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The state created a super company for building highways and roads: CNADR split off through reorganization
de Victor Bratu 23.9.2016
The Government adopted on Wednesday an emergency ordinance which reorganizes C.N.A.D.N.R. and set up the National Investment Company S.A. Road (C.N.I.R.), a separate company to manage the road infrastructure.
The initial motive of this reorganization was to create a state entity which besides managing and implementing all infrastructure projects, is able to also design and execute them, saving the time lost in tenders and appeals to projects.
The result is a structure expected to create advantages, having though the great disadvantage that could be coordinated and administered politically and consequently becoming a political stake for the next governments.
What is old CNADNR renamed CNAIR
The same ordinance changes the name C.N.A.D.N.R into C.N.A.I.R. (National Company of Road Infrastructure Administration) and will have as main activity the maintenance, management and operation of the motorways, public roads, road diversions and other infrastructure.
The company will also manage the projects that are being implemented at the moment, such as sections Sebes-Turda, Lugoj-Deva, Gilău-Nădăşelu.
Projects under implementation, once finalized, will be transferred to C.N.I.R., the newly established investment company.
What the CNIR does, what money and what personal it uses
C.N.I.R. will manage the development projects of road transportation infrastructure according to the needs of safe citizens’ movement and circulation of commodities and by keeping the travel times comparable to those from the European Union and the comfort in traffic.
Specifically: it will design, construct, rehabilitate, modernize and repair the highways, build expressways, national roads, road diversions, other elements of road infrastructure.
The initial share capital of C.N.I.R. is worth 50 million lei and is subscribed and fully paid in cash by the Romanian state until 30 November 2016, as the sole shareholder exercising its rights and fulfil its obligations via the Ministry of Transportation, as the legal representative of the Romanian state.
The new company may contribute capital investment, according to the law, to the establishment of companies with similar or related activities along with individuals and / or legal, Romanian and / or foreign entities for the development of road infrastructure projects.
It may also establish branches, representative offices, agencies and other such subunits in the country and abroad, including partnerships with the international financial institutions, to develop transportation infrastructure projects.
As regards the project management, C.N.A.I.R. transfers sequentially road transportation infrastructure projects to C.N.I.R, over a maximum period of three years.
Projects that will be transferred are:
- Bucharest South ring Road modernization
- Construction of Bucharest ring II South ring Road
- Construction of the highway Sibiu – Pitesti
- Construction of the highway Targu Mures – Targu Neamt – Iasi – Ungheni
- Construction of the expressway Ploiesti – Buzau – Focsani – Bacau – Paşcani
Until C.N.I.R. actually starts activity, C.N.A.I.R. can provide support services based on cooperation protocols signed by the two companies.
C.N.I.R. staff is hired based on individual employment contract concluded under the law, only by contests.
Sources of C.N.I.R funding:
- External grants (for the periods 2007-2013, 2014-2020 and after 2020)
- State budget
- Other legal sources (public loans or from international financial institutions).
C.N.I.R. also monthly collects 15% of the road tax from C.N.A.I.R., bridge tolls and other revenues resulting from the exploitation of public leased properties, excluding the income from the leased service areas and rentals.
Government’s measure for establishing C.N.I.R will lead to long-term development of trans-European transportation network (TEN-T), for the optimal functioning of the internal EU market, closely related to achieving the goals of the Europe 2020 strategy for growth.