www.business-review.eu Business Review | October 2020
22 MACROECONOMY
New opportunities in the age of big projects Romania has been allocated a total of EUR 80 billion through the EU’s resilience mechanism programme and 2021-2027 budget. Most of this large sum will be spent on large infrastructure projects including roads, railroads, hospitals, energy, and urban regeneration. By Sorin Melenciuc projects in Romania, the new contracts will mean that at least 375 km of motorway or expressway will be under construction in 2021 (compared to less than 100 km in 2019), and the financing will mainly come from EU funds. These projects could trigger a bonanza of construction, with large local companies such as UMB, Selina, Arcada, Erbasu, Marcotim or Deme very well placed to secure large contracts and enjoy a golden age in terms of their profits. The main beneficiary of this boom is by far the UMB Group, owned by Dorinel Umbrarescu, called “the king of the asphalt” in Romania. In the past few years, UMB has won some motorway projects and managed them very well compared to other construction companies. UMB is already working on two main projects: the Bacau ring road (31 km, of which 16 km of motorway) and one of the four sections of the Craiova-Pitesti expressway (DX12). But this year, the company has secured many other contracts: one section of A0 (BuThis year, Romania increased its motorway network by almost 25 kilometers
charest Orbital motorway), 3 sections of A3 (Nadaselu-Poarta Salajului), 2 more sections of DX12, the Galati ring road, and the Galati-
HARD WORK
Most experts say that Romania’s construction
Braila expressway. These new contracts could
In fact, Romania is already experiencing a
boom, overtaking regional peers, is a logical
push Umbrarescu’s UMB to become a true
construction boom, despite the Covid-19
consequence of its lack of infrastructure.
engineering champion in Romania and even
pandemic. Construction works in Romania
This year, Romania increased its motorway
in the region, as it has become by far the larg-
rose by 12.2 percent year-on-year in July and
network by almost 25 kilometers – 2 sections
est and best-equipped construction group in
by 18.1 percent in the first 7 months of this
of the Transylvanian A3 motorway – to a total
the country.
year, with the main driver being the engineer-
of 873 km, below Hungary or Serbia. But the
ing works sector (+25.5 percent year-on-year
speed of infrastructure projects seems to
being among the beneficiaries of this boom.
in January-July 2020).
have accelerated this year as the new Liberal
Selina Group, based in Oradea and owned by
government has signed several contracts for
local entrepreneur Beniamin Rus, completed
new projects.
its first motorway section this year as a main
According to the latest Eurostat data, Romania has registered by far the largest increase in this sector among the 27 EU member states – and this deserves an explanation.
But other, smaller groups are also seen as
According to the Pro Infrastructura As-
contractor (a 5.3 km connection between Ro-
sociation, an NGO monitoring infrastructure
mania and Hungary near the city of Oradea)
