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Old January 7th, 2017, 07:23 PM   #9301
rudiwien
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I think Winnipeg shows that modelling a fund on Norway is maybe not the best example, because they do have a totally different level of steady income from their, since decades, fully developed oil business.

Even if the gas reserves in the Black Sea are big enough to get anywhere near there that, and even if Romania is going to exploit them in 3-4 years, how does that help for infrastructure construction now?


So, yes, this can be a long-term vision for after when EU funds will be a primary source to draw from.
But until that is set up, running as expected and creating the dreamt-of revenue streams, I'd think the priority of any government should be on fixing the construction planing & approval & award processes, the planning and execution departments in the ministry and road operations company, to try to get to a 100% absorption rate of EU funds; after all, this is mostly "free money" (yes, there is no thing as free lunch, but this gets really close) - except for the ones who want to work in their own pockets, which seems to be the major "fault" of this scheme for the politicians..

Still, I think only if Romania manages to get that working, I think you can actually consider PPP- or state-fund-based funding for infrastructure projects.

And in any way, PPP is unfortunately not the great "magic wand" that politicians and banks want to make you believe; there are several studies that have shown that PPP projects are in fact more expensive than state-built projects. But, mostly they are an appealing instrument for politicians, because it allows them to draw on funds from the future to build stuff now, which they can sell as their achievement.
The downside is that you seriously limit the options for future decisions, because you have already bound much of the money you can decide upon.. But that is "only" the problem of future generations (of politicians), so the ones today don't care much about that now.
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Old January 7th, 2017, 07:36 PM   #9302
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Quote:
Originally Posted by rudiwien View Post
there are several studies that have shown that PPP projects are in fact more expensive than state-built projects.
However, construction works are usually completed much faster. That means, the new or widened road can be used earlier. Driver save time and money which is good for economy.
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Which new motorways are currently under construction?
Which new motorways will be opened next?

See 'New motorway projects' thread

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Old January 7th, 2017, 07:38 PM   #9303
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PPP projects come in many variants. Some involve tolling, some don't.

The most common PPP contracts today are private or public concessions with tolling, or PPP contracts based on availability payments (shadow tolling arrangements are falling out of favor). Availability payments can be thought of as a mortgage, rather than making the full downpayment at once, the cost is spread out over 20 or 30 years.

While this is more expensive than paying the entire cost of construction upfront, the upside is that you can build more motorways in a short period of time. This is particularly interesting if there is backlog and countries want to catch up. With a conventional funding method, it would take decades more.
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Old January 10th, 2017, 03:07 PM   #9304
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There are tons of projects in Romania which do not benefit from enough EU funding and on the other hand need to be built ASAP, irrespective of their detractors, such as Comarnic-Brasov or Craiova-Pitesti motorways.These projects could benefit from this fund.
Romania needs to built at least 3 high capacity Transcarpathian routes and 100km of road in the mountains will cost as much as 4-500km in the plains.

Only the A1 is guaranteed EU funds and if that mountain section is not started by 2020 even that guarantee may no longer exist after 2020 when funding rules will change again, quite possibly to the detriment of Romania but we don't know.
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Old January 10th, 2017, 03:10 PM   #9305
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Only the A1 is guaranteed EU funds
Wrong
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Old January 10th, 2017, 05:26 PM   #9306
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Which highways are subject to EU funds in Romania during the current programme period (2014-2020), except the obvious A1? Any sections from A6?
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Old January 10th, 2017, 05:38 PM   #9307
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Entire A10?
A3 Campia Turzii - Tg Mures?
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Old January 10th, 2017, 07:43 PM   #9308
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Quote:
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Which highways are subject to EU funds in Romania during the current programme period (2014-2020), except the obvious A1? Any sections from A6?
These ones

https://www.dropbox.com/s/2zhi8tmkeu...sport.pdf?dl=0

Last edited by sponge_bob; January 10th, 2017 at 08:01 PM.
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Old January 11th, 2017, 08:57 AM   #9309
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[RO] Romania | road infrastructure • autostrăzi şi drumuri

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These infrastructure projects are eligible for EU funding:

https://www.dropbox.com/s/2zhi8tmkeu...sport.pdf?dl=0
Thank you. I notice that not all projects have a planning, instead 'CEF' is written at the date the project should be delivered/ finished.
What does CEF mean?

Did the new government simply copy paste from this document into their 'governance programme' 2017-2020?
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Old January 11th, 2017, 09:48 AM   #9310
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CEF = Connecting Europe Facility. It was established in late 2013. Most of the programme consists of railroad upgrades.
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Old January 11th, 2017, 10:12 AM   #9311
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Thank you. I notice that not all projects have a planning, instead 'CEF' is written at the date the project should be delivered/ finished.
What does CEF mean?
EU Transport funding. Roads can be funded from EU Regional funds too in poorer areas.

Transport funding is more for Railways and Canals nowadays and less for roads and I expect that trend to continue until there is no CEF for roads by 2030.
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Old January 11th, 2017, 11:52 AM   #9312
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Quote:
Originally Posted by sponge_bob View Post
..
Only the A1 is guaranteed EU funds and if that mountain section is not started by 2020 even that guarantee may no longer exist after 2020 when funding rules will change again, quite possibly to the detriment of Romania but we don't know.
Quote:
Originally Posted by roaddor View Post
Which highways are subject to EU funds in Romania during the current programme period (2014-2020), except the obvious A1? Any sections from A6?
Quote:
Originally Posted by sponge_bob View Post

Sorry, but what is the point of claiming that "only A1 is guaranteed EU funds"? Why do you want to, on purpose (?), misinform?

