4 Deloitte Touche Tohmatsu – Our global firm A global organization of firms devoted to excellenceServes more than one-half of the world’s largest companiesServes many medium and small businesses as well as public sector institutionsFlexible, adaptive and innovative firm with a strong reputationMore than people worldwide in over 140 countries
5 Deloitte in Romania [1/2] started in 1992, in Bucharest, with a team of 3 peopleis one of the leading professional services organizations in the countryis lead by 12 Partners and a Chairmanemploys more than 350 professional and support staff that help our clients to excelIn 2008, Deloitte has settled premises in the territory - Cluj-Napoca and TimisoaraIn Romania, the services are provided by Deloitte Audit SRL, Deloitte Tax SRL, Deloitte Consultanta SRL and Reff&Associates SCA, jointly referred to us as Deloitte Romania
6 Deloitte in Romania [2/2] Deloitte Romania offers the full range of professional services, integrating:AuditEnterprise Risk ServicesForensic ServicesTaxLegal services: Reff & AssociatesBookkeeping & Payroll Services taxationConsultingGrants & IncentivesStrategy & OperationsFinancial AdvisoryMergers & AcquisitionsCorporate Finance
8 Entering the Romanian Market Why enter the Romanian market?Large consumer market: 21.5 million peopleDue to its strategic geopolitical position, it can act as a hub towards Asian and Southern European marketsImportant infrastructure development needs in:Transportation – connections to European corridors (both roads and railways)Environment – solid and water waste management, water treatment, water networksEnergy – renewable power sources (hydropower, wind energy, bio-fuels, biomass)Expanding Oil&Gas and Technology IndustriesA foreign company can establish a presence on the Romanian market mainly through:Representative officeLocal branchLocal distributorMarketing agentConsortium, joint ventures or other forms of associations that do not give rise to a separate corporate body are also operational in Romania. Their tax implications, including any type of registration for tax purposes (if necessary), has to be analysed on a case-by-case basis.Depending on your company’s goals, Deloitte offers a wide range of services that can help you narrow down the options in order to find the best solution for entering the Romanian market.
9 Applicable taxes The main taxes applicable in Romania are as follows: Profits Tax;Income Tax;Social, Health and Unemployment Security Contributions;Value Added Tax;Customs Duties and Excise Duties;Withholding Taxes; andLocal Taxes.This list is not exhaustive, it is only an indication of the more important taxes.Deloitte offers tax services that enable both compliance with Romanian taxation regime and maximize the benefits and exonerations available in the Romanian Fiscal Law.
10 Deloitte services [1/2]Deloitte can facilitate the entry of foreign companies onto the Romanian market through the provision of the following specialized services:AuditTax & legalConsultingFinancial AdvisoryAccounting advisory servicesAccounting trainingStrategic tax guidanceInternational tax structuringIndirect taxationCorporate taxTransfer pricingTax complianceCompetition and EU lawEmployment law advisoryMarket entry strategyDue diligencePersonnel recruitmentEU funds applicationsManagement of grantsBusiness modelingValuation servicesMergers & acquisitions transaction supportPost-merger integration
11 Deloitte services [2/2]Deloitte can help foreign companies already in the Romanian through the following services:AuditTax & legalConsultingFinancial AdvisoryAudit services Financial statement transformations Financial reporting Review of accounting systems and internal controls Forensic services Internal audit ActuarialBookkeeping & payroll servicesStrategic tax guidanceInternational tax structuringIndirect taxationCorporate taxTransfer pricingTax complianceCompetition and EU lawEmployment law advisorySupply chain optimizationCustomer & market analysisOperating model optimizationFinance TransformationTechnology IntegrationHuman resources analysisEU funds applicationsManagement of grantsTreasury Management and Cash FlowBusiness modelingValuation servicesMergers & acquisitions transaction supportPost-merger integrationCorporate financeReorganizations
13 PPP’s advantages for the Government Private funds substitute insufficient public funds and secures easier access to better financing solutions from lenders;Quicker development of needed infrastructure provided by the project and reduced development risk;Working in partnership with the private sector, governments can benefit from the strong incentives for private investors to keep costs down;Maximizes the use of each sector’s strengths;Obtain project ownership after private participants receive an agreed equity return;Take control of the project if it is inefficiently operated or otherwise fails;The private sector secures more efficiency in service provision than the public sector.
14 Key elements for a successful PPP Appropriate legislative framework;Commitment of the Contracting Authority to support the project throughout the entire process;Development of a solid business case with a guaranteed revenue stream attractive to investors;Well prepared tender process in order to attract an appropriate partner / investor;Use of financial, technical and legal assistance from reputable and experienced advisors.
16 Tasks performed by Deloitte (1) 1. Preparation The objective of the first step is to determine – through financial, legal and technical analysis – the public infrastructure project's attractiveness for potential investors, as well as the terms and options that will attract the most suitable investor.Diagnosis (Feasibility Study)Review the legal legislation and analysis of the legal base and identification of appropriate requirements of the project;Prepare the general technical project for the public infrastructure development;Develop a financial model suitable for the Contracting Authority and also attractive to investors and lenders.Options Report (the Substantiation Study)It outlines the technical and financial options for the public infrastructure project based on the results of the analysis and in line with the requirements of the Contracting Authority, and recommends the optimal solution.
17 Tasks performed by Deloitte (2) 2. DecisionThe Contracting Authority decides on optimal financial and technical solution for the airport's development projectReview proposed qualification criteria and scoring factorsDecide upon tender method according to Romanian Legislation3.1 Granting the ConcessionObjective: Tendering the project in order to obtain the most advantageous offer for the Contracting Authority, in a transparent and competitive manner.Actions before the tenderPreparation of tender documents;Preparation of the data room;Announcing the tender and the tender calendar;Marketing the airport and tease investors' interest.
