Advisory Services Agreement on

Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting (P156889)

Output No. 3 Institutional Strategic Plan 2017-2020 for the Ministry of Transport

September 2017

Project co-financed from the European Social Fund through the Operational Programme Administrative Capacity 2014-2020

This report has been delivered under the Advisory Services Agreement on Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting signed between the General Secretariat of the Government and the International Bank for Reconstruction and Development on June 8, 2016. It corresponds to Output 3 under the above-mentioned agreement.

Disclaimer This report is a product of the International Bank for Reconstruction and Development / the World Bank. The findings, interpretation, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. This report does not necessarily represent the position of the European Union or the Romanian Government. Copyright Statement The material in this publication is copyrighted. Copying and/or transmitting portions of this work without permission may be a violation of applicable laws. For permission to photocopy or reprint any part of this work, please send a request with the complete information to either: (i) the General Secretariat of the Government (1 Victoriei Square, Bucharest, Romania); or (ii) the World Bank Group Romania (Vasile Lascăr Street, No 31, Et 6, Sector 2, Bucharest, Romania).

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Table of Contents

List of Acronyms ...... 3 List of Figures ...... 4 List of Tables ...... 4 Preamble ...... 6 Executive Summary ...... 8 I. Context of the Sector ...... 12 II. Mission and Vision ...... 20 III. Strategic Objectives, Programs, Measures and Indicators ...... 21 Strategic Objective 1: Develop an integrated and environmentally friendly national transport system ...... 21 Program 1.1. Optimizing the national transport system and maintaining a balanced and sustainable rail and road network ...... 25 Program 1.2. Development of road and rail infrastructure within the main internal and international transport corridors ...... 32 Program 1.3. Increase the operational capacities of the Danube River and Ports ...... 34 Strategic Objective 2: Develop a multimodal national transport system that is sustainable and efficient ...... 37 Program 2.1. Increasing the competitiveness of rail passenger transport services ...... 42 Program 2.2. Development of an intermodal freight transport system, mainly served by environment- friendly transport modes ...... 46 Program 2.3. Strengthening the regional and municipal organization of public passenger transport. 48 Program 2.4. Achieve a single transport area in air transport ...... 51 Strategic Objective 3: Provide safe, accessible and clean transport solutions for the citizens ...... 53 Program 3.1. Safer transport ...... 58 Program 3.2. Cleaner transport ...... 61 Program 3.3. Increased transport accessibility ...... 62 Program 3.4. Connection of rural areas to major road transport axes ...... 64 Program 3.5. Development of Intelligent Transport Systems ...... 65 Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public ...... 68 Program 4.1: Improve the administrative capacity of the sectoral policy management and implementation ...... 71 IV. Arrangements for Implementation, Monitoring and Evaluation of the ISP ...... 74 V. Multiannual and Annual Budgeting and Financing Sources ...... 77 Annex 1a: Budgetary Objectives and Programs for the period 2017-2020 (thousand RON) ...... 81 Annex 1b: Programs, Measures and Budget allocations 2017-2020 ...... 82 Annex 2: Institutional Strategic Plan (summary table) ...... 89 Annex 3: Programs and connected Measures, Output Indicators (summary table) ...... 99 Annex 4: Institutional Profile ...... 152

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List of Acronyms

ATM Air Traffic Management CEO Chief Executive Officer CFR Călători Societatea Naţională de Transport Feroviar de Călători (railway passenger company) CFR Marfă Societatea Naţională de Transport Feroviar de Marfă (railway freight company) CFR SA Societatea Naţională de Căi Ferate (railway infrastructure company) CNAIR National Road Management Company CSIR Inter –Ministerial Council for Road Safety EC European Commission ERDF EU Regional Development Fund ERTMS European Rail Traffic Management System EU European Union EUR Euro currency unit GDP Gross Domestic Product GHG Greenhouse Gas GTMP General Transport Master Plan ICAO International Civil Aviation Organization ICT Information and communication technology IRI International road roughness index ITS Intelligent transport System MAIC Multi-Annual Infrastructure Contract (with the infrastructure managers) MoT Ministry of Transport OECD Organization for Economic Co-operation and Development OPT Operational Programme for Transport PBMC Performance-based maintenance contract PPP Public private partnership PSC Passenger Service Contract PSO Public Service Obligation PSP Private sector participation

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RIS River Information Services RNCMNR Romania National Company for Motorways and National Roads RON Romanian New Lei Ro-Ro Roll-on Roll-off RRA Rail Reform Authority SES Single European Sky SESAR Single European Sky ATM research GSG General Secretariat of the Government of Romania SOE State-owned enterprise TEN-T Trans- European Network for transport TEU Twenty-foot equivalent Units TU Traffic Unit VMS Vehicle Management System VNIS Vessel Information Navigation System

List of Figures

Figure 1. Monitoring cycle for Ministry of Transport’s Institutional Strategic Plan ...... 75 Figure 2. ISP structure by funding source ...... 78 Figure 3. Breakdown of financial envelopes, by year and strategic objective ...... 79

List of Tables

Table 1. EU financial allocations in Romania for 2014-2020 (mil. EUR, 2011 constant prices) ...... 77 Table 2. Financial resources for operationalizing the 2017-2020 ISP (thousand RON) ...... 78 Table 3. Breakdown of estimated financial resources, by year and strategic objective (thousand RON, 2017-2020) ...... 79

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Acknowledgments

This report was prepared by a team comprised of Cătălin Păuna (TTL, Senior Economist), Jérôme Bleuchot (Transport Strategy expert), Mara Bubberman (Public Policy expert), Costel Todor and Mircea Tulea (World Bank experts). The report benefited from thoughtful comments from Jean-Francois Marteau (Program Leader Sustainable Development), Antonio Nunez (Transport Specialist) and Nadia Badea (Operations Officer) and of the overall guidance from Lalita Moorty (Practice Manager, Macro Economics and Fiscal Management) and from Elisabetta Capannelli (Romania Country Manager).

The team would like to thank the staff at the Secretariat General of the Government (SGG) for the support and excellent collaboration provided throughout the elaboration of this Note, in particular to Secretary of State Radu Puchiu, and General Director Dragoș Negoiță, as well to the counselor Radu Iacob and the project team, who provided useful recommendations and achieved a proper project. In addition, the team would like to thank the Ministry of Transport for the excellent collaboration, Secretary of State and coordinator of the Management Group Maria Magdalena Grigore, and Secretary of the unofficial working groups Cristina Cuc, as well as all the members of the unofficial working group.

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Preamble

Rationale The General Secretariat of the Government of Romania (GSG) has requested support from the World Bank under a Reimbursable Advisory Services (RAS) to strengthen the planning, budgeting and policy monitoring capacity in the Center of the Government, Ministry of Public Finance (MoPF), and selected line ministries. With the purpose of enhancing the efficiency of public spending, the RAS focuses on i) further strengthening the existing Institutional Strategic Plan (ISP) development processes under the guidance of the General Secretariat of the Government of Romania (GSG); ii) building capacity in the government to monitor ISP updates and implementation with a common IT tool, developed with support from the Bank; and iii) developing a central dashboard in the GSG for reporting on the implementation of the high level ISP priorities of the selected ministries. The defined activities of this RAS derive from the functional reviews of the Public Administration, which made evident that the public sector is suffering from a disconnect between planning and budgeting, leading to poor linkages between resources used and results. The government has therefore requested the Bank to help institutionalize a process for monitoring policy implementation, with clear roles and responsibilities for the GSG, the MoPF and the line ministries, using the methodologies, tools and processes developed under this RAS. This will be an integral part of the budgeting reforms promoted by the government. With the objective to make the strategic planning process compulsory for every ministry in Romania, the GSG is seeking that the ISP becomes a regular product developed by every ministry. As one of the selected line ministries, the Ministry of Transport (MoT) has committed to undertaking a far-reaching reform Programme, covering both policy and public administration. Strengthening the strategic planning function in the transport sector is an important component of this reform. Previously the Ministry of Transport developed a Strategic Planning for 2012-2015 with the assistance of the World Bank. This ISP builds on the content of the previous strategic planning, however in order to provide a uniform format across all line-ministries, the methodology of the ISP has changed upon the guidance of the GSG. The current ISP therefore changed its structure and has included strategic objectives linked to programs and measures that are evaluated by outcome and output indicators. As the ISP will be updated on a yearly basis, programs that have been completed in the previous cycle have not been included, and new programs have been included in the planning. The Government of Romania has adopted the final General Transport Master Plan (GTMP) in September 2016. The GTMP provides the general development framework for transport infrastructure, financing sources and strategic project implementation in Romania. The GTMP was an ex-ante conditionality required by the EU in order for the MoT to benefit from the current cycle of cohesion funds. The General Transport Masterplan is a strategic planning instrument for major interventions that are relevant for implementing the national transport objectives. The time horizon for the GTMP is 2040 and the programming period of programs is 2030.

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Methodology The development of the MoT ISP 2017-2020 was carried out during the period November 2016 to May 2017. The 2017-20 strategic planning process in Ministry of Transport was overseen by the State Secretary and the General Secretary of the MoT. The Strategic Management Directorate provided technical coordination. The World Bank provided technical support throughout the whole process, with the Strategic Management Directorate of the MoT functioning as the main intermediary and facilitator. In its effort to be inclusive, informative and participatory, the World Bank provided a training with selected personnel of the Ministry from October 24 -to October 28 2016, in order to familiarize the MoT personnel to the principles of strategic planning, while using the theories and examples of the ISP 2014-17 to carry out the revision for the ISP 2017-20. The purpose of this workshop was to train selected personnel to become members of an ISP MoT working group, however this group was never formally instituted.

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Executive Summary

Why is there a need for an Institutional Strategic Planning? The General Secretary of the Government of Romania (GSG) is committed to enhance the efficiency of public spending. By establishing an Institutional Strategic Plan (ISP) for the budgeting cycle 2017- 20 in the Ministry of Public Finance and selected ten line ministries, the GSG aims at strengthening the budgeting, planning and monitoring capacity of the Romanian government. As the Ministry of Transport (MoT) had already drafted an ISP for the budget cycle 2014-17, the senior staff of MoT is familiar with this important tool for the implementation of strategic planning and budgeting in the Romanian transport administration. The ISP 2017-2020 builds further on the previous ISP and strengthens the leading role of the MoT in developing an ISP within the transport sector. The methodology of the current plan has been redefined by the GSG in order to provide for a harmonized approach for all ten participating ministries. What is included in the Institutional Strategic Planning? The ISP 2017-2020 provides the strategic objectives from the transport sector, the institutional priorities and goals to which the MoT has committed. The ISP includes clear programs, measures, and budget as well as an assessment framework of targets to measure progress. The ISP is structured along the four main strategic pillars of the Transport Sector. The ISP contains the following four strategic objectives: Strategic Objective 1: Develop an integrated and environmentally friendly national transport system This strategic objective aims at improving the major infrastructure as condition to provide a sustainable national transport system that is balanced, efficient, and that supports all other objectives. This objective is a challenge given the fact that the existing transport infrastructure in Romania is in an overall poor condition and that there is still a very large gap of connecting infrastructure especially in roads.  Program 1.1 – Optimizing the national transport system and maintaining a balanced and sustainable rail and road network  Program 1.2 – Development of road and rail infrastructure within the main internal and international transport corridors  Program 1.3 – Increasing the operational capacity of the Danube River and ports Strategic Objective 2: Develop a multimodal national transport system that is sustainable and efficient This objective aims at improving transport services through the consolidation of the competition system within and between the four modes of transport by improving cooperation amongst transport operators and providing better services to the citizens of Romania.  Program 2.1 – Increasing the competitiveness of rail passenger transport services  Program 2.2 – Development of an intermodal freight transport system, mainly served by environment-friendly transport modes  Program 2.3 – Strengthening the regional and municipal organization of public passenger transport  Program 2.4 – Creation of a single transport area in air transport

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Strategic Objective 3: Provide safe, accessible and clean transport solutions for the citizens The objective aims at improving safety of the transport sector in Romania including the reduction of loss of human life due to traffic accidents in all modes of transport, and improve access to isolated communities.  Program 3.1 – Safer transport  Program 3.2 – Cleaner transport  Program 3.3 – Increased transport accessibility  Program 3.4 – Connection of rural areas to major road transport axes  Program 3.5 – Development of Intelligent Transport Systems Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public This objective aims at improving the administrative capacity and administrative performance of the Ministry of Transport and at enhancing its human resources capacity.  Program 4.1 – Improve the administrative capacity of the sectoral policy management and implementation A description of strategic objectives and expected impacts is provided below including programs, expected outcomes, and measures with planned outputs. The programs are correlated with financial resources and their distribution along the period of implementation 2017-2020. How is this ISP outlined? The ISP has been developed through careful consultations with personnel of the MoT at both technical as management level. The ISP contains the following chapters: Chapter I: This chapter contains the context and challenges of the sector, including international and European influences on the sector. It analyzes the economic, technological and geopolitical context of the sector. This chapter finds that the national transport system presents an excessive imbalance between modes of transport, with consequences related to the limitation of its economic efficiency. The infrastructure network in Romania is in an inappropriate state, and its maintenance and renewal is inefficient. The sector is facing a high demand for services from the public, but the preponderant focus of these demands on road transport has led to the overstrain of this network. Road infrastructure does not have a relevant capacity to provide satisfactory services and railway infrastructure cannot effectively contribute to the de-congestion of the road network due to inadequate technical conditions, which severely limit the competitiveness of rail transport services. The involvement of the private sector is limited. Chapter II: This chapter provides the mission and the vision of the Ministry of Transport. It includes the MoT’s commitment to support trough appropriate public policies the development of a sustainable, reliable and accessible transport sector, and it confirms the MoT’s role to be trustworthy, responsible and transparent organization.

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Chapter III: This chapter provides the four strategic objectives1, programs2, measures3 and indicators.  Strategic Objective 1: Develop an integrated and environmentally friendly national transport system. This strategic objective aims at improving the major infrastructure as a condition for ensuring a balanced, efficient and sustainable national transport system that supports all other objectives. This is a challenge because the road network is still very undeveloped compared to European standards on motorways, which creates a huge gap between demand for transport and the available capacity. On the other hand, the rail network has sufficient transport capacity, which can significantly contribute to the de-congestion of the road network and the overall improvement of transport services, provided that an accelerated recovery program for renewal, repair and maintenance is implemented. The programs address the following issues: (i) rebalancing the national transport system and maintaining a sustainable rail and road network; (ii) developing rail and road infrastructure along the main domestic and international transport corridors; (iii) developing the operational capabilities of the Danube and the Danube ports.  Strategic Objective 2: Develop a national multimodal transport system that is sustainable and efficient. This objective aims to strengthen the competitive environment in the four modes of transport, to enhance the cooperation between transport operators and to improve the transport and related services provided to Romanian citizens. The programs address the following issues: (i) enhancing the competitiveness of rail passenger transport services, (ii) developing an intermodal freight transport system primarily served by green modes of transport, (iii) strengthening regional and municipal passenger transport integration, (Iv) the creation of a single transport area in air transport.  Strategic Objective 3: Provide safe, accessible and clean national transport solutions for the citizens of Romania. The objective aims at improving safety of the transport sector in Romania and at the reduction of loss of human life due to traffic accidents in all modes of transport, while improving access to the network all over the country. The program addresses the following issues: (i) providing safer transport, (ii) providing cleaner transport, (iii) increasing transport accessibility, (iv) improving the connection between rural areas and the main road transport axes, (v) the development of Intelligent Transport Systems.  Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public. This objective aims at improving the administrative capacity and administrative performance of the Ministry of Transport and is enhancing its human resources capacity.

