The document provides an overview of Romania's current macroeconomic situation and plans for improving its road infrastructure through public-private partnerships and projects. Key points include: Romania's economy is stable and growing slowly, inflation is decreasing, and the government debt level is below limits; the legal framework for PPPs and procurement is being updated to attract private investment into 15 priority infrastructure projects, including roads; and the current road network is outlined and plans provided to expand the motorway program through new construction and PPPs.
The document provides an overview of Romania's current macroeconomic situation and plans for improving its road infrastructure through public-private partnerships and projects. Key points include: Romania's economy is stable and growing slowly, inflation is decreasing, and the government debt level is below limits; the legal framework for PPPs and procurement is being updated to attract private investment into 15 priority infrastructure projects, including roads; and the current road network is outlined and plans provided to expand the motorway program through new construction and PPPs.
The document provides an overview of Romania's current macroeconomic situation and plans for improving its road infrastructure through public-private partnerships and projects. Key points include: Romania's economy is stable and growing slowly, inflation is decreasing, and the government debt level is below limits; the legal framework for PPPs and procurement is being updated to attract private investment into 15 priority infrastructure projects, including roads; and the current road network is outlined and plans provided to expand the motorway program through new construction and PPPs.
Current macroeconomic developments in Romania Configuring the legal framework for PPPs and public procurement Projects proposed for implementation (public budget and/or private finance) Short- and medium-term road strategy Current developments in Romania (1) 2012-2013 are years of macroeconomic stability; economic growth resumed in 2011, reaching 0.7% in 2012 and is seen accelerating in 2013 (1.6% estimated) largely as a result of strengthening industrial activity / export- oriented sectors impact in the current account balance the years to follow (2014-2016) are dedicated to economic relaunch Inflation followed a downward path (volatility influenced mainly by the non-core components) Flat multi-annual inflation target (December / December): 2.5% starting 2013 Current developments in Romania (2) Romania is no longer in the excessive deficit procedure (ESA, % GDP); the EU assumed deficit limit of 3% is respected (in the first 3 months of 2013); The default probability is smaller than that of Spain, Slovenia, Portugal, Italy and Hungary; the CDS has registered a decreasing tendency; The growth rate of public debt has slowed down, enabling fiscal space for larger investments in education, health, infrastructure and agriculture; Public debt well below the Maastricht criterion The Ministry of Finance issued 300 million Lei denominated bonds to be reimbursed in 2016 at a 4,90% interest rate; Fitch confirmed Romanias credit rating at BBB- with stable perspective; What we want for the future To reduce fiscal evasion To bring more money into the economy: o Attracting investments o Daimler case: 300 million Euro plus 400 new jobs o Exxon, OMV and Romgaz: offshore energy explorations (about 1 billion Euro) o OMV Petrom: 200 million Euro at Suplacu de Barcau, 500 million euro at Brazi o China Huadian Engineering: 1 billion Euro at Rovinari o Increasing the absorption rate of EU funds: o Extraordinary impact on the infrastructure development o Close cooperation with the European Commission for the next budgetary programming period
PPP legal framework: our vision To finalize the legislation in the field, thus enabling contracts with the following characteristics: An optimised Value for Money for the infrastructure projects on long-term basis (the whole-life contract) Attraction of new (private) capital sources into the provision of infrastructure o private economic operators, o investment funds, o institutional investors (pension funds and other private financing institutions), relieving the pressure from public sector (project associated debt or risk); PPP legal framework: principles Large upfront investment capital cost (for public infrastructure) is avoided Later payments (from final users or from the public authority), to cover construction and maintenance costs, generally come once the assets are ready for operation (when involving works) or when services are provided; Projects can also be classified as off-balance sheet for the public sector: Assets involved in these projects could be classified as non- governmental assets (with no immediate impact on the public debt and budget deficit): subject to fulfilling Eurostat criteria (ESA 2010) Public procurement legal framework The cumulated estimated value of the public procurement awarding procedures was approximately 20% of the GDP in 2012 An analysis was done on the time spent in the awarding