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Three PPP projects worth almost 4bn euros frozen

13.01.2010, 21:50 21

Projects worth over 4 billion euros, which are to be operated ina public-private partnership (PPP), the Comarnic-Brasov motorway(58 km), the Pitesti-Sibiu motorway (120 km), and Bucharest'sorbital road (101 km) have been frozen at various stages, with noconstruction works started, after all governments in office havebeen talking about the need for investments ininfrastructure.
Why are PPP contracts not working? Builders say the law is notgood, lawyers explain the current legislation provides a solidenough 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 EUmoney, but it is not pressing for PPP projects to start, either.The first public-private partnership in infrastructure - thebuilding of the Comarnic-Brasov motorway section - could be signedthis month, more than half a year after the winner wasannounced.
If preparation for this section has taken five years, what willhappen to the next projects of this kind that will be auctioned in2010 - the Pitesti-Sibiu motorway (120 km) and Bucharest's orbitalroad (101 km)?
The Comarnic-Brasov motorway project had winners in 2004, as well,but as part of the more extensive Ploiesti-Brasov section, whenMiron Mitrea (Social Democratic Party) was Minister of Transport,but the project was cancelled in 2005, when the government of theDA Alliance (Democratic Party and Liberal Party) wasinstalled.
French-held Vinci, which together with Greek group Aktor won thetender in May last year, was one of the winners in 2004, when notender was organised, with the contracts being awarded directlyinstead.
The concession contract was supposed to be sealed by December 6thlast year, according to a statement made by Radu Berceanu, Ministerof Transport at the end of 2009, but the deadline was extendeduntil January.
"We want to sign this contract and probably will do it over thenext few weeks. Anyway, we want to know for sure whether we signthe contract or not, because we don't want to wait any further,"said Adrian Ionescu, manager of the Infrastructure Department ofthe Ministry of Transport.

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