1 Strategic Objective - A clear and timely statement on the impact of policies aimed at supporting the institution's vision and feasible to be achieved during the Institutional Strategic Plan’ application. 2 Program - A coherent set of actions under the authority of an institution, which seeks to achieve a predefined set of objectives for which performance indicators have been developed and that identify the results which can be obtained within the funding limits approved by the law. In the architecture of the Institutional Strategic Plan, a Program is a set of measures under the authority of one or more institutions, which seeks to achieve strategic goals for which performance indicators have been developed and which identifies the results that can be obtained within the funding limits approved by the law. 3 Measure - A continuous function of an institution or a long-term commitment, or an intervention to which an institution commits itself in order to reform and improve its policy implementation or program outcomes. A Measure consists of a group of activities and / or projects supporting that policy.

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Chapter IV: This chapter provides for arrangements on the implementation, monitoring and evaluation of the ISP in order to enhance the Ministry’s accountability, and develop the monitoring and evaluation framework. In addition, the ISP anticipates the development of an IT system for performance assessment of the proposed programs. Chapter V: This chapter presents the multiannual budgeting and financing sources, including European funds (38%), State Budget (51%), and co-financing mechanisms (11%). The impact, outcome and output indicators as well as a comprehensive description of the measures are provided in the annexes, including the legislative framework of the Ministry of Transport. What are the next steps? The ISP will be operationalized in a policy agenda of the Ministry of Transport for 1+3 years period. In the first year the ISP will be adopted by the Ministry and adjusted wherever needed. The annual work plan of the Ministry will be derived from the ISP and will provide the basis for the establishing the budget of the MoT for the coming years. The monitoring and evaluation process of the ISP programs and measures will be facilitated by a centralized IT application that falls under the supervision of the GSG. This application is presently being developed. The GSG will monitor the implementation together with the MoT. The GSG in collaboration with the MoT will publish a yearly execution report regarding the implementation of the proposed programs. *This report includes indicators based on government strategic documents, complemented by indicators designed by the World Bank team when they did not exist. The summary tables in Chapter 3 have generally kept the indicators proposed by strategic documents and the ministry where available. The indicators proposed by the World Bank are proposals by the WB team based on available information but the indicators need to be confirmed or completed by the Ministry of Transport. For some indicators, the World Bank team considers that some values should differ from existing strategy and programmatic documents adopted by the government as they will likely not be achieved given the current situation in the sector since they were adopted. The World Bank has commented in the Annex to this document when it considered them as not appropriate. As a result, the values quoted in Chapter 3 are not necessarily endorsed by the World Bank team.

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I. Context of the Sector

International and European trends influencing Romania The development of the transport sector in Europe, regional development and environmental concerns will have a significant impact on the Romanian transport sector in the years to come. In the past two decades Romania has made significant progress regarding the transition to a market economy, promoting rule of law, and becoming member of the EU. It is important for the development of Romania to become an active player in the EU market. Transport is the backbone for the movement of persons and goods in the EU and is therefore significant for Romania’s future progress. The main factors that will play a significant role in the Romanian transport sector are:  The growing demand for mobility;  The development of new technologies in the transport sector;  Romania’s commitment to develop the transport sector that meets European standards in order to face the mobility needs. Economy Romania’s trade with European partners has been steadily increasing over the past years and a large share of this trade is to be seen in equipment, commodities and goods. The trade sector is dependent on the well-functioning transport system. The main commercial partners of Romania are located within the European Union, the EU represents 75% of all imports (Germany, Italy and Hungary) and 71% of the exports (Germany, Italy and France). At present trade represents 83% of Romania’s GDP compared to 43% in 1990. People travel more than in the past, and their demand for various modes of transport is continuously increasing. This demand is reflecting a dynamic job market as well as the developments of the tourism sector that has become more attractive for national and international tourists. At present, there are more than 4.7 million private cars (2013) registered in Romania - compared to 2.8 million in 2000. In general, the GTMP foresees a growth of 26.6% for the period of 2011-2020 (2011 base year) and for the same period it expects a growth of 33.8 % in freight transport4. Transport of passengers by train remains important in spite of declining number of passengers. In the period between 2000 and 2015 the percentage of passenger transported by rail dropped from 16.3% to 4.5%, representing one of the biggest declines in in Europe. The transport of freight by rail halved from 43.1% in 2001 to 21.5 % in 20135; and this decrease is expected to continue in the coming years. In Romania, there is a unique regional diversity and the differences between the urban and rural population contrast with other European counties. 55% of the population lives in urban areas while 45% of the population lives in rural areas. Around 39 % of the labor force is located in rural areas, with 45 % of the rural population dispersed over 12,751 villages. These rural communities face a large migration of workforce and a growing aging population. In terms of access to economic opportunities and social services, transport is an important factor for development of the rural areas of Romania. Romania faces big regional disparities; as such the monthly gross average salary in the

4 in tone-km, base value 2011 5 Eurostat

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central Ilfov region is RON 900 per person while in the rural regions in the north east of the country, this accounts only for RON 500. Romania has succeeded in attracting investments over the past twenty years. In 2015 investments represented 24.7% of Romania’s GDP, the highest percentage in Europe. The main areas for investment are construction, machinery and transport equipment while technology and innovation investments remain limited. Industries such as car and manufacturing are important in Romania, and these rely on good transport links to both suppliers and customers in and outside Romania. Romania is still recovering from the 2008 crisis. In 2010 the investments adjusted sharply from the preceding two years. The crisis had impact on trade and the people’s demand in travel, causing a drop in transport demand. Inland waterway transport recovered to pre-crisis level by 2013, and accounted 15 million tons transported (9% of the total freight transport in Romania). Inland waterway transport is expected to grow, due to commitment of European stakeholders for improving the navigability of Danube and development of intermodal of transport. Air transport showed a rapid growth in the number of passengers carried from 2007-2011, namely from 7.8 million of passengers per year to 10.8 million. In the period from 2014 to 2015 the number of passengers increased by 15.3 %, placing Romania at the second place in Europe in terms of passenger growth.6 Airports are hence facing an unprecedented demand from the increasing mobility needs of Romania’s citizens. The Romanian economy is expected to recover and will have positive effects on trade, increased mobility with as result an increase in private car ownership. This development represents both a challenge and an opportunity for the Romanian transport sector. Environment In Romania, there is a steady upward trend of annual GHG emissions produced by the domestic transport sector, which are growing faster than the EU-28 average. The Romanian transport sector accounts for 12.5% of the total GHG emissions across all sectors. Even though the EU average is higher and accounting for 19.7%, the Romanian share is growing faster, caused by the decline in the railway transport of both passengers and goods, and the increasing motorization rate. Road transport is to be hold accountable for 93% of all transport emissions, which is a similar rate compared to the EU-28 average. The motorization rate in Romania is the lowest in the EU and accounts for 224 cars per 1000 inhabitants in 2012, but this rate has risen from 152 cars per 1000 inhabitants compared to 2006 and is expected to grow significantly in the coming years. Technology in transport Due to increased pollution, congestion and climate change, there is an increasing pressure from both the public opinion as well as decision makers to provide a clear commitment for using cleaner transport technologies. This desire will impact all stakeholders in the transport chain, from both the supply side and the demand side, e.g. the need to offer a clean vehicle fleet. Despite investments in new technologies and innovation remaining low, the transport sector should make a shift towards the use of modern IT systems to sustain a safe and clean transport. Geopolitical context As member of the EU, Romania has aligned its policies to the 2020 European objectives, which includes the adoption of several structural reforms in varied sectors. South Eastern European

6 Ibid.

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countries have the desire to benefit from international trade routes. A such the Black Sea region is important with regard to international trade, holding several trade routes between Asia, the Middle East and Europe. To this extent Romania may become a competitive and efficient transport route to Central Europe. Main challenges of the Romanian transport system The national transport system must support the increase of the competitiveness of the national economy The previous evolution and the current situation of the national transport system in Romania are atypical both in relation to the evolutions of the European transport systems and in relation to their current situation. Starting from the converging results of a multitude of scientific studies demonstrating the superiority of rail transport in relation to other modes of transport, both in terms of economic efficiency and aggression towards the environment, which is lower, as well as the contribution to climate change and the deterioration in the general health of the population, which is inferior, the European Union has adopted a transport policy7 which focuses on the priority promotion of rail transport within a balanced overall transport system and is aimed at making effective use of complementarity modes of transport. This policy aims, on the one hand, to strengthen the competitiveness of national economies by increasing the efficiency of national transport systems and by developing internal transport markets and, on the other, to strengthen the competitiveness of the Community economy by creating a single European transport area, characterized by economic efficiency, modal balance and sustainability from the perspective of interaction with the environment. The implementation of this policy, through appropriate national funding and regulation mechanisms, has led to an increasing trend in rail transport in most Member States and to strengthening the trend of priority for intermodal transport where rail transport plays a major role.8 There is also a concerted concern among European states, backed by European Union grants, aimed at modernizing the infrastructures of the European transport corridors and the TEN-T network. In Romania, the only area in which there is a relative synchronization with the European Union's transport policy is the modernization of infrastructure related to the European transport corridors and the TEN-T network. Regarding the domestic transport market in Romania, the policy constantly practiced in the last 27 years is in contrast to European politics. Starting from the need, initially perfectly justified, to encourage individual mobility of people,9 measures have been implemented to encourage individual car transport. However, these facilities have also been unduly extended to commercial road transport by taking over by the state of the burden to cover (entirely or almost entirely from public funds) a large part of the costs of commercial road transport, such as: the costs of using the infrastructure, traffic safety costs etc. This approach, coupled with the severe under-financing of rail transport and the full coverage by the State of the costs of some negative transport effects such as

7 Strategic document COM (2011) 144 "White Paper - Roadmap to a single European transport area: Towards a competitive and resource-efficient transport system". This document is ignored by the World Bank report 8 For example, in the case of intermodal freight transport, rail transport is the major component of the transport by land routes 9 It has been a matter of eliminating the restrictions imposed artificially, before 1989, on individual car transport

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accidents, pollutant emissions and greenhouse gas emissions,10 has led to a profound distortion of the internal transport market, and has artificially created a major competitive advantage of road transport compared to rail transport. In addition, there has been a steady and programmatic neglect of public transport at both urban and interurban levels, which has made the option of individual transport the only valid option for addressing people's mobility needs. The result of these policies is a deeply unbalanced national transport system, where massive transport by car is prevalent, which has caused excessive pressure on the road network whose transport capacity has already been exceeded by the growth rate of demand for transport.11 The consequences are, on the one hand, the exponential growth of bottlenecks and the significant reduction in driving speeds, and, on the other hand, the exponential increase in the number of road accidents. In the public interurban passenger transport market, the imbalance is manifested by the predominant modal share of road transport (especially minibuses), which is close to 80%, in contrast with the increasing trend on the European level considering the use of rail passengers services (with a modal share that tends to exceed 50% in interurban public transport on land routes). It is important to note that one of the major causes of the prevailing modal imbalance existing on the domestic public passenger interurban transport market lies in the lack of prolonged financing of public procurement of new rolling stock. This led to the reduction of the national operator’s rolling stock from around 11,000 passenger wagons in 1990 to 2290 wagons in 2016, of which only about 1,500 are operational, which is likely to drastically limit transport capacity and, implicitly, the offer of public transport services. Moreover, given that CFR-Călători operates about 1,300 trains per day with the available fleet, it results that the wagon fleet diminishment has the consequence of severely limiting the efficiency of operating costs for passenger trains. In the freight transport market, distortions on the domestic transport market allow road users to offer much lower prices than rail operators. As a consequence, rail transport was obliged to give up the small freight transport market12 to the road transport sector and was limited to customers who, due to their own business model, are obliged to transport goods in large quantities (in the order of loading capacity of a complete train).13 Moreover, the development of intermodal transport on Romanian territory14 is virtually impossible within the current legislative framework, because imbalances in land transport services prices channel customers' options exclusively towards road transport. Moreover, the gradual degradation of railway infrastructure as a result of severe underfunding in the last 27 years has progressively amplified the modal imbalance in the transport market and is likely to favor the continuing imbalance in the national transport system. As a result, the current situation of Romania's national transport system is characterized by:

10 In this way, the intrinsic safety benefits of rail transport, such as the low level of pollutant emissions and the low level of greenhouse gas emissions, have been completely neutralized 11 Especially since, according to the data from the Master Plan of Transport of Romania, single-track roads represent 90% of the length of the national road network and highways, and 97.5% of the total length of the national road network respectively 12 In terms of loading capacity of a wagon or container 13 Such large cargo shipments cannot be transported by road because it would be necessary to simultaneously deploy a fleet of over 100 trucks, which is virtually impossible 14 Concerning intermodal transport involving the predominant use of rail transport over land freight

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• Excessive overloading of the road network, whose capacity is already overtaken by transport demand, with consequences on limiting travel speeds and increasing the frequency of accidents. The overloading of the road network also leads to the accelerated degradation of rolling surfaces, with consequences on maintaining a high share of mediocre and precarious roads (over 40%15) and on the exponential growth of maintenance costs and repairs. • The impossibility of capitalizing on the rail network16 as a solution to decongesting the road network and streamlining passenger and freight traffic due to the degradation state generated by severe and prolonged underfunding, as well as artificial distortions on the transport market which make rail transport very little attractive for customers. The main effect of the imbalance of the national transport system is the massive increase in the overall costs borne by the national economy in relation to transport. The results of an international study17 applied on the Romanian case shows that, assuming the transfer to rail of only 10% of the total current road traffic, the total amount of annual savings that can be obtained at national level amounts at about 1% of the GDP (1.5 billion euros). A large part of these savings refers to the reduction of public spending to cover the effects of transport. In other words, the adoption of policies favoring road transport at the expense of rail transport, which generated the transfer of several tens of percent of the traffic volumes towards the road, was equivalent to assuming increases in the costs of the national economy for transport in the amount of at least 4 billion euros per year (on average). The main consequences of these additional costs are the significant limitation of the competitiveness of the national economy, the limitation of the possibilities for increasing the national economy and the increase of the fiscal pressure. Another important effect of the imbalance of the national transport system is the increase of the imbalances in the geographical distribution of economic development. In the last period investor tendency to develop new economic facilities in the western area of Romania is prevailing in order to avoid the shortcomings caused by the inadequate quality and inadequacies of the national land transport infrastructure and to benefit from easier terrestrial connections to Western Europe. This trend is likely to generate accelerated poverty in the eastern and southern regions of Romania, with profound negative consequences on the country's economic development and demographic trends. Summing up the above aspects, it can be argued that the inadequate policy regarding the national transport system may neutralize the potential of motor transports on economic development and maintain the tendency of an increasing gap between the level of development of the national economy and that of the other European economies. The transport network condition must ensure better accessibility for people and businesses to support sustainable development Over the past two decades the Romanian economy changed drastically and this change provides a challenge for the current transport system. The road transport infrastructure inherited from the plan economy does not meet today’s transport demand. Yet, the accessibility of transport depends on the readiness of Romania to develop its infrastructure, to ensure proper maintenance and to adopt efficient public policies.

