Craiova first Romanian local administration to sign financing contract with Chinese company

Craiova (southwestern Romania) is the first Romanian local administration that signed a financing contract with a Chinese company, Mayor Lia Olguta Vasilescu announced on Monday in Beijing, after she signed a memorandum for the building of several homes in the seat city of Dolj County.

Romanian and Chinese PMs Victor Ponta and Li Keqiang (left and right in the background), Craiova Mayor Lia Olguta Vasilescu (left) and Chinese businessmen congratulate each other on signing a real estate development contract

‘The building of a residential neighbourhood will begin next month. We are talking about 1,800 homes at a very low price, of 400 euros per square metre. The prices for the homes will be in the 20,000 — 45,000 euros range. They will benefit from financing from China Development Bank [CDB]; those interested will buy directly from the Chinese. We offered 7 hectares of land and completed all the legal procedures so far for the concession of this land. This Chinese company won at an unexpectedly low price for us,’ Vasilescu explained.

She added that two companies of Craiova will be subcontractors, and the building materials will be purchased on the local market. She also mentioned that the Chinese company will invest money borrowed from CDB, and will sell directly to Craiova locals, who need, however, to submit a request to the municipality.

‘This means we already have 6,000 requests of Craiova locals filed at the municipality. We will select among them, and the company will sell to them at this preferential price. Our criterion is ‘first coming, first served’ among those who filed requests.

According to the mayor, the building term is two years, and the investment amounts to 35 million euros.

The memorandum of understanding was signed with CDB and Shandong Ningjian Construction Group Co Ltd, the contractor, during a meeting of Prime Ministers Victor Ponta and Li Keqiang in Beijing.

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