupied. Moreover, the number of pensioners is overrepresented by comparison with the number has decreased with 25.6% since the 2011 Census. However, we have to bear in mind that the pressure on the local job market has of people over 65 (21.2% against 17.8%), indicating a phenomenon of early retirement, which was very common especially in the been partially released by the significant number of locals that are working abroad or by the faculty graduates that remain in the big 90s. In this context, there is potential for increasing the number of employed people with more than 10.000, if the local economy university centers, such as Cluj-Napoca, Timișoara or Bucharest. will develop in the future. 100% Supported Unemployment rate (as of % of active persons) 90% persons 9 80% 8 Pupils and 70% students 7 60% 6 50% Pensioners 5 40% 4 30% Unemployed 3 20% 2 10% Employed 1 0% 0 ia a eș a u ad ov v oc bi ia va eș a u ad ov l Iu ur De aș Ar oc bi Si l ap Iu ur De aș Ar M Si ba Br ap M ba j-N Br u Al -N rg u Al u rg Tâ uj Cl Tâ Cl Data source: 2011 General Population and Housing Census. Own calculations Data source: 2011 General Population and Housing Census. Own calculations According to the statistical data collected by National Institute of Statistics (NIS), the number of employees in Alba Iulia decreased by 1.4% (-411 jobs) since the last Census (2011), but the number of jobs created in the surrounding settlements (Sebeș, Galda The biggest share of employed people work in the tertiary sector, which became the engine of the local economy in the last two de Jos, Ciugud), namely 996, compensated and even exceeded this decline, confirming the tendency of company relocation in decades, namely 18,812, representing 61.8% of the total occupied individuals. Industry currently employs only 7,883 persons suburban areas, which started in the mid-2000s. (25.9%), followed by the construction sector (2,620 or 8.6%) and agriculture, with only 1,110 occupied persons (3.6%). At the economic sector level, processing industry (22.5%) ensures the biggest number of jobs (16.1% of total), followed by retail and repairs (16.1%), public administration and defense (11%) and construction (8.6%). These activities are generally poorly remunerated and generate limited added-value. At the same time, high-value activities, such as IT&C, financial services, scientific, technical and professional services attract together less than 7.3% of the total local labor force, thus explaining the low level of salaries. However, the occupation structure of the labor force has improved continuously in the last two decades, resulting in an increase of the service sector at the expense of industry. 126 127 % of the total employed 76.8% of the local labor force works in non-financial and financial companies, confirming that the private sector is the very engine of the local economy, whereas the public sectors occupies 19.1% of the personnel, a significant share considering the size of the Other services 4% Agriculture, forestry and fishing 4% city. More exactly there are over 5,900 employees depending on the salaries assured by the municipality and other state-funded ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia Culture and recreation 1% organizations. The shrinking public budgets has strongly affected the public servants during the crisis, since in 2010 the salaries have been reduced by 25%. % of the total employed There is no available data on salaries collected al Territorial Administrative Unit (TAU) level, but county information provided Public administration by NIS at county (NUTS 3) level is relevant, since more than half Education 19% of the employees are registered in the county seat, namely Alba 6% Households 3% Iulia. The monthly medium net wage at county level reached 1.323 lei in 2013, up 17.3% against 2008. However, this value Health and Non-profit institutions social services is still behind the national and regional averages, with 16.2%, Non-financial and serving the population 1% 6% respectively 5.1%. The only economic activities for which the Processing industry financial companies 23% employees in Alba got bigger wages than the ones in other 77% parts of the region and of the country in 2013 are agriculture, energy, scientific, professional and technical services, public Public administration Data source: 2011 General Population and Housing Census. Own calculations administration and education, the last two from the public sector. 11% 1800 1600 Constructions 1400 23% 2008 1200 2009 1000 Retail and repairs 2010 16% 800 Transport and logistic 600 2011 5% 400 2012 HORECA 2% 200 2013 IT&C 2% 0 Water and waste management 1% Alba County Center Region Romania Financial services 2% Energy 2% Data source: NIS. Tempo Online Database. 