Romanian model of metropolitan areas in local development intercommunity development associations Emilia Lucia Ctan1, Marius Cristian Ctan2

Abstract: In order to satisfy the ever complex needs of our society, public administration has to follow closely, through constant development, the growth of the human society in general. From this point of view public administration oneself does not represent a purpose, but has to adapt itself to serve the social needs and realities in their dynamics. Therefore a strong connection exists between society and its component elements and public administration. As a fully-fledged member of the EU Romania needs to prove in the subsequent years its capacity of absorption of European funds, which represent financial solidarity tools among member states (Cohesion fund, Structural funds, Solidarity fund) and are designed mainly to develop local communities. The setting up of associative forms of territorial administrative units in order to create regional development projects or to make available public services plays an essential role in this. Also, our country needs, first of all, to create a stable internal legal framework, lacking in ambiguities, to be able to consolidate its capacity to develop local communities. In this context, the study analyses the legal framework regarding the Romanian model of metropolitan areas development, through associative forms of territorial administrative units, especially associations for intercommunity development as a private structures with public utilities statute. This study also emphasizes an example of good practices in the Romanian metropolitan areas development, the case of Oradea Metropolitan Area Intercommunity Development Association, which comprises Oradea municipality and other nine territorial administrative units from Bihor County, Romania. This association is a member of European Metropolitan Regions and Areas and can be regarded as a positive model in regional development in Romania since it was promptly set up shortly after the respective legal framework was elaborated, and it became prominent through seriousness in its activity. 1. Preliminary aspects regarding the regional policy of the European Union The reconstitution of the European States, the emergence of social problems which affect cities in particular (poverty, exclusion, environmental damage and so on) and which the public authoroties cannot deal with by traditional means, the problems of local taxes and of sharing financial contributions with central government, the globalization of the economy and the vital influence of the city in the world system are factors which combine to contribute to the problems involved in governing our cities3. In this context, the regional development policy is one of the most complex policies of the European Union, meant to reduce the economic and social disparities between the various regions of Europe and therefore acting upon crucial domains for urban and rural development such as the small and medium size enterprises, transports, agriculture, environment protection, labor force employment, professional training, education etc. In order to carry out these objectives, solidarity funds were created within the Union, as instruments of financial solidarity between the member states (The Cohesion Fund, The Structural Funds, the Solidarity Funds), to which special pre-accession funds are added, such as PHARE (for supporting economic reconstruction), ISPA (an instrument of structural policies prefiguring the Cohesion Fund) and SAPARD (a special fund for the agriculture) which can be accessed by the pre-accession countries and through which their transition to the European Union standards and organizational structures was supported. As far as Romania is concerned, as mentioned in a study about regional policy (l), the regional development aquis does not define the way in which the specific structures of EU requirements should be created in Romania, but only enumerates these structures and leaves it to Romania to create them4.

1 2

PhD lecturer, Dimitrie Cantemir University, Trgu Mure, Romania PhD student, National School of Political Studies and Public Administration, Bucharest, Romania 3 Bernard, Jouve, Christian, Lefvre.2002. Introduction to Local Power, Territory and Institutions in European Metropolitan Regions: In Search of Urban Gargantuas, edited by Bernard Jouve and Christian Lefvre. Routledge 4 See The European Institute from Romania.2003. The policy of regional development , available online at www.ier.ro; It is a study issued within the PHARE Project RO 0006. 18. 02.-The formation of local administration public servants specialized in European business and project management, implemented by the European Institute from Romania in cooperation with Human dynamics

