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Explore the challenges faced by Romania in infrastructure construction and learn from the experiences and solutions implemented by Poland, a larger fellow CEE country. This article discusses problems such as environmental protection, expropriation, construction permits, contracts, costs, and shortage of materials and contractors, providing proposed solutions. Gain valuable insights to improve infrastructure construction projects in Romania.
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Poland vs. Romania – same road, only one step in front What can Romania learn from its larger fellow CEE country 25 September 2008
Poland vs. Romania – quick facts Source: GUS, INS
Road and rail infrastructure Source: GUS, INS
Rail and airport infrastructure Source: GUS, INS
Infrastructure construction Source: Governments, GUS, INS * estimate
Problems and solutions in infrastructure construction • Environmental protection • Expropriation • Construction permits • Construction contracts • Construction costs • The investment process • Shortage of building materials • Shortage of contractors
Consequences Project implementations – delayed Inconsistency with EU regulations – blocking of funds Solutions Proposed: Regulations assessing investment impact Adopted in Poland: General Directorate for Environmental Protection was set: easier public access to information complex analysis of undertakings impacting the environment Incoherent environmental protection procedures
Consequences Protracted land purchase procedures Long preparatory stages for road projects Solutions Proposed: Incentives for land owners Adopted in Poland: Amendment to legislation (Sept. 2008): increase in the relinquishment period increase in the compensation for fast property vacation relocation payment Expropriation process - difficult
Consequences Expiry of building permits – necessary renewals Solutions Proposed: Extension of the validity period Adopted in Poland: Extension from 2 to 3 years Construction permits – short validity periods
Consequences Potential errors or other issues in construction contracts: -invalidation of the contracts -losing of the financing Solutions Rigorous writing of the contract FIDIC standard contracts in the public sector High complexity of contracts
Consequences Construction costs higher than the financing limit – endangering project implementations Solutions Proposed: Speeding up tendering process and commissioning of construction works Implementing in Poland: - speeding up procedures - increase employment in GDDKiA Rapid increase of construction costs
Consequences Long preparatory stages for road projects Solutions Implementing in Poland: Amendment to the Public Procurement Act: -limit the amount of inspections -eliminate legal absurdities in the statute Protracted investment process
Shortage of contractors - solutions • Proposed Contracts for smaller portions of roads Stimulation of participation in public tenders • Implementing in Poland Construction contracts for 20-kilometre stretches of road Requirements for small investments – minimised
Proposed Increase in the production capacity Usage of alternative materials Implementing in Poland Expansion of the list of materials including: gneiss green stones crushed brick cement debris Shortage of building materials - solutions
Thank you very much for your attention Ovidiu Oancia, Analyst PMR Publications tel.: /48/ 12 618 90 67 ovidiu.oancia@pmrpublications.com www.pmrpublications.com www.constructionpoland.com www.constructionrussia.com