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Romanian Railway Operator CFR To Hold Auction To Lease Ten Railway Sections

Romanian railway administrator CFR SA on Thursday will organize an open outcry auction to lease ten sections of the public railroad network in Bucharest, Brasov and Iasi.
Romanian Railway Operator CFR To Hold Auction To Lease Ten Railway Sections
Ioana Tudor
20 dec. 2011, 17:38, English

The auction will be organized at the headquarters of the Romanian Commodities Exchange (BRM).

The lease contracts to be awarded will be valid for four years. Contract awarding criteria consider the highest price. Bidders have until December 22 to submit offers.

In November, CFR awarded three other railway line lease contracts.

Romania’s Government decided in June to lease 1,000 km of public railroad and close another 1,000 km, in an effort to save 109 million lei (EUR25 million) from the railway company budgets, as per a previous agreement with the International Monetary Fund.

The Government has promised the International Monetary Fund to close 20% of the country’s railroad network, about 4,000 kilometers of railway lines, unless it finds investors to ensure their maintenance.

According to CFR data, in 2009, Romania’s railroad network was 20,210 km long, including 17,691 km in public management and 2,519 km in private management. (EUR1=RON4.3125)