35 Mio USD Cut From Infrastructure Loan

A.T. (Tradus de Andrei Năstase)
Ziarul BURSA #English Section / 27 august 2009

The Ministry of Finance has prepared a draft Government Decision regarding the approval of an amendment to the Loan Agreement between Romania and the International Bank for Reconstruction and Development (IBRD) for financing a sectoral project for supporting the transportation sector. By this amendment, the parties agreed to extend the drawing period until 31 December 2009 and to decrease the loan by 35 million USD, according to a press release from the Ministry of Finance.

The overall cost of the project was initially calculated at 225 million USD, of which 180 million USD as a loan from the IBRD and 45 million USD as co-financing from the Government of Romania. The support earmarked for the road transportation sector is 112.5 million USD, of which 90 million USD as a loan from the IBRD. The funds are allocated for periodical maintenance and current repairs of national roads and the assurance of technical assistance for the modernization of the National Highways Company (CNADNR).

The railway transportation sector will receive financial support in the amount of 112.5 million USD, of which 90 million USD as a loan from the IBRD. The money will be used for maintenance, periodical repairs, current repairs and capital repairs of inter-operable railway tracks in view of removing temporary speed limits and improving traffic safety. Some of the budget will also be spent on technical assistance for the Romanian Railway Company (CFR).

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