As a consequence, in accordance with the objectives of economic and social cohesion and with those of the European Union regarding the regional development policies, eight development regions have been created in Romania which, according to Law nr. 315/2004 5, are the framework for the issuing, implementing and evaluating the regional development policies and for specific data gathering according the European regulations issued by EUROSTAT for the second level of territorial classification NUTS 2, existent in the European Union (art. 6 point 2)6. According to the Law 315 art. 5 point 2), the development regions are neither public administration units nor legal entities. According the legal provisions (art.6 point 3 of Law 315/2004), the regions, the counties and/or the communes belonging to different regions may associate in order to carry out certain objectives of common interest, interregional and/or interdepartmental. The increasing role of the regions and communes in the economic, social and cultural life of Europe confers a crucial importance upon these units as far as the mechanisms of the new European governance is concerned. At the same time, as regards the administrative-territorial units in the rural area, the authority manifests itself in the close vicinity of the citizens. In order to rapidly reduce the social and economic disparities between Romania and the European Union member states, the 2007-2013 National Plan for Development sets certain national development priorities, among which: the development of rural economy and the increase of productivity in agriculture; decreasing the economic development disparities at a national level. 2.The association of the administrative-territorial units in intercommunity development associations. The Metropolitan Areas 2.1.Legal Frame. The Concept of Metropolitan Area Law nr.215/2001 (republished) is the legal frame of the local public administration; according to its provisions, the communes and the towns, the cities and the counties are administrative-territorial units with local autonomy, where local public administration authorities are organized and function. The administrative territorial units are public legal entities, having the following characteristics: full legal competence and their own patrimony; they are judicial subjects of fiscal law, owners of the fiscal code and of the Treasury and Bank accounts; they are holders of the rights and obligations provided by the contracts of public and private assets management they are part of, and by the relationships with other physical or legal entities, as provided by the law; in Law courts they are represented by the mayor or the president of the County council. A commune is made up of one or more villages. Certain towns may be ranked as municipal towns, according to the legal provisions, and within these municipal towns administrative territorial sub-divisions may be created, whose demarcation and organization are performed according to article 20 of the Law nr. 215/2001, republished. The demarcation of the communes, towns and counties is also made according to the legal provisions, as well as any modification of their territorial boundaries, and solely with a previous referendum, organized according to article 22 of the Law 215, republished. In matter of right to association, Law 215/2001, republished, provides that the administrative territorial units may conclude agreements and participate in carrying out zonal or regional development programs , based upon the decisions taken by the municipal or county councils, according to the law. They are also entitled within the competences of the deliberative and executive authorities to cooperate and associate within intercommunity development associations, which are specifically emphasized by the legislators, as representing: private law cooperation entities (4) established according to the law, by the administrative territorial units with a view to fulfill together development zonal or regional programs or to provide common public services ( art. 1 point 2-c)
5

Law 315/2004 regarding the regional development in Romania, published in Romanias Official Monitor, part I nr. 577 / June 29th 2004 modified by Government Ordinance 111/2004 approved by Law 58/2005 approved by Law 58/2005 6 According to the Annex to Law 315/2004, the names and the structure of the development regions in Romania are as follows: North-Eastern Region includes the following counties:Bacu, Botoani, Neam, Iai, Suceava, Vaslui; the Southern Region includes the following counties: Arge, Dmbovia, Prahova, Teleorman, Giurgiu, Ialomia, Clrai; the South-Western Region includes the following counties: Dolj, Gorj, Mehedini, Olt, Vlcea, ; the Western Region includes the following counties: Arad, Caras-Severin, Hunedoara, Timi; the North-Western Region includes the following counties: Bihor, Bistria-Nsud, Cluj, Maramure, Satu-Mare, Slaj; the Central Region includes the following counties: Alba, Brasov, Covasna, Harghita, Mure, Sibiu; the Region of Bucarest including Bucarest and Ilfov

public and public utility service providing entities (art. 1 point 2-g) . Law 215/2001, republished, defines the metropolitan area, as an association of intercommunity development, based on the partnership between the Capital of Romania or the 1st degree municipal towns, on the one hand, and the administrative territorial units situated in their close vicinity, on the other. The metropolitan area differs from what the legislator calls urban agglomeration, which is an intercommunity association between 2nd degree municipal towns and towns, including town neighborhoods and villages in their zone of influence. In order to distinguish between 1st degree municipal towns (the only ones that are entitled to associate in metropolitan areas), lower degree municipal towns and towns, most relevant are the provisions of Law 352/2001 regarding the approval of the National Town and Country Planning Plan Section IV, Locality network, which establishes that the national locality network is made up of urban localities and rural localities, ranking as follows: rank 0 the Capital of Romania, a municipal town of European importance; rank I municipal towns of national importance, potentially influent at a European level; rank II municipal towns of inter-county or county importance, or having a balancing role in the localities network; rank III towns; rank IV commune residences: rank V villages belonging to communes and villages belonging to municipal towns and other towns. It is remarkable that specific regulations about the metropolitan areas are provided by the Romanian legislation; in this respect, Law 352/2001 states that, with a view to a balanced development of the territory of the Capital and of the 1st degree municipal towns, the administrative territorial bodies may associate to form a voluntary partnership in order to establish urban metropolitan areas. According to the law, such associations contribute to the strengthening of complementarities between these units and the factors interested in territory development; with the support of the local councils7 and the large consultation of the local people the development program of the metropolitan areas development is adopted, thus being outlined a real Romanian model of local development through metropolitan areas. 2.2.The characteristics of the intercommunity development associations. Their organization and functioning Starting from the concept of metropolitan area as an intercommunity development association based on partnership between the Capital of Romania or the 1st degree municipal towns and the administrative territorial units in the close vicinity, it is of interest to identify the characteristics, the organization and the functioning of the intercommunity development associations, our study being focused on this aspect. First of all we should mention that, although they are private legal entities, the intercommunity development associations are of public utility, by force of law, by derogation from the provisions of Government Ordinance 26/2000 regarding associations and foundations, modified and completed by Law 246/2005. Being of public utility, these associations are assigned certain rights and obligations, as follows: INTERCOMMUNITY DEVELOPMENT ASSOCIATIONS - rights and obligations resulting from the status of public utility status RIGHTS 1. the right to access European funds in order to carry out common projects of zonal or regional interest or to provide common public services 2 the right to mention in all the documents issued that the association or the foundation is recognized as being of public utility 3 the right to be assigned free use of the public assets