2014 Scientific, technical and professional services 3% The biggest wages at county level were reported in 2013 for the energy sector (226% of the county monthly average net wage), financial services (179%), public administration (163%), the extraction industry (152%), scientific, technical and professional Administrative and support services 2% services (149%), IT&C (124%) - activities that reunite only 20.2% of the local labor force. Conversely, the smallest wages are Data source: 2011 General Population and Housing Census. Own calculations registered in HORECA (49%), retail and repairs (66%), other services (74%), administrative and support services (75%), culture and 128 129 recreational activities (75%), constructions (77%) – sectors that provide 33.9% of the total jobs. Thus, the occupational structure By comparison with other county seats nearby, Alba Iulia has a relative large share of population with tertiary education, being of the population, namely the large share of employed in low added-value activities, is the main cause of wage disparities against surpassed only by Cluj-Napoca, the second university center in Romania. The local university has played a central role in the more developed cities and counties, such as Bucharest, Cluj-Napoca, Sibiu, Timișoara etc. increasing share of residents that have graduated university studies. However the 1st December University has an offer of studies ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia that is not necessary correlated with the existing and emerging economic agglomerations in the city and its surroundings. Most faculties (Theology, History and Philosophy, Law and Social Sciences, Economics) are rather theoretic ones, whereas the Faculty Monthly net wage (lei) - 2013 of Engineering is the only one actually preparing the necessary stuff for sectors such as IT&C or electronics. In this context, most high-school graduates interested in engineering prefer to continue their university studies in bigger university centers – such as Cluj- Energy Napoca, Bucharest, Timișoara, etc. Since most of them remain in those cities, that are more offering from the job market perspective, Public administration and defense it becomes challenging to find highly specialized personnel in Alba Iulia, regardless of the external migration phenomenon. Extraction industry Professional, scientific and... 100% No studies IT&C 90% Water and waste management Primary and 80% secondary Education studies Processing industry 70% Agriculture, forestry and fishing Professional 60% studies All sector - average 50% Health and social services High-school Transport and logistic 40% studies Constructions 30% Post-secondary Administrative and support studies 20% Culture and recreation activities Other services 10% Higher education Retail and repairs 0% lia va ov iu eș a ad Real-estate oc b Iu ur De aș Ar Si ap M ba Br HORECA -N u Al rg uj Tâ Cl 0 1000 2000 3000 4000 Data source: 2011 General Population and Housing Census. Own calculations Data source: NIS. Tempo Online Database. 2014 Out of all residents aged over 10, 27.9% had university studies, 4.8% post-secondary ones, 30.3% graduated high-school and In what concerns the blue-collar workers class, their number has declined significantly after 1989, with the switch to a service- 14.3 professional studies, whereas the remaining 22.7% had only primary and secondary ones. Although the share of population oriented economy and the transformation of many professional schools in technological high-school, that generally ensure a with tertiary education has doubled since 2002, especially among young people, most residents in Alba Iulia, especially the ones theoretical preparation, far from the needs of the business environment. In 2011, only 14.3% of the residents in Alba Iulia had aged over 40, have technical studies and have been trained to work in different economic sectors, dominating the local economy professional studies, a lower percentage than the ones reported by Brașov and Sibiu, cities that have recently attracted many before 1989. With the switch of the local economy from industry to services in the last two decades, this group is facing the most investors in the industrial field. In this context, more than 50% of the employees in the manufacturing sector are aged over 40 challenges in finding a suitable job in the new economic context. At the same time, the number of residents with university studies and the newly established investors in different industrial sectors need to train the new personnel in their own facilities. Moreover, is currently overrepresented by comparison with the occupational structure of the population (approximately 16.000 graduates for although the are many providers of life-long learning services, both public (such as the County Employment Agency) and private, less than 10.000 jobs requiring such studies), regardless of the correlation between the profile of the studies and that of the job. the number of participants is reduced and the offer is focalizing more on occupations from the tertiary sector than on industry. 