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| The Private Public Partnership in Romania 28/04/2011 |
| (2011-04-28) |
| Last updated: 2011-04-29 12:34 EET |
Romania does not fare well on highway construction, but has ambitious projects to change the situation. The investment list approved this week by the government in Bucharest includes 5 highways, two new nuclear reactors for the power plant in Cernavoda (in the south east of Romania), a residential compound and a prison. Authorities have resorted to the private public partnership solution that has been widely used by EU states. As PM Emil Boc explains, the reason is very simple:
‘’There are not enough financial resources in the budget or from European funds, to complete all infrastructure projects that Romania must carry out. As a result, Romania resorts to the public private partnership to conduct large-scale infrastructure and upgrading works.’’
In order to ensure that the up-coming projects run smoothly, the Romanian government has recently modified the law regarding partnerships with private investors, valid since October, after the European Commission warned Bucharest on the violation of EU norms in the field. Once legislative shortcomings were removed, the executive drafted the list mentioned above, which brings together 18 public investment projects which are to be promoted by related ministries.
All projects drawn at the Ministry of Transport regard the construction of highways, while the Ministry of Economy will use the private public partnership to develop the construction of the Tarnita-Lapusesti Hydroelectric Power Plant, and reactors 3 and 4 of the Cernavoda nuclear power plant, the thermal plant in Doicesti and the AGRI gas interconnector. Prime Minister Emil Boc said the feasibility study of the AGRI project, involving the construction of 2 liquefied natural gas terminals (one located in the Romanian city of Constanta and the other one in Georgia) will be completed by April 1st 2012. AGRI will be fuelled with gas from Azerbaidjan.
The gas will be liquefied in the Georgian port of Batumi, then carried on a Black Sea route to Constanta and then deliquified. Other investments approved by the Romanian government regard the construction of the Siret-Baragan canal, the completion of the Danube-Bucharest canal and the Braila-Tulcea car bridge over the Danube, an ecological project to build 10, 000 apartments in Bucharest, 6 regional emergency hospitals and the refurbishment of the Ana Aslan center. The latter is the National Institute for Geriatrics and Gerontology, once popular with personalities the world over, who sought treatment there.
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