And you then anyhow posted a list of current projects, containing many more motorways...? Let alone the currently worked on motorways in that document include way more than "only A1"; and in principal, everything in TEN-T core is eligible, and then also TEN-T comprehensive would be eligible once TEN-T core is built.

So, the already mentioned A10 & parts of A3, plus A7, A8, A0, ...

A map from TEN-T in Romania, giving an impression what could be built with EU funds (though I am a bit confused with what is considered to be already completed in that map..)
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Old January 11th, 2017, 11:53 AM   #9313
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Quote:
Originally Posted by sponge_bob View Post
..
Only the A1 is guaranteed EU funds and if that mountain section is not started by 2020 even that guarantee may no longer exist after 2020 when funding rules will change again, quite possibly to the detriment of Romania but we don't know.
Quote:
Originally Posted by roaddor View Post
Which highways are subject to EU funds in Romania during the current programme period (2014-2020), except the obvious A1? Any sections from A6?
Quote:
Originally Posted by sponge_bob View Post

Sorry, but what is the point of claiming that "only A1 is guaranteed EU funds"? Why do you want to on purpose misinform?

And you then anyhow posted a list of current projects, containing many more motorways...? Let alone the currently worked on motorways in that document (for which funding, even the phased implementation in two funding cycles, is already approved by the EU authorities) include way more than "only A1"; and in principal, everything in TEN-T core is eligible, and then also TEN-T comprehensive would be eligible once TEN-T core is built (yes, that is not guaranteed, but as it is in TEN-T core, if Romania applies for funding, they would with all likelihood get it granted)

So, the already mentioned A10 & parts of A3, plus A7, A8, A0, ...

A map from TEN-T in Romania, giving an impression what could be built with EU funds (though I am a bit confused with what is considered to be already completed in that map..)


And that map of course doesn't include local bypass projects, which can also get funding from other sources (regional development, etc..)

Last edited by rudiwien; January 11th, 2017 at 12:11 PM.
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Old January 11th, 2017, 12:20 PM   #9314
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There is no money programmed for Ten T not core roads in the transport budget of around €4bn a year. The full Ten T network is large but the core network is 9 trans european corridors.

ONLY €2bn a year of that €4bn is ringfenced for all the poorer states combined and the richer states get the rest for base tunnels and HSR mainly.

EU funding for non core roads has to come from Regional/Cohesion funding if anywhere.

The above figures do not include Regional/Cohesion funding.
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Old January 11th, 2017, 01:20 PM   #9315
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Well, I referred to the highways which are covered by the TEN-T corridors Orient/East Med. and Rhein/Danube in Romania because they are with the highest priority for EU and for this reason A1 & A6 obtain most of the money.
If there are other highways (from the core network) like A10 or parts of A3 or even parts of A7 and A8, what is the EU share for them (25-30%) and does the country secure the rest of the money by means of loans?
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Old January 11th, 2017, 02:10 PM   #9316
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If there are other highways (from the core network) like A10 or parts of A3 or even parts of A7 and A8, what is the EU share for them (25-30%) and does the country secure the rest of the money by means of loans?
If they qualify for regional and cohesion funding then it is 85%. In fairness most of Romania will qualify for regional and cohesion funding after 2020 as well.

The A6 is only partly a Core route, from Calafat west. I suspect it will no longer be a core route by 2030 or even sooner and that the (almost fully complete) motorway corridor from Budapest to Belgrade to Sofia will entirely replace it by then. It only became a corridor in the first place when Milosevic kicked off his wars 25 years ago.
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Old January 11th, 2017, 04:52 PM   #9317
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This is very optimistic. What are the requirements for a highway to go into the category Regional & Cohesion funding? Please give an example for such a highway in Romania which satisfies the conditions and why the corresponding route satisfies them.

When Serbia joins EU, their highways A1 & A2 will become another branch of Orient/East Med. corridor but that does not mean it will not be counted anymore in Romania and Bulgaria (Lugoj-Botevgrad section). The 9 major TEN-T corridirs, good or bad, are drawn to happen first, then come the bold highways from the core network and finaly come the remaining highways from the comprehensive network. EU funding of 85% is very limited and applies only partially to highways along the TEN-T corridors. The EU share for the highways in the core and especially in the comprehensive networks is much less.
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Old January 11th, 2017, 07:06 PM   #9318
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Please give an example for such a highway in Romania which satisfies the conditions and why the corresponding route satisfies them.
Probably Bucharest - Iasi on both regional isolation and relative income grounds. The full case is usually made at a NUTS 2 or 3 Regional level and Romania has around 10 regions so I ain't read 10 plans.
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Old January 12th, 2017, 11:20 AM   #9319
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If the European commisssion agrees to alocate some day in the not foreseeable future even 30% for this road, which by the way is part of the core network, Romania will be lucky. Should that happens, the rest of the TEN-T corridor/s are supposed to be ready by then. The time for bargaining is over and this is better because each country will try to build what is left from its network by means of loans, however, without the hypocritical interference from abroad that a certain level of budget deficit is surpassed.

Last edited by roaddor; January 12th, 2017 at 11:41 AM.
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Old January 26th, 2017, 06:33 PM   #9320
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Nice winter landscape in southern Romania:


source: trafictube.ro
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