So Far, Transylvania Highway Cost 560 Mio EUR

• 9-10 Mio EUR Per Finished Kilometre

The Romanian Government has so far paid over 560 million EUR for the works performed by Bechtel on Transylvania Highway. The project started in 2004. Bechtel representatives on Friday told a press conference that the budget for this year was approximately 327 million EUR. The money is enough to finish 42 kilometres of highway.

A simple calculation indicates a cost of 9-10 million EUR per finished kilometre. Bechtel stressed that the sum was not relevant for the entire project, which was described as very complex due to the nature of the works. According to them, each section requires the construction of several bridges and viaducts in order to build the highway to European technical standards. This is why the construction of a highway in a hilly area is much more expensive than in a plain area.

Bechtel said that the Ministry of Transport had paid most of the 77 million EUR (VAT included) debt for the works performed in 2008. Of this sum, the Ministry still owes some 1.5 million EUR plus penalties of 3.2 million EUR, plus 26 million EUR (VAT not included) for certified works. Bechtel is confident that these sums will be paid by the end of the month.

The agreement between the Ministry of Transport and Bechtel stipulates that Bechtel will no longer receive a 30% advance payment for the works scheduled for 2009. The two parties agreed that the Ministry could pay monthly invoices 50% in EUR and 50% in RON in order to reduce the forex risk. The payment deadlines have been extended from 25 to 35 days.