15 According to the General Master Plan of Romania 16 The Romanian rail network has a sufficient transport capacity, which can take transport flows at least 3-4 times higher than the current ones, as well as a good geographic coverage of the national territory 17 The study "External Costs of Transport in Europe" carried out in 2011 at the request of UIC by Delft, Infras and Fraunhofer ISI

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A large share of the Romanian economy is dependent on trade. The EU free movement of goods and persons offers a tremendous potential for private investments as well for the creation of jobs. In this investment climate, the cost of transport and logistics is crucial for the decision of firms to establish in Romania. The competitiveness of Romania therefore also depends on the ability of Romania to ensure linkages to the European market but as well the ability of Romania to address the connection between urban and suburban areas, which is linked to the mobility of Romania’s work force. Since 2005, Romania became an attractive supplier in terms of natural resource potential, such as natural gas and oil. As such, addressing the quality of the overall infrastructure is crucial. The quality of the overall infrastructure was evaluated by the Logistic Performance Index (LPI) as 2.8 in 2016 on a scale from 1 to 5, and ranked last in the European Union. The value of the transport assets is high, and these assets need to be preserved for the benefit of future generations. Yet maintenance and renewal have been neglected in the first years of the transition period, and backlogs have increased. Efforts in order to modernize the Romanian Road Infrastructure started years ago in order to upgrade the roads to European standards, and to link the major corridors to Romania’s regional centers and communities. These tasks have yet to be completed.18 The construction of Romania’s Highway network is particularly lagging behind compared with the rest of the EU and is seen as one of the main constraints to international and internal connectivity. Construction of motorways since EU accession has been limited due to both funding and implementation issues compared to other countries having joined the EU since 2004. The Romanian railway network is in a deteriorated state, which limits the competitiveness of rail transport on the transport market and does not allow balancing the distribution of land transport applications between the two relevant modes of transport. The railway network in Romania is mostly in a poor condition despite the national and European funds that have been invested into the sector. Significant financial sources are spent on the operation of the network. The high density of the network has become a financial burden for the MoT. A large part of the train network carries only a very low volume of passengers and freight, therefore there is the need for rationalization of the rail infrastructure and rail infrastructure services. The maintenance of both road and rail infrastructure is inadequate due to the comprehensiveness of the network, and the limitations in budget and in human resources. Romania has few intermodal and logistics facilities which could enable a reliable interface between the different modes of transport. The port of Constanța is a strategic hub, it is located along the Danube-Black Sea channel and it possesses over a few inland terminals. The port of Constanța has well-developed road and railway services that are enabling the transportation of freight containers, however the intermodal facilities are underdeveloped and a modern transport infrastructure is absent on the key corridors. The development of intermodal facilities is a key factor for the development of the port of Constanța and for enabling national and international trade. While there is a high demand for passenger transport, the public transport supply is not corresponding to needs of the population both in terms of quality and quantity. Despite the network connections to all urban centers, the accessibility of the suburban regions and rural areas remains low. Transport connections between regions are mostly unreliable, with high travel times and inadequate information on the services. A sustainable passenger transport supply is a key factor in the development of the rural areas.

18 Source: The World Economic Forum, the Global Competitiveness Report (2014)

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Urban public transport is a main asset for the city of Bucharest, this includes the transport services of the metro, bus and tramway. A major factor which could improve it is the integration and coordination of the different modes of transport in order to face the increasing demand of the citizens. Car ownership poses a challenge for the city of Bucharest, since ownership has been increasing rapidly and is causing significant congestion problems, associated to a chaotic parking situation. In addition, this impacts negatively on both the competitiveness and GHG emissions in Romania’s main economic center. The Bucharest Metropolitan Transport Authority has been set up, in order to regulate the urban transport system. Yet, public policies that address the urban transport challenges still need to be effectively defined in order to be implemented so that the mobility needs of the City of Bucharest can be faced. The transport system must be safe, secure and clean One of the main challenges for the Romanian transport system is the safety and the security record of road, rail, air and inland waterway transportation. It is important for Romania to have safety programs on all these four modes of transport, despite the fact that road safety is the most urgent challenge in terms of fatalities. Safety programs for rail, air and waterborne transport have shown a good track record over the past years but there is need for continuous commitment of the MoT in ensuring the implementation of safety programs and providing knowledge and trained personnel to operationalize these programs. Compared to other countries, the roads in Romania are amongst the most dangerous roads in Europe and represent a tremendous loss in human life. As such Romania’s roads took the life of 1,913 people in 2016. While most European countries have been able to address their unsafe roads and provide for safer infrastructure, Romania has not yet been able to do so. Accessibility of rural areas and connectivity between rural areas and local and regional centers also remains sub-par by European standards, mainly due to the condition and standards of the road network. Adequate administrative and operational capacity The transport sector is crucial for Romania’s economic development and therefore the Ministry of Transport is a key player in achieving the goal of sustainable economic development. With one of the largest shares in the state budget and access to European funding, the Ministry has an important card to play. The MoT however faces a large challenge as it oversees some of the largest State- Owned Enterprises in terms of revenues, assets, staff but also financial losses. The ISP therefore proposes a plan for the future years in terms of matching its responsibilities and ambitions by adequate management and administrative capacity. Human resources management is one of the key factors in providing an adequate administrative and operational capacity. Yet the public sector is not an attractive employer for many Romanians, and the ministry is unable to attract and keep motivated staff under its employment. To this end the financial crisis had a negative impact on HR in the MoT since the Ministry had to freeze hiring and had to reduce the compensation benefits during the crisis years. Moreover, in terms of career development and incentives the Ministry lacks adequate training opportunities and development possibilities and transparent procedures for promotion. There is a clear gap in terms of available budget and resources and the need for investments. While the budget resources are limited, the need for investments and maintenance is high. In order to meet the needs by using the available means there is need for a greater efficiency of usage of European funds, public funds and alternative sources of financing such as public-private partnerships (PPPs).

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The absorption rate of EU structural funds is rather low, and this can be addressed by increasing the organizational capacity at the level of the Ministry and its subordinated transport entities. At present fragmentation and overlapping responsibilities in the administrative apparatus of the Ministry leads to conflicting policies, regulations, lack of ownership and conflicting client roles. The corporate governance of SOE’s that fall under the managed authority of the MoT should comply with international good practices and criteria for good governance. Boards of SOE’s need to offer guidance by providing a vision and good commercial skills. There is lack of a transparent procedure for the appointment of higher management personnel leading to management instability. Challenges At present the main challenges that the transport sector is facing are the following:  Restructuring and reinforcing the major national networks, road, rail and waterways;  Reorganizing transport services in order to meet the needs of citizens and businesses;  Developing a safe and a secure transport system, including public transport that is accessible for everyone;  Improving the organizational capacity of the Ministry and the corporate governance of State Owned Enterprises in order to improve services to the public.

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II. Mission and Vision

Mission To support, through appropriate public policies, the development of a sustainable, reliable, and accessible transport system, that serves the needs of the Romanian citizens, and the Romanian economy in an efficient and equitable way. The Ministry is responsible to the citizens for providing:  A safe transport system ensuring that transport infrastructure and services are provided and used to the benefit of society, in a manner that protects people from death and injury.

 An integrated transport system including the transport infrastructure, facilities and services that enable people to travel conveniently, reliably, and in a competitive time, using a combination of means of transport when necessary; and help minimize the cost and time to move goods from production sites to processing plants or markets. It also includes public policies promoted at a European, national, regional and/or local level.

 An efficient transport system generating benefits to Romania that are greater than its costs.

 An equitable transport system ensuring that its costs and benefits are distributed in a fair manner among citizens, industries, and geographic areas.

 A transport system that, while protecting the environment, supports integrated social and economic development without harm to human health or to environment for the benefit of today’s and future generations.

Vision To be a trustworthy, transparent and responsible organization, working to organize a transport system responsive to the growing mobility needs of citizens and to the efficient circulation of goods, as well as enhancing the economic development of national transport companies.  The Ministry is the lead public institution in charge of transport matters and mobility in Romania. The Ministry therefore undertakes this responsibility with the highest standards of transparency, accountability, and integrity in a collaborative manner with other public institutions, the private sector, and civil society organizations.

 The Ministry is constantly enhancing its management capabilities and organizational performance to match the important responsibilities entrusted to the Ministry by the citizens of Romania.

 The Ministry is responsive to the needs of citizens. It listens to their needs and feedback and continuously measures the results of its actions to adjust its work according to the needs.

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III. Strategic Objectives, Programs, Measures and Indicators

Strategic Objective 1: Develop an integrated and environmentally friendly national transport system

Romania’s transport infrastructure has a significant economic value, and it is of importance that the major infrastructure is reinforced and sustained for the generations to come. The development of the major rail, road, air and waterway infrastructure is a condition to ensure a sustainable transport system. This will support all other strategic objectives. The Transport infrastructure is in an overall poor condition in Romania and there is need for a continuous commitment from the Ministry to reinforce the key infrastructures. As such there is need for investments and proper management of assets in order to keep the operational costs of the road infrastructure down. Railways are an important mode of transport in Romania, because the heavy industries in Romania depend on the transport network. Rail transport also plays an important role in supporting the mobility needs of the population. In addition, railways are important for international transport. The ministry will therefore step up its efforts to modernize the railway network, both to meet the requirements of the internal transport market and to support the international mobility of people and goods. Thus, rail transport will be sustainable and environmentally friendly. Modern road management practices require functional classification of roads. Romania’s national roads have the following classification: Highways, Express roads, National E-roads, National main roads, National secondary roads. These roads face the continuous changes regarding traffic and increasing economic growth in Romania. Therefore, the roads need to be able to carry a higher number of traffic and at the same time guarantee safety. The infrastructure network needs to enhance the connectivity between the countries regions. This means that the Ministry will ensure that design and maintenance standards are in accordance to the traffic volume and connectivity needs at national and European level. With regard to the road transport sector, the policies should aim at the development of a high-speed road network that is safe, or express roads along the main axes of transport that face the growing road traffic needs, taking into account the necessary road safety measures. In addition, the regional access roads need to be improved in order to improve the regional connectivity and cohesion of the country. Railways are an important mode of transport in Romania, as the heavy industries in Romania are dependent on the network in terms of transport. Moreover, the railways are important for international transport. Therefore, the Ministry will increase its efforts in upgrading the railway network along the key TEN-T key transport corridors (core and comprehensive). As such rail transport represents a sustainable and environmental transport system.

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Inland waterways, river ports and sea ports represent an important part of Romania’s transport infrastructure. As such the Danube river holds 29 ports and the Black Sea holds three ports of national and international importance. In terms of trade the sea port of Constanța is Romania’s most important port, and it represents a large share in both import and exports of goods. The port is connected to the North Sea by the Danube Black Sea canal and the links to corridor IV and location on corridor VII and the TRACEA route reinforces the significance of the port. The development of the Constanța port is one of the priorities of the MoT. Moreover, the MoT will continue its effort to ensure modernization and usage of the full capacity of the inland waterway and sea ports. Further the Ministry will continue its efforts to create a fully operational waterway on the Danube river in order to enhance the transport of freight. Harmonized information services will lead to the attractiveness of transport on inland waterway routes. Three main Programs support this strategic objective: Program 1.1 – Optimizing the national transport system and maintaining a balanced and sustainable rail and road network The restoration of the modal balance of the national transport system is an essential condition for improving its economic efficiency, which will help to boost the competitiveness of the national economy by reducing the overall costs of transport. Improving the infrastructure network of Romania is the main condition for achieving a safe and sustainable transport system. The challenges in this sector mainly relate to the poor quality of the infrastructure network on its capabilities and services. The program addresses the sustainability of financing resources for the road and rail sector and the elaboration of multi-annual performance contracts between MT, CNAIR and CFR SA. Program 1.2 – Development of road and rail infrastructure within the main internal and international transport corridors The rehabilitation of the railway network, focusing mainly on railway thoroughfare, is an essential condition for efficient satisfaction of land transport demand on the domestic market and for balancing the demand for the two major land transport networks. As well, the construction of the TEN-T network and the existence of European funding programs, such as the CEF, as well as the cohesion funds, represent a major opportunity for the development of Romania's main infrastructures. This program supports the development of the main road network (motorways and express roads) and strategic rail sections, including rolling stock and infrastructure. Program 1.3 – Increasing the operational capacity of the Danube River and ports Romania's strategic location along the Danube and the Black Sea coast offers an excellent opportunity for development. However, Romania does not fully benefit from its inland and maritime waterway transport capacities due to the reduced navigability period of the Danube and the lack of modern port infrastructure. The program contains measures to improve navigation conditions on the Danube river, as well as to develop the infrastructure and services of the port of Constanța. Strategic Objective 1 envisages long term impacts on the transport sector and is based on the following outcomes, presented in the figure below:

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•Improvement of LPI (Logistic performance Index); Target 2030: 3.2; Target 2020: 3.0 • Road travel time Constanța - Hungarian Border; Target 2030: 8.0 h, Impacts Target 2020: 8.0 h •Rail travel time Constanța to Hungarian Border key destinantions; Target 2030: 10 h (indicative), Target 2020: 15 h (indicative)

•(1.1.1) Accelerated railway infrastructure rehabilitation: Reconstruction works over 350 km / year - target), compared to the current rate of about 10 km / year (baseline); The length of speed restrictions eliminated due to current repairs extended by 50% ; Rail network performance parameters maintained at least at the 2017 reference • (1.1.2) Effective use of financial resources for the management of railway infrastructure: 20% reduction in unit maintenance costs of the secondary rail network compared to the current level (reference level) •(1.1.3) Ensure a fair and sustainable contractual and financial framework for the management of railway infrastructure: increase the average technical speed of the network to 72 km / h (target), compared to the current level of 70,17 km / h (baseline) •(1.1.4) Ensure a fair and sustainable contractual and financial framework for the management of road infrastructure: The share of roads under the CNAIR administration and in good condition will reach 60% (target), from 52% (the level of reference) Program • (1.2.1) Improvement of railway infrastructure along railways in order to support the competitiveness of rail transport services in the internal passenger and Outcomes freight transport market: Increasing the average speed of operation • (1.2.2) Improvement of railway infrastructure along TEN-T corridors in line with European Union standards on capacity, speed and interoperability with other networks: Increasing the average operating speed • (1.2.3) Improve road infrastructure in support of the TEN-T network in line with European standards on capacity, speed, safety and services: Increasing the average speed in the TENT-T main network; Increasing the percentage of 4-lane roads in the road network under CNAIR • (1.3.1) Improve the navigability of the Danube river and related channels and the number of days per year of navigability to 330 days (target) from 320 days (baseline) • (1.3.2) Improvement of Constanța port operational capacities: container designed at 2 million TEU / year, from 1.5 million TEU / year (baseline) • (1.3.3) Improve the operational capacity of the inland waterway port network along the Danube River: the capacity of inland freight transport to 32.2 million tonnes / year in 2020, from 26.8 million tonnes / year ( Reference level)

