The infrastructure deficit is porly covered - Articole Transport-Business.ro

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The pace of expansion and modernization of infrastructure is likely to slow to an intolerable level, warn two recently published reports of the consulting giant Deloitte.

This trend is caused by insufficient public funds and by difficulties in obtaining loans for public-private partnerships. Romania will not be sparred by this trend and it already is obvious that there is not enough money to stick with the ambitious plans of the Ministry of Transports and Infrastructure (MTI). In order to build 2.000 km of motorways by 2013, the needed money is around 2,5 billion Euros a year, given that each kilometre requires an investment of at least five million Euros.

This year, the entire budget for investments is well below one billion Euros, so there is a huge gap up to the 2,5 billion Euros required. Within the next five years, the infrastructure will weigh more in investor decisions to move or start operations in one country or another, Deloitte estimates. For this reason, the public sector must prove creativity and adaptability in the context of a changing economic environment and to abandon traditional models of funding and development of infrastructure projects, replacing them with innovative models.