Preparation of a Public Private Strategy For Romania

Preparation of a Public Private Strategy For Romania


P Snelson, Atkins Transport Planning, UK



Lack of funds for the construction, rehabilitation and maintenance of the Motorway and State Road Network is a common problem in many countries across the world. To try and tackle this lack of funds different models for procuring such services and obtaining better value for money for public investment have been developed and implemented in a number of countries with varying results.
The demand for better roads and more capacity in Romania has been growing dramatically over recent years. However, like many countries in Central Europe, State budget funding for this is limited and this has led to an inevitable under funding of road improvements throughout the country. It is with this background that the Ministry of Public Works, Transport and Housing (MPWTH) and the National Administration of Roads in Romania (NAR), in association with EBRD invited tenders for a study to investigate the feasibility of introducing a Public Private Partnership (PPP) into the development of the Bucharest ? Brashov Motorway along the DN1 corridor. This project involved the development of a PPP based operation where the necessary capital finance required to construct new sections of motorway and any necessary upgrade the existing road would be sought through the private sector. The concession company would then maintain and operate the route over a predetermined period and would receive payment for its initial capital investment and on going services from NAR based on an agreed payment mechanism. The project looked at all aspects of the requirements and justification for PPP from the Scope and Scale of the project to its Value for money and affordability from the point of view of the Government.


Association for European Transport