130 131 The sector analysis of the local economy and the mapping of the economic agglomerations The Balassa Index of Revealed Comparative Advantages was used to determine the export potential and competitive advantages The overall scoreboard of the city’s economy indicated that a limited number of sectors have a significant contribution to both of the local economy’s sectors. The results show that the only products for which Alba County has a significant comparative entrepreneurship, output, employment and exports, resulting from a concentration of companies, skills and know-how, that are advantage are wood, furniture, footwear, ceramics (chinaware) and, more recently, food and beverages, respectively automotive, ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia defining the competitive advantages of Alba Iulia. Whereas public administration, education, health and social services, culture thus confirming these are most relevant industrial agglomerations in the area, with real export potential. and recreation, water and waste management are still dominated by the public sector, the most performing activities at local level remain the processing industry, retail, constructions, and transport. Also administrative and support services, as well as the professional, scientific and technical services gather a significant number of companies, but their contribution to the local GDP and Balassa Index of Revealed Comparative Advantages - Alba County to employment is still marginal, mostly because these markets are dominated by individual and family businesses. -5 -4 -3 -2 -1 0 1 2 3 Total number of Number of employed Live animals and animal The specialization potential of the Number of employees in people in the sector products local economy by comparison Total turnover active companies Sector (2013) (mil.Lei, 2013) companies from Alba Iulia Vegetable products with other county seats in the (2013) (2011 Census) region can also be evaluated Animal or vegetable 2011 Agriculture, forestry and fishing 54 100 236 1110 fats and oil using the Global Utility Method, Foodstuffs vegetables 2012 a management tool orienting Extraction industry 12 60 140 50 and tobacco the economic decisions. In 2013 order to carry out this analysis, Processing industry 257 777 5273 6847 Mineral products 2014 we have considered a number Energy 12 10 210 543 of 18 economic sectors and 3 Chemical products Water and waste management 15 99 971 443 macroeconomic indicators for Plastics and rubber each of these sectors (number of Constructions 330 218 1812 2620 active companies, total turnover Wood products Retails and repairs 820 774 2779 4909 and number of employees), all for a number of 4 benchmarking Transport and logistics 214 187 1039 1619 Paper cities, potential competitors for HORECA 139 39 591 597 Textiles the investors interested in Alba Iulia. The results show that the IT&C 108 26 221 538 Footwear city economy is lagging behind Financial services 7 58 95 756 the performances of the bigger Stone, plaster, cement, ceramics, glass urban centers, such as Cluj- Real estate 92 17 109 90 Napoca, Sibiu and Târgu Mureș. Metal products Professional, scientific and technical services 375 47 512 912 Above average performances are Machinery, mechanical appliances registered only for businesses in Administrative and support services 120 31 761 682 and electrical equipment agriculture and education, both Public administration 0 0 0 3335 Automotive with a marginal contribution to the local GDP. From this perspective Education 28 5 143 1889 Optical, medical, clocks and musical instruments Alba Iulia does not have a Health and social services 59 15 230 1939 Miscellaneous clear economic specialization, manufactured articles whereas this is clear in the case Culture and recreation 31 26 114 373 Other products not of Cluj-Napoca (services) or Sibiu elsewhere included (industry). Other services 58 6 158 1130 -5 -4 -3 -2 -1 0 1 2 3 Data source: Borg Design Database and NIS, The 2011 Population and Housing Census Data source: NIS, Tempo Online Database, 2014. 