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May 20, 2022
BUSINESS

EC demands Romania to have a “very cautious” approach in identifying private partners

Regarding the development of motorway projects under public-private partnership (PPP), Johannes Hahn, commissioner for Regional Policies and vice-president of the EC suggested during a meeting last week with Transport Minister Relu Fenechiu that Romania should have a very cautious approach of identifying private partners and the models of partnership, Mediafax reports.  “Because the repayment period exceeds 10 years, in the Commission’s opinion the evaluations of the possibility to recover the investment have a low accuracy, especially for road infrastructure projects. It was recollected the situation of Portugal, as an example of the failure of this kind of projects,” the Ministry of Transport mentions in a press release. Authorities announced in the past that they plan starting several projects under PPP, which would allow attracting private funds to support investments.

The two officials also discussed Romania’s requests regarding the immediate and long-term needs in the development of road infrastructure, the absorption of structural funds and the cancellation of the pre-suspension of the Sectoral Operational Programe Transport (POS-T). Premier Victor Ponta said, at the end of January, that the Bucharest-Brasov and Pitesti-Craiova motorways, reactors 3 and 4 of the Cernavoda nuclear power plant, the Tarnita power plant, the Macin bridge and the Siret-Baragan Canal were included on the list of investment projects considered as priorities, which will be achieved through public-private partnership.

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