ANALYSIS reporting on the Railways and highways in the NRRP. Construction sites open on only 10% of the length of highways, and no design and construction contracts signed for railways and metros

Halfway through the year, the Ministry of Transport had construction sites open on only 10% of the length of the 4 highways included in the NRRP funding. On the railways, it has not yet managed to sign any contract for the modernization of the main lines or the execution of the two metro lines in Bucharest and Cluj Napoca. Of the almost €30 billion under the NRRP, Transport receives more than €7.5 billion, the area with the largest allocation but also the most difficult challenges and risks, given the weak administrative capacity of CFR SA, CNAIR, and Metrorex to carry out major projects within the contractual deadline. In the first part of the analysis, Economedia presents the situation of road infrastructure projects, and in the second part, we look at rail and metro projects.

In mid-2022, in the race against the clock to meet the NRRP milestones and especially the August 2026 deadline, work is only underway on 42 kilometers of highway (Transylvania Highway). Preparations are underway to break ground on another almost 50 kilometers of the A7 Ploiesti – Buzău (the first two lots), according to the Economedia analysis. For the two major railway modernization/rehabilitation projects, Cluj – Oradea, and Caransebeș – Arad, the procurement procedure for each section is far from the prospect of signing the design and execution contracts, while for the M4 Gara de Nord – Filaret metro line there is not even a guarantee that the tender will be launched at the end of the summer. Slightly more „advanced” is the Cluj Napoca metro, with the deadline for submission of tenders extended several times, the last date set for July 8.

The causes for delays vary from the inclusion of projects that are not „mature” in the NRRP (M4 Bucharest), evaluations beyond the legal deadline of 2 months/extensions caused by numerous clarifications/poorly drafted tender documents, missed tenders (the case of the A1 Lugoj – Deva motorway, with a major risk of losing funding) or appeals to the CNSC and CAB (the case of A7, first section).

Only 270 kilometers of the 438 kilometers of highway planned in the NRRP are likely to be completed on time, by August 2026, according to an analysis presented by the Pro Infrastructure Association.

The situation of the 4 highways included in the NRRP

A7 – Moldova Highway: The A7 Ploiesti – Pascani highway (approx. 320 km) is the largest road infrastructure project financed through the NRRP in the European Union. Out of the 13 lots of the A7, execution contracts (FIDIC red, execution-only) contracts are signed only on the first two lots of the Ploiești – Buzău section, 50 out of 63 km. For Lot 3 the CAB decision is awaited (details here). The next section, Buzău – Focșani is under evaluation. Section 4 Bacau – Pascani is expected to be put out to tender next month, and the long-delayed Focsani – Bacau towards the end of the summer. Minister Grindeanu (PSD) has asked CNAIR chief Cristian Pistol (PNL member) to sign the remaining 11 contracts by the end of the year, an obviously impossible task.

UMB moves mountains on the Transylvania Highway: The only project in execution and with open construction sites is the section with two lots Nădășelu – Zimbor – Poarta Sălajului (42 km) with a physical stage of almost 40%. Completion in December 2023 depends on several factors, not only on the exemplary mobilization of Romania’s most powerful contractor but will be within the timeframe of the NRRP.

A8 Highway ends: the tender for the design and execution of the almost 60 kilometers of ends will be launched on 15 December at the latest, according to the latest timetable. The two sections Târgu Mureș – Miercurea Nirajului and Târgu Neamț – Leghin, with a total length of almost 60 kilometers, have the technical documentation almost completed and will receive the Environmental Agreement in October, announced Cătălin Urtoi, advisor to Transport Minister Sorin Grindeanu, after a monitoring meeting on the Unirii Highway project at Iasi City Hall. In order to meet the NRRP deadlines, the contract duration for design and execution must be less than three years (6 months for the Technical Project and 24 months for execution).

Lugoj – Deva highway, the chronicle of a failure of the State: Six constructors from Romania, Greece, and Turkey submitted bids for the tender for the design and execution of the missing stretch of highway between Lugoj and Deva. It is worth noting the entry into the race of UMB and the Greeks from AKTOR (today with a Negative Intermediate Certificate), as well as the four bidders from Turkey, of which Mapa and Cengiz are bidding separately, not in an association as they „went” for lot 2 Sibiu – Pitesti. The estimated value of the contract financed by the PNRR is between 2.28 billion lei and 2.59 billion lei (excluding VAT). For the maximum score, the contractors must offer a maximum of 45 months as opposed to the maximum of 57 months provided for in the tender. Funding through the PNRR can be „saved” if several conditions are cumulatively met, including:

• the signing of the contract by the end of the year (depending on the evaluation deadline, clarifications from the contractors, appeals and deadlines at the CNSC, possibly also the CAB)
• reduction of the design period below 11 months, with the associated risks
• adherence to the site schedule to the letter
• signing the contract with a contractor/contractor that has proven to work quickly and well (probably the most important condition listed)

NOTE: Rail infrastructure projects (Railway and Metro) will be presented in the second part of the material.