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Strategic Objective 1: Develop an integrated and environmentally friendly national transport system

Program 1.2: Program 1.1: Program 1.3: Development of road and rail infrastructure Optimizing the national transport system and Increasing the operational capacity of the maintaining a balanced and sustainable rail and within the main internal and international Danube River and ports road network transport corridors

Measures of Program 1.1. 1.1.1.1 Renewal of railway infrastructure as part of a Measures of Program 1.2. Measures of Program 1.3. program of progressive recovery of accrued arrears 1.2.1.1 Adoption and implementation of a priority 1.3.1.1 Improvement of navigation conditions on the 1.1.1.2 Applying an intensive program to carry out the program for the renewal (rehabilitation) of the lines Bulgarian-Romanian common section of the Danube current infrastructure repairs for the railway thoroughfares 1.1.1.3 Current maintenance of the infrastructure for 1.3.1.2 Improvement of navigation conditions along permanent operation 1.2.1.2 Increasing the capacity of CFR SA to execute the Danube between Călăraşi and Braila the line repair works with its own resources 1.1.2.1 Reclassification of the railway network in relation 1.3.1.3 Improvements to shoreline protection along 1.2.2.1 Rehabilitation of railway sections of the TEN- to traffic intensity the Sulina Canal 1.1.2.2 Defining differentiated performance and T network (Large Infrastructure OP) 1.3.1.4 Rehabilitation of locks maintenance standards 1.2.2.2 Rehabilitation of railway sections of the TEN- 1.1.3.1 Balancing the allocation of budgetary resources for T network (Connecting Europe Facility) 1.3.2.1 Improving port Infrastructure in Constanța the financing of land transport infrastructure 1.2.2.3 Rehabilitation of critical civil engineering Port 1.1.3.2 Adopting and implementing a methodology for works 1.2.2.4 Modernization of stations 1.3.2.2 Improvement of the port communication defining the financing needs of the railway infrastructure in systems in Constanța Port accordance with the provisions of Directive 2012/34/EU 1.2.2.5 Modernization of electromechanical and of Law no. 202/2016 installations 1.3.2.3 Renewal of utilities networks in Constanța 1.1.3.3 Adopting and implementing a multi-annual contract 1.2.2.6 Preparation of technical projects for the Port of activity and performance for the railway infrastructure electrification of railway sections 1.3.2.4 Improvement of services for freight and manager 1.2.3.1 Completion of the Romanian highway passengers transport in Constanța Port 1.1.4.1 Adopt and implement a definition of maintenance network 1.3.3.1 Improvement of the infrastructure and needs based on network conditions and not on rules, as 1.2.3.2 Construction of major city bypasses equipment of ports on the Danube well as a contract based on network conditions 1.2.3.3 Modernization of the ring road of Bucharest 1.1.4.2 Adopt and implement a multi-annual road maintenance performance contract 24

The estimated budgetary resources needed for implementation of measures and achieving the Outcomes and impacts for 2017-2020 period is 41,027 717 (thousand RON). Strategic Objective’s program budgets Total value /year Total ,(000) 2017 2018 2019 2020 RON P.1.1 Optimizing the national transport system and maintaining a balanced and 19 575 960 4 053 911 4 866 325 5 289 614 5 366 110 sustainable rail and road network P.1.2 Development of road and rail infrastructure within the main internal and 16 935 830 5 025 526 5 667 983 2 942 962 3 299 359 international transport corridors P.1.3 Increasing the operational capacity of the Danube 4 515 927 559 109 1 365 754 1 390 419 1 200 645 River and ports Total SO1 41 027 717 9 638 546 11 900 062 9 622 995 9 866 114

Program 1.1. Optimizing the national transport system and maintaining a balanced and sustainable rail and road network

Justification. The optimization of the national transport system, which is mainly aimed at balancing intermodal competition and the equilibrated and sustainable development of major transport infrastructure, along with the accelerated integration into the single European transport area19, mainly concerns land transport, and aims at creating the conditions for more balanced distribution of transport demand among modes of transport. Such an approach involves the accelerated rehabilitation of rail transport so that it can become a real alternative to road transport in the shortest time possible. Achieving this goal means reducing the pressure on the already overloaded road network by transferring significant traffic flows to the railways. In parallel, given the foreseeable growth in demand for transport, the concern for the development and modernization of road infrastructure needs to be continued and strengthened. The rebalancing of the national transport system will have positive effects on the overall reduction of transport costs, in favor of strengthening the national economy and its competitiveness. The main strategic priorities under this program are: i) Accelerated rehabilitation of railway infrastructure. The Romanian railway infrastructure is in an advanced state of degradation, caused on the one hand by the consistent policy of underfinancing from public funds and, on the other, by the gradual decrease of CFR SA's own revenues due to the policy of favoring road transport. This situation has led to the progressive limitation of the performance of train movements20 and the fluctuating availability of infrastructure21 affecting the

19 This includes the correlation of national transport policies with EU policy 20 Mainly due to the need to impose an increasing number of speed restrictions allowing the trains to circulate safely even under degraded operating conditions of the infrastructure

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reliability of rail transport services, with effects on the amplification of the spiral of rail transport decline. As a result, accelerated rehabilitation measures of the railway infrastructure are required, on the one hand, in order to increase its effective performance at least at the level of the initially projected parameters (with consequences on the increase of the performance of the railway transport services) and, on the other hand, in order to enhance the availability of infrastructure, with consequences on strengthening the reliability of rail transport services. CFR SA considers that the actions for the rehabilitation of railway infrastructure as logistical support for the rehabilitation of the railway transport system and for increasing the economic efficiency of the national transport system should be aligned to the following priority directions of action: 1. Infrastructure renewal under a program of progressive recovery of accrued arrears. Infrastructure renewal is essential to allow for full exploitation of the projected performance of the infrastructure by reversing the low probability of failure of the infrastructure components. Taking into account the special magnitude of the arrears in matters of renewal, a program that assumes an annual renewal pace above the maturity rhythm22 should be adopted. In order to ensure maximum benefits from renewal investments, CFR SA prepares a prioritization program for renewal interventions based on the criterion of priority renewal of sections with the highest intensity of rail traffic. It is advisable to limit the pace of railway infrastructure renewal to around 500-600 km / year to prevent excessive traffic disturbance due to renewal work. 2. Apply an intensive program to perform current repairs. Chronic maintenance sub-financing has led to the accumulation of a large number of failures in the infrastructure components, which has led to a large number of speed restrictions and dangers. In the next period, the pace of new speed restrictions and / or new dangers is expected to be high due to the advanced state of infrastructure degradation. Given the magnitude of the infrastructure renewal arrears, the program for recovering these arrears will be (relatively) slow. This leads to the need to address current repairs through a program dedicated to this objective, correlated with the renewal program. Given that this current repairs program will run simultaneously with a sustained renewal program, it may be likely that within 8-10 years there will be a state of equilibrium in terms of infrastructure maintenance, characterized by a reduced number of speed restrictions caused by defective infrastructure elements and by a reduced rate of occurrence of new defects generating speed restrictions. 3. The current maintenance of the infrastructure, which is necessary to keep the probability of occurrence of failures of some infrastructure components at a reduced level. International practice has devoted the idea of "permanent operation" of the railway infrastructure.23 The level of maintenance for the "permanent operation" of the infrastructure should be understood as the level of maintenance that minimizes the likelihood of random failures of some elements of the infrastructure. This level of maintenance cannot lead to improvements in infrastructure parameters, but it is the level necessary to avoid significant degradation of these parameters. In the case of an infrastructure that is subject to a normal pace of renewal and ongoing repairs, permanent operation means operating at the projected parameters of the infrastructure.

21 Generated by the high frequency of occurrence of random railway infrastructure failures, that lead to the inadvertent imposition of new speed restrictions and line closures 22 Statistical data reveals that the annual average overrun of the maturity dates regarding the infrastructure renewal is over 300 km 23 See the considerations presented in the General Transport Master Plan of Romania

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ii) Effective use of financial resources for managing railway infrastructure. In order to efficiently use the financial resources available for the maintenance, repair, renewal, development and upgrading of the railway infrastructure, these resources should be directed to those areas of the network that are likely to generate maximum benefits for the entire Romanian railway system and, implicitly, for the national economy. To this end, it is necessary to structure the railway network so as to allow for a differentiated approach to financing and operation. As a result, the Romanian railway network should be structured into two categories:  A core network, which must be brought with priority to European standards in terms of maintenance and operation and which will provide the performance requirements needed to increase the competitiveness of rail transport services. The available development resources will be allocated as a priority for this main network.  A secondary network that needs to be maintained in operation with moderate performance parameters and that will be subject to performance improvement actions as the main network rehabilitation is completed. Limiting performance parameters for the secondary network will result in lower maintenance and operating costs. The maintenance of this secondary network is necessary to ensure the accessibility of rail transport for all regions of the country and to strengthen the main traffic flows of passengers and freight. Ensuring the connectivity of the human and business communities on the territory of Romania in order to contribute to the increase of the quality of citizens' life and the gross domestic product cannot be achieved in the absence of good connectivity to the transport network. Even if the main routes provide the highest productivity of a network, this cannot be achieved without the proper capillary of the system. Therefore, transport services on the secondary routes need to be rethought from the perspective of the development of commuter services based on 2010- and not 1940- generation transport technologies, as it is currently the case, and also from the perspective of interconnecting long-distance services provided on the main network (especially along the principal lines). In order to finance the secondary network, co-financing solutions should also be implemented by local administrations, with the appropriate modification of the existing legislation. Such an approach may allow for faster results to be obtained with a reasonable financial effort. iii) Improve the legislative framework in the field of transport in order to establish a level playing field between modes of transport. As shown in Chapter I, a major imbalance in the land transport market has been created in the last 27 years. Although rail transport is cheaper, safer and less polluting than road transport, the adopted measures artificially generated a major competitive advantage over road transport and delayed the development of rail transport. The main visible effects of these measures are:  The uncompetitive nature of passenger rail transport, especially because of the prices and the deterioration of railway infrastructure performance, which has led to the massive migration of customers to road transport. In order to maintain the accessibility of railway services within reasonable limits it was necessary to introduce the subsidy for public passenger transport services in a corrective way, which makes the magnitude of the passenger rail market to be regulated practically exclusively from the sizing and allocation of subsidies for public services.  The uncompetitive nature of the rail freight transport prices, which led to the total loss of the small freight transport market by the rail transport.

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The less visible effect is that the vulnerability of the national economy is maintained by artificially promoting a more expensive mode of transport, which generates large budget costs. In addition, the artificial and excessive promotion of road transport also contributes to maintaining a high level of dependence on oil products. In light of these considerations, and given that: (a) The European Union's transport policy strongly recommends balancing competition in the land transport market and prioritizing the promotion of rail transport; (b) A multitude of international studies conducted lately at the level of other administrations highlights the economic benefits of promoting rail transport; (c) The reduction of public transport costs is a matter of national interest, and the achievement of this goal is conditioned by prioritizing the promotion of rail transport. Measures that are likely to lead to the balancing of competitive opportunities in the domestic land transport market need to be adopted and implemented in the next period. In principle, these measures will have to be geared, on the one hand, to balancing the allocation of budgetary resources to the two modes of land transport and, on the other hand, to internalize as much as possible the costs of transport modes, so that the real costs are reflected in the prices offered by the carriers, and the pressure on the state budget is significantly diminished. Balancing the allocation of budgetary resources between the two modes of land transport was considered within the General Transport Master Plan of Romania. Starting from the Romanian Government's commitment to the 2% of GDP allocation for transport infrastructure24, the Master Plan proposed a balanced financial projection including proposals for the distribution of public funds by spending categories (maintenance and repairs, renewal / rehabilitation and investments for modernization / development) and modes of transport. This financial projection can be used as a basis for defining legal obligations of the Ministry of Transport and of the Ministry of Public Finance regarding the allocation of public funds for transport infrastructure by categories of expenditures and modes of transport, even if the latest variant of the General Transport Master Plan approved by GD no. 666/2016 contains a less detailed version of the distribution of funds. The implementation of these proposals would, on the one hand, create the premises of establishing a fair competitive environment between modes of transport and, on the other hand, the prerequisites for ensuring the financial resources needed to rebalance the national transport system. As a result, it is necessary to improve the legislative framework in the field of transport consisting of defining by normative acts some rules for the distribution of public funds by categories of expenditures (maintenance and repair, renewal / rehabilitation and investments for modernization / development) and modes of transportation in conformity with the recommendations of the Master Plan of Transport of Romania. The internalization of external costs generated by modes of transport should be focused on two main directions, involving differentiated approaches and solutions. On the one hand, symmetric implementation of the 'user pays' principle, with reference to the cost of using transport infrastructure, should be ensured. In this respect, the progressive implementation of the charging of road infrastructure use for commercial transport25 in proportion to the distance traveled should be considered. Such an approach is recommended by the European directives and there are already examples of good practice in many European countries.

