Government simplifies access for voluntarily amalgamated localities to infrastructure project funding

Localities that have voluntarily merged their administrations will have easier access to funds aimed at developing infrastructure and improving public services. The Government has approved amendments to the Methodology for voluntary amalgamation, establishing clear rules for the preparation, selection, financing and implementation of investment projects in amalgamated communities.

For 2027–2028, investments of approximately 3.49 billion lei are estimated, benefiting 161 groups of voluntarily amalgamated city halls. The funding is planned in two equal installments: 50% in 2027 and 50% in 2028.

The funds may be used to modernize local roads and bridges, expand water supply and sewerage networks, improve public lighting and the energy efficiency of public buildings, renovate schools, kindergartens, medical, cultural, and sports institutions, manage waste, and develop public spaces. The purchase of public transport vehicles, specialized vehicles, and equipment required for local services may also be financed.

Projects will be proposed by local authorities based on the priorities jointly established by the localities participating in the amalgamation process. City halls will also be able to make use of projects identified previously for which feasibility studies or technical documentation already exist. Funding may cover the preparation of these documents, as well as the co-financing of investments carried out through other programs, without duplicating expenses.

The selection and approval of projects will take place in four stages:

Information and preparation: city halls will receive information about the funding conditions, eligible investments, and documents required for submitting projects.

Submission of applications: local authorities will submit priority projects accompanied by supporting documents and estimated budgets.

Evaluation: Regional Development Agencies will verify the eligibility, documentation, and feasibility of the projects. The proposals will subsequently be examined by the investment selection committee, composed of representatives of the Ministry of Infrastructure and Regional Development, the Regional Development Agencies, and the State Chancellery.

Approval of funding: the selected projects will be approved by the Ministry of Infrastructure and Regional Development and included in the funding plan, specifying the beneficiaries and the approved amounts.

Under the new mechanism, the Ministry of Infrastructure and Regional Development will provide project funding through the Regional Development Agencies. These agencies will also play an important role in implementing the investments, depending on the experience and administrative capacities of the city halls.

Thus, local authorities with experience in managing investments will be able to organize procurement and carry out the works directly, subject to verification and monitoring by the Regional Development Agencies. In the case of city halls that lack the necessary experience, the agencies may take over the organization of tenders, contracting of works, execution of payments, and management of project implementation. This will enable municipalities with limited administrative capacity to carry out the investments planned for their communities.

The new mechanism also establishes rules for expenditure verification and monitoring of works. After the projects are completed, local authorities will be required to ensure the maintenance of the investments for a period of at least five years.