Radio România Internațional

Tag: motorways

  • The Priorities of Romania’s Recovery and Resilience Plan

    The Priorities of Romania’s Recovery and Resilience Plan

    The centre-to-right coalition government in
    Bucharest on June 2nd made public the National Recovery and
    Resilience Plan PNRR – about 12 hundred pages sent to the EU with measures,
    which would allow Romania to attract 29 billion euros worth of EU funds. This
    money, which Romania can get as loans or subsidies is part of a major plan of
    672 billion euros designed by Brussels so that all the member states can
    overcome the economic impact of the Covid-19 pandemic. Authorities in Romania
    want to use some of the money to build over 400 kilometers of motorway,
    hundreds of schools and kindergartens and refurbish many hospitals.




    In fact, the transport infrastructure,
    Education and Healthcare are going to receive most of the funds. The plan also
    contains provisions for some environment activities such as reforestations or
    an improved waste management. According to Prime Minister Florin Citu, all the
    loans Romania is going to get by means of PNRR will be used for investment.




    Florin Citu: We must get loans to
    invest in Romania as we need to build motorways, hospitals, schools, and the
    loans we get by means of this PNRR are at a low interest rate, close to zero.
    Germany, Spain, Italy, countries from the Eurozone, are getting loans at this
    rate. The fact that we can get loans at such a low interest rate and invest
    them is a good thing for Romania.




    Deputy prime
    ministers Dan Barna and Kelemen Hunor have underlined that key sectors will
    significantly change and that all communities, irrespective of the region will
    be equitably and fairly supported. On the other hand, Lucian Romascanu,
    spokesman for the opposition PSD, believes that on the contrary, the projects
    included in the PNRR will be causing new imbalances.




    Lucian Romascanu: We don’t have anything when it comes to motorways, rail
    roads, irrigation systems or gas networks, and that situation is condemning
    Romania to underdevelopment. We are going to have a country which is developed
    unequally, right at a time when we can give it a new look by properly using
    these funds.




    The plan also contains a series of reforms in
    terms of pensions, justice, state companies and the payment of the personnel in
    the public system. While the government says that it wants to recalculate
    pensions, the opposition PSD has referred to the former’s intention to increase
    the pension age, implement austerity measures and freeze incomes.




    According to the Social-Democrats, the poverty
    of the Romanians and the dropping standard of living are the only certitudes of
    the National Plan of Recovery and Resilience. According to the Minister of Investment and
    European Projects, Cristian Ghinea in the next period Bucharest is waiting for the
    official assessment of this plan in Brussels and for its approval. From that
    moment on the ways of implementing the aforementioned plan belong exclusively
    to Romania.


    (bill)





  • Decisions on infrastructure

    Decisions on infrastructure

    Over 30 years since the
    anticommunist revolution and nearly 13 years since Romania joined the EU, not a
    single motorway is crossing the Carpathians. At the end of 2019 Romania had
    only 850 kilometers of motorway, of which 100 were built by dictator Nicolae
    Ceasescu. A few motorway segments built at great cost are linking our country
    to our neighbors, rather than allowing the people to get faster to Bucharest or
    easing their trips to the seacoast. Some of the obstacles included politicians’
    indifference, bureaucracy but also the selection of builders, who only seek
    financial gain. According to statistics, Liberals and Social-Democrats have had
    equal shares in governing the country after the 1989 revolution, either by
    themselves or part of ruling coalitions. Neither side can however take any
    credit in building motorways. Instead they blame each other, in repeated
    arguments meant to boost their election scores. Since 2016, when it entered the
    opposition, the National Liberal Party has harshly criticized the
    Social-Democrats, accusing their incompetence. Last year the former left-wing
    Government started negotiations to sign public-private partnerships for the
    building of two motorways. In one case a conglomerate from China and Turkey had
    been selected, while in the other case companies from the two states, with
    major works in their home countries, although not in the European Union, had
    made bids. After taking power last year, the Liberals have promised another
    approach, a better one, they say. Accordingly, on Tuesday the Liberal
    Government decided to cancel the public-private partnerships. Prime Minister
    Ludovic Orban explained:


    Our goal is simple: cancel all
    ongoing procedures and transfer these projects to the relevant ministries. For instance
    the Transport Ministry will take over all transport infrastructure projects,
    whereas line ministries taking over other projects should present their implementation
    plans within a week at the most, so we will know clearly each procedural step
    we have to take, the planning of each stage in the project and the funds we
    have to earmark for these projects.


    The Social-Democrats are now
    accusing the Liberals of backtracking the country by proposing feasibility studies
    instead of kicking off construction works for the two motorways. The director
    of the Pro Infrastructura Association, Ionut Ciurea, has recently estimated
    that considering only 43 kilometers of motorway were built in 2019, Romania
    could have another 57 kilometers of motorway this year.


    (Translated by V. Palcu)

  • Brussels expects Romanian infrastructure projects

    Brussels expects Romanian infrastructure projects

    Pundits in Bucharest are commenting on the latest episode
    from the so called ‘War of the Roses’ saga, hinting at the roses that are part
    of the logo of the Social Democratic Party, the senior partner in the ruling
    coalition in Romania. Commissioner Corina Cretu, herself a member of the Social
    Democratic Party, supported by the former leader of the party Victor Ponta to
    get the office in Brussels, has become virulent in criticizing the Romanian
    Government, now headed by Viorica Dancila. She has perceived as an insult the
    lack of infrastructure projects, for which Romania could easily get European
    funds. The Commissioner has stated that as regards transports, the most
    vulnerable and at the same time one of the most important sectors, Romania has
    lost two billion Euros, and efforts are being made to avoid decommitment for
    the 2014-2020 period. Here is the European Commissioner Corina Cretu:


    We have money for feasibility studies
    but we have received no applications for that. We could program the building of
    the Targu-Mures motorway for 2021. Unfortunately, the Government has announced
    that it wants to build the motorway based on the public-private partnership
    system. Our specialists are not comfortable with this approach, because it
    means de-prioritizing investment. We are completely open, but as long as we do
    not have projects, there is nothing to analyze, and therefore nothing to fund. I would like to publicly announce that I will
    no longer tolerate any insult from the Romanian Government in relation to the
    work I do.


    Calin Popescu Tariceanu, the leader of the Alliance
    of Liberals and Democrats, the junior partner in the ruling coalition in
    Bucharest, has stated that he fully supports the statements made by the
    European Commissioner, of whose good faith and good intentions he is convinced.
    The Social Democratic Finance Minister Eugen Teodorovici has in turn admitted
    that the delay in attracting European money is affecting the budget. However,
    as regards the projects mentioned by Commissioner Cretu, he also said:


    They are being verified and analyzed by JASPERS,
    a body made up of experts with the European Investment Bank, and other
    structures, which, unfortunately are not moving as fast as they should, in the
    sense that they should submit to Brussels the funding applications faster. Our
    main problem, budget-wise, is that if these reimbursement applications are
    delayed too much, the disbursement is delayed too, therefore the state budget
    deficit grows.


    The media speculates that the chilly relationship between
    Corina Cretu and her colleagues in Bucharest could be motivated politically.
    Her term ends next year, and the parent party hasn’t even proposed her to run
    again in the elections for the European Parliament due next year.





    (Translated by M. Ignatescu)

  • Public-private partnership in infrastructure development in Romania

    Public-private partnership in infrastructure development in Romania

    Despite daily political scandals involving the countrys president Klaus Iohannis supported by the right wing opposition, on the one hand, and the ruling coalition formed by the Social Democratic Party and the Alliance of Liberals and Democrats on the other, in Bucharest the Government carries on, minding its business. At least this is what the deputy prime-minister Viorel Stefan stated on Tuesday, when he presented the strategic projects that are to be commenced shortly, based on the new legislation on public-private partnership.



    Essentially, the government plans to build three motorways, to modernize 15 hospitals and to build a large medical compound. But lets see what the government means when talking about motorways. The first one will link the city of Ploiesti, in the south, to Brasov, in the centre. A second one will connect Targu Neamt and Iasi to Ungheni, in the Republic of Moldova, while in the south a third one will make the connection between Bucharest, Craiova, Drobeta Turnu Severin and Lugoj.



    Viorel Stefan stated that the 100 km long eastern motorway will also include a bridge over Prut River, which will connect it with the road infrastructure in the neighboring Republic of Moldova. The one in the south is aimed to help develop tourism, mainly because it will be connected to the section that exists already in the south, known as the ‘Sun Motorway, which links the capital city to the Black Sea Coast.



    Viorel Stefan: “The South Motorway, 550 km long, is an important project for many investors, who have already invested quite heavily in the area, more specifically in Craiova and the surroundings. Lets not forget that this motorway will help increase the tourist potential in the Danube Gorges. Moreover, it will secure the link with Serbia, Bulgaria and the 4th Pan-European Corridor in Lugoj.



    The government also plans to modernize 15 hospitals owned by the Romanian Freight Company and managed by the Transport Ministry and to build the Carol Davila healthcare compound, on some 300 hectares in Bucharest. The compound will include the Republican Hospital, with a capacity of 3,000 beds and 37 operating theatres. Also, a Medical School and student dorms will be built, as well as residential and shopping facilities for the staff, parking lots and a hotel for those who accompany the patients.



    All the projects presented on Tuesday and dubbed ‘strategic will require substantial expenses, of 15 to 20 billion Euros. The works are to start next year, and scheduled to complete in five years for the motorways, three years for the Republican Hospital and seven years for the Carol Davila compound. The Government, the deputy prime-minister Viorel Stefan also said, is determined to make up for the decade-long delays in the building of the countrys infrastructure.


    (translated by: Mihaela Ignatescu)