The Ministry of Transports, Constructions and Tourism (MTCT) could sign approximately $4bn contracts with US-based Bechtel and Washington Investment Group in order to carry out infrastructure projects.
“We’re negotiating with Bechtel Group over building the Bucharest-Targu Mures-Cluj- Oradea-Bors highway, and with Washington Investment Group over transport infrastructure projects worth $1-$3bn,” Transports minister Miron Mitrea said.
He was saying a little while ago that Bechtel had already set aside $800 million for funding the project, which is worth approximately $2.5bn. Bechtel is the company that won the most important contract awarded by the State Department in Washington for rebuilding the infrastructure in Iraq and worth about $680 million.
Miron Mitrea yesterday signed a statement of intent on transport infrastructure co-operation with the US Deputy Trade Secretary Samuel Bodman. “This document we signed today is extremely important for us and will surely pave the way to closing new deals with first rate American companies,” Mitrea said.
The MTCT official has recently announced 2003 will see a “boom” in terms of highway construction, given that Romania is the only country in Europe that has only 100 km of highways at the moment.
“We’re hoping to begin construction works on another 120 km this year. We will also proceed with the rehabilitation of the national roads at a constant pace,” Mitrea specified, adding about 2,000 km of national roads were scheduled for modernisation until late in 2004. The specialists say the infrastructure investment needs are estimated to $20-22bn over the next 15 years.
In order to finance infrastructure projects, the Romanian authorities are willing to increase the consolidated budget deficit scheduled for next year to 3.7% of GDP, one percentage point above the level set for 2003 (2.65%).
“We propose increasing the budget deficit for a very clear purpose – speeding up infrastructure investments. No possibility of inflationary slippages, because the money will be spent only on infrastructure. Everybody (IMF, EU) agrees we need funding for highways,” Finance minister Mihai Tanasescu was saying at some point. He added the highway surveys were in progress and the authorities in Bucharest were already in talks with banks that might fund the investments. This plan to increase the deficit is to be taken up with the International Monetary Fund delegation due to arrive in Bucharest this week.
Infrastructure investments are a European Union concern, as well. The European Commission is to analyse a 208bn euro plan aimed at improving the efficiency of the transport infrastructure in the Alps, the Pyrenees and the Baltic Sea area and completing the infrastructure networks in Europe. miruna.lebedencu@zf.ro