The European Commission has approved Romania’s revised National Recovery and Resilience Plan (PNRR), a funding package worth EUR 21.4 billion, prime minister Ilie Bolojan announced on Wednesday, October 22. The revised facility includes EUR 13.57 billion in non-reimbursable grants and EUR 7.84 billion in low-interest loans, aimed at boosting investment in infrastructure, healthcare, digitalization, green energy, and public administration modernization.
Prime minister Bolojan said the revision ensures Romania can maintain the operation of coal-fired power plants in Gorj (Rovinari and Turceni), Hunedoara (Valea Jiului), Craiova, and Râmnicu Vâlcea (Govora). Three energy units will remain active until the end of 2029, while two others will continue operating until at least August 2026.
The decision, he said, is meant to safeguard national energy stability, prevent power and heating disruptions, and preserve more than 4,500 jobs in mining regions.
“At the same time, Romania continues its energy transition through investments in gas-fired plants, photovoltaic parks, and energy storage capacity,” the prime minister said.
The renegotiation of milestones and deadlines was necessary because some commitments had not been met, while loan allocations risked expiring next year, Ilie Bolojan further explained.
“One of the most important milestones was decarbonization. We committed to closing coal-fired power plants by the end of this year, to be replaced with gas plants or photovoltaic parks. Unfortunately, the replacement investments have not been completed, and therefore, without the granted extension, aside from the social issues in those regions, we would not have been able to ensure the necessary energy production for Romania,” he stated.
The PM noted that the revised plan restores credibility with European partners and commits the government, ministries, and local authorities to meeting all updated milestones to avoid losing EU funds.
The minister of investments and European projects, Dragoș Pîslaru, confirmed that the European Commission’s official documents have been published and that formal approval will follow at the next ECOFIN Council meeting. The final version of the plan maintains a total value of EUR 21.41 billion, he also said.
Among the key achievements of the renegotiation, Pîslaru highlighted the full conversion of funding for the A7 highway, worth EUR 2.17 billion, from loans to grants, along with EUR 1.39 billion in grants for energy-efficient building renovations.
Strategic investments in digitalization, including the automation of public administration and completion of the government cloud, were also preserved, alongside financing for eight major hospitals and a new investment for 1,200 ambulances.
So far, Romania has received EUR 10.72 billion, nearly half of its total PNRR allocation.
irina.marica@romania-insider.com
(Photo source: Cineberg Ug/Dreamstime.com)
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