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U.S. Ambassador Says Expropriations, Poor Financing Hinder Constr Of Romania’s Transylvania Hwy

U.S. Ambassador to Bucharest Mark Gitenstein told Pro TV in an interview Sunday that expropriations and the lack of solid financing sources are the main problems regarding Romania’s Transylvania Highway, built by U.S. constructor Bechtel.
U.S. Ambassador Says Expropriations, Poor Financing Hinder Constr Of Romania’s Transylvania Hwy
Departamentul Life
24 oct. 2010, 15:39, English

The ambassador said he is confident the Romanian Government and Bechtel will find a way to continue construction works on the highway. Gitenstein also said everybody in the U.S.A. pays a toll and the money collected this way goes into a certain account and is used to build highways.

Gitenstein pointed out Romania can attract over EUR20 billion in European Union funds, adding, however, it needs co-financing to attract these funds. He also said Romania must improve the absorption of EU funds.

Gitenstein stressed he encourages U.S. companies to invest in Romania and highlighted that American investments in Romania over the past eight-ten months amount to $1.2 billion.

The construction of 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 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.