U.S. Bechtel Continues Asphalt Works On Romania’s Transylvania Highway

The company’s PR manager Bogdan Sgarcitu Tuesday said asphalt works would continue as long as weather allows it, despite the fact that the government is way behind payments.

Sgarcitu said the Romanian Transport Ministry and the National Roads and Highways Company urged Bechtel to complete asphalt works on the first 25 kilometers by yearend.

According to Sgarcitu, works are behind schedule over failure to complete land expropriations in the area.

Economy and finance minister Varujan Vosganian said last week the government completed all its “tasks” involving the highway, adding Bechtel is to blame if things go wrong.

The government assigned an additional RON400 million (nearly EUR112 million) in this year‘s second budget revision for construction works on the highway.

Stefan Szobotka, communication manager of the highways company, said mid- May the first 35 kilometers of the highway would be slated for use in November this year.

He also said Bechtel received a downpayment of EUR132 million at the beginning of the year to cover works in the first half of 2008.

Construction works on Transylvania highway started in 2004 based on a contract worth EUR2.2 billion, which was assigned to Bechtel.

However, works were halted mid-2005 when the authorities looked into the contracts concluded during previous governments.

Under these circumstances, the initial deadline for the completion of works, set for 2012, was extended by one year.