24 Letter of the Government of Romania no. 57338 forwarded to the European Commission on 09/12/2013 25 Concerning trucks, coaches, buses, minibuses

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On the other hand, mechanisms for charging terrestrial commercial transport operators should be identified and implemented in relation to the degree of damage to the environment and to the health of citizens. It is mainly about the symmetrical and fair implementation of the ‘polluter pays’ principle. The internalization of the external costs of transport presents a number of certain advantages, such as: - collecting important amounts from transport operators, which can largely ensure the financing needs of the terrestrial transport infrastructure, with such consequences as less pressure on the state budget for this kind of expenditures; - reducing the tax burden on citizens and economic operators, which are now obliged to finance the external costs of transport; - launching a strong and concerted concern of transport operators towards limiting pollutant emissions and greenhouse gas emissions. The only downside is the significant resistance of the road transporter, who will naturally have the impression that the facilities at their disposal today are a gained right and, as a result, immutable. For this reason, the real political will to internalize the external costs of transport is the only viable guarantee of the success of such an approach. Given that the internalization of external costs implies a progressive approach, probably staggered over a fairly long period, it is necessary to apply a program of measures with immediate effect to compensate for distortions on the transport market. The main priorities of this program of measures should aim at: a) Creating the appropriate legislative framework to enable the compensation mechanism for public service obligations on rail passenger transport26 to improve the efficiency of the use of public funds allocated for this purpose by increasing the supply of public services and increasing the level of performance and quality of the public services. In order to maximize effects, coordination with the legislative framework on the allocation and use of rolling stock to be procured from public funds (see also the considerations in this respect presented under Program 2.1 below) must be ensured. b) Creating the necessary legislative framework for the implementation of a mechanism for the promotion of intermodal freight transport by offsetting from public funds the difference between the costs and revenues of transport operators and services involved in the intermodal logistic chains that use with priority the railway for freight transport (see also the considerations in this regard presented under Program 2.2 below). These measures would be phased out as the internalization of external costs generated by modes of transport is completed. iv) Ensure a sustainable contractual and financial framework for the management of railway infrastructure. Implementation of strategic programs and measures on railway infrastructure rehabilitation is conditional on ensuring a sustainable contractual and financial framework for the management of the railway infrastructure. Such a contractual framework must, on the one hand, ensure the implementation of the principles laid down in Directive 2012/34 / EU on the financing of railway infrastructure and, on the other hand, implement a monitoring and evaluation mechanism

26 Mechanism introduced by the EU Regulation (UE) no 1370/2007

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regarding the performance of the infrastructure manager in accordance with the principles set out in Directive 2012/34/EU and in the LIOP. v) Ensure a sustainable contractual and financial framework for road maintenance. Road maintenance and management must be carried out in an efficient manner so that these services can be offered to Romanian citizens, while maintaining a low financial pressure on the taxpayer. The ministry will gradually introduce performance-based maintenance contracts and, at the same time, will modernize its maintenance practices in collaboration with CNAIR. Objectives. Program 1.1 aims to achieve the following results by 2020: Result 1.1.1 Accelerated rehabilitation of railway infrastructure Annual renewal of railway lines through refurbishment works at a rate above the average overrun of the maturity (over 350 km / year - target), compared to the current rate of about 10 km / year (baseline) Increase by 50% of the current situation (reference level) of the length of eliminated speed restrictions through current repairs The current maintenance of the railway infrastructure for permanent operation, with consequences on maintaining the infrastructure performance parameters at least at the current level (the reference level) Result 1.1.2 Effective use of financial resources for managing railway infrastructure 20% reduction in unit maintenance costs of the secondary rail network compared to the current level (baseline) Result 1.1.3 Ensuring a fair and sustainable financial and contractual framework for the management of railway infrastructure Increase of the average technical speed of the network to 72 km / h (target) compared to the current level of 70.17 km / h (baseline) Result 1.1.4 Ensure a sustainable contractual and financial framework for road maintenance The share of CNAIR-managed roads in good state to reach 60% (target), from 52% (baseline) Description. The Program includes measures related to:  Carrying out studies and diagnostic measurements to determine the appropriate actions to achieve the objectives, especially with regard to improving road and rail infrastructure conditions. Major areas are: expertise in engineering structures, soil conditions, all types of studies (such as hydrological studies, seismic studies, environmental studies) and preparation of maintenance plans.  Implementation of rehabilitation and maintenance plans, including multi-annual budgeting, contracting, monitoring of contractual arrangements and monitoring of implementation bodies.  Financing of maintenance activities, including regular maintenance, preventive consolidation, renovation of selected network already in operation, including equipment, materials and workforce. Funds may be allocated through multi-annual contracts. Success factors. The main conditions that will enhance the success of the program are as follows: For both sectors:  Multiannual budgets provided by the Romanian State for the maintenance, repair and renewal of railway and road networks.

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For the rail sector:  The willingness of the Government and the Ministry of Transport to support the progressive increase in the pace of railway infrastructure renewal until the average rate of maturity is exceeded;  Increased efficiency of rail network management (plans, operational support, technological improvement), along with financial efforts to maintain and organize the infrastructure. For the road sector:  The availability of traffic data and forecasts and the state of transport routes;  Introduction of modern management systems such as PMS (Road Traffic Management System). Measures. The essential measures that will contribute to achieving the Program results are presented below. The budgets allocated are indicated in Annex 1 and the results and targets for measures are indicated in Annex 3.

(1.1.1) Accelerated rehabilitation of railway infrastructure

1 - Renewal of railway infrastructure as part of a program of progressive recovery of accrued arrears

2 - Applying an intensive program to carry out the current infrastructure repairs

3 - Current maintenance of the infrastructure for permanent operation

(1.1.2) Efficient use of financial resources for managing railway infrastructure

1 - Reclassification of the railway network in relation to traffic intensity

2 - Defining differentiated performance and maintenance standards

(1.1.3) Ensure a sustainable contractual and financial framework for the management of railway infrastructure

1 – Balancing the allocation of budgetary resources for the financing of land transport infrastructure

2 – Adopting and implementing a methodology for defining the financing needs of the railway infrastructure in accordance with the provisions of Directive 2012/34/EU and of Law no. 202/2016

3 – Adopting and implementing a multi-annual contract of activity and performance for the railway infrastructure manager

(1.1.4) Ensure a sustainable contractual and financial framework for road maintenance

1 - Adopting and implementing a definition of maintenance needs based on network conditions and not on the basis of rules, as well as a contract depending on network conditions

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2 - Adopting and implementing a multi-annual road maintenance performance contract

Program 1.2. Development of road and rail infrastructure within the main internal and international transport corridors

Rationale. The improvement of the core infrastructure network is a key for a sustainable and safe transport system in Romania. This program aims at addressing the poor condition of the road and rail network and for upgrading the quality of the network as it is still far from European standards regarding capacities and services. Improving rail infrastructure creates the opportunity to strengthen the performance of rail transport services on the most demanded transport routes in the internal market, with the consequences of attracting additional customers and reducing the overload of national roads on the respective routes. The improvement of the TEN-T network (core and comprehensive) represents the following opportunities for Romania:  The network consists of routes that connects the major cities in Romania;  The network connects to the Central European TENT-T network and this provides major opportunities for Romania in terms of trade relations with the rest of the EU. The Romanian road infrastructure did not keep up with the increasing demand and pressure on the road infrastructure system. The ministry needs to develop better infrastructure on the major trade corridors in order to support domestic and international trade. The development of infrastructure that is connected to the European transport corridors was a condition for Romania in order to become member of the EU and after Romania’s membership to the EU in 2007 structural funds became available and are still available for Romania’s infrastructure development. This program is therefore supported by the Large Infrastructure Operational Programme (LIOP) for the period 2014-2020 in order to improve mobility trough the development of the TEN-T and metro network and the development of a multimodal high quality, sustainable and efficient transport system supported by cohesion funds. The development of the infrastructure that supports the rail and road European transport corridors is financed through a combination of three sources: (i) EU structural cohesion funds, (ii) the state budget, and (iii) Connecting Europe Facility funding. Moreover, it is expected that public private partnerships will become an additional source of finance as soon as the Ministry has the capacity to develop and implement PPP projects. Objectives. Program 1.2 aims at reaching the following results by 2020: Result 1.2.1. Improve the rail infrastructure along railway lines in order to support the competitiveness of rail transport services in the internal market of passenger and freight transport Increasing the average speed of operation within the following railway lines: - Line 200: Braşov-Sibiu-Arad-Curtici-frontieră - Line 300: Bucureşti-Brașov-Cluj-Oradea-Episcopia Bihor-frontieră - Line 400: Brașov-Siculeni-Deda-Dej-Baia Mare-Satu Mare - Line 500: Ploieşti-Bacău-Suceava-Vicşani-frontieră - Line 600: Tecuci-Bârlad-Iaşi-Ungheni-frontieră - Line 700: Pajura-Mogoşoaia-Urziceni-Făurei-Galați-frontieră - Line 800: Bucureşti-Constanța-Mangalia - Line 900: Bucureşti-Craiova-Timișoara

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Result 1.2.2. Improve the rail infrastructure along the TEN-T corridors in conformity with European Union Standards regarding capacity, speed, and interoperability with other networks Increase of average operational speed on the following rail network: - Rhine-Danube corridor - Orient East Med - TEN-T core network - TEN-T comprehensive network Increase in kilometers of lines with an operational ERTMS enabling European interoperability Result 1.2.3. Improve the road infrastructure supporting TEN-T network in conformity with European standards regarding capacity, speed, safety and services: Increase of average speed on the TENT-T core network Percentage of 4-lane roads in the road network under the administration of CNAIR Description. The Program includes measures related to:  The construction of new road infrastructure (highways and/or express roads) and the renovation of existing infrastructure, including bridges, tunnels, culverts and other engineering structures, parking facilities and access roads.  The construction and upgrading of railways lines, by renovating or re-shaping the rail platform, bridges, tunnels, culverts and other engineering structures, and including all the necessary equipment for rail, power supply, telecommunication and signaling, stations and all associated operational structures and fixed equipment. Success factors. The main conditions that will enhance the success of the Program are:  The progressive increase in the budget allocations for the renewal of the railway infrastructure  A successful absorption of the European Union grants regarding the financing of the TEN-T network, especially Cohesion Funds and the Connecting Europe Facility (CEF);  A stable and realistic multi-annual budgeting of the national contribution to the investments;  The increase of the capacity of the Ministry of Transport to develop, contract and manage large infrastructure project (see also Program 4.2);  Selection of contractors upon a competitive procedure based on quality and reliability;  Clear conditions for private capital involvement as additional support for the implementation and finalization of the Program. Measures. The essential measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(1.2.1) To Improve the rail infrastructure along railway lines in order to support the competitiveness of rail transport services in the internal market of passenger and freight transport

1 - Adoption and implementation of a priority program for the renewal (rehabilitation) of the lines for the railway thoroughfares

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2 - Increasing the capacity of CFR SA to execute the line repair works with its own resources

(1.2.2) To improve the rail infrastructure along TEN-T network in conformity with European Union standards regarding capacity, speed, safety and interoperability with other networks

1 - Rehabilitation of railway sections of the TEN-T network (Large Infrastructure OP)

2- Rehabilitation of railway sections of the TEN-T network (Connecting Europe Facility)

3 - Rehabilitation of critical civil engineering works

4 - Modernization of Stations

5 - Modernization of electromechanical installations

6 - Preparation of technical projects for the electrification of railway sections

(1.2.3) To improve the road infrastructure supporting TEN-T networks in conformity with European standards regarding capacity, speed, safety and services

1 - Completion of the Romanian highway network

2 - Construction of major city bypasses

3 - Modernization of the ring road of Bucharest

Program 1.3. Increase the operational capacities of the Danube River and Ports

Rationale. The Danube River is the main transit corridor for freight transport in Romania. The Danube River provides access to the sea for many upstream countries situated along the Danube, and provides a significant opportunity for development of national and international trade as well as for economic opportunities for Romanian fluvial freight operators. The port of Constanța is the main port of the Black Sea in the region and the port is connecting most of the maritime entrances. The growing demand for transport services provides a spill over for development to the satellite ports of Constanța and fluvial transport in Romania. Fluvial transport is primarily consisting of low cost transportation of large volumes of bulk cargo. As such the port of Constanța has a strategic role for the management of maritime and fluvial transport operations and represents a key asset for Romania’s future growth in the transport sector. At present the Port of Constanța and the inland waterways and ports have benefited from development programs under the TEN-T Rhine-Danube Corridor policy, as the Danube corridor is subjected to multiple development programs that address improvement of fairway capacities. Many bottlenecks have been reduced and therefore traffic is expected to grow over the coming years. Yet there are still bottlenecks that prevent Romania from fully tapping into the maximum potential of maritime and fluvial transport. As such there is a low level of investments in modernization of the port infrastructure as well as there is a low level of maintenance of port infrastructure. The dock

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infrastructure is aging and is well beyond quality standards. Romania did not fully tap into the full potential of the Danube network for freight transport over long distance due to the limited navigability of certain sections of the Danube. Moreover, with 1.41 million TEU27 handled in 2014, the port has almost reached its limits (1.5 million) while the movement of containerized freight is supposed to grow from 4% to 12% by 2030. To face this challenge, the MoT will address the following issues:  The capacity of the container terminal has to be increased as well as the equipment should be modernized.  The port operations should be rationalized to take advantage of the location and its infrastructure;  The promising business activities, like Ro-Ro services and passenger traffic, have to be developed;  The hinterland connections have to be reinforced;  The equipment and service infrastructure should be renewed. The MoT will enhance public policies that aim at:  Improving and developing the navigability conditions of the Danube and associated waterways;  Reinforcing the capacities of the Maritime Port of Constanța and its inland organization;  Improving the efficiency of cargo management through a modernized infrastructure for all the significant ports along the Danube. Objectives. Program 1.3 is intended to achieve the following results by 2020: Result 1.3.1. Improvement of the navigability of the Danube River and its associated canals and to achieve its full transport operational capacities: Improvement of number of annual days of navigability to 330 days (target) from 320 days (baseline) Result 1.3.2. Improvement of the operational capabilities of the Port of Constanța: Container capacity of Port of Constanța to 2 million TEU/year from 1.5 million TEU/ year (baseline) Result 1.3.3. Improvement of the operational capability of inland waterways ports network along the Danube River Increase the capacity of freight transportation on inland waterways to 32.2 million tons/ year in 2020 from 26.8 million tons/ year (baseline) Description. The Program will support a varied set of technical interventions that are including the following activities:  The conception, construction or rehabilitation of structural and engineering works along the Danube River, the maintenance activities (dredging, bank reinforcement) of the waterways. Also, organization of activities and acquisition of equipment for monitoring of the fairway conditions, the water conditions, and the related environmental mitigation measures.