132 133 The processing industry was the dominating sector of the local economy before 1989 and went to a long and painful restructuration and market reorienting process in the last decades, resulting in personal cuts, but also in the disappearance of emblematic communist production facilities such as INCOV (the carpet factory), ARDELEANA (footwear), UTEPS and UZINA ARDEALUL (heavy mining ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia machinery) and RESIAL (refractory bricks). Their disappearance has been only partially replaced by the newly established foreign and Other Services local investors, such as VCST and STAR TRANSMISSION (automotive), REKORD (footwear), KRONOSPAN and HOLZINDUSTRIE SCHWEIGHOFER (wood processing), TRANSAVIA and ELIT (meat production and processing), IPEC (chinaware), POMPONIO and Cluj-Napoca Culture and Recreation FRUHWALD CONNEX (building materials). Some of the companies established in the communist era are however still active and have managed to develop and modernize: ALBALACT (milk processing), APULUM (chinaware) or SATURN (metallurgy). Health and social services Inside the processing industry sector, we can notice the existence of a few economic agglomeration, by considering also a broader Education territorial context, respectively the suburban area of Alba Iulia included in AIDA. These agglomerations can be seen in the field of: Administrative and support A. wood processing and furniture services a business activity generating a total turnover of around 800 mil. Euro/year, that is providing main exports products of Târgu Mureș Professional, scientific and the county and generates more than 3.500 jobs, out of which almost 600 for the residents in Alba Iulia. This industry technical activities is concentrated in Sebeș, where the two market leaders have their headquarters; Real-Estate B. agriculture and food industry with a few sub-branches (meat production and processing, milk and cheese products, ice cream, condiments, fish Financial services products, bakery), with a total business output of 300 mil. Euro/year, providing around 3.000 jobs, including over 2.600 for the residents in the city, being from this perspective the biggest employing industrial activity. The food IT&C industry tends to concentrate in Galda de Jos (Oiejdea), Alba Iulia and Sebeș; Sibiu HORECA C. light industry including footwear, leather products and garments – with a yearly turnover of around 65 mil. Euro, mostly coming from Transport and logistics exports. It provides more than 3.500 jobs, out of which over 2.200 for the city residents. This industry is located both in Alba Iulia and Sebeș; Trade and repairs D. ceramics and building materials (non-metallic mineral products) Deva a traditional industrial activity located in Alba Iulia, with two main sub-branches: ceramics and chinaware, respectively Constructions building materials, especially concrete products, also with a significant contribution to the export of the area. These activities generate a turnover of almost 70 mil. Euro/year and employ over 1.200 people, out of which over 900 from Water and waste management Alba Iulia. The ceramic industry is located inside the city limits, whereas the building material industry in located in Sebeș, Vințu de Jos and Teiuș; Energy E. automotive Processing industry is an emerging sector of the local economy, based on the establishment of more foreign investors, such as SEWS, Alba Iulia STAR TRANSMISSION or VCST, that are producing different car components especially for the external markets. Extraction industry Although it currently provides just a few hundred jobs for the residents in Alba Iulia, this field of activity is expected to become very soon one of the main employers in the area and the engine of the export activity, once the newly Agriculture. forestry and fishing opened production facilities will function at their capacity. This industry is very well developed in Cugir, Sebeș and 0 0.2 0.4 0.6 0.8 more recently in Alba Iulia. 134 135 Although it employs almost 5.000 people only in Alba Iulia, the tourism, chinaware), both benefitting from EU funding. Although many clusters have already been legally and functionally established Total employed retail sector is generally fragmented in small individual and in the Center Region, especially in Harghita and Covasna counties, also with the continuous support of Center Regional Development residents in Industrial sub-sector family businesses, the average size of a company from this field Agency, only one is located in Alba Iulia, namely PRELMET TRANSILVANIA. This cluster has been established in 2013 in order to ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia Alba Iulia being of only 3.3 employees in 2013. Most of the small stores in increase the competitiveness of the metalworking industry in the area of Alba Iulia, more exactly in Cugir, having as starting point the Food and beverages 1636 Alba Iulia have been opened immediately after 1990, this sector local tradition in the field. The cluster comprises 27 companies, 3 universities (from Alba Iulia, Cluj-Napoca and Sibiu), one research being the most attractive for the local entrepreneurs. However, organization, the Alba County Council, the municipalities of Cugir and Alba Iulia, the Center RDA, as well as 4 catalyst organizations, Textiles and garments 1274 in the last decade the retail sector went to a restructuration among which the Industrial