procedures, internally, by the contracting authorities. And where the action / inaction of the public authorities have an impact on the entering into force of the public procurement contracts EGO 34/2006 was modified to impose new deadlines with regard the evaluation of bids in different awarding procedures Stages which do not depend on the bidders or which would impose new constraints for the bidders Special attention for improving efficiency in the public procurement process Infrastructure projects 15 infrastructure projects to which the Government pays special attention: Transport (roads, inland waterway and port) Energy (nuclear, hydro, shale gas) IT (access to justice and land registry) Mining (gold and copper) Sources to attract private finance: Through privatization or concession / PPP 3 road projects for which the tender has already started (Comarnic-Brasov, South Section of the Bucharest Ring Road and Craiova-Pitesti)
CURRENTLY, THE ROAD NETWORK IN ROMANIA, ADMINISTERED EXCLUSIVELY BY CNADNR, IS STRUCTURED IN :
MOTORWAYS 548 KM EUROPEAN NATIONAL ROADS 6.037 KM MAIN NATIONAL ROADS 4.465 KM SECONDARY NATIONAL ROADS 5.998 KM
A. Motorways in exploitation (548 km), out of which, in 2013 (up to October), 17.7 km were received / completed, representing Simeria - Ortie section, km 0 +000 - km 17 +700;
B. Motorways in execution (188 km): Cohesion Fund financing, 182 km motorway (within the Pan-European Transport Corridor no. IV) Lugoj Deva motorway, sections 1 4, Orastie Sibiu and bypass Sebes, sections 1 4 State budget funding, Bucuresti Moara Vlasiei section (6,5 km) C. Motorways in tender: 135 km, with Cohesion Fund financing, are in tender (the works contracts will be signed progressively, in the last quarter of 2013 and first quarter of 2014: Nadlac Arad (sections 1 and 2) Timisoara Lugoj (section 2) Sebes Turda (all 4 sections)
ORASTIE SIBIU Lot 1 km 0+000 km 24+100 Lungime: 24,1 km Constructor: SC STRABAG SRL Consultant: Asocierea Consitrans, Via Design & Omicron-Ampero MOTORWAY CONSTRUCTION PROGRAM WITH FINANCING FROM EU AND STATE BUDGET LUGOJ DEVA Lot 4 km77+361-99+508 Lungime: 22,14 km Constructor: Asocierea S.C. Tehnostrade & S.C. Spedition UMB Consultant: in curs de lansare procedura achizitie publica servicii de consultanta LUGOJ - DEVA Lot 2 km 27+620 km 56+220 Lungime: 28,600 Lot 3 km 56+220 km 77+361 Lungime: 21,14 km SEBES TURDA Lungime: 70 km
LUGOJ - DEVA Lot 1 Lugoj Dumbrava km0+000-27+400 Lungime: 27,4 km Constructor: Asocierea Tirena Scavi SpA Societa Italiana per Condotte dAcqua SpA Cossi Constructioni Consultant: Asocierea Search Corp ConsulgalConsultores ORASTIE SIBIU si Bypass SEBES Lot 2 km 24+100 km 43+855 Lungime: 19,7 km Constructor: Asocierea Straco Grup Studio Corona SRL Civil Engineering Consultant: Asocierea Consitrans, Via Design & Omicron-Ampero ORASTIE SIBIU si Bypass SEBES Lot 3 km 43+855 km 65+965 Lungime: 22,1 km Constructor: Impregilo SpA Consultant: Asocierea Consitrans, Via Design & Omicron-Ampero Nadlac Arad NADLAC ARAD si drum de legatura Lot 1 km 0+000 km 22+218 Lungime: 22,218 Lot 2 km 22+218 km 38+882 Lungime: 16,6 km Lugoj Deva Orastie Sebes Sibiu Ploiesti Bucuresti Turda TIMISOARA - LUGOJ Lot 2 km 54+000 km 79+625 Lungime: 25,625
Motorways (in concession regime) in tender the following projects are in various stages of the competitive dialogue awarding procedure for the works concession contract (design, build, finance, operate and maintain) more specifically, 537,2 km, out of which 227,2 km newly built motorway : South Section of the Bucharest Ring Road (with operation and maintenance and A1 and A2 motorways) Craiova Pitesti motorway, Bucuresti Brasov motorway, Comarnic Brasov section.
Motorways (in concession regime) in preparation 417 KM: North Section of the Bucharest Ring Road Nord (52,77 km); Ploiesti Buzau Focsani motorway (142,3 km); Bucuresti Alexandria Craiova motorway (222 km).
Length: 644,26 km Motorway construction program (in concession regime) MOTORWAYS IN TENDER 227,19 km MOTORWAYS IN PREPARATION 417,07 km Craiova Pitesti Ploiesti Brasov Comarnic Bucuresti Focsani Buzau Craiova Alexandria Autostrada Bucuresti Alexandria - Craiova Lungime: 222 km October 2013 During January October 2013, 288 km of rehabilitated roads were completed and other 173 km are scheduled to be completed until December this year.
Currently (October time), we have in execution 1532.26 km of national roads, out of which: 310.08 km of national roads are financed through reimbursable financing / EIB loan (5th stage), 470.96 km, the same financing source (6th stage), 696.2 km with funding from the state budget, 26.51 km financed from ERDF, 28.52 km financed through ISPA facility,
Other 181.41 kilometres of national roads are under tender procedure for awarding the works contracts.
Rehabilitation/modernization program for national roads
Until October 2013, 18,48 km of bypasses (for Oradea and Alexandria) were completed and section 3 of the Brasov bypass (6,34) will be finalized until December this year.
Currently, 126,37 km are in execution, out of which: 95,05 km are bypasses with financing from the State budget; 31,32 km are bypasses with non-reimbursable ERDF financing.