27 Represents an ISO standard for containers with the length of twenty foot

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 The development of port infrastructure, dredging works and increase of channel depth, internal and external rail and road connection, new equipment and terminals, improvement of utility networks, modernized storage and handling zones for the operators. Success factors. The main conditions that will enhance the success of the Program are:  Successful absorption of the European Union grants regarding the financing of the TEN-T network, especially Cohesion Funds and Connecting Europe Facility funding;  Stable and realistic multiannual budgeting of the national contribution to the investments;  Coordination of the policy of investments with those of the other modes of transport for better inland connections;  Willingness of port operators, freight forwarders and shippers to exploit the opportunities of containerization and multimodal transport services. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(1.3.1.) To improve of the navigability of the Danube River and associated canals to achieve the full transport operational capacities of inland waterways

1 - Improvement of navigation conditions on the Bulgarian-Romanian common section of the Danube

2 - Improvement of navigation conditions along the Danube between Călăraşi and Braila

3- Improvements to shoreline protection along the Sulina Canal

4- Rehabilitation of locks

(1.3.2.) To improve the operational capabilities of the Port of Constanța

1 - Improving Port Infrastructure

2 - Improvement of the port communication systems

3 - Renewal of utility networks

4 - Improvement of services for freight and passengers transport

(1.3.3.) To improve the operational capability of inland waterways ports network along the Danube River

1 - Improvement of infrastructure and equipment of Ports on the Danube

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Strategic Objective 2: Develop a multimodal national transport system that is sustainable and efficient

Increased inter-modality will support economic growth and green transport. Intermodal transport represents an efficient combination of multiple modes of transport and is an efficiency combination of multiple modes in order to transport freight. Multimodal transport has a beneficial effect on economic development, economic efficiency, safety and the reduction of GHG emissions that are resulting from transport, provided that priority is given to promoting environmentally friendly and economically efficient modes of transport. At present the intermodal sector in Romania is still underdeveloped but there is a significant potential for the development of intermodal hubs along the European transport corridors. The objective of the Ministry is to offer intermodal services and to improve their quality to meet the needs of the citizens. To this end the Ministry will encourage and support private sector investments, provided improved procedures and regulations that ensure greater transparency. At the same time, the Ministry is involved in supporting regional mobility through the development of county / regional road infrastructure and efficient connection through multimodal connections to national interest networks and in ensuring urban / metropolitan mobility through the development and modernization of large public transport systems (suburban and / or underground) in large urban agglomerations by investing in infrastructure and modern means of transport, but also by enhancing the quality of life at regional level through the improvement of transport safety and security for all modes of transport. At present, there are 26 road/rail terminals hold by CFR Marfă and there are 19 terminals hold by private operator. The terminals owned by CFR Marfă need to be developed more substantially given their poor quality of infrastructure and services. Most of these terminals are not tapping into their full potential. As such, some terminals under the control of CFR Marfă need to be entirely replaced by new terminals due to their unsatisfactory conditions. Despite the fact that intermodal transport is beneficial for trade in general, the ministry will in specific develop terminals that have potential for increased international trade, such as Timișoara and Constanța. The remaining 19 terminals that are owned by the private sector are being used in a more efficient manner. Urban development has led to rail and road terminals being within cities instead of being at the outskirts of the urban regions. This situation is in disparity with EU policies and leads to high costs for trucks that transport freight, as they need to possess special permits to access city roads in order to reach the intermodal transport terminals. The Ministry of Transport should strengthen the logistics facilities and develop container operations through a sustainable network of intermodal platforms in Romania for the period of 2014-2020 concentrating on the following cities: Bucharest, Timișoara, Cluj-Napoca, Bacău and Oradea. Presently on the land transport, the container operations in Romania are limited, especially on the railway network, compared to other European countries, mainly due to distortions on the transport market that were mentioned in Chapter I. The ministry will develop the infrastructure of waterway and port terminals, with a special focus on the development of the Port of Constanța. Currently all ports are intermodal hubs already and have different types of intermodal connections such as to roads and railways. These terminals are not using their full capacity and need to be upgraded. In the case of the port of Constanța, where there is a large volume of transshipment, it is essential that new capacity is built.

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The MoT will ensure better coordination between the different modes of transport, in order to meet the passenger needs. With regard to urban centers of Romania, the Ministry will ensure trough appropriate public policies that an intelligent intermodal transport system will be developed in major cities. The Ministry will take appropriate measure to adapt to the growing demand of air transport services. Over the last years Romania faced an increasing growth in demand for air transport services, leading to a high growth in the number of passengers carried from 2007-2011, namely from 7.8 million of passengers per year to 10.8 million in 2011. Subsequently in the period from 2014 to 2015 the number of passengers increased by 15.3 %, and placed Romania at the second place in Europe in terms of passenger growth.28 The technical standards of airports need to be upgraded in order to offer services in a safe and efficient way and to this end the Ministry will embrace the effort to make the Romanian sky network part of a larger European Single Sky network. This will lead to positive economic developments and increased air safety. The ministry will also step up its efforts to rehabilitate railway infrastructure along railways and to modernize infrastructure along the TEN-T railway corridors so that this mode of transport can be used effectively to sustain the increase in the mobility of persons and goods. Rail transport offers a safer and more efficient transport alternative, which is why increasing its share in the national transport system is likely to generate substantial benefits for the national economy. The objectives of interoperability on the core TEN-T network international operations should be achieved by the MoT. Romania should be a part of the European Rail network without any limitation on safety and capacity standards, as well as propose attractive transit routes to goods heading to central Europe. The efficient management of incentives to transport services that are performing public service obligations (PSO) in rail sector is an important challenge. Incentives such as PSO subsidies should not provide indirect aid to existing companies. PSOs should also take into account the economic and social relevance of the services, the number of people effectively using them and be modulated to support improved quality and efficiency of the services. The European transport strategy urges that "by 2050, the majority of medium-distance passenger transport should be made by rail". Against this background, given the considerations presented in Chapter I, the promotion of rail passenger transport by increasing its competitiveness must be a priority for the Romanian state, both in terms of the national interest to strengthen the competitiveness of the national economy and in terms of the obligations assumed as a Member State of the European Union. Four main Programs support this strategic objective: Program 2.1 – Increasing the competitiveness of rail passenger services The program aims mainly to strengthen the public passenger transport system for passengers, which, through the mechanisms of financing public service obligations, is the main pillar of increasing the competitiveness of rail transport in the field of passenger transport. Program 2.2 – Development of an intermodal freight transport system, mainly served by green transport modes The Program aims at constructing / reinforcing the intermodal platforms in Romania and thereby will promote containerization. For the strategic planning period 2016 -2020, the MoT will concentrate the investments in Bucharest, Timișoara, Cluj-Napoca, Bacău and Oradea.

28 Ibid.

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The program also aims to promote intermodal forms of transport such as RO-LA and semi-trailer intermodal transport in line with good practices in Europe, where such forms of intermodal transport have proved to be effective and attractive to customers. An essential condition for the success of this program is the improvement of the legislative framework in order to strengthen a level playing field between modes of transport. Program 2.3 – Reinforce the regional and municipal integration of passenger public transport A major problem of the national transport system is the imbalance created by the preponderance of individual road transport, which has caused excessive overloading of the road network, with consequences on the limitation of the speeds, the exponential increase of the frequency of the accidents and the increase of the GHG and noxious emissions. The rational solution to correct this imbalance is to create an attractive alternative to the individual transport option by strengthening a competitive public transport system with a special focus on rail transport with some important economic advantages. This program is complementary to Program 2.1 and aims, first of all, to complete the public service system of national interest with regional interest systems for rail passenger transport in the area of influence of the big cities. Such an approach has proved to be a successful solution in other European countries and is encouraged by the provisions of the European legislation in force. Public transport in Bucharest does not face the current demand nor is adapted to new urban challenges. The metropolitan authority that was set up by Law 8/2012, has not been effective in managing and regulating public transport in the metropolitan area. The Program aims at an appropriate institutional framework for urban transport in Bucharest and better cooperation between transport operators, however the activities that are needed within the Transport are not defined yet. The activities need to be properly defined before the plan can be implemented. The program aims at the development of Bucharest Metro (especially Lines 5 and 6) as the backbone of the public transport system. Program 2.4 – Achieve a single transport area in air transport The program aims at improving Romanian air transport by developing an infrastructure that that is in compliance with safety and security, that meets the mandatory technical standards and makes use of navigation assistance systems. The program aims at the modernization of the Air traffic management system that falls within the EU Single European Sky Program. This strategic objective is based on the outcomes of programs presented below.

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•Rail modal share for passengers and freigh. Target 2030 9.5 %: Target Impacts 2020: 4.5% (the same as 2010 level) •Percentage of cargo in containers: Target 2030: 20%, Target 2020: 10%

•(2.1.1) Increasing the performance and efficiency of the public passenger transport system of national interest for rail passenger transport: a 20% increase over the current passenger train routes (measured in train-km) that are a public service obligation •(2.1.2) Promoting high-attractiveness services for passenger rail transport: Implementation plan for cadenced services, in line with the recommendations of the Romanian Master Plan of Transport; 5% increase in the technical speed of the lines set out in the cadenced services implementation plan •(2.1.3.) Logistics support for passenger rail services: A 20% increase in the transport capacity of the fleet of rolling stock intended for passenger transport in relation to the existing transport capacity •(2.1.4.) Integration of passenger rail transport into intermodal flows to increase people mobility: Achieving a pace of rail transport on Bucharest Nord - Henri Coanda Airport route at 300 passengers per day (target) to about 50 passengers Day today •(2.2.1.) Priority promotion of intermodal rail-container transport: TEU handled daily in newly built / upgraded public terminals at 373 TEU (target) from 0 TEU (reference level for 2017) •(2.2.2.) Promoting RO-LA transport and semi-trailer intermodal transport: Achieving an average pace of 2 RO-LA trains per week (target) compared to 0 currently (the reference level; Achieving an average pace of 1 semi-trailer on Week (target) vs. 0 currently (baseline) •(2.2.3.) Increasing the competitiveness of intermodal transport on the internal Program market of freight transport: Implementing a mechanism for financial support of Oucomes railway and road operators involved in intermodal transport, ensuring the compensation of the difference between costs and revenues; Complete the process of increasing the competitiveness of the national rail freight operator •(2.3.1.) Promotion of public service systems of regional interest for rail passenger transport in the area of ​​influence of big cities: Adoption of a law on the application of the provisions of Regulation (EU) no. 1370/2007 •(2.3.2.) Promoting an integrated and efficient urban transport system in the Bucharest metropolitan area: The Bucharest Metropolitan Transport Authority, which will be operational and with a metropolitan public transport strategy adopted, as well as an integrated operational target tariff system, •(2.3.3.) Development and modernization of urban transport services in Bucharest: Mileage of metro lines built up to 19 km (target) from 0 km (reference level; Average number of passengers per day underground at 700 000 per day in 2020 (target, ) From 600,000 per day (baseline) •(2.4.1.) Romanian airports will follow the ICAO safety audits and recommended aviation safety practices and procedures (Craiova, Sibiu, Cluj-Napoca, Timișoara and Henri Coanda - Bucharest): Increase of space for the platform by 40%, Increase in the number of aircraft Henri Coanda - Bucharest by 10%, from 108,566 in 2019 (reference level) •(2.4.2.) Romania will participate in the development of the Single European Sky: Implementation in Romania of 4 new ATM (target) functionalities, from 0 functionalities (the reference level). Full implementation of the SESAR air traffic management program

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Strategic Objective 2: Develop a multimodal national transport system that is sustainable and efficient Program 2.2: Program 2.3: Programme 2.1: Development of an intermodal Program 2.4: Strengthening the regional and Increasing the competitiveness of freight transport system, mainly Creation of a single transport municipal organization of public rail passenger transport services served by environment-friendly area in air transport passenger transport transport modes Measures of Program 2.2. Measures of Program 2.1. Measures of Program 2.4. 2.2.1.1 Development of a network of Measures of Program 2.3. 2.1.1.1 Improve the national legislative public intermodal terminals, as 2.3.1.1 Completing the national 2.4.1.1 Improvement of technical framework legislative framework in accordance 2.1.1.2 Adopt and implement public recommended by the General parameters of Romanian Airports Transport Master Plan of Romania with the principles established by the service contracts European legislation on regional-interest 2.4.2.1 SESAR Deployment Program 2.1.1.3 Establishment and 2.2.1.2 Adopt and implement a plan implementation 2015 – Cluster 3 operationalization of the Rail Reform to provide a container park for internal public services for passenger rail Agency traffic transport 2.4.2.2 Optimization of available 2.1.2.1 Adopt and implement a plan for 2.2.1.3 Define the business model 2.3.1.2 Modernizing the railway belt of airspace cadenced services regarding the involvement of different Bucharest 2.1.2.2 Repair and maintenance of lines actors of the railway system in the 2.3.2.1 Reformulate the administrative for the implementation of cadenced intermodal transport of containers arrangements for BMTA services 2.3.2.2 Restructuring the municipal 2.1.3.1 Adopting and implementing a plan 2.2.2.1 Providing intermodal terminals with the necessary public transport companies for the procurement of rolling stock, as well 2.3.2.3 Adoption and implementation as purchasing it equipment 2.1.3.2 Ensuring the necessary rolling 2.2.2.2 Improve the legal framework of a general long-term strategy for stock in order to increase the attractiveness BMTA and the public transport services 2.1.4.1 Adopt and implement a of RO-LA transport services and in Bucharest multimodal integration plan with the air intermodal semi-trailer transport 2.3.3.1 Creation of the new metro line passenger transport services “M5” 2.1.4.2 The realization of railway 2.2.3.1 Defining and implementing a 2.3.3.2 Creation of the new metro line connections between Bucureşti Nord and “M6” Henri Coandă Airport legal mechanism of financial support for the intermodal rail-road container 2.3.3.3 Extension of the line M4 with 2.1.4.3 Multimodal integration with the new section Parc Bazilescu- individual interurban road transport transport operators 2.1.4.4 Multimodal integration with urban 2.2.3.2 Enhancing the Străulești passenger public transport systems competitiveness of the national rail 2.3.3.4 Modernization of the metro freight operator lines M1, M2, and M3

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Estimated budgetary resources needed for implementation of measures and achieving the Outcomes and impacts for 2017-2020 period is 12,594,206 (000 Lei).

Strategic Objective’s program budgets Total value /year Total

,(000) RON 2017 2018 2019 2020

P.2.1 Increasing the competitiveness of rail 5 969 974 1 489 500 1 508 474 1 486 000 1 486 000 passenger transport services P.2.2 Development of an intermodal freight transport system, mainly served by 861 0 287 287 287 environment-friendly transport modes P.2.3 Strengthening the regional and municipal organization of 6 615 483 1 116 913 2 038 253 1 916 916 1 541 401 public passenger transport Creation of a single transport P.2.4 7 889 0 2 630 2 630 2 630 area in air transport Total SO2 12 594 206 2 606 413 3 549 643 3 405 832 3 030 317

Program 2.1. Increasing the competitiveness of rail passenger transport services

Justification. Statistical analyzes reveal that rail passenger transport is prevalent on the Romanian railway network. This type of transport has a share of about 75% of total rail traffic in total train path (measured in train-km). On the other hand, the European transport strategy urges that "by 2050, the majority of medium- distance passenger transport should be done by rail". Against this background, given the considerations set out in Annex 1, the promotion of rail passenger transport by increasing its competitiveness must be a priority for the Romanian State, both in terms of the national interest to strengthen the competitiveness of the national economy and in terms of the obligations assumed as a Member State of the European Union. In this respect, the following categories of strategic actions are relevant: a) Promoting high-attractiveness services for passenger transport. The basic component of this strategic action is the deployment of high-frequency train services and equal succession intervals (so-called cadenced services). International experience has shown that this type of service is highly appreciated by customers because it responds appropriately to their mobility needs. The attractiveness of such services has also been validated on the Romanian railway network, as it has led to substantial sales growth on the routes where they have been implemented (eg. Bucharest-Pitesti, some non-interoperable sections). The analyzes made for the elaboration of the General Transport Master Plan of Romania have led to the recommendation of a cadenced service model for passenger transport, presented in the following figure. This model should be implemented by the year 2030. Assessments made using the National Transport Model demonstrated that the implementation of this service model can lead to an increase in the volume of rail passenger services (measured in passenger-km) of about

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115% in the year 2030 in comparison to the volume registered in 2012. The following figure shows the proposed structure of the train running chart, where each line represents a train per 2 hours.

