CNADNR Spends 75 Mio USD From IBRD Loan On Road Development

The National Highway Company (CNADNR) performed works on 1,429.85 kilometres of roads between 2007 and July 2009 as follows: bitumen layer on 797.83 kilometres, very thin road layers on 276.02 kilometres and asphalt layers on 356 kilometres. The cost of 74.8 million USD was covered from a loan disbursed by the International Bank for Reconstruction and Development. The company announced in a press that the remainder of the maintenance works in progress would be completed by end-October 2009. Specifically, this includes 753.09 kilometres broken down as follows: bitumen layer on 222.01 kilometres, very thin road layers on 342.52 kilometres and asphalt layers on 188.56 kilometres. These works will cover the portion of the IBRD loan left to be drawn.

According to the CNADNR press release, the loan agreement between Romania and the International Bank for Reconstruction and Development (IBRD) regarding the financing for the sectoral project on transportation and its section on maintenance works on public road and railway infrastructure was signed in Bucharest in November 2006. The total cost of the project is 225 million USD, of which 180 million USD from IBRD and 45 million USD from the Romanian Government. The funds were equally divided between CNADNR and public railway company CFR S.A. CNADNR received 112.5 million USD, of which 90 million USD from the IBRD loan and 22.5 million USD from the Romanain Government. The deadline for drawing was 31 December 2008, but subsequent negotiations with the World Bank extended it to 31 December 2009.