The Ministry of Regional Development and Tourism said, in a press release, that this decision was made in order to observe the Government’s budgetary commitments to the International Monetary Fund, European Commission and World Bank.
Through PNDI, the government planned to rehabilitate 10,000 km of county and local roads, and build water or sewage networks, as well as kindergartens and daycare centers. Four contracts, worth a combined RON2.93 billion (including VAT), have been signed so far, for works in counties Arad, Bihor, Prahova, Ilfov, Giurgiu, Maramures, Bistrita Nasaud, Buzau and Vrancea. Four more contracts, worth RON1.27 billion (including VAT), have been awarded and will be signed, for works in Arges, Brasov, Dambovita and Teleorman.
PNDI’s allowance will be reduced by around RON15.9 billion in the next budget revision, the press release said.
In February, the International Monetary Fund and European Commission criticized the program, arguing it does not abide by good fiscal practices and may be a liability for the 2012 budget. They suggested incorporating as many EU-funded projects as possible into the program. (EUR1=RON4.3791)