Proposals on implementing a cadenced service model Source: General Transport Master Plan of Romania b) Logistics support for rail passenger services, mainly by ensuring adequate rolling stock in terms of transport capacity, traffic speed and comfort level. As shown in Annex 1, the national rail passenger operator has a market share of over 80%, but faces an acute shortage of rolling stock in terms of transport capacity, but also in terms of performance and comfort. The most critical aspect is that of transport capacity. The approximately 1,500 operational wagons allow customers to embark in about 1,300 trains per day, which leads to the impossibility of operating all transport links29 and to the inability to provide satisfactory public services in terms of number of trains, available capacity and comfort. This is due to the prolonged lack of funding for the purchase of new rolling stock, as well as to the financing for the maintenance, repair, renewal and upgrading of the existing rolling stock. As a result, it is essential to identify and implement financing solutions for both the acquisition of new rolling stock and the maintenance, repair, renewal and upgrading of existing rolling stock. With regard to the acquisition of new rolling stock, within the LIOP30 there are non-reimbursable funds available for the purchase of a fairly consistent package of new rolling stock. Purchasing this rolling stock and making it available to railway operators with public service contracts is one

29 There are a large number of traffic sections on which no trains are operated, due to the lack of transport capacities, which leads to the overloading of the road infrastructure on these relations 30 Large Infrastructure Operational Program

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of the main tasks of the newly established Railway Reform Authority. Consideration should also be given to the use of co-financing facilities from non-reimbursable funds for rolling stock packages for the implementation of public transport services of regional interest (eg. suburban services in the area of influence of big cities). However, mechanisms for financing from national public funds must also be set up to fully cover the needs of new rolling stock. With regard to the maintenance, repair, renewal and upgrading of existing rolling stock, it is necessary to identify and implement legal financing mechanisms under the general mechanism for financing public service obligations. This should be another priority task of the Railway Reform Authority. c) Integration of passenger rail transport into intermodal flows for the increase of mobility for persons, which should, in principle, would cover the following relevant targets:  Multimodal integration with passenger air transport, which involves making rail connections to airports with significant traffic (over one million passengers per year).  Multimodal integration with individual interurban road transport, which is the mode of transport with the highest modal share in the transport market. A solution commonly used in other railway administrations is the carriage of passenger cars.  Multimodal integration with urban passenger transport. Mainly, this means coordinating rail transport with the major city transport systems (buses, trams, subways) in order to facilitate transport flows on routes that have an end in the cities and the other end in other localities. d) Increased accessibility of passenger rail transport. The issue is addressed in Program 3.3 below. The necessary prerequisite for ensuring the success of such a strategic approach is to enhance the level of performance and efficiency of the national public passenger transport system for rail passenger transport, mainly by improving the national legislative framework in line with the principles laid down in the European legislation with respect to public passenger transport services and the adoption and implementation of public service contracts based on monitoring the performance of rail passenger services. Many of the strategic actions identified above are legally assigned to the task of the Railway Reform Authority, a newly established entity, which must be operated in a speedy manner.

Objectives. Program 2.1 aims to achieve the following results by 2020: Result 2.1.1. Increasing the level of performance and efficiency of the public service system of national interest for the rail passenger transport Public Service Contracts (PSCs) for optimized passenger rail transport leading to a quantitative increase in the supply of public services by increasing by 20% the current passenger train route (measured in train-km) that is subject to public service obligation Result 2.1.2. Promoting highly attractive services for passengers' rail transport Implementation plan for cadenced services, in accordance with the recommendations of the General Transport Master Plan of Romania, which can be implemented as the rolling stock is acquired and operationalized on the basis of the funds allocated to LIOP.

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Increase by 5% of the technical speed of the lines established in the plan for the implementation of the cadenced services, by carrying out repair and maintenance works financed from the funds stipulated in LIOP. Result 2.1.3. Logistics support for rail passenger transport services Increase the transport capacity of the fleet of rolling stock for passenger transport by 20% as compared to the existing transport capacity Result 2.1.4. Integration of passenger rail transport into intermodal flows designed to increase people's mobility Achieving a pace in rail transport on Bucharest North - Henri Coanda Airport route of 300 passengers per day (target) compared to about 50 passengers per day at present (the reference level)

Description. The program contains initiatives related to the reorganization of the management of public passenger transport services, including the recruitment of Rail Reform Authority (ARF) staff and the development of new sectoral regulations and OSP contracts. It also includes a package of measures (investment and organization) for increased quality of passenger services on railways, introducing, among other improvements, a regular schedule.

Success factors. the following aspects increase the success of the program:  Coordination of the efforts of MT, ARF, CFR SA and railway operators to improve and make efficient the public passenger transport services;  The Government's willingness to ensure a sustained pace of funding of public service obligations considering the passenger rail transport;  Effective management of the procurement process of rolling stock based on funds allocated through LIOP.

Measures. The measures that will help achieve the Program's results are presented below. The budgets allocated are indicated in Annex 1 and the results and targets for measures are indicated in Annex 3.

(2.1.1) Increasing the level of performance and efficiency of the public service system of national interest for the rail passenger transport

1 - Improve the national legislative framework in line with the principles established by the European legislation on public passenger transport services

2 - Adopt and implement public service contracts based on monitoring the performance of rail passenger services

3 - Establishment and operationalization of the Railway Reform Authority

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(2.1.2) Promote highly attractive services for passengers' rail transport

1 - Adopt and implement a plan for the implementation of cadenced services, in accordance with the recommendations of the General Transport Master Plan of Romania

2 - Repair and maintenance of lines for the implementation of cadenced rail passenger services

(2.1.3) Logistics support for rail passenger transport services

1 - Adopting and implementing a plan for the procurement of rolling stock, as well as purchasing it

2 - Ensuring the necessary rolling stock

(2.1.4) Integration of rail passenger transport into intermodal flows designed to increase people's mobility

1 - Adopt and implement a multimodal integration plan with the air passenger transport

2 - The realization of railway connections between North Bucharest and Henri Coanda Airport

3 - Multimodal integration with individual interurban road transport

4 - Multimodal integration with urban passenger public transport systems

Program 2.2. Development of an intermodal freight transport system, mainly served by environment-friendly transport modes

Rationale. The existing intermodal terminals are in a deteriorated state and are not using their full potential. In addition to this Romania’s freight transport has a low degree of containerization. At present only 13.000 containers are transported on a daily basis, and this represents only 5% of the total freight transport inn Romania. This rate is way below EU average. Yet there is a significant economic potential for containerized transport, as it enables more efficient transport and has less negative effects on the environment. At present, most of the containers are transported from Bucharest to Constanța, where 80% of the country’s containers are operated. There are also other existing routes for containers, especially to Western Europe along the Pan European corridor IV and to the north towards corridor IX. The program aims to promote containerization in Romania by the development of a sustainable network of intermodal terminals. For the programming period of 2014- 2020 the following cities investments should be concentrated in the following cities: Bucharest, Timișoara, Cluj-Napoca, Bacău, Oradea. The main obstacle to better development of containerized transport is the low quality of rail services and the lack of intermodal facilities along the trade routes. This program intends to facilitate the development of containerization by reinforcing the network of intermodal platforms in the country.

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The future network, as defined by the GTMP entails two dimensions:  Two major tri-modal platforms (rail-road- inland waterway and sea) located in Constanța and in Giurgiu;  A network of ten modernized multimodal platforms in the vicinity of the major cities of the countries. For the strategic planning period 2016-2020, the investments will be concentrated in Bucharest, Timișoara, Cluj Napoca, Bacău and Oradea. As such the Master Plan foresees to close the present platform of Bucureștii Noi and build a new terminal with improved capacity, located close to the Bucharest ring road and highway of Bucharest, in order to have, for the future, a potential to convert into a tri-modal terminal, connecting to the Danube-Bucharest Channel. In parallel, logistics facilities in Ports have to be reinforced (see Program 1.3, result 1.3.2. and 1.3.3.). Furthermore, the capacity of CFR Marfă to develop the marketing capacities to develop such a promising business line has to be strengthened (see Program 2.4). Objectives. Program 2.2 is intended to achieve by 2020 the following results: Result 2.2.1. Priority promotion of intermodal rail-container transport Increase of TEU daily manipulated to 382 TEU (target) from 101 TEU (2011 benchmark) Result 2.2.2. Promoting RO-LA transport and intermodal semi-trailer transport Achieving an average pace of 2 RO-LA trains per week (target) versus 0 currently (baseline) Achieving an average pace of 1 semi-trailer train per week (target) compared to 0 at present (baseline) Result 2.2.3. Enhancing the competitiveness of intermodal transport on the internal market for freight transport Implementation of a financial support mechanism for rail and road operators involved in intermodal transport, by which a compensation for the difference between costs and revenues will be ensured Complete the process of increasing the competitiveness of the national rail freight operator Description. The Program includes all the investments related to the development of logistics platforms:  Land acquisition or re-allocation;  Connecting to utility networks;  Soil preparation, operational surfaces reinforcement, drainage systems;  Rail and road connections;  Warehouses. Other investments should be programmed in parallel, such as development costs (marketing, administration) and public services re-locations (customs, phytosanitary, safety and security services). The private operators should also buy the equipment to perform their business activities. Success factors. The following factor enhance the success of the program:  A consensus between operators on creating and financing the connections between intermodal platforms;  The involvement of CFR SA, CFR Marfă and other rail freight operators on the development of efficient physical interfaces between rail and other modes;

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 The interest of shippers and freight forwarders for operating container trains. Measures The measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(2.2.1) To prioritize the promotion of intermodal rail-road container transport

1 - Develop a network of public intermodal terminals, as recommended by the General Transport Master Plan of Romania

2 - Adopt and implement a strategic plan to provide a container park for internal traffic

3 - Define the business model regarding the involvement of different actors of the railway system in the intermodal transport of containers

(2.2.2) To promote RO-LA transport and intermodal semi-trailer transport

1 - Providing intermodal terminals with the necessary equipment

2 - Improve the legal framework in order to increase the attractiveness of RO-LA transport services and intermodal semi-trailer transport services

(2.2.3) To increase the competitiveness of intermodal transport on the internal market for freight transport

1- Defining and implementing a legal mechanism of financial support for the intermodal rail- road container transport operators

2- Enhancing the competitiveness of the national rail freight operator

Program 2.3. Strengthening the regional and municipal organization of public passenger transport

Justification. One of the key issues considering the optimization, balancing and streamlining of the national transport system is to increase the level of competitiveness of public passenger transport so that it becomes an attractive alternative to the variant of individual road transport (by car). The results of scientific studies showing the superiority of rail transport in terms of energy efficiency, safety and low GHG and NOx emissions lead to the need to ensure through public policies and appropriate strategies the conditions for increasing the use of rail transport in public passenger transport. The above Program 2.1 is geared to achieving these desires in terms of medium and large distance interurban passenger transport. This program addresses the issue of dealing with aspects complementary to the Program 2.1, namely the problem of suburban transport in the area of influence of the big cities in Romania. Cities such as Bucharest, Cluj, Timișoara, Brașov, Iași, Constanța, Craiova, Galați and others are regional economic poles that generate major transport flows in the adjacent areas, consisting mainly in the movement

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of employees residing in these areas towards the economic units of those cities. The offer of rail transport services to take over these transport flows is not satisfactory either in terms of transport capacity, or in terms of timetable, performance and quality of services, which leads customers to focus mainly on individual transport or on public road transport, with the consequences of maintaining excessive demand for road infrastructure, maintaining the frequency of road accidents on a high level, and maintaining the high overall costs generated by the transports within the national economy. As a result, it is necessary to adopt the necessary measures for prioritizing the promotion of public service systems of regional interest for the rail transport of passengers in the area of influence of the big cities. The first step in this respect should be to complement the legislative framework based on the provisions of Regulation (EU) No. 1370/2007, which allows the establishment of legal mechanisms for the support of local public passenger transport services of regional interest for the rail passenger transport. Moreover, the development of public rail transport systems of regional interest can be supported by the use of European non-reimbursable funds for regional interest objectives (e.g. for the acquisition of rolling stock for suburban transport in the area of major cities). In this context, an important objective is the railway belt of Bucharest Municipality, which can be used for the multimodal integration of the suburban railway transport in Bucharest metropolitan area with the urban public transport of the capital. The supply of urban public transport services such as tramways, trolleys and bus services in Romanian cities is not satisfactory, the infrastructure is in a poor condition and has not been developed over the past years. A large share of the rolling stock is outdated and the services do not meet the demands of the passengers. At the same time, urban areas faced an increased number of passenger vehicles on the roads. This causes critical situations regarding traffic congestions, parking space, road safety and emission of GHG. Bucharest is the largest economic center of Romania and transport is critical for its competitiveness. Despite the recent attempts to improve transport services and infrastructure, there are problems that pose major constrains on sustainable transport of people and goods in the capital. The following problems can be observed in major cities in general: (i) lack of coordination to invest in new infrastructure (ii) lack of prioritization for urban transport by dedicated bus lanes of traffic lights for busses, (iii) lack of integration of public transport services, (iv) lack of coordination of bus and metro services, (v) lack of development of suburban rail services, (vi) increased level of private minibuses in the public services within major cities. These problems regarding public transport in cities arise from inconsistent policies, a disorderly legal framework, and the absence of a strategic plan for urban transport in Bucharest. There is limited coordination between the offer of metro services and bus and tramway services. There are two different entities responsible for urban transport in Bucharest, Metrorex, a joint stock company under the mandate of MoT is responsible for the Bucharest metro, and RATB, an autonomous entity subsidized by the General Council of the Municipality of Bucharest, is providing transport services for buses, trolleybuses and tramways. In order to address the public transport problems of Bucharest, the Bucharest Metropolitan Transport Authority was set up at the initiative of the Ministry and of the Bucharest Municipality. So far, the BMTA did not provide any results in improving the situation regarding urban public transport. To this end the BTMA has not been effective in improving coordination between the following modes of transport: busses, metro, railway transport and electric urban transportation. Therefore, the ministry will ensure that the authority will become operational and that a strategic plan will be