OBLIGATIONS

1.to register separately the purchased goods or the constructions erected with public money 2 to submit the activity reports and the annual financial balance to the competent administrative authority 3. to publish excerpts from the activity reports and financial balances in Romanias Official Monitor, part IV and in the National Register of non for profit entities, within 3 months from year closure. The respective form is approved by Order of the Public Finance minister 4. to inform the competent administrative authority

according to the Law for public administration 215/2001, republished, the local councils are local deliberative authorities

about any modification of the statute and the constitutive act 5 in case of liquidation, the assets obtained from budgetary resources and left as a consequence of liquidation, shall be distributed to other associations, humanitarian foundations, or public institutions having the same object of activity, according to a governmental decision.
8

Secondly, the financing of the intercommunity development associations is provided by contributions from the local budgets of the member administrative territorial units and by other sources, according to the law. As a consequence, we can conclude that the financing of the intercommunity development associations is provided mainly by the local budgets, but at the same time the Government is obliged to support them through programs financed by the State budget, which does not exclude supplementary financing sources9 . Thirdly, as far as their organization and functioning are concerned, the intercommunity development associations are led by an administration council made up of representatives of the member administrative territorial units, appointed by the local or county council as recommended by the mayor or by the municipal or county councilors as the case may be. The administration council is led by a president elected by the vote of the majority of the members. In order to fulfill their objectives, the administration council may establish a technical committee financed by the resources of the intercommunity development association. The organization and the functioning of the administration council and technical staff are established by the constitutive act and the statute of the intercommunity development association, approved by the associated local municipal or county councils. At the same time, for the proper management of general interest services, the intercommunity development associations may decide to appoint a public administrator, whose recruiting, appointment and dismissal are made according to a specific procedure by the administration councils and are approved by the respective local municipal or county councils. Taking into consideration the characteristics, the organization and the functioning of intercommunity development associations we may affirm that they represent associative structures of the administrativeterritorial units that confer them the right to issue and implement zonal and regional development projects in conditions of: efficiency, having in view that the projects issued and implemented together by the administrativeterritorial units imply lower costs and reduced personnel than if they acted individually in implementing projects and supplying public services; effectiveness, having in view that common implementation of development projects of zonal or regional interest leads to better chances for accepting financing projects and accessing European funds, with good results for zonal development, while providing common services gives the possibility to adapt the obtained results to the local context. 2.3. Constituted metropolitan zones in Romania Currently in Romania there are 11 great cities that have developed processes of organizing the metropolitan areas corresponding to them. For example: Iai metropolitan area, which is a region in Iai County, Romania, that includes the municipality of Iai and 13 nearby communes: Aroneanu, Brnova, Ciurea, Holboca, Lecani, Miroslava, Popricani, Rediu, Schitu Duca, Tometi, Ungheni, Valea Lupului, and Victoria; it was constituited to create a better business environment, to attract more consistent investitions and to better coordinate environmental and infrastucture projects; it has a total surface of 787.87 km, of the 5,476 km that the county has, and a population of 397,800 out of the 834,000 in the county; Oradea metropolitan area, with a population of 240.800 in 2006 being the largest urban area from Criana historical region, surpassing the city of Debrein (Debrecen);

8 9

relevant are the provisions of art. 12 (2) of Law 215/2001 reopublished: The Government supports the association of administrative-territorial units by way of national development projects. These projects are financed each year by the state budget and are registered separately in the buget of the Ministry of Administration and Home Affairs according to the local public finance legislation

