The Romanian Ministry of Environment has recently published, for public consultation, the draft Government Decision on the organization and operation of the National Forest Administration – Romsilva. We see this as a new step that proves authorities’ determination to deliver this long-awaited and repeatedly promised reform. However, in order for this effort to reach its goals, we believe it is essential to reiterate two key aspects that must be addressed as priorities: clearly defining the expectations for this state-owned enterprise and ensuring it has the resources needed to fulfill its mission.
The Need to Revise the “Letter of Expectations”
A meaningful reform, implemented in line with the provisions of the National Recovery and Resilience Plan and Emergency Ordinance 109/2011 – both cited in the draft’s explanatory memorandum – cannot move forward without first revising the “Letter of Expectations.” This document defines the mission and objectives of the state-owned enterprise, its public service obligations, and the performance indicators used in selecting the Board of Directors of Romsilva.
We reiterate what we have previously flagged: without amending the Letter of Expectations through a Ministerial Order:
- Public service obligations remain vaguely defined and misclassified, lacking proper justification relative to their strategic role and existing legal framework;
- Performance indicators are not fully aligned with the objectives of the National Forest Strategy 2030;
- Annual targets for these indicators are not correlated with the goals set in forest and environmental policy frameworks and appear disconnected from the level of ambition required.
Moreover, the draft Government Decision introduces a new list of “optional” indicators for the directors of forest departments and heads of forest districts. This list is not fully aligned with the performance indicators used for selecting the Board of Directors and should be cascaded to Romsilva’s executive leadership.
Reinvesting Profits - A Prerequisite for Success
We believe the Government must commit through this Decision that at least 90% of Romsilva’s profit can be reinvested over the next four years, in order to meet the established performance indicators.
A genuine reform implies a diversified investment program in:
- Digitalization;
- The acquisition of equipment specific to forestry operations;
- The development of forest infrastructure needed to protect environmental values, boost competitiveness, and support the higher-value processing of wood.
Without such measures, the public enterprise cannot fulfill its public interest objectives. As a state-owned entity, aside from its public service obligations, Romsilva has limited access to EU funding and cannot receive direct support from the state budget without it being considered state aid. Without the ability to prudently reinvest the profit it generates, Romsilva risks becoming stuck exactly where transformation is most needed – and, over time, it could even face the risk of insolvency.
WWF-Romania remains open to contributing constructively, with technical arguments and concrete proposals. Romania needs an efficient, transparent, and competitive National Forest Administration, capable of responding to both economic requirements and the needs of nature conservation and local development.
We invite the authorities to continue the technical dialogue needed to jointly build a solid reform, capable of delivering tangible results.