Romania re-starts irrigation water channel project approved just before fall of communism

A project approved a year before the fall of communism in Romania has recently received a green light from the Romanian Government. Delayed for 26 years, the project consists in building a water channel to connect the river Siret to the Baragan agricultural area. With only six kilometers of the planned 190 kilometers built before the fall of communism in 1989, the project has recently been given to a special task force within the Government, which should draft the necessary paperwork. The task force, which will work as a separate division, will be able to contract consultancy services, buy equipment, take delivery of the project once finalized, and maintain and exploit it. The Government recently approved the creation of this task force, but the Parliament needs to approve it. The Siret-Bărăgan channel, which had been approved in 1988, stopped on lack of funding. The idea was re-discussed again in 2002 and, when complete, is expected to help increase crops in the Baragan area, resulting in an annual EUR 120 million growth in revenue. Authorities say the water channel would allow the irrigation of more than 500,000 hectares of land, including around 80 percent without using any pumping mechanisms. In 2003, the authorities had estimated the channel needed between USD 500 million and USD 1 billion in private investment, and since no investor was interested, the project was scrapped. However nine years later, in 2012, the Agriculture Minister Daniel Constantin estimated a total of EUR 2.6 billion would be needed for the project. Authorities then gave 2013 as the start year for the project, budgeting just EUR 50 million during that year. Estimations on a possible total cost for the project have varied with time. In 2011, the then Agriculture Minister Valeriu Tabara said the project would cost some EUR 3.6 billion to build, and a public – private partnership was eyed. In recent years, private investors have shown interest in this project, including Russian and Chinese companies, according to the authorities. China National Agricultural Group Corporation expressed its interest in 2011 in what has now become a project of major importance for Romania. editor@romania-insider.com