Transport Ministry promises to take 10 times more money from EU

The Transport Ministry this year set out to draw several hundred million euros from the EU non-repayable funds (through the Sectoral Operational Programme for Transport), after in 2009 it attracted only 32m euros, the equivalent of 2.4% in the total amount it can access by 2013.

The EU by the end of last year approved infrastructure and transport projects totally worth 1.1bn euros through the POS-T programme, in line with which 4.5bn euros were earmarked for Romania by 2013.

Thus, in line with the most upbeat scenario, European funds of around 300-400m euros may be absorbed this year, according to ZF estimates based on data provided by the Transportation Ministry.

The value of approved projects includes all eligible costs (construction cost), of which the EU co-finances 85%, and non-eligible costs (expropriations, authorisations, utilities transfers, VAT).

"Firstly, money from the budget must be allotted for these projects. The EU co-finances just 85% of eligible costs only after we pay invoices to builders. For instance, if a project has a construction value of 100m euros, the EU earmarks 85m euros. But taking into account non-eligible expenses, the project gets to 170m euros, and the state must first have this money and will subsequently get the money from the EU," Constantin Dascalu, a secretary of state with the Transportation Ministry, told ZF.

The projects due to absorb money from the European Union this year will be Cernavoda-Constanta highway (51 kilometres), Constanta orbital road (22 kilometres), the rehabilitation of DN1H (1H national road) Zalau-Alesd (69.3 kilometres), the rehabilitation of DN24 Galati-Vaslui-Crasna county limit and DN24B Crasna-Albesti (94.7 kilometres).

"This is the first year we really have necessary projects that can generate a high absorption of European funds. To the 1.126bn euros already approved, the projects worth 2.54bn euros already submitted and awaiting approval will be added," Constantin Dascalu states.

He chose not to specify the absorption degree of transport infrastructure funds to be reached in late 2010, because this may vary depending on the projects filed with the European Commission and awaiting approval.