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Transylvania Motorway – three times more expensive than expected

5 noiembrie 2007

Information in English

 
Workers’ wages and the high price of construction materials will result in a higher cost of the Transylvania Motorway (Bors – Brasov) than initially foreseen. However, the authorities are not aware of the final price as yet. “It is too early to give a price because we don’t know it exactly.
 
The higher price has objective reasons because, since the time when the Nastase Government did the pre-feasibility study, the price of construction materials and the price of labour have gone up. The study in question did not foresee any clear costs and, unfortunately, it wasn’t too clear in concoction with the technical option either because it has become apparent in the meantime that new solutions would be needed such as some viaducts, which will naturally inflate the final price,” Transport Minister Ludovic Orban said. He further said that the work would continue in the winter in order to expedite the construction process.
 
“We are working faster and we are already ahead of schedule with a segment of 42 kilometres from Campia Turzii to Gilau, and we hope to be able to allow traffic there in 2008,” explained the Bechtel representative, Bogdan Sgarcitu.
 
The Director General of the National Motorways and National Roads Company, Mihai Grecu, stated that the longer it takes, the higher the cost will be. “Bechtel has speeded up work which may lead to a lower end price for the building of the motorway because the slower the work the higher the costs are. Unfortunately the work is also being delayed because of expropriations, in the most advanced segment about 65 per cent of the land having been expropriated already, and 80 per cent along the second segment Bechtel is working on, the one from Suplacu de Barcau to Cluj west to Mihaiesti and from Mihaesti to Suplacu de Barcau, Cluj West – Mihaiesti, respectively, and Mihaiesti – Suplacu de Barcau”.
 
On the other hand, the former Minister of Transport, Radu Berceanu, indicated that the state would need to pay there times more than originally foreseen for the construction of the Transylvania Motorway. Berceanu believes that the Transylvania Motorway is not going to cost 2.2 billion euros as initially foreseen by the pre-feasibility study, but 7 billion euros.
 
Bechtel is bound to perform the contract by February 2013. In 2007, the US company has a budget of EUR 184 M and the 2008 budget may be nearly 500 million euros. The motorway will be 415 km long, of which over 55 km will be bridges, viaducts, 94 pedestrian overpasses, 58 vehicle flyovers and 16 junctions.

 

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