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MApN: the proposed budget is 2.04% of GDP; investments in Infrastructure – 800 million lei

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The budget of the Ministry of National Defence (MApN) proposed for 2021 includes funds of 22.746 billion lei, representing 2.04% of GDP and this sum allows investments in infrastructure of approximately 800 million lei, a press release of MApN sent on Monday says.

Similarly, the representatives of the ministry include, in this context, direct or indirect payments to suppliers in the national economy which can surpass 2.5 billion lei and investments in the military medical system, research in the medical domain ( Institutul Cantacuzino) and in higher education in the MApN system of over 263 million lei.

‘The commitment regarding investments for defence adopted at the level of the Alliance includes, beside a minimum threshold of 2% of GDP for defence, allocation of at least 20% of the budget for major equipment. 2021 is the sixth year since Romania has surpassed this threshold, the percentage for 2021 being 23.6%’ the quoted source says.

MApN shows that in 2021 there are programmed acquisition of equipment and specific materials directly from suppliers from the national economy which could surpass one billion lei, another 1.4 billion lei being destined to foreign economic operators but who have as subcontractors companies from Romania. The payments are planned both to the economic operators with state capital and with private capital.
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These acquisitions will be made both within major programmes for endowment which are underway or which will be started this year, for all categories in the army, and in the domain of modernisation of the technique already in use, complex maintenance and capital repairs ( land, air and navy).There will also be ammunition acquisition from economic operators in the country.

The Ministry of National Defence says that ‘ they have supported and still do the involvement of the industry in Romania in achieving military capability both by being the first contractor of the Romanian operators as much as they have the necessary capacity, and by technological transfer and production in Romania of products which cannot be made either because of lack of capacity or know-how in cooperation with well-known producers at international level’.

The representatives of the ministry estimate for 2021 investment in infrastructure of over 815 million lei, certain investments from the state budget of approximately 750 million lei and co-financing of certain projects from the NATO programme for investments in security –NSIP of 15.5 million lei, as well as projects made through European non-refundable funds of 50 million lei.

The main directions of implementation of the projects of investments for MApN included in the draft budget for 2021 are: HQs for the Multinational Division South-East Bucuresti, The Multinational Brigade South-East Craiova; the national military colleges: Craiova, Breaza, Alba Iulia, Campulung Moldovenesc, Constanta; air bases: Borcea, Mihail Kog?lniceanu, Câmpia Turzii, Otopeni;development of infrastructure for the big units and units beneficiary of the programmes for endowment: Patriot/HSAM, Piranha, HIMARS/Larom, Spike; the Sebes Pharma Centre; the Medical Logistics Centre and Sanitary Storage House Nord Sebes.

They are associated with the necessary infrastructure to increase the quality of the personnel’s life by the development of facilities for accommodation, treatment, leisure, recovery of the fighting capacity of the military; administrative and training areas for the newly created HQs: the HQs of the Reunited Forces, the HQs of the Forces for Special Operations, the HQ for Cyber Defence, the Multinational South-East Corps; the development of infrastructure by access to non-refundable European funds and the programmed for recovery and resilience; , development of infrastructure with the strategic partner in joint locations: Cincu, Mihail Kogalniceanu, Deveselu, Campia Turzii.

 

Similarly, this year there will be investment in the consolidation of the infrastructure of the own network of hospitals by starting 22 new investment works and acquisition of the feasability studies for another 14 investment projects. The main objectives take into consideration the modernisation, extension and construction of new wings as well as the upkeep of the water supply and electricity.

 

The Cantacuzino Institute has allocated for 2021 funds for the modernisation of the specific infrastructure – budgetary loans worth over 28 million lei and agreements of almost 47 million lei, funds for investments of essential equipment, worth 3.5 million lei, funds for the activity of combating the spreading of Covid-19 through specific actions of RT-PCR testing, mainly reagents and sanitary materials-12.5 million lei as well as for research in the medical domain mainly for the development of the projects included in the research sector of the Ministry of National Defence -"Imuno 1 - Orostim" - 1,4 milion lei, "Imuno 2 - Polidin" - 1,6 milion lei, Good Laboratory Practice - 500 thousand lei and  tetanus toxoid - 320 thousand lei.

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