Wednesday, June 8, 2011

Romania Signs Three Road-Building Contracts Worth $627 Million

Romania signed three contracts valued at 428 million euros ($627 million) with construction companies to build and design highways financed mainly by the European Union, Transport Minister Anca Boagiu said.

The ministry awarded a contract worth about 167 million euros to Austria’s Strabag SE (STR), while a group led by Italy’s Astaldi SpA (AST) won a contract of 147 million euros, according to an e-mailed statement today. Two private companies from Romania and Italy got the third contract worth 114 million euros.

“So far, we have organized auctions to award projects of 3 billion euros from the 5.7 billion euros the EU is giving us until 2013 to build roads and highways,” Boagiu said in the statement. “We plan to sign construction contracts for the remaining projects by the end of the year.”

The Balkan nation that joined the EU in 2007 has been using the EU money and other resources to upgrade its transportation system. The government plans to sell minority stakes in its utilitiesTranselectrica SA (TEL) and Transgaz SA and in the largest oil company OMV Petrom SA to gain funds for financing infrastructure investments.

Last month, Romania awarded five contracts valued at 693 million euros to Austria’s Alpine Bau GmbH, Italy’s Impregilo SpA and to three groups led by Romanian companies Spedition UMB and Romstrade.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague atjagomez@bloomberg.net

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