CNADNR is one of the most heavily subsidized institutions of the country and its spending of the money has always been a subject for debate particularly because the results in form of new highways are nowhere in sight. In comparison, the Parliament Palace (the biggest building in Romania) cost almost $2 billion to build, according to ZF data or EUR1.5 billion at today’s’ exchange rate.
Highway projects will get about RON3.2 billion this year, 23% less than initially allocated in 2012 and 4.4% less than actually spent last year, ZF has calculated based on the data provided by CNADNR, whose 2013 budget has been recently approved.
The highways were not the only ones to get less money, national roads and beltways did, too. This year’s allocation for national roads and beltways stand at RON1.9 billion, 4.2% less than actually spent last year and 22% less than the initial allocation in 2012.
The highway budget cut is part of the overall investment slashing this year, which means some roads may not be completed on time.
Romania has only 530 kilometers of highways now and CNADNR has another about 250 kilometers under construction, out of which 150 kilometers should have been completed this month but will be inaugurated at least several months later than scheduled.
One of the reasons for the delay is, construction companies say, the insufficient financing. Delayed payment for work done, and various problems on construction sites such as relocation of utilities, led to postponement of highway completion.
The earliest deadlines were set for May, when builders say the entire Deva-Orastie highway will be completed, and the end of the summer, when the second section of Nadlac-Arad (western Romania) and the first section of Orastie-Sibiu (central Romania) should be done.
As the European funds, which the government hoped to use to pay for highways part of the European Corridor IV are pre-suspended and state budget allocations for road infrastructure were cut, CNADNR is trying a new strategy. The company seeks private partners to contribute funding, construction work, maintenance and operate the highways.
The projects it hopes to find partners for include the Comarnic-Brasov highway, estimated to cost EUR1.2 billion, the highway-standard southern part of Bucharest’s beltway, expected to cost EUR1.7 billion and the Craiova-Pitesti expressway (EUR1.7 billion).
This is one of the few actions taken by the new government about road infrastructure. Almost 230 kilometers of highways could be built if the strategy turns out to be successful. (EUR1=RON4.4211)
(English version by Loredana Fratila-Cristescu)