The assets belonging to “Auto Stations and Terminals” State Enterprise along with the right to operate transport routes will be granted to a private service provider, which will in return commit to invest, for three years, in the modernization of the enterprise’s 30 branches. Estimated investments start at 200 mil. lei, and the return on investment is projected over a period of 25 years.

The conditions of the Public - Private Partnership (PPP) and the general requirements for selecting a partner from the private sector are given in a Government decision, which has been submitted for public discussion by the Ministry of Economy and Infrastructure , IPN reports.

Throughout the interval of financing, constructing, and using the public good, the private partner will have the right to collect fees, in order to recover investments and overhead costs. At the conclusion of the contract, the good will be transferred back to the state, free of charge, in a good state and free of any bonds or dues.

The Ministry of Economy and Infrastructure points out that in the past three years, SE “Auto Stations and Terminals” has had a net profit of 4975 thousand lei, a fourth of which was transferred into the state budget. Over the active period of the PPP project, it is estimated for the private partner to transfer 5075 thousand lei annually to the state budget, ensuring 5% annual growth for this parameter.

The Public Properties Agency will act as public partner in the project.