Romstrade starts the year with contracts with local authorities

Construction company Romstrade, controlled by businessman Nelu Iordache, starts 2011 with contracts with the local authorities, after in previous years around 60% of the company’s turnover used to be generated by contracts sealed with the National Motorways and Roads in Romania (CNADNR).

This sees Romstrade in a race to build a car park, an underpass and a commercial area in Charles de Gaulle Square in Bucharest through a public-private partnership, with the value of investments amounting to around 93 million euros. In addition, Iordache’s company will build the Mihai Bravu-Splaiul Unirii overpass, a contract worth around 23 million euros, excluding VAT. Whilst in 2010 40% of Romstrade’s turnover came from projects with local administrations, in 2011 it is difficult to estimate if the share will change or not, considering that the local authorities have not organised tenders for many projects yet, but on the other hand CNADNR did it for several motorway sections in December.

“We have general information about the tenders, and more information on the motorways, because the sections were already subject to tenders in the second part of last year. We don’t know yet how many tenders we will qualify for,” Gheorghe Răcaru, strategy and development manager of the group that includes Blue Air and Romstrade, told ZF.