Park in Cugir. Most of the company members are based in Cugir, but there are some also from Alba Leather and footwear 945 process once the international and national commercial chains, Iulia and Aiud, whereas potential members are foreseen from Cluj, Sibiu and Zalău, therefore making the cluster a macroregional especially discounters, entered the local market. Among them we presence. Another cluster initiative from 2012 is ALIMENT TRANSILVANIA, reuniting 3 universities, the County Council, the Center Wood processing and furniture 588 can mention: Kaufland, Lidl, Profi, Carrefour, Dedeman, Ambient, RDA, the Municipality of Alba Iulia, as well as 5 production companies, consultants and RDI units. Ceramics and building materials 945 Lem’s, Flanco, etc. These chains are currently dominating the local market, providing also 44% of the jobs in this field. In this However, these cluster initiatives are in an initial phase and request support for developing their internal administrative and service Automotive 170 content, many local entrepreneurs, owning small neighborhood provision capacity. On the hand, we can notice the absence of formal clusters in fields such as wood & furniture, ceramics & building shops went bankrupt. materials, automotive – that are currently dominating the economy of the area. Metallurgy 293 Metal processing, machinery & equipment 937 From the FDI perspective, Alba County attracted significant foreign investors in the last decade, but still occupies a medium position (19) among the 41 counties in Romania, with around 0.9% of the total volume of investments. However, the number of companies Electrical equipment 303 with foreign capital subscription continued to grow also during the crisis, as well as the volume of invested capital. In terms of Plastic and rubber 27 invested capital and newly created jobs, the most important foreign investors are: Kronospan and Holzindustrie Shweighofer (wood processing), Star Transmission and VCST (automotive), Pehart (paper), Semmelrock Stein and Baumit (building materials), Ener Paper & printing 101 Rom (electrical equipment), Rekord (footwear), Savini Due (furniture), Fruhwald Connex and Pomponio (building materials), Saturn Chemistry 37 (metallurgy), Rapel (leather) etc. Most of the investors are German, Austrian, Italian and Belgian. Data source: Borg Design Database 1800 2003 The construction sector also plays an important role in the economy of the city, ensuring almost 9% of total number of jobs. 2004 The companies active in this field of activity are also relatively small, specialized in residential and non-residential building and have 1600 an average number of only 6 employees. However, there are some companies based in Alba Iulia that are regional players and 2005 1400 report significant annual turnovers: POMPONIO (road, civil and industrial works, concrete), INSTALATORUL (joinery and plumbing), 2006 DRUMURI ȘI PODURI LOCALE (road construction and rehabilitation, public company owned by the County Council), SIPATUB 1200 (plumbing), TOBIMAR etc. Most of these companies are confronted with low private demand, considering that the local real-estate 2007 1000 market in rather underdeveloped, and are generally depending on public works inside or outside the county. These field of activity 2008 has also been affected by the global crisis and many construction companies became insolvent in the recent years. 800 2009 The transport and logistics sector is a sector that contributes more and more to the local economy of Alba Iulia and 600 its surroundings. It has developed together with the established of the new investors in the area, by providing freight transport 2010 services for their external and internal clients. As a result the biggest companies in this field (OPREAN, GIRO, FSR RAILSERVICE, 400 2011 AGROTRANSPORT ALBA etc.) are specialized in such services, whereas the passenger transport services are less developed. We 200 can mention here the local public transport company (TRANSPORT PUBLIC), one of the most innovative and well organized in the 2012 whole country, and LIVIO DARIO, a private company operating different inter-county routes. 