Three PPP projects worth almost 4bn euros frozen

Projects worth over 4 billion euros, which are to be operated in a public-private partnership (PPP), the Comarnic-Brasov motorway (58 km), the Pitesti-Sibiu motorway (120 km), and Bucharest's orbital road (101 km) have been frozen at various stages, with no construction works started, after all governments in office have been talking about the need for investments in infrastructure.
Why are PPP contracts not working? Builders say the law is not good, lawyers explain the current legislation provides a solid enough basis for such projects, but the country risk is too high, and the authorities say banks are very reluctant to give funding. The state cannot build these projects from its own funds or with EU money, but it is not pressing for PPP projects to start, either. The first public-private partnership in infrastructure - the building of the Comarnic-Brasov motorway section - could be signed this month, more than half a year after the winner was announced.
If preparation for this section has taken five years, what will happen to the next projects of this kind that will be auctioned in 2010 - the Pitesti-Sibiu motorway (120 km) and Bucharest's orbital road (101 km)?
The Comarnic-Brasov motorway project had winners in 2004, as well, but as part of the more extensive Ploiesti-Brasov section, when Miron Mitrea (Social Democratic Party) was Minister of Transport, but the project was cancelled in 2005, when the government of the DA Alliance (Democratic Party and Liberal Party) was installed.
French-held Vinci, which together with Greek group Aktor won the tender in May last year, was one of the winners in 2004, when no tender was organised, with the contracts being awarded directly instead.
The concession contract was supposed to be sealed by December 6th last year, according to a statement made by Radu Berceanu, Minister of Transport at the end of 2009, but the deadline was extended until January.
"We want to sign this contract and probably will do it over the next few weeks. Anyway, we want to know for sure whether we sign the contract or not, because we don't want to wait any further," said Adrian Ionescu, manager of the Infrastructure Department of the Ministry of Transport.