Transylvania Highway Construction Work To Continue In 2011 – Romanian PM

Boc said money from the state budget has been earmarked to pay off debts to American company Bechtel, the constructor of the Transylvania Highway.

The prime minister said public road authority CNADNR and Bechtel are holding talks on setting prices considering cost standards, as well as on overdue debts and payment schedule.

According to Boc, the Transylvania Highway is one of the Government's priorities.

On Monday, Bechtel started procedures to lay off over 800 Romanian employees working on the Transylvania Highway construction site. Collective layoff procedures were started at the end of 2010 and were to be applied as of January 20, but the company agreed to postpone layoffs for ten calendar days, at the request of the local labor inspectorate.

Bechtel employees union representatives told MEDIAFAX Sunday workers will be fired in stages so layoff procedures be finished by March 1.

Bechtel said in November 2010 it started to lay off its over 800 employees working on the project, arguing the construction area is not ready for further works and the Romanian state has not paid its debts for works in 2010.

On December 4, Boc said works on the Transylvania Highway would continue in 2011 and the Government was seeking ways to continue funding the project.

The construction of the Transylvania Highway, which links central Brasov to western Bors on the border with Hungary, started in 2004 based on a EUR2.2 billion contract attributed to U.S. constructor Bechtel. Works were halted mid-2005, when authorities started looking into contracts concluded under the previous government. The deadline for the completion of works was extended until 2013 from the initial 2012.

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