Romanian CFR Calatori To Receive 30% Less Subsidy In’09

The passenger division of Romanian national railroad company CFR could receive from the state budget subsidy worth 612.24 million lei (EUR1 = RON4.2143) this year, which spells a 30.3% decrease from the RON878.28 million granted last year.

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The subsidy granted this year represents about one quarter of the company’s needs, estimated at RON1.721 billion, according to a draft Government decision approving the 2009 Additional act to the CFR Calatori 2008-2011 activity contract, drawn up by the Ministry of Transport.

Initially, in the contract approved by Government Decision in 2008, the required subsidy for 2009 had been set at RON4.18 billion, and at RON4.84 billion for next year.

Upgrade and procurement projects cumulate RON1.644 billion, money secured from the company’s own funds, from external sources and from the state budget. Thus, CFR Calatori will receive RON406.83 million from the state, and the bulk of the money (RON186.17 million) will be used for train car upgrades.

For the purchase of new train cars, the company will receive RON140 million and RON61.71 million for locomotive upgrades.

According to the draft normative act, CFR Calatori would need RON510 million for car upgrades and RON485 million for purchases.

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