Review of the sectors transport, infrastructure and communications in romania
Transport, Infrastructure and communication
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Transport, Infrastructure and communicationThe Romanian road network is in a deteriorated stage due to the low quality of the road construction works and the enormous backlog in repair and maintenance. Romania is pursuing a strategic plan for the development of its road network until 2006, comprising rehabilitation of international routes, modernisation of national routes and motorway construction. It is projected that 13 highways are to be built covering 3,000 Km, as well as 1,200 Km of new railway lines, new bridges over the Danube and the Prut river and 4 new airports at Brasov, Galati, Alba – Iulia and Bistrita. The existing railways will be upgraded to suit high – speed trains. The territory of Romania will be crossed by several pan-European corridors: the Danube connected to the Rhine-Maine –Danube Canal, a lot of main railway lines, the highway and the Bucharest-Chisinau-Kiev road. The report specifies the development of transport means and facilities planned for the period 2001-2004 and emphasising quality of services, traffic safety and transport security. The state railways’ company, SNCFR, has been split into five separate companies. New train operators are also to be given access to the network. A two-stage railway modernisation and rehabilitation programme is being implemented. The construction of the Danube-Black Sea canal created an important waterway that connects the Black Sea to the North Sea through the Rhine-Main-Danube canal. The main problem of inland waterway transport over the Danube is the fact that the river still has to be cleaned nearby Novi Sad by removing remaining parts of the destroyed bridges. This operation is planned to be completed by the end of 2001. Further problems concern the need for dredging on several places. The Romanian dredging industry is still not privatised. Finally, agreement with Bulgaria should be reached regarding the planning and use of the terminals in the river ports in both countries.
About 60% of the Romania’s imports and exports pass through the port of Constanta, the most important maritime port of the country. Romania plans to sell a maximum stake of 66 per cent of the Tarom airline, with the state keeping a 34 per cent controlling share. The strategy of telecommunication development was drawn up as a priority field of the country’s macroeconomic infrastructure. A long term Development Program was devised, with strategic objectives. Part of the Program has already been accomplished through the commissioning of digital transit telephone exchanges, local and international. Mobile telephony evolves very fast. In only three years it reached an average penetration rate of 10%. In comparison, Romtelecom, the fixed telephony network and active for decades, has an average penetration rate of 17%. The quality of the fixed telecommunication infrastructure is below standards and the future for the fixed telecommunications network is very uncertain because of the increasing competition from the mobile operators. The penetration rate of Internet is still low: less than 1%. In this field there still is a large potential for growth. There is an extensive list of investment priorities and covers all transport modes. A distinction has been made between investment priorities in the sectors transport, infrastructure and water by the public sector (listed in the report) and those as indicated by the Romanian Chamber of Commerce and Industry (CCIR). The latter are not priorities for investment, but should be considered as business opportunities (CD-ROM). Donors and FinancingThe Accession Partnership continues to provide the single framework through which the priority areas for further work are identified regarding progress to be made by Romania towards membership of the European Union, the financial means available to implement these priorities and the conditions which will apply to that assistance. The 1999 Accession Partnership with Romania was adopted by the Council in December 1999 and remained the framework on which the programming for the year 2001 has been based. Indicative allocations for Romania in 2001 are as follows (in million EURO): Phare: 298.7 ISPA: 243.9 (mid-point of range) SAPARD: 153.6 Total: 696.2 A Working Document on priorities for Phare 2001 was prepared by the Commission in consultation with the Romanian authorities in early 2001. The institution building priorities identified for Phare support under the 2001 programme for Romania (which will represent about 30 % of the total Phare budget) indicate for transport: The adoption of EC norms as regards driving/resting hours for road transport and the implementation of maritime safety acquis as regards State Flag Control. The main priorities identified for investment in the acquis (expected to receive about 30% of the Phare budget) and selected for the transport sector are Maritime safety equipment and testing equipment for railway safety. Investments in economic and social cohesion are expected to receive up to 40 % of the overall Phare budget allocation and include: road worthiness enforcement, railway rehabilitation, cross border co-operation and waste water treatment projects. ISPA: For Romania, Community aid in the framework of ISPA will be between 20% and 26% of the total allocation. The average mid-range allocation is € 243.9 million a year (at 1999 prices), equivalent to € 1,674 million for the 2000‑2006 period. Guidance is that half of the support - € 121.9 million a year - will be used to finance transport infrastructure projects, the other half for environment projects. Strategic Objectives in the field of transport are stemming from serious weaknesses in its network of roads, railways and waterways. At the same time, there is a necessity of upgrading to European standards and of increased traffic capacity around urban areas. During the year 2000, the Commission has approved four transport-related projects. The EBRD’s pipeline of projects is concentrating on: large-scale privatisation and restructuring with strategic investors; private sector investment in either local private or joint-venture projects; SME financing, banking and non-banking financial sector; national and municipal infrastructure privatisation and public-private partnerships; Significant additional levels of investment (read private capital and finance by IFI) are needed in order to achieve acceptable standards. Since 1991 the World Bank has built up a portfolio of 29 IBRD-financed projects, of which 22 are currently active, and two Global Environmental Facility (GEF) projects, of which one is currently active. Since 1991, World Bank commitments to Romania total over US$3 billion. Priority is given to advice and financing for EU accession-related programmes. In 2000 one transport sector project has been approved (Trade and Transport Facilitation Project, worth US$ 17 million). 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