 Braov metropolitan area with a population of 398,125 in the present, but is estimated to reach 600.000 by 2012; it includes the cities of Codlea, Scele, Ghimbav and Rnov and will include the city of Sfntu Gheorghe in the future; Constana metropolitan area; the project is in process and it will have a population of 550.000 in just 33% area of the Constana County; it includes cities like Nvodari, Ovidiu, Eforie, Techirghiol and Basarabi. 3.Case study: Oradea Metropolitan Area Intercommunity Development Association 3.1. Setting up of the association Oradea Metropolitan Area was created by the association of Oradea municipal area with the administrativeterritorial units located in the proximity zone, respectively the commune of Biharia, Bor, Cetariu, Nojorid, Oorhei, Paleu, Snmartin, Sntandrei. Thus, the 9 founding localities situated at the western Romanian border have set up the first legally acknowledged intercommunity development association in the form of metropolitan area, through the partners general meeting decision of May 9, 2005. On July 31, 2007, the commune of Giriu de Cri adhered to the association as a consulting member, generating an increase in the number of members, this reaching 10 (ten) administrative-territorial units. The Purpose of Association, as stated in the articles of association, is to stimulate and support enhancement of prosperity of the area, to increase the well-being of its citizens; the final aim being a continual increase of the quality of life. The general objective refers to the concept of metropolitan area durable development in the context of a prospective creation of an urban space common to the 9 founding localities for the purpose of implementing all principles necessary for tight territorial cohesion. The specific objectives set for this region refer to the alignment of Oradea Metropolitan Area to the economic and social euro-atlantic standards in concordance with the domestic ones; to the establishment of a market climate in accordance with international competitional procedures, and last but not least, to the increase of social and economic cohesion of the area. Among the main activities of the association there are items linked to promotion of a coherent durable development strategy, enforcement of public policies that allow for continuous growth of added value, facilitation and support of direct investments, issuance of projects with major impact upon the areas sustainability. Moreover, there are also points interconnected with making the major trans-border poli-centre position viable. 3.2. Administrative and executive governing bodies of the association The management of Oradea metropolitan Area Association is structured on three levels. The first is endowed with deliberative character and consists of the Partners General Meeting. The second level has an administrative character and is ensured by the Director Council. The third level, having an executive character is handled by a technical and operational board that has the role of implementing measures taken within the first two decisional levels. Partners General Meeting PGM is made up of 84 de representatives of the members designated by the local councils of the 10 administrative-territorial units that belong to the association. Association Director Council Oradea Metropolitan Area Director Council comprises the mayors of the founding administrative-territorial units, as head credit officers. And in accordance with their duties as elected constituents, they act as representatives of the administrative-territorial units. Functioning as the body with administrative powers, the Director Council is responsible for enforcing the decisions of Partners General Meeting, as well as for other matters provided in the Functioning and Organization Regulation and Statute of the Association. As a rule, the Director Council has three meetings a year, or as many as it it considered necessary when decisionmaking is required. The provisions of decisional acts are transmitted and enforced by the personnel, in the form of provisions issued by the technical and operational board director of the association. The Director Council is periodically informed by the executive body and it approves materials and documents that are subsequently subjected to final endorsement, in accordance with statutory provisions. Association Technical and Operational Board The Functioning and Organization Regulation and Statute of the Association states that its personnel represents a technical-operational apparatus empowered to represent the association in its relations with third parties, and it also represent an interface between the governing bodies of the association. The role of this apparatus is to fulfil the duties stipulated in the Articles of Association, in the Partners General Meeting decisions, and the Director Council decisions. In 2007, the personnel employed by the associated consisted of 9 people, 7 of which were permanently employed whereas 2 were collaborators.

