INVESTMENT OF ONE BILLION EUROS FINANCED USING EUROPEAN GRANTS Romanian Railroad Company to hold a call for tenders for the Border - Curtici - Arad railroad segment

Alina Toma Vereha (Translated by Cosmin Ghidoveanu)
Ziarul BURSA #English Section / 7 decembrie 2010

Romanian Railroad Company to hold a call for tenders for the Border - Curtici - Arad railroad segment

CFR SA has launched on the SEAP portal the call for tenders for appointing the developer which will perform the construction and installation works for the Border - Curtici - Arad - km no. 614 railroad segment, with a length of approximately 41 km. The project has an estimated value of 1,177,184,177 lei, VAT excluded. The deadline for submitting tenders is January 12th, 2011, and the project will last 36 months. The contract will be financed via grants from the European Commission, and by the Government, through the state budget, as part of the Sectoral Operational Programme Transport (SOPT).

According to data published by the Ministry of Transports, the SOPT program has allocated 1.8 billion Euros for the infrastructure of the Romanian Railroad Company (CFR) (166.3 km of the IVth transport corridor). This is supplemented by an additional 227 million Euros allocated for the modernization of railway stations.

Two more railroad segments will be financed via the SOPT

Another railroad segment of the IVth transport corridor which will be financed under the SOPT is Simeria - Coşlariu, which has a length of 68 km. According to data recently presented by the Ministry, the works have an estimated value of 651 million Euros, with the works scheduled to start in 2011 and to be completed in 2014.

The third railroad segment to be financed using European grants is Coşlariu - Sighişoara, with a length of 99 km and an estimated value of over 900 million Euros. The works are expected to begin in 2011, and should take five years to complete.

The SOPT will also provide funding for the rehabilitation of the railroad bridges over the Danube, of Cernavodă and Feteşti. The works are scheduled to begin in 2011 and are expected to take three years, and have an estimated value of almost 69 million Euros.

25 projects awarded via SOPT

Out of the 61 projects submitted under the SOPT, on October 31st 2010, 21 were under evaluation, 8 had been rejected and 32 had been approved. The total value of the projects submitted was 23.5 billion lei, and investments that received approval amount to 7.3 billion lei, according to data published by the Authority for Coordinating Structural Instruments (ACIS) o the Ministry of Finance.

Out of the approved projects, 25 were contracted on October 31st, 2010, with a total value of 4.8 billion lei, of which 1.6 billion lei from European grants. The total amount of payments to the beneficiaries of the SOPT projects had reached 159.6 million lei on October 31st, 2010, which represents an absorption rate of 1.83%.

Future projects

In 2014, the Ministry of Transports intends to begin modernization works for the following segments of the European railroad transport corridor no.4: Curtici - Simeria (two billion Euros), Sighişoara - Braşov (1.9 billion Euros) and Predeal - Braşov (500 million Euros). The works for these segments are scheduled to be completed in 2020.

On the southern branch of the corridor, the ministry wants to build three railroad segments between Arad and Calafat. These projects are estimated to cost in excess of three billion Euros, as they concern approximately 500 km of railroad tracks. Work is scheduled to begin after 2017.

The Minister of Transports, Anca Boagiu, announced that when it comes to infrastructure investments, railroad and road works for the IVth Pan-European corridor, which have received European grants, have priority over other projects. Since the amount that needs to be co-financed each year by the Romanian state is very high, the Ministry will no longer have the money needed to finance other major projects using its own funds.

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