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June 26, 2022
BUSINESS

Investments: 375 projects in 2014 amounting to RON 8 bn

Major public investment project from the Government budget is subway line 5 Drumul Taberei – Universitate, according to Liviu Voinea, Minister Delegate for Budget.



In 2014, 375 investment projects will be financed from the national budget, of which 100 are significant investments (worth over RON 100 M). A total amount of RON 7.22 billion (26 percent) will be allocated to significant investments, according to data presented on Thursday by Minister Delegate for Budget Liviu Voinea at a public debate on the methodological norms for making public investments a priority.

“We have set our priorities in terms of execution rather than in terms of planning, because we have missed the legal means to create this prioritisation ever since the Budget Law was issued. We are working on the legal background which should objectively allow prioritising public investments,” said minister delegate for Budget.

According to him, the shortage of financial resources makes the average duration for finalising investment projects be nine years for ongoing projects, but there are also investment projects that would be finalised in 700 years if their financing were identical with the one in the past.

The first 20 public investment projects which will have the highest financing from the national budget in 2014 will qualify for RON 5.09 billion (about EUR 1.12 billion), of a total RON 13.33 billion earmarked in the national budget for almost 400 public investment units, according to Voinea.

The highest financing was planned to be given to Bucharest underground mainline V (Drumul Taberei – Universitate), to a motorway connecting Bucharest to Brasov and a project for industrial laser at Magurele. A sum of RON 100 million was set aside for the National Theatre House and the investment will be finalised in 2014. In 2013 the public investment projects from the national budget amounted to RON 12 billion and almost RON 6 billion (50 percent) were allocated for the first 20 investment projects. The highest allocations went to the motorways connecting Lugoj to Deva and Cernavoda to Constanta.

Eleven new investment projects are set in the budget on 2014, in total amount of RON 223.8 million, and other RON 2.73 billion will be necessary over the upcoming years to conclude these projects. If there are 375 projects running at central authorities, several thousands projects are running at local authorities, with another prioritization process in store, through the Ministry of Regional Development which benefits from technical assistance from the World Bank to prioritize local projects with low monetary value. This year’s programme also includes other investments spending in total amount of RON 4.87 billion, for which other RON 34 billion are to be allocated in the years to come. Minister Delegate for Budget Liviu Voinea said that he requested a month ago an audit of all buildings of public institutions in Romania as there has never been such a list before which might lead to savings in the Government budget.

Voinea initiated the project to prioritize the public investments in December 2012 when he was appointed in the position, a thing he reasserted for this year as well. The reform of the prioritization of public investments is valid for both central and local public investments, companies whose capital is owned by the Government in majority, for self-financed public institutions, for private companies that require Government guarantees and for the public-private partnerships. The previous reports of the World Bank pointed out the inefficient management of the public investment projects as the main cause preventing the substantial increase in the absorption of structural and cohesion funds in Romania.

 

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