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Infrastructure Construction in Poland vs Romania: Lessons Learned and Proposed Solutions

Explore the challenges faced by Romania in infrastructure construction and learn from the experiences and solutions implemented by Poland, a larger fellow CEE country. This article discusses problems such as environmental protection, expropriation, construction permits, contracts, costs, and shortage of materials and contractors, providing proposed solutions. Gain valuable insights to improve infrastructure construction projects in Romania.

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Infrastructure Construction in Poland vs Romania: Lessons Learned and Proposed Solutions

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  1. Poland vs. Romania – same road, only one step in front What can Romania learn from its larger fellow CEE country 25 September 2008

  2. Poland vs. Romania – quick facts Source: GUS, INS

  3. Road and rail infrastructure Source: GUS, INS

  4. Rail and airport infrastructure Source: GUS, INS

  5. Infrastructure construction Source: Governments, GUS, INS * estimate

  6. Problems and solutions in infrastructure construction • Environmental protection • Expropriation • Construction permits • Construction contracts • Construction costs • The investment process • Shortage of building materials • Shortage of contractors

  7. Consequences Project implementations – delayed Inconsistency with EU regulations – blocking of funds Solutions Proposed: Regulations assessing investment impact Adopted in Poland: General Directorate for Environmental Protection was set: easier public access to information complex analysis of undertakings impacting the environment Incoherent environmental protection procedures

  8. Consequences Protracted land purchase procedures Long preparatory stages for road projects Solutions Proposed: Incentives for land owners Adopted in Poland: Amendment to legislation (Sept. 2008): increase in the relinquishment period increase in the compensation for fast property vacation relocation payment Expropriation process - difficult

  9. Consequences Expiry of building permits – necessary renewals Solutions Proposed: Extension of the validity period Adopted in Poland: Extension from 2 to 3 years Construction permits – short validity periods

  10. Consequences Potential errors or other issues in construction contracts: -invalidation of the contracts -losing of the financing Solutions Rigorous writing of the contract FIDIC standard contracts in the public sector High complexity of contracts

  11. Consequences Construction costs higher than the financing limit – endangering project implementations Solutions Proposed: Speeding up tendering process and commissioning of construction works Implementing in Poland: - speeding up procedures - increase employment in GDDKiA Rapid increase of construction costs

  12. Consequences Long preparatory stages for road projects Solutions Implementing in Poland: Amendment to the Public Procurement Act: -limit the amount of inspections -eliminate legal absurdities in the statute Protracted investment process

  13. Shortage of contractors - solutions • Proposed Contracts for smaller portions of roads Stimulation of participation in public tenders • Implementing in Poland Construction contracts for 20-kilometre stretches of road Requirements for small investments – minimised

  14. Proposed Increase in the production capacity Usage of alternative materials Implementing in Poland Expansion of the list of materials including: gneiss green stones crushed brick cement debris Shortage of building materials - solutions

  15. Thank you very much for your attention Ovidiu Oancia, Analyst PMR Publications tel.: /48/ 12 618 90 67 ovidiu.oancia@pmrpublications.com www.pmrpublications.com www.constructionpoland.com www.constructionrussia.com

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