NAR Restructuring and Road Rehabilitation Project

complete

Restructuring of the National Administration of Roads (NAR) and rehabilitation of 224 km of national roads in Romania. Project objectives: (a) Support the commercialisation and privatisation of the National Administration of Roads' operational activities, starting with periodic road maintenance; (b) restructure and modernise NAR to regulate, plan and manage the road network; and (c) finance a portion of the road rehabilitation programme. Loan proceeds will be used for the following: (i) maintenance equipment; (ii) rehabilitation of 224 km of national roads; and (iii) consultancy services. (a) Private sector and competition development through the commercialisation and privatisation of NAR's periodic road maintenance activities; (b) demonstration effect and skills transfer associated with the commercialisation and privatisation programme; (c) development of roads and bridges to EU standards; (d) improved road sector cost recovery and regulatory framework through the implementation of a Road Fund Law; and (e) economic development as a result of an improved national road network. Romania is the borrower. The implementor will be the National Administration of Roads (NAR). Established as a "regie autonome", NAR is responsible for administering the national road and bridge network through seven regional directorates. Sovereign loan of US$ 85.9 million (ECU 69.0 million). US$ 185.7 million (ECU 149.2 million), part of a programme totalling US$ 553.5 million (ECU 444.7 million) to be co-financed by the International Bank for Reconstruction and Development (World Bank), the European Investment Bank and Phare. The project was screened B/0, requiring an environmental analysis. The pre-investment feasibility study incorporated an environmental analysis of the various proposed road rehabilitation options and alternatives and contributed to the selection process. Only road sections with no significant environmental impact were recommended by the consultants and accepted by the Bank as part of the project. These include Brasov-Sighisoara (111 km), Sighisoara-Tirgu Mures (48 km), and Tirgu Mures-Turda (65 km) sections, comprising the rehabilitation of existing carriageways, widening of shoulders, improving ditches, drains, and retaining walls, rehabilitation of bridges and access roads near intersections, and adding footways and improving parking conditions within cross sections through communities to improve safety conditions. Environmental mitigation measures have been agreed by the Romanian Ministry of the Environment. These include: replacement of trees and bushes; planting new trees and bushes for erosion control; protection of vulnerable ground and surface water using impermeable drains; noise barriers; watering roads during construction; and emission controls on asphalt plants. Phase II of the study, which will include detailed engineering plans, will incorporate specific mitigation measures and will be incorporated into the tender documents. The supervision of the works will include the monitoring of the implementation of the environmental mitigation measures by the contractors and reporting to the Bank. ECU 900,000 to fund the assistance required for the commercialisation and privatisation of NAR's periodic road maintenance activities.