The government has approved amendments to the Methodology for Voluntary Association, which set out rules for the preparation, selection, financing and implementation of investment projects in associated municipalities.
For the period 2027–2028, it is planned to invest around 3.49 billion lei, which will be available to 161 groups of voluntarily associated municipalities.
Funding will be provided in two phases
The funding is planned to be disbursed in two equal tranches: 50 per cent in 2027 and 50 per cent in 2028. The funds will be used to modernise local roads and bridges, expand water supply and sewerage networks, improve street lighting, enhance the energy efficiency of public buildings, renovate schools, nurseries, medical, cultural and sports facilities, manage waste and develop public spaces.
Funding will also be provided for the purchase of public transport, specialised vehicles and equipment required for the operation of local services. Projects will be proposed by local authorities based on priorities established jointly by the town halls participating in the association.
New local authorities will also be able to utilise previously identified projects for which feasibility studies or technical documentation already exist. Funding will cover the preparation of these documents, as well as co-financing of investments carried out under other programmes, without duplication of expenditure.
Stages of project selection
Project selection and approval will take place in four stages. Local authorities will receive information on funding conditions, eligible investments and the documents required for project submission. Local authorities will then submit projects, accompanied by supporting documents and estimated budgets.
Regional development agencies will verify that the projects meet the criteria, check the documentation and assess their feasibility. The proposals will then be considered by a commission responsible for investment selection, comprising representatives from the Ministry of Infrastructure and Regional Development, the Regional Development Agency and the State Chancellery.
Selected projects will be approved by the Ministry of Infrastructure and Regional Development and included in a funding plan specifying the beneficiaries and the approved amounts. Under the new mechanism, the Ministry of Infrastructure and Regional Development will provide funding for projects through the regional development agencies.
These agencies will also play an important role in the implementation of investments, depending on the experience and capabilities of the local authorities. Thus, local authorities with experience in managing investments will be able to organise the procurement and execution of works directly, subject to verification and monitoring by the regional development agencies.
In the case of local authorities lacking the necessary experience, the ministries will be able to take charge of organising tenders, awarding contracts, making payments and managing project implementation.
The new mechanism also establishes rules for auditing expenditure and monitoring works. Upon completion of the projects, local authorities will be required to ensure the preservation of the investments for at least five years.
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