0 Number of foreign Subscribed capital Subscribed capital Subscribed capital 2013 Different previous studies have identified potential (emerging) clusters at local and regional level, such as INCLUD – “Industrial Cluster investors companies (mil. Lei) (mil. USD) (mil. Euro) 2014 Development” (wood, constructions, metallic products) or INOV CLUSTER (agro-food, renewable energy, waste management, Data source: National Trade Office 136 137 From the innovation potential, the area of Alba Iulia is very weak in technology information and transfer centers. The only functional topography and cadaster, systemic archeology, history and politics, philology, law, sociology, educational sciences, pedagogy, one – CIT ALBATECH is administrated by the Alba Chamber of Commerce, Industry and Agriculture and it covers only 3 fields of territorial development, mezzo-American studies and geometric functions. However, most of the scientific outputs of these centers activity: IT&C, agro-food and biotechnologies. The center offers business assistance services for innovation and technology transfer are not transferred to the private sector, either because they are of no interest for the business environment, or because there is no ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia especially to SMEs and provides also training activities. Moreover, the Center Regional Development Agency (RDA), based in Alba functional technology transfer system. In this context, less than 0.1% (2 mil. Euro) of the annual GDP of the county is allocated for Iulia, is member of the EU’s Europe Enterprise Network, providing free services to SMEs such as: business and technology transfer RDI expenses, meaning only 20% of the national average and 2% of the EU-28 one. partners’ identification, access to relevant EU business information and legislation, supports for participation in international fares and promotion events, identification of funding opportunities for RDI and business development. No science and technology park Share of GDP (%) allocated to RDI expenses is available in the area. Romania Center Region Alba County In terms of business support infrastructure, the only available public one is Cugir Industrial Park, established in 2002, under the 0.6 authority of the County Council. The park has a total surface of 11.17 hectares and it is focused on production (metalwork, wood 0.5 0.5 0.5 The private companies in the area of Alba Iulia processing), but also services, currently providing over 400 jobs. The park is a brownfield structure, thus its assets consist of 0.5 0.5 0.4 are conducting their own RDI activities, from buildings that are rented to different SMEs. Thus, there are no greenfield industrial parks available, all newly established foreign and internal budgets, but they are not benefiting from local investors being forced to develop their production facilities on their own. The emerging industrial platforms in Oiejdea, Sebeș, 0.3 public support in this sense. However, the share of Ciugud (Drâmbar), Vințu de Jos are the result of private investments, the only support given by the local authorities consisting 0.2 0.2 0.2 innovative companies is very small, one of the main on landing the ground to investors and sometimes of access and utilities infrastructure works. The lack of business support 0.2 0.2 0.1 0.1 reasons being the lack of innovation culture among infrastructure can become a significant drawback in attracting new investors, considering that the surrounding counties (Cluj, 0.1 0.0 0.0 0.0 0.0 entrepreneurs, but also the lack of incentives and of Mureș, Sibiu, Brașov, Bihor, Timiș) have invested large amounts of money, including EU funds, in industrial parks, extended on 0.0 a favorable legislation. hundreds of hectares and fully equipped. One relevant example is of the three public TETAROM Industrial Parks in Cluj-Napoca 2007 2008 2009 2010 2011 2012 2013 hosting more than 4.000 jobs at the moment. From the scientific output point of view, Alba Iulia ranks 20 among the Romanian cities, with only 8 indexed articles in 2011, far The RDI activity at local level is poor. The only authorized research unit in Alba Iulia is a CCPPR – a research, design and production behind cities such as Cluj-Napoca (692), Timișoara (317), Sibiu (23) that are traditional university centers. No entity in Alba is center for refractory materials, with a tradition of over 40 years. The entity has implemented different research projects with financial member of the Romanian Patent Information Centers Network. As a result, only an average of 10 patents, 9 models and drawings, support from the state budget, EU funding, but also from private sources, conducting to new patents, products, technologies, respectively 89 trades/year were registered in Alba between 2001 and 2013, less than in the surrounding counties. experimental models and scientific papers. However, the activity of the center has dramatically dropped in the last 5 years, because on lacking public support for RDI activities, so it currently hires only 6 employees. The biggest research center is the county remains the R&D Station for Winery based in Blaj, with a long tradition in its field of activity. Conclusions and recommendations for improving the competitiveness of the local economies The public RDI sector is represented at local level by the research centers organized by the 1st December University of Alba Iulia. Alba Iulia is currently competing with a large number of medium and large size cities from Romania in