Romanian Passenger Railway Carrier CFR Calatori To Receive 56% Higher Subsidies In 2010

This year's subsidies will cover only half the company's needs, estimated at RON1.42 billion, according to a draft Government decision approving a document adding to CFR Calatori's contract for 2008-2011, developed by the Ministry of Transports and Infrastructure.

In 2009, CFR Calatori received RON612.24 million in subsidies, but this amount was increased several times until the end of the year. In December of last year, the Government transferred an additional RON182 million from the budget reserve Fund.

The company's contract for 2008-2011, approved through a Government Decision in 2008, sets the required subsidy for 2010 at RON4.85 billion. CFR Calatori needs RON1.84 billion to upgrade its vehicles, but will have to make do with RON373.9 million, provided by its own activity, external sources and the state budget.

The railway carrier will receive RON198 million to upgrade its cars, RON130 million to buy new cars and RON20.92 million to upgrade its engines. According to the draft decision, CFR Calatori requires RON820 million for car upgrades, RON656 million for new cars and RON200 million for train engine improvements.

Five private companies will also receive state subsidies: Regiotrans, Regional, Transferoviar Grup, Servtrans Invest and Ferotrans TFI.

According to the draft's explanatory note, public service contracts are signed for four years, approved by the Government and must be updated each year after the state budget is adopted. Amendments may be made whenever necessary, but at least once per year.

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