Romania Delays Railway Upgrade Works Six Months On Lack Of Funds

Works to upgrade the railway linking Romania’s capital Bucharest to southeastern Constanta are six months lagging over lack of funds and are to be finished in August next year, Transport Ministry sub-secretary of state Constantin Axinia said Tuesday.

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The Transport Ministry currently owes EUR32.6 million to contractors working to upgrade the rail.

"At the beginning of the year, we paid EUR32 million debts for 2008 and we now need EUR32.6 million to pay this year's bills. Contractors have said they will reduce the pace of works because of delays in payment," Axinia said.

The Bucharest-Constanta railway is part of the fourth pan-European transportation corridor.

After the completion of the upgrade works on the Romanian segment, due for 2010, passenger trains will be able to reach speeds up to 160 kilometers/hour, while freight trains - up to 120 kilometers/hour.

The upgrade for the other Romanian section of the corridor, liking central Brasov to Curtici on the western border with Hungary, will cost EUR3.1 billion, which will come from the EU, the state budget and a loan from the European Investment Bank, Axinia said.

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