New support for food industry development in Romania
The Romanian Government has recently approved the state aid scheme for the implementation of a multiannual national programme called “INVESTALIM”, for the development and modernisation of the food processing sector, which will provide financial support to stimulate domestic food production during 2023-2026.
The INVESTALIM programme will be implemented by the Ministry of Agriculture and Rural Development through the Agency for Financing Rural Investments (AFIR paying agency). The maximum budget of the INVESTALIM programme for the period 2023-2026 is approximately €600 million, i.e. €148 million per year.
This programme will provide regional state aid to support investments in the acquisition of assets for the establishment of new processing units, the capacity expansion of existing units, the diversification of production through the processing into new products.
Eligible domains are:
- Meat processing and preservation
- Fish industry
- Potato industry
- Fruit and vegetable juices
- Processing and preservation of fruit and vegetables
- Production of oils and fats
- Production of dairy products and cheese
- Production of bakery products
- Bread production
- Sugar production
- Production of animal feed for farm animals and pet food
Investments made under the INVESTALIM Programme must cumulatively meet the following main criteria:
(a) have a total value, excluding VAT, of at least RON 2,500,000, i.e. the equivalent of minimum €500,000;
b) it must demonstrate economic efficiency and viability throughout the implementation of the investment and for a further 5 years after its completion;
c) meet established quantitative and qualitative indicators;
d) generate contributions to regional development, through the payment of taxes and duties to the state budget and local budgets, for the implementation period and for a further 5 years after its completion;
e) generate a quantifiable multiplier effect in the economy by attracting other related investments and by developing local suppliers;
f) the enterprise is obliged to maintain the initial investment in operation for at least 5 years from the date of its completion.
Beneficiaries are economic operators established under Law No 31/1990 on commercial companies. They must provide a financial contribution of at least 25% of the total costs of the investment project from their own resources, in a form which is not subject to any other public aid.
Beneficiaries may obtain financing from credit institutions to secure their own contribution. Such financing shall be granted in accordance with the credit institutions' own internal rules, on the basis of a credit agreement, and shall be guaranteed by the Rural Credit Guarantee Fund NFI SA.
The amount of state aid granted under the INVESTALIM Programme is determined in compliance with the conditions laid down in GD 311/2022 on the maximum intensity of regional State aid in the period 2022 - 2027 for the initial investments.
Under this programme, AFIR will be able to sign financing agreements until 31 December 2026 while payments can be made until 31 December 2031.
Note: call for projects shall be published on the AFIR paying agency (www.afir.ro / www.afir.info)