Antena 3 CNN Romania Romania needs investment of EUR 32 billion in transport infrastructure

Romania needs investment of EUR 32 billion in transport infrastructure

2 minute de citit Publicat la 14:38 16 Iul 2013 Modificat la 14:38 16 Iul 2013
Romania needs investment of EUR 32 billion in transport infrastructure
Romania's investment needs, particularly in the road and railway  infrastructure are estimated at EU 32 billion and given that last year the total capital expenditure of the public budget  amounted to 4.4 billion euro, a solution is to attract European funds, said Monday, Vasile Iuga, country manager and partner at PwC Romania during  a public-private partnership seminar.

According to Agerpres, Iuga pointed out that Romania's export capacity is largely dependent on  the development of its infrastructure.

‘We are all proud of the Dacia company's export success. Currently, Dacia delivers  annually for exportation over 300,000 car  or car parts  to be assembled in other Dacia factories  in Morocco, Russia, India and Colombia. How many do  know, however, that it takes around 30 hours for  the  trains loaded with cars leaving weekly  from the  factory in Mioveni on the route Craiova - Lugoj - Nădlac  to get to the Hungarian border? That is  as much as it takes them to get further  on to the  consumers in Western Europe. Basically, the trains in Romania  run at  the same speed as in Caragiale’s times '' remarked Vasile Iuga.

Besides  the EU funds, part of the necessary infrastructure investments could be covered by attracting private funding, so we need a Public Private Partnership Law  that is modern, flexible and functional.

Moreover, private sector’s  involvement would bring technical expertise and project management capabilities needed for the development of large infrastructure projects.

"So far, Romania has had  two missed opportunities  in terms of PPP. Both the law of 2006 and  the one in 2010, proved inapplicable. For example, restricting participation of  public funds, both in  the investment and  during the period of its operation, made almost impossible the  financial layout  of projects, because not all projects can be viable only through gross receipts  from the users' explained Iuga.

In the process of amending PPP legislation, PwC representative said that "" it is gratifying that the new text'' bill removes this hurdle and makes  a clear distinction between projects structured as public-private partnerships and concessions.


In his opinion, in order  to attract private investors in investment projects, we  have taken into account the financial viability of the project, the ability of investors to obtain a reasonable profit to justify the opportunity cost of resources committed to the project.

Also, such projects must have  public funding provided by the inclusion of these costs in the budget for all the years of building and running the project, said Vasile Iuga.


Moreover, we also need political support for private sector involvement in infrastructure projects, especially as there is no tradition of such projects, and users are not accustomed to them

"Finally, it requires close collaboration between public and private stakeholders throughout the project implementation  and a fair sharing of risk between the two partners," concluded Iuga.

The minister delegate for Infrastructure Projects and Foreign Investments, Dan Şova attended the seminars along other representatives of the public administration.

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