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adopted and implemented. The Metropolitan Transport Authority should have a legal personality that will allow the organization to manage the transport modes more directly. At present the administrative arrangements of the BTMA are not clear in order to implement measures. There is need to redefine the arrangements. Also, it is recommended that RATB would have to be required to account separately for their trolleybus, tram and bus operations and that the bus operation should also be restructured into a number of separate profit centers in preparation for a move to a system of competitive tendering. It is necessary that any public owned carrier should be constituted as a regular commercial company, subjected to a bankruptcy constraint. At present, this is not the case. Regarding other urban centers in Romania, such as Craiova, Iași, Cluj, Timișoara, Oradea, Suceava, Bacău, and Brașov, the ministry aims at instituting appropriate public policies to support the development of intelligent and intermodal urban transport systems that at the same time have a low carbon foot print. As such mandatory transport services will be offered on all transport modes. There is need to serve the needs of the citizens regarding suburban railway transport for major cities. Objectives. Program 2.3 intends to achieve the following results by 2020: Result 2.3.1. Promote public service systems of regional interest for rail passenger transport in the area of influence of big cities Adopting a law on the application of the provisions of Regulation (EU) no. 1370/2007 as regards the financing of service obligations for urban and suburban passenger transport (including suburban rail transport) Result 2.3.2. Promote an integrated and effective urban transport system in Bucharest metropolitan area The Bucharest Metropolitan Transport Authority to be operational with metropolitan public transport strategy in place and an integrated fare system operational (target) from separate development plans (baseline) Result 2.3.3. Develop and upgrade the urban transport services of Bucharest Kilometers of metro tracks built to 19 km (target) from 0 km (baseline) Average number of passengers per day in the Metro, to 700 000 per day in 2020 (target) from 600 000 per day (baseline) Description. The investments of the Program are directed towards the development of Bucharest Metro, and include:  Studies and investigations of the underground for the positioning and the conception of the tunnel and stations;  Underground works – tunnel and station construction according the relevant method;  Equipment of railways lines and stations (power supply, signaling and operation control, safety systems, drainage systems, electro-mechanical equipment, electrical and video systems, ticketing);  Repair and maintenance equipment. Success factors  The availability of Government and local authorities to identify a solution for implementing public service systems of regional interest for rail passenger transport in the area of influence of large cities;  A consensus can be found regarding the institutional and financial reorganization of public transport services at Metropolitan level;

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 A clear leadership – preferably BMTA – emerges for the management of Bucharest transport system;  For the Metro investment, a successful mobilization of the European Union grants under POIM and the related State funds is obtained. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3. (2.3.1) To promote public service systems of regional interest for rail passenger transport in the area of influence of big cities 1 - Completing the national legislative framework in accordance with the principles established by the European legislation on public services of regional interest for passenger rail transport 2 - Modernization of the railway belt of Bucharest (2.3.2) To promote an integrated and effective urban transport system in Bucharest metropolitan area 1 - Reformulate the administrative arrangements for BMTA 2 - Restructuring of the Municipal public transport companies 3 - Adoption and implementation of a general long-term strategy for BMTA and the public transport services in Bucharest (2.3.3) To develop and upgrade the urban transport services of Bucharest

1 - Creation of the new metro line “M5” 2 - Creation of the new metro line “M6” 3 - Extension of the line M4 with the new section Parc Bazilescu-Străulești 4 - Modernization of the lines M1, M2 and M3

Program 2.4. Achieve a single transport area in air transport

Rationale. The air passenger transport is steadily growing in Romania, at present Romania ranks second in Europe in terms of passenger growth. As such the total number of passengers in Romanian airports increased by 15, 3 % in the period from 2014 to 2015 and this increase is expected to continue in the following years, provided that the airports respond to international competition. In terms of volume of passengers and aircraft movements Romania’s main airports are the following: București International Airport Henri Coandă and the airports of Timișoara, Iași, Cluj and Bacău. As such these airports also are part of the TEN-T network. Bucharest, Timișoara and Constanța are the airports that fall under the coordination of the Ministry, while the airports of Iași, Bacău, and Cluj fall under the local authority of the respective counties. Air transport is not only important for international movements but offers an alternative to road and rail transport to connecting the major regional centers to Bucharest. While the demand for air transport is increasing, most airports have reached their maximum capacity, and face aging airport infrastructure. The Ministry needs to ensure that airports take important measures to improve their quality and services in order to adapt to the growing demand of passengers.

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In order to ensure future growth of air traffic the Ministry has to ensure the modernization of the infrastructure of strategic airports and has to improve their connectivity with other modes of transport such as railway services and highway infrastructure, and in the case of Bucharest also connection with the metro. For this is respective strategic planning period the Ministry will focus on six key airports and aerodromes (Bucharest Henri Coanda, Cluj Napoca, Timișoara, Craiova, Sibiu, and Bacău). The aim of the Ministry is to develop its Air Traffic Management that falls within the framework of the Single European Sky. Objectives. Program 2.4 is intended to achieve till 2020 the following results: Result 2.4.1. Airports in Romania will develop operational capacity in compliance with aviation safety regulations (Craiova, Sibiu, Cluj-Napoca, Timișoara and Henri Coanda - Bucharest) Percentage increase of platform space by 40% Percentage increase of number of aircraft movements of Bucharest Henri Coanda Airport with 10% compared to 2019 from 108,566 (baseline) Result 2.4.2. Romania will participate to the development of the Single European Sky Program: Full implementation of SESAR program on air traffic management Description. Interventions are mainly necessary in the following areas:  Take-off and landing runways capacities;  Navigation assistance systems: (Doppler VHF Omni-directional Range – Instrument Landing System– Non-directional Beacon -Approach Lighting System);  Safety systems for passengers;  Cargo terminal facilities;  External connections;  Training and technical assistance. Success Factors.  Successful mobilization of the European Union grants under POIM, CEF and the related State funds is obtained;  Shared willingness of the supervising bodies of Airports (State, Local authorities) to implement the development Programs. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(2.4.1) Romanian airports and civil aviation will comply with ICAO safety audits and recommended practices and procedures regarding aviation safety

1 - Improvement of technical parameters of Romanian Airports (2.4.2) To participate in the Single European Sky Program

1 - SESAR Deployment Program implementation 2015 – Cluster 3 2 - Measure for the optimization of available airspace

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Strategic Objective 3: Provide safe, accessible and clean transport solutions for the citizens

The transport sector has a considerable impact on safety and environmental issues. Key challenges have to be addressed by the Ministry of Transport. Safety Provided that safe transport in Romania is one of the core objectives of the Ministry of Transport, regarding the fact that it involves the loss of human life and the integrity of the Transport system. In order to take responsibility for improving safety, the Ministry needs to act as lead public institution. In terms of road traffic fatalities, Romania places itself as second worst performers in the European Union. Road traffic crashes on national roads and highways account for almost 50% of all fatal traffic accidents. This is a clear sign that road infrastructure safety needs to be improved so that the Ministry can prevent fatal crashes. Concerning deadly rail fatalities, the safety of train movements must be strengthened and the extremely low level of accidents affecting rail transport customers must be maintained. On the other hand, given the large number of serious accidents at level crossings, the Ministry has to work with CFR SA to identify and take the necessary steps to reduce the number of deaths at rail crossings. The Ministry considers air transport safety as an important responsibility and will ensure that the safety standards are in line with International and European obligations such as the International Convention regarding Civil International Aviation and the Euro Control Convention31. The Ministry foresees that its air traffic safety unit is satisfactory equipped in order to ensure airworthiness of aircrafts that are serving Romania. The Ministry will ensure the safety in inland waterway and maritime navigation and enhance measures that reduce the number of fatalities in this sector. As such the Ministry will ensure that relevant authorities will improve their capacities regarding safety conditions on the Danube. Environmental impacts The constantly growing impact of the transport sector on the environment has become a concern for the Ministry. In Romania, there is a steady upward trend of annual GHG emissions that are produced by the transport sector, and this growth is significantly higher compared to the EU-28 average of GHG emissions. This indicates that the externalities produced by the transport sector are not under control. The Romanian transport sector accounts for 12,5% of the total GHG emissions. Economic incentives for climate friendly transport should be developed in favor of more climate friendly transport like non-oil motorized vehicles or rail transport. Cities may run pilot projects that are addressing clean public transport fleets, tramway modernization and facilitating non-motorized modes. Sustainable urban mobility plans should address such priorities to fight air pollution resulting from congestion and GHG emissions, taking into account the reduction of the usage of fossil fuels in urban transport.

31 For relevant regulations see annex 4

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The Ministry has the responsibility to implement the European obligations arising from Natura 2000 regulation in order to preserve Romania’s natural heritage and reduce negative externalities caused by the transport sector. 32 Romania has the mandate to enhance its environmental awareness. Environmental priorities need to be taken into account during the development of impact studies and they should be maintained during the entire life cycle of projects. These priorities should aim at the mitigation of negative externalities like air and water pollution, noise pollution and negative impacts on biodiversity. Quality of life and equity Besides the mitigation of negative externalities resulting from the Transport sector, the sector should also contribute to improve the quality of life and to improving the social equity in the country. Transport should also help to foster the social inclusion, rather than constituting an additional discriminative factor. Key priorities include (i) increasing the accessibility of road and rail transports; (ii) better targeting improvement for disadvantaged populations; and (ii) providing more timely and relevant transport information to users, particularly through Intelligent Transport Systems (ITS) investments. Ensured accessibility of public transport for citizens with special needs: The rural population should not have limited or reduced access to the main economic areas of the country. The Ministry should develop road connections that connect the rural areas to transport routes and should develop public transport services in order to ensure better connections. The Ministry will take the necessary measures to improve access to transport to mobility impaired people, and senior citizens. As such barriers to transport have to be reduced and since they affect the citizens in a negative manner with regard to access to employment, health services, social service and other services. The ministry will provide and implement a framework that incentivizes the public transport operators to provide special transportation services to its citizens with reduced mobility. Moreover, the ministry will ensure optimum compliance with existing norms for ensuring accessibility of public transport to people with special needs. Timely, relevant transport information should be made more widely available, particularly through Intelligent Transport Systems (ITS) improvements: For all transport users, individuals and companies, better information regarding the transport offerings, traffic, safe parking and infrastructure conditions is needed. The recommendations of the European directives regarding intelligent transport systems (ITS) should be fully implemented and contribute to better management of mobility in Romania. Better management of information through telematics will facilitate the interfaces between users, operations and infrastructure in several sectors and enhance overall performance in transport. The general framework for using of ITS should be implemented. Priority targets should be the key domains where the ITS can support the resolution of some existing issues: road safety, facilitation of the transit operation, information to transport users related to the transport routes and conditions, follow up and management of fleets of vehicle, vessels, trains and any related cargo. The implementation of ITS can provide a more immediate vision to infrastructure managers of the status of the operations in their respective field, better manage the traffic and help them to react quickly and efficiently to any situation. Four main Programs support this strategic objective:

32 See : Cadrul de Acțiune Prioritară pentru Natura 2000 (PAF)

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Program 3.1. – Safer transport The Ministry has shown its concern regarding the alarming situation of road safety in Romania, and developed a National Road Safety Strategy for the period 2016-2020 in order to address this problem and to halve the number of road fatalities by 2020. The Program supports road safety measures that are included in this strategy, in specific, measures that address road infrastructure safety including reduction of Black Spots (segments of the road with a high concentration of fatal traffic crashes), on the national network. The ISP acknowledges that the actions presented under the National Road Safety Strategy entail actions for multiple Ministries, this ISP only takes into consideration the activities that fall under the mandate of the Ministry of Transport. It also supports the efforts in the Air sector for incident analysis, in the rail sector for the reduction of level crossings, the facilitation of access to transport for disabled people, and the reduction of fatalities in the inland waterway sector. Program 3.2. – Cleaner transport Romania has adopted a multisector strategy aimed at mitigating the effects of climate change and reducing GHG emissions. This strategy includes several actions related to the transport sector. This Program includes overall technical support to other public authorities sharing the same objective, in the domains of urban transport, vehicle replacement and sustainable fuels and propulsion systems. Program 3.3 – Increased transport accessibility In the context of the preoccupations for prioritizing the promotion of a highly efficient and attractive public passenger transport system (see Program 2.1 above), an essential issue is to increase public accessibility for this type of public services. An important aspect of increasing the accessibility of public transport services is the improvement of facilities provided to help people with reduced mobility. Measures to this end must ensure compliance with European policy in the field and the European legislation governing this area. Program 3.4. – Connection of rural areas to major transport axes The low quality of regional road infrastructure has had an important and negative impact on regional development, limiting the mobility of workers and constituting a continuous impediment to the creation and development of activities outside the main transport axes. The Program aims to support projects improving the network of regional and interregional road connections (“Transregio roads”) in harmony with the development of the core road corridors, with the purpose of having better access to major road corridors. The Program also targets, for similar purposes, the connection to the networks of neighboring countries in addition to TEN-T corridors (“Eurotrans Roads”). Program 3.5. – Development of Intelligent Transport Systems Given the growing importance of new information technologies, the implementation of ITS (Intelligent Transport Systems) has become an obligation to safely and efficiently manage complex systems involving important traffic flows of goods and persons. This Program aims to support the ongoing implementation of ITS solutions in several modes of the transport sector: diffusion of information to road users; development and implementation of an ERTMS signaling system for rail operation; implementation and promotion of an RIS system for navigation. Strategic Objective 3 envisages long term impacts in transport and is based on outcomes generated by programs as they are presented below.

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•Reduction of casualties and fatalities in transport sector: Target 2030: less than 600 fatalities; Target 2020: 1188 fatalities •Reduction of GHG from the transport sector: Target 2030: - 20% of 2010 Impacts emissions; Target 2020: -10% of 2010 emissions •Reduction of time of travel from sub-regional centres to highway or express road network: Target 2030: -30% on renovated axes

•(3.1.1) Global security of land transport security: Adopt a legislative package on the implementation of a system of progressive internalization of external costs generated by the effects of rail and road accidents •(3.1.2.) Strengthening rail transport safety: Increase by 10% the number of centrally controlled railway and station signaling installations in current stations and lines: Increasing by 25% the number of automatic signaling installations with (semi) barriers at level crossings, as compared to the current situation •(3.1.3.) Strengthening road safety: Reducing black points along roads by 50% (target) from 138 (initial value); Percentage of effective implementation of winter maintenance targets at 100%, from 70%; Proportion of infrastructure projects subject to a road safety audit at 100%, from 0%; The ratio of infrastructure projects subject to road safety inspection to 100% (objective), from 0% (reference value) • (3.1.4) Strengthening Air Transport Security: Compliance of Civil Aviation Authority with ICAO (Target) Safety Audits, Non-Compliance (reference value) •(3.1.5) Strengthening inland waterway transport safety: Reducing the number of deaths in inland waterway transport by 50% •(3.2.1) Improve policies to reduce GHG emissions and emissions in the transport sector: Adopt a legislative package on the implementation of a system of progressive internalization of external costs from GHG and NOx emissions in the transport sector • (3.2.2) Improve policies to reduce GHG emissions and emissions in the rail transport sector: Launching some investment projects to electrify another 264 km of railway line, compared to the current length of 2347 km electrified railway line Program •(3.2.3) Improve policies to reduce GHG emissions and emissions in the road transport sector: Reduce CO2 emissions in the transport sector by 10% by 2020, from Outcomes 0% (baseline) •(3.3.1) Increasing the accessibility of rail passenger transport: The rate of customers who can reach a railway