Thus, the EC will cover the construction costs for two highway segments initially financed by the Romanian state via banking loans, EC said in a statement.
The funds target Arad-Timisoara highway and Constanta ringroad, which were opened to traffic in 2011, and 2012 respectively, and which were constructed with funds from the state budget, European Commission, European Investment Bank and the European Bank for Reconstruction and Development.
European Commission approved Romania’s request to finance, via the Cohesion Fund, the part of the investment initially covered by loans. Thus, the EC contribution to the construction of the two highway segments totals EUR439 million, out of which EUR287 million for Arad-Timisoara and EUR151.5 million for Constanta ringroad.
The Cohesion Fund is aimed at Member States whose Gross National Income (GNI) per inhabitant is less than 90 % of the EU average. It aims to reduce economic and social disparities and to promote sustainable development.
The priorities of the Cohesion Fund include the development of trans-European transport networks.