attracting foreign investors, The university currently holds 4 doctoral schools (History, Philology, Accounting and Theology), with 16 professors and 98 PhD that seem to be better prepared to host them, especially from the business infrastructure and services point of view (Cluj-Napoca, candidates, and research centers and institutes for theology, linguistic education, finance and accounting, geology and speleology, Sibiu, Arad, Brașov, Timișoara, Oradea, etc.). From this perspective it is mandatory for the city to exploit its specific advantages (accessibility, qualified labor force, tradition and know-how in some specific sector, natural resources) and to invest more in industrial and technology parks and business support services in order to maintain its competitiveness. The development of a new industrial and technology park is necessary, either by extending the existing park in Cugir, or by identifying a suitable greenfield location around the city. This would also decongestion the city, that has many brownfield sites incompatible with the aspiration of a modern touristic center, and help the companies that intend or must relocate outside the city area. Although unemployment is not a pressing issue for the community, the current structure of the local economy, based on manufactory low added-value industries, is unattractive for high-skilled personnel, which is migrating to big cities or to other countries, either because of the unavailability of suitable jobs or because of the salaries. A reorientation of the city economy, in the smart specialization approach is necessary, with a focus on the existing or emerging industrial agglomeration (wood processing and furniture, agro- food, light industry, ceramics and building materials, automotive). This can be done only by developing the technology transfer 138 139 infrastructure and services. Once done, smart specialization will make the city less vulnerable to economic cycles and even companies relocation, regardless of the increasing employment opportunities and better remuneration of work. ANNEX 1: Analysis of the competitive advantages and the innovation potential of Alba Iulia Alba Iulia benefits from a local business class, made up of small and medium entrepreneurs, which are vital for the economic stability of the city (see the cases of Albalact and Transavia, two major companies owned by residents, with more than 1.500 employees). They should benefit from the same treatment as the foreign investors and more attention should be given to developing business support services and incentives for the development of their companies. This can be done by local aid measures (“scheme de minimis”) for the companies investing a certain amount of money or creating new jobs and through the establishment of a business incubator, especially for young entrepreneurs. An advisory group of entrepreneurs should be created and consulted regularly by the municipality in the decision making process. The structure of the labor force may pose problems in the coming years, because the educational offer is not adapted to local market job, the external and internal migration will continue to exist and demand, especially for blue collar workers will continue to increase with each investors that will chose the city for developing a business. The professional schools should be reactivated and the educational offer should be adapted to the above-mentioned existing and emerging clusters. Moreover, there is need for more practice for pupils in companies, with the help of tutors from the industry. The local university is facing a continuous decrease in the number of students and has to face the competition of traditional, solid university centers such as Cluj-Napoca, Timișoara or Bucharest. Moreover, the birth rate has dropped dramatically in the last years, aggravating the decline of small universities, such as the one in Alba Iulia. In this context, it becomes mandatory for this emblematic institution of the city to reorient from educational services to RDI and technology transfer activities, as it already has a solid infrastructure and the necessary professional staff. Moreover, its educational offer should be reoriented more towards adults in need of requalification and to technical field of studies, that highly demanded on the local job market (for example in the automotive sector). The existing clusters have a weak administrative and services providing capacity. They need to receive public support in order to really contribute to the competitiveness of the local economic agglomeration. Moreover, there is need for such associative initiatives in other industries that are representative for the local economy, for which know-how, skills, labor force and resources are already available, such as chinaware, light industry, automotive and wood processing. 140