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October 23, 2020
BUSINESS

National Roads Corporation cancels awarding the concession for Comarnic-Brasov motorway

The National Roads and Motorways Corporation (CNADNR) on Thursday announced it gives up the concession contract for the Comarnic – Brasov Motorway to the Vinci-Strabag-Aktor association, on reason that the bidder has not found the necessary money, and that the financing from the state budget would have harmed Romania’s budget position, informs a release by the CNADNR, sent on Thursday to Agerpres.

‘After completing the negotiation for the concession contract with the Vinci-Strabag-Aktor association, the CNADNR SA announces the cancellation of the procedure for the concession contract of public works for the design, construction, financing, operation and maintenance of the Bucharest- Brasov motorway, the Comarnic-Brasov segment,’ the release says.

According to the document, the concession contract is complying with the Eurostat methodology ‘on Government balance sheet’ (the financing is part of the budget deficit – editor’s note).

‘Under the circumstances, and considering the significant cost of the project, given that the Contracting Authority (resulted from the association of the CNADNR with the Transport and Infrastructure Ministry in 2012) would close the concession contract with the bidder declared a winner, this could lead to non-observing the commitments Romania has agreed with the European Commission, the International Monetary Fund and the World Bank as regards the budget deficit target and the public debt,’ the release adds.

Under these circumstances, the bidder declared a winner did not succeed in getting the involvement of the international financiers (the European Investments Bank, the European Bank for Reconstruction and Development, the International Finance Corporation etc.) to financing the concession project. On the other hand, in the case of a financing from private donors exclusively, the financing costs to finalizing the project would soar, the CNADNR specifies.

The total length of the Comarnic – Brasov motorway segment is 58 km, and the estimated value for this project is worth 997 million euro without the VAT, roughly 1.237 billion euro with the VAT, respectively.

 

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