Minister of the Economy, Digital Transformation, Entrepreneurship and Tourism Bogdan Ivan on Friday reported that procedures were completed for allocating RON 200 million for repairing damages caused by floods at the Praid salt mine and RON100 million for tourism entrepreneurs operating in the area affected by the floods.
"We have urgently allocated funds for repairs and for the direct support of the community affected by the floods. RON 300 million will be available starting today, with the publication of the aid schemes in the Official Journal. Also today, I will be at the scene again, together with the people of Praid and the teams of experts who are working against the clock to stabilise and safely divert the course of the Corund River," Ivan is quoted as saying in a press statement.
The orders initiated by the Ministry of Economy, Digital Transformation, Entrepreneurship and Tourism (MEDAT) refer to a state aid scheme worth RON 200 million to repair flood damage at Praid, as well as a de minimis aid scheme worth RON 100 million for tourism enterprises at Praid - including spa tourism and public catering - affected by the floods. The aid measures are valid from the date of publication in the Official Journal of Romania until December 31, 2025.
Damage repair takes into account a maximum of 20 enterprises whose business, carried out in the calamity zone directly affected by the floods and which meet the conditions provided for in the relevant ministerial order. Damage assessment will be conducted by an appraiser authorised by the National Association of Licensed Appraisers of Romania and by a chartered accountant or by an expert company that is part of the Body of Romania's Expert and Licenced Accountants.
The eligible costs include the replacement value of the assets that cannot be returned to business; the cost of repairing assets affected by floods, where possible; loss of income due to the total or partial suspension of business at Praid for a maximum of six months from the occurrence of the disaster.
The de minimis aid will be granted in the form of grants to the tune of 15% of the 2024 turnover. The maximum number of beneficiaries is 300, and the aid will not exceed the threshold of EUR 300,000 per beneficiary, in compliance with the de minimis ceiling per single enterprise and the legal rules on the cumulation of de minimis aid.
The eligible beneficiaries of the de minimis aid are small or medium-sized tourism enterprises affected by floods, which have their registered office or places of business where the business for which they apply for funding located at Praid.
Problems at the Praid Salt Mine appeared on May 5 after heavy rainfall caused the level of the Corund stream to rise and the infiltration of water into the salt mine. Production and visiting at the Praid Salt Mine are down as all resources are focused on solving the emergency and make the area safe.
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