In order to complete the projects initiated by the association the technical and operational apparatus benefits from assistance that comes from technical contractual associates, specialized in conducting studies and in paperwork required in the programs and applications that are part of the plan for Durable Development Strategy of Oradea Metropolitan Area. For this purpose, several operations termed as extremely qualified are conducted by contracting the necessary services, and/or by punctually setting up groups of local collaborators from the 10 administrative-territorial units of the association, for sector projects. 3.3.Development Projects for Oradea Metropolitan Area In Oradea Metropolitan Area there are a series of projects currently in progress, and the section below includes a synthetic presentation of each category: 3.3.1. Projects for Development and Modernization Strategy a) Preparation, issuance and wording of 20072026, Oradea Metropolitan Area portfolio and project records, in accordance with Durable Development Strategy of Oradea Metropolitan Area with a view to designing presentation materials for international meetings with potential investors, or for the purpose of making application proposals popular with management authorities of structural instruments; b) Issuance and financing application submission with Phare CBC 2005 program, of Oradea Metropolitan Area Road Transport Infrastructure Development Director Plan, as project selected for nonreimbursable finance portfolio for trans-border cooperation; c) Setting up the basis for the Oradea-Debrecen regional development corridor concept, which is based on the concept of territorial conglomerate, and was initiated in cooperation with Oradea University, Euroregiohaz and Debrecen University. This is a project that promotes Central European poli-centres, and is part of Phare CBC and INTERREG programs; d) Initiation of a project regarding strategy and action plan for South-Eastern Europe Road Transport Infrastructure Development (under tutelage of Stuttgart region, which introduced the Oradea Metropolitan Area Road Infrastructure concept at the Vicenza Conference of May 2007 for INTERREG IV program). 3.3.2. Projects for Public Utilities Services Infrastructure a) Paperwork preparation and wording for setting up water supply, sewerage and waste water evacuation regional operator, and for Oradea Metropolitan Area members shareholding of Oradea Water Company Ltd., as regional operator; b) Completion of Feasibility Study on Oradea Metropolitan Area water supply, sewerage and waste water evacuation, which included the Opportunity Study, the Master Plan and preparatory paperwork for drawing up the application for 20072013 Cohesion Fund finance, for the Environment Operational Sectorial Plan; c) Raising awareness about the concept of development and extension of Oradea Metropolitan Area local public transportation services, issuing and drawing up paperwork for setting up the regional public transportation operator in the form of a public limited company whose shareholders would be the administrative-territorial units that represent the members of the association; and finally, drawing up a structural finance application. 3.3.3. Projects for Institutional Development a) Participation to information seminars: Modification proposals for Regional Operational plans and Sectorial Operational Plans (April, Baia Mare); Launching of 2007 trans-border cooperation programs and implementation of finance contracts (June, Bucharest); Implementation potential analysis of the Phare CBC Modernization and Trans-border Cooperation Fund (May-June, Oradea); Intercommunity public utilities services (April, May, June in accordance with the planning made by the Embassy of France - Sibiu, Bucharest, Braov, Iai); Training on utilizing structural funds (May, Cluj-Napoca); b) Implementation of ISO 9001:2000 and ISO 14001:2005 environmental quality management integrated system in the association and the administrative-territorial units, and IFU CERT Hamburg (D) certification; c) Issuance of environmental and quality certificates in accordance with ISO 9001:2000, 14001:2005 and EMAS II standards, and certification in intercommunity development for participating local public administrations that represent founding members of Oradea Metropolitan Area; d) Certification of Oradea Metropolitan Area Intercommunity Development Association as the first Romanian association that fulfils EMAS II European international standard;

e) Presentation of 20072026 Oradea Metropolitan Area Priority Projects Portfolio (Brussels - 10 October 2007), and discussions with European Investment Bank representatives on identification of applications financially supported by European financial institutions. 3.3.4. Projects for the environment a) Completion of ECO-LIFE project that aims at raising public awareness on Oradea Metropolitan Area environmental preservation, in both urban and rural parts (creation, publication and distribution of 39.500 brochures with environmental information content for the urban and rural space; training courses for the city-hall staff responsible for environmental problems dissemination; public meetings on the environmental policies promotion with representatives of the OMA private sector from rural communities); b) Paperwork preparation for the ECO-TOUR project, Education and raising awareness of Oradea Metropolitan Area public on carrying out environment-friendly touristic activities, aimed at obtaining Environment Fund finance. 3.3.5. Other types of projects a) Cooperating with the European Investment Bank for identifying financial assistance conditions that would ensure co-finance of applications from the priority projects portfolio of the association, respectively, for the acquisition of trams in the Oradea tram park modernization program; b) Assessment of common projects intentions portfolio, as part of transnational cooperation programs with Montbeliard Urban Community, and Montbeliard Durable Development and Arrangement Agency; c) Completion of OSIM registration procedures for Oradea Metropolitan Area registered trade-mark. 4. Conclusions The reconstitution of the European States, the emergence of social problems which affect cities in particular (poverty, exclusion, environmental damage and so on) and which the public authoroties cannot deal with by traditional means, the problems of local taxes and of sharing financial contributions with central government, the globalization of the economy and the vital influence of the city in the world system are factors which combine to contribute to the problems involved in governing our cities. In this context, the study analysed the legal framework regarding the Romanian model of metropolitan areas development, through associative forms of territorial administrative units, especially associations for intercommunity development as a private structures with public utilities statute. This study also emphasized an example of good practices in the Romanian metropolitan areas development, the case of Oradea Metropolitan Area Intercommunity Development Association, which comprised Oradea municipality and other nine territorial administrative units from Bihor County, Romania. This association is a member of European Metropolitan Regions and Areas and can be regarded as a positive model in regional development in Romania since it was promptly set up shortly after the respective legal framework was elaborated, and it became prominent through seriousness in its activity.