China’s accession to the European market is no political or economic secret. Over the past years, this country has led an open policy regarding its implication in the strategic projects of the European countries. Rapid economic growth has changed China’s statute of underdeveloped country into a state with an aggressive campaign of implication in other countries’ economic affairs.
Romania is one of the European countries where China plans to invest a “huge amount” in developing projects from different economic segments. “For China, Romania is a bridge, as well as Eastern Europe. Cooperation between China and Central and Eastern Europe is an important part of the cooperation between China and the European Union and Romania plays a major role in it”, declared Chinese Prime Minister Li Keqiang, during the China – Central and Eastern Europe Forum.
The main topics the officials of the two countries discussed about included cooperation in fields such as economy, trade, finance-banking, infrastructure construction, energy, agriculture, science and technology, telecommunications, information technology, environment protection, tou-rism etc. Several agreements on significant investments were signed during the forum.
Transport infrastructure investments were an important discussion topic between the two parties. According to official declarations, the Chinese delegates were proposed a series of infrastructure development projects that Romania plans to develop through public-private partnerships (PPP), concessions, financing or other forms included in the legislation in force.
The development of a railway project that would enable Romania to have a faster railway section based on China’s expertise was one of the topics discussed by Victor Ponta and his Chinese counterparts. “We’ve entered a very important road, that of a first railway project to benefit in Romania from a rapid railway section based on Chinese technology. I believe that with the support of the prime minister and mine, this project will begin to fall into place”, said Victor Ponta. “China is ready to consolidate its cooperation with countries in the region in fields such as roads, ports, telecommunications, high-speed railways. Both countries are determined to set up working groups to build high-speed railways. We’ve discussed the particulars with Mr Prime Minister Ponta. Working groups have already initiated discussions on the financing of equipment. Regarding the high-speed railway, we will discuss the implementation of the pilot project in December”, declared Chinese Prime Minister Li Keqiang.
Romanian Minister of Transport Ramona Mănescu announced that in December the parties would launch technical talks on the development of Vienna-Bucharest-Constanta high-speed railway whose cost could amount to EUR 11 Billion. “We will begin technical talks with Chinese partners and depending on how they progress and when we will sign the contract, we will know the exact deadlines, when the works begin and when they will be completed”, said Mănescu.
One of the priorities of the railway company CFR SA by 2015 is to identify financing for the high-speed line linking Romania to Europe’s high-speed network. Romania needs infrastructure development, “this need being much higher that the availability of European funds. Therefore, the partnership with China is welcomed. A series of proposal has been sent to the ministry, as well as proposals among which the development of the HSL. It is a European corridor starting from Vienna, to Budapest, Bucharest and Constanta. We will most probably begin with an easier to complete section, thanks to ground aspects (Bucharest-Constanta). The biggest interest is to connect Constanta Seaport”, said Mănescu. She added that Vienna-Budapest-Bucharest-Constanta high-speed railway, estimated at EUR 11 Billion, is the first project she invited the Chinese to participate in.
Corridor IX and the Capital’s railway ring, other projects of interest for China
Apart from the HSL, the Chinese and Romanian authorities are interested in implementing infrastructure projects in concession with financing provided by the private side, as state budget financial resources and European funds are limited compared to the need for projects. Other two railway projects to which the Chinese businessmen are invited are the modernisation of the Capital’s railway ring and the pan-European Corridor IX. The project of the railway ring consists in the modernisation of the Capital’s railway ring to facilitate the access to Bucharest of the people living in the peri-urban area. The project includes the modernisation of 82 km of line with 12 stations and a total estimated cost of EUR 350 Million. Also, the modernisation of the pan-European Corridor IX is important not just for Romania, providing a railway link on the north-south axis of 551 km, but also for EU.
The railway network modernisation priorities of CFR SA include, apart from the modernisation of Corridor IV, the moder-nisation of the conventional railway section of Corridor IX.
“We are interested in the participation of Chinese companies in concession processes and we have thus expressed our availability. Romania can be a gate for Chinese investments in Europe, but they have to observe the European tendering and construction procedures”, declared Dan Şova, minister of large infrastructure projects.
He added that he also invited the Chinese constructors to participate in the tenders which include European financing.
As long as China is interested to participate in the development of railway infrastructure projects, the Chinese rolling stock manufacturers will be interested in delivering railway vehicles that could be operated on the upgraded lines or on the HSL.
China-Central and Eastern Europe Forum also hosted an exhibition of the industry of HSL construction, but also models of trains that could be operated in the future in Romania as well. The Chinese rail industry company presented the technology they use in manufacturing rolling stock and displayed models of electric trains capable to reach speeds of 120 km/h and to carry a volume of goods of 5 thousand tonnes. One of the most important passenger trains in China is CRH380A developed by de China South Locomotive & Rolling Stock Corporation (CSR) and dedicated to high-speed transport (over 350 km/h). “We are on a very important journey, that of a first railway project to have rapid railways and appropriate vehicles in Romania based on Chinese technology”, declared Prime Minister Victor Ponta in a joint press release with his counterpart Li Keqiang.
All partnerships will be concluded in agreement with the national and European legislation on the attribution of public procurement contracts, public works concession contracts and services concession contracts.
Detailed discussions will be held during the next period to establish priority projects and work methodology.
According to the declarations of the Romanian Minister of Transport, Ramona Mănescu, technical discussion with Chinese partners will take place on 10 October to develop Vienna-Bucharest-Constanta high-speed line, whose cost could reach EUR 11 Billion. “Regarding the EU competition regulations, it is obvious that Romania and all member states observe them. However, today, in conditions of equal, European competition, there are several projects for which China had better offers, better technical and financial offers. I gave my word to the PM and to his delegates that the best offer will win, Chinese or not”, said Ponta.
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