Romania ends highway contract with Bechtel, reduces costs and plans new bids for next segments

The Romanian state will no longer work with US company Bechtel on the next segments of the Transylvania highway and has managed to reduce the highway costs from EUR 9.9 bln to EUR 3.8 billion. The Ministry of Transport has completed negotiations with American company Bechtel. The objective is to reduce construction costs made with the Transylvania highway, according to the Romanian Prime Minister, Emil Boc. The highway's total cost decreases with 50 percent, at EUR 3.8 billion from EUR 9.9 billion, said Anca Boagiu, the Romanian Minister of Transport. Bechtel will continue works at theSuplacu de Barcau – Bors section, while for the section Gilau - Mihaiesti, once signed the agreement with Bechtel, the work will be put out for auction, according to the Prime Minister. The design for the Targu Mures - Campia Turda section will also be resumed, he added. One of the achievements in negotiations with the U.S. company is that after completion of Suplacu de Barcau - Bors section by Bechtel, the Romanian state will be able to auction the works for the other six sections, without any claim from the company. “It was one of the existing clauses in the contract that was asking not to bid any of the remaining sections for a period of two years”, said Anca Boagiu. Referring to the progress of work, Anca Boagiu said that from the total of EUR 2.2 billion, as was originally planed in the contract for execution of 413 km of highway, were spent EUR 1.25 billion, for 54 km build until now. "I am glad that Bechtel and the Ministry of Transport managed to find together a solution for this important project. The result is a success for all parts, especially for the Romanian citizens which will enjoy this modern system of highways in those regions for years to come”, said the US Ambassador, Mark H. Gitenstein. The construction of the Transylvania Highway, which links central Brasov to western Bors on the border with Hungary, started in 2004 based on a EUR 2.2 billion contract attributed to U.S. constructor Bechtel. Irina Popescu, irina.popescu@romania-insider.com