Access to major infrastructure projects is determined not only by technical expertise, but above all by capitalization. In Romania, public contracts for road, railway, or utility infrastructure frequently exceed €100 million, and qualification requirements include minimum turnover thresholds, performance guarantees, and demonstrated financial capacity.

According to data from the Ministry of Finance and market analyses, many Romanian construction companies operate with low margins and limited equity, amid rising material and labor costs in recent years. In addition, public projects typically involve negative cash flow in the initial phases, until work statements are settled. Without solid credit lines or stable banking partnerships, local firms face difficulties in covering these gaps.

Within programs financed under the 2021–2027 Cohesion Policy and the National Recovery and Resilience Plan (NRRP), project values are substantial, and eligibility criteria tend to favor operators with international experience and consolidated balance sheets. As a result, foreign or mixed consortia frequently dominate large-scale tenders.

The “critical capitalization threshold” represents the minimum level of financial resources and guarantees that enables a company to compete effectively for major projects. Below this threshold, firms remain active primarily in the medium-sized works segment or as subcontractors.

To overcome this limitation, solutions include partnerships among Romanian firms, consolidation through mergers and acquisitions (M&A), and improved financial discipline. Without adequate capitalization, infrastructure development will continue to be carried out predominantly by external players.

(Photo: Freepik)