18 Tasks performed by Deloitte (3) 3.2 Granting the ConcessionActions during the tenderReceive expression of interest from potential bidders;Potential bidders buy tender documents;Bidders conduct due diligence process in the data room and on site;Submission of bids;Evaluation of bids by the Evaluation Commission (evaluation report provided by the Advisors);Selecting and announcing the winner;Concluding and signing the concession agreement with the winner.4. Execution of construction works according to the agreed schedule
19 Deloitte credentials in airport PPPs across Europe
20 Deloitte credentials in airport PPPs across Europe AssignmentDateClientConcession periodProject value (Euro)Work undertakenTirana Airport Concession, AlbaniaGovernment of Albania20 years74 millionAdvisor to the Government of Albania on the structuring, tendering and granting a concession to upgrade and operate the Tirana Airport.Varna and Burgas Airports, BulgariaPrivate investor35 years403 millionAdvisor to the private investor for the concession to upgrade and operate the airports.Bacau Airport, Romania2007 -The District Council of Bacau45 millionAdvisor to the District Council of Bacau on the structuring, tendering and granting a concession to upgrade and operate Bacau Airport.Ferihegy Airport, Budapest75 years1.8 billionAdvisor to the private investor for the concession to operate the airport.Teeside International Airport, UK2003Teeside Municipality30 millionAdvisor to the Teeside Municipality for the concession to upgrade and operate the airport.Pristina Airport2005 --Advisor for the pre-concession evaluation study.
21 Deloitte credentialsEuropean airports and airlines
23 Deloitte PPPs credentials across Europe PPP ProjectSectorPeriodClientValue (Euro)Services provided by DeloitteStreet management and maintenance in Birmingham, UKUrbaninfrastructureMar 2004 – presentBirmingham Council882 MilAdvisor to the Local Council for structuring, tendering and granting a concession to operate, upgrade and maintain the transport system.Partnership for Cardiff’s transport system, UKRoad infrastructureNov 2003 – Nov 2004Cardiff Council600 MilAdvisor to the Local Council to identify the private partner, offer valuation and the development of the feasibility study.Congestion scheme in LondonTraffic congestion2001 – Feb 2003Transport for London Company-Financial advisor to the London public transport company on the credit worthiness of the proposed preferred bidder for one of the key components of the Mayor’s proposed Congestion Charging Scheme.Prague Congestion Charging SystemJan – May 2008The City of PragueAdvisor to the local authorities to prepare a strategic study for congestion charging in Prague and to implement the congestion charge system.Mother Teresa International Airport, Tirana, AlbaniaAirport infrastructureGovernment of Albania74 MilAdvisor to the Government of Albania on the structuring, tendering and granting a concession to upgrade and operate the Tirana Airport.Dalkeith City Regeneration, UKPublic Administration1997Midlothian Council45 MilAdvisor to the local council for the feasibility study development.The Birmingham Library, UKJul 2003 – 2004300 MilAdvisor to the local councilon options for building a new state of the art library, identifying alternative scenarios and effects of financing and acquisition.
24 Deloitte PPPs credentials across Europe PPP ProjectSectorPeriodClientValue (Euro)Services provided by DeloitteHighland and Islands Fire Brigade, UKPublic Administration2002Highland and Islands Fire Brigade165 MilAdvisor to the fire brigade on a feasibility study to develop and upgrade the brigade’s equipment and facilities.Gateshead Schools, UKEducationNov 2003–Nov 2005Gateshead Council77 MilAdvisor to the Local Council to secure financing to rebuild two secondary and five primary schools.Surrey Schools, UKJun 2001 – Mar2004Surrey Council-Advisor to the Local Council on their „innovative‟ disposal of their school support services through a PPP joint venture .Heerenveen Stadium Expansion NetherlandsSports and Leisure2000 – 2001Heerenveen Municipality, SC Heerenveen and the Training CenterAdvisor to set up a business plan as an initial step for the project to expand the football stadium to include a hotel and a training center.Wolverhampton City Leisure, UKOctWolverhampton Council18 MilAdvisor to the Local Council for the development of the feasibility study for a new leisure pool for the city, the appointment of the preferred bidder and the procurement of the new facility.Redevelopment City Center Amsterdam-NorthUrban DevelopmentAmsterdam Municipality and the CZAN consortiumAdvisor during negotiations, in the first stage of the project; advisor to the CZAN consortium on the development strategy, organization and the financial contracting with the municipality of Amsterdam.
25 Deloitte PPPs credentials across Europe PPP ProjectSectorPeriodClientValue (Euro)Services provided by DeloitteDevelopment contribution scheme, Dublin, IrelandUrban developmentFour local authorities2,66 BillionLead Advisor to the four local authorities on adevelopment scheme to include parks, regeneration projects, roads, drainage system, etc.Vleuterweide urban development, NetherlandsVleuten-De Meern Municipality900 MilAdvisor to the municipality during negotiations with private parties interested in setting up a public – private joint venture aimed at developing 11,000 houses in the area.Street Lighting in StokeStreet lighting2001 – Jun 2003Stoke Council30 MilAdvisor to the Local Council on its street lighting project.Street Lighting in StaffordshireJan 1998 – Mar 2003Stafforshire CouncilAdvisor to the Local Council for financial assistance and project management for the local street lighting service.Contract renegotiation SurreyWaste management2003 – presentSurrey Council127 MilAdvisor to the Local Council to renegotiate the building contract for two Energy-from-Waste plants in the area.Wrexham, Waste Disposal, UKpresentWrexham Council57 MilAdvisor to the Local Council for a waste management services project, offers’ valuation and assistance during negotiations with the preferred bidder.