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What happens to European funds via SAFE for outstanding lots on A7 and A8 highways. Ministry of Transport's explanation
๐Ÿ‡ท๐Ÿ‡ด Romania /Energy & Infrastructure

What happens to European funds via SAFE for outstanding lots on A7 and A8 highways. Ministry of Transport's explanation after deadline expiration

From Adevฤƒrul · () Romanian

Translated from Romanian, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Romania will not lose European Union funding for A7 and A8 highway projects despite missed deadlines, as they are considered cross-border initiatives.
  • Several lots on the A7 and A8 highways are facing appeals and contract delays, with some awarded to specific construction groups.
  • The Ministry of Transport explains that the cross-border nature allows for contract signing beyond the May 31 deadline under the SAFE program.

Romania is set to retain European Union funding through the SAFE program for its A7 and A8 highway projects, despite missing the May 31 deadline for signing contracts on several lots. Horaศ›iu Cosma, State Secretary at the Ministry of Transport, confirmed exclusively to Adevฤƒrul that the projects' cross-border nature prevents the loss of these crucial funds.

Challenges persist with contract awards for certain sections. On the A8 highway, the Tรขrgu Frumos โ€“ Leศ›cani lot (28.6 km) is under appeal by Strabag and Makyiol, while the Iaศ™i โ€“ Ungheni lot (15.5 km) faces challenges from Concelex and Construcศ›ii Erbaศ™u. Similarly, on the A7 highway, the Bฤƒlcฤƒuศ›i โ€“ Siret lot (12.7 km) is awaiting contract finalization with FAR Foundation SRL โ€“ Automagistral Pivden SRL โ€“ Lincor Trans, after appeals by MIS Grup and Concelex were rejected. This same consortium is set to execute two other lots on the Suceava โ€“ Siret segment, consolidating the entire section under one contractor.

Further along the A7, the Paศ™cani โ€“ Suceava sector, spanning 62 km across two lots, has been entirely awarded to the UMB Tehnostrade group. Additionally, UMB Tehnostrade will construct the Tรขrgu Neamศ› (Moศ›ca) โ€“ Tรขrgu Frumos (27 km) lot on the A8 highway, while the Leศ›cani โ€“ Iaศ™i (17.7 km) section will be built by Spain's FCC.

Cosma explained that while the SAFE program typically requires contracts to be finalized by May 31, this rule does not strictly apply to these Romanian highway segments. Because the projects extend into Moldova and Ukraine, they are classified as joint, cross-border acquisitions. "The Moศ›ca โ€“ Paศ™cani and Suceava โ€“ Siret highway sections, as well as Paศ™caniโ€“Ungheni, having that cross-border component... are considered by the Commission a joint acquisition, a project carried out in partnership by several states. And under the SAFE regulation, this falls under the possibility of signing contracts even after May 31. That's why we managed to find this interpretation of the regulation and why we don't have a problem at this moment," Cosma stated.

The Moศ›ca โ€“ Paศ™cani and Suceava โ€“ Siret highway sections, as well as Paศ™caniโ€“Ungheni, having that cross-border component... are considered by the Commission a joint acquisition, a project carried out in partnership by several states. And under the SAFE regulation, this falls under the possibility of signing contracts even after May 31. That's why we managed to find this interpretation of the regulation and why we don't have a problem at this moment.

โ€” Horaศ›iu CosmaExplaining why Romania will not lose EU funding despite missed deadlines for highway projects.
DistantNews Editorial

Originally published by Adevฤƒrul in Romanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.