PNDI, running between 2011 and 2020, is managed by the ministries of Development and of the Environment.
The Development Ministry has drafted an Emergency Ordinance to resize the program. PNDI’s allowance will be reduced by around RON15.9 billion in the next budget revision.
Once the ordinance enters force, Romanian authorities will not be able to sign any more contracts with suppliers, except for site management services related to contracts already in progress or for which the tender results have already been announced.
Furthermore, the value of works performed for contracts running when the ordinance enters force may not exceed RON1 billion per year; this budget will be divided between the two ministries in proportion to the value of their contracts.
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. The projects would initially be financed by the contractors, who would be reimbursed in tranches by the state between 2013 and 2020.
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=RON4.3733)