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Minister Sova: National Motorways Company owing debts worth 500 mln euros
The National Motorways and Highways Company (CNADNR) incurs debts of 500 million euros, Romanian Minister-delegate for Infrastructure Projects of National Interest and Foreign Investment Dan Sova said on Thursday for Agerpres .
Minister Sova said a solution to rendering the company's activity more effective is to terminate the snow-clearing contracts that are to be fulfilled by the same CNADNR. 50 percent savings were made this year in snow-clearing activities in the budget allotted to the 2012-2013 winter.
Therefore, the arrears worth 500 million euros were financed through the state budget, said Sova. They will be paid during the first two quarters of 2013, in order to avoid bankruptcy and preserve jobs.
Sova stressed that the Control Corp of the prime minister will complete an inspection at CNADNR in July-August, after two controls of the Court of Auditors, one regarding the activity and the other concerning the EU funds.
Sova also said that the Romanian authorities are waiting for the answer from the Commission regarding the establishment of the Motorways Authority. The Authority must be able to access EU funds, as it is not included in the EU 2007-2013 financial exercise.
Other investors interested in taking over Transylvania Motorway project
The deadline for the completion of negotiations with US contractor Bechtel for the termination of the contract for the construction of the Transylvania Motorway is April 30, and other investors are interested in taking over the project, Dan Sova, Minister-delegate for infrastructure projects of national interest and foreign investments on Thursday told Agerpres.
Minister Sova did not rule out an amicable settlement with Bechtel.
'I believe - and after 15 years of law practice during which I did consulting and negotiation - I can say that I will come to terms with them. This is not about the art of negotiation, there is no technique, it's just about common sense and honesty in this business,' said Minister-delegate Dan Sova.
According to him, the tender will be prepared and until a new contractor is appointed, the construction site will be entrusted to a security company, a maintenance and conservation company.
'I can tell you, under the reserve of confidentiality, that there are about three contractors of global scale interested in building the Transylvania Motorway,' said Dan Sova.
He also explained that he would meet with the MPs and Transylvania local authorities to for them to know the exact situation of the project; he also mentioned the possibility that the latter take over the construction of the motorway, opting for the solution of 'an intra-community association that should take over the project and carry it through,' a solution that will be referred to the government for approval, before it is tabled to the potential builders.
Bechtel won the tender for the construction of the Transylvania Motorway (linking the central city of Brasov to western border city of Bors). Works began in 2004, under a EUR 2.2 bln contract awarded to Bechtel. The company has so far completed 52 km (the Turda - Campia Turzii section) of the total of 415 km and the initial deadline had been set for 2011 and then extended by one year because of the interruption of the works in 2005. Meanwhile, Bechtel gave up the Targu Mures - Brasov project section, and current talks with the authorities are aimed at reaching an amicable termination of the contract.
The state needs about 250 million euros to complete the Suplacu de Barcau - Bors section. Eleven years after the signing the contract, the Romanian state finds itself with 52 kilometers of motorway in operation and 1.4 billion euros already spent.
Comarnic-Brasov motorway building contract to be signed by Sept. 30
The contract for leasing the building works on the Motorway linking Comarnic to Brasov (central Romania) will be signed by September 30, with the works to begin in October, Minister-delegate for Infrastructure Projects of a National Interest and Foreign Investments, Dan Sova told AGERPRES on Thursday.
'The contract must be signed by September 30. The works must start in October. This is the schedule. Yesterday I had a meeting with the Louis Berger consultant. He explained me there are problems relating the funding structure, the risk structure, there are problems with the motorway route, there are problems with the technical project. All such problems must be resolved at a fast pace. Therefore, it is an objective which we, as the Government, have pledged and I am sufficiently stubborn to do what it takes to sign the contract in October with somebody. Pre-qualification is taking place now and we'll see who qualifies further', the minister said.
Sova explained that the pre-qualification phase for this important project will be completed in about a month.
'We launch the pre-qualification for (the motorway between) Pitesti and Craiova. This is the third leased out project we are going to make this year and next year we'll try to switch to a higher phase. You are aware that now, in 2013, a new instrument is being set up for the 2014-2020 financial exercise, namely to combine the European funds with the public-private partnerships. We have several objectives to be built on European funds in a classic manner, of 85 percent', he explained.
He said the Romanian state will apply the leasing-out model on three motorway projects: Comarnic-Brasov, the Southern Bucharest Ring-Road and Pitesti-Craiova.
'I anticipate that we'll sign for Comarnic in October, for the southern ring-road in November and for Pitesti-Craiova in December', Sova announced.
EIB delegation met Minister Sova to discuss infrastructure assistance and funding
Romania's Minister-delegate for Infrastructure Projects of National Interest and Foreign Investment Dan-Coman Sova on Tuesday welcomed a visiting delegation of the European Investment Bank (EIB) to discuss important aspects of EIB's cooperation with Romania in the area of road infrastructure projects.The Romanian Government reports in a press release that the delegation was made up of EIB's representative in Romania Flavio Schiavo Campo and EIB Operations Director for South-East Europe Luca Lazzaroli.
Talks at the meeting focused on projects in which EIB can get involved by offering specialist technical assistance and also funding for infrastructure projects.EIB will provide assistance to help Romania improve its legislation for public-private partnerships and lease contracts for infrastructure works, with the funding, design and construction of the Comarnic-Brasov portion of the Bucharest-Ploiesti-Brasov motorway being an important project on the agenda.
EIB is Romania's strategic partner, with the participants in the meeting having agreed to promote wide cooperation in favour of major projects being carried out in Romania.