Romanian Government to financially support RO-LA transport projects

Rail transport operators will be able to submit financing demands to the Environment Fund Administration (AFM) to recover 60% of the bill for shipping trucks by rail. The Romanian Government will grant financial support through the RO-LA programme to reduce pollution and carbon dioxide emissions. The announcement was made by AFM Vice-President, Dorin Corches.

– Today, road transport per truck costs RON 10 (EUR 2) between Constanta and Oradea, but rail transport is 15-20% more expensive. That is why rail freight transport is not attractive. By paying 60% of that bill, costs will be reduced so that carriers would prefer to transit Romania with freight by rail as it will be a lot cheaper –  he said.

In April, AFM will launch to public debate the tender book concerning the financing scheme. According to the legislation, the tender book will be debated for ten days and then the submission of applications will begin. RON 25 million will be allocated for the first session, which AFM hopes to initiate in April. The second session will be held at the beginning of the final quarter of this year, said Dorin Corches.

The European Commission approved for Romania a state aid scheme for RO-LA transport for a 5-year period which was supposed to end in December 2017, but no financing session has been initiated on that scheme. The Romanian authorities have initiated the procedure for the extension of this state aid scheme and received in December the approval of the European Commission and the programme was therefore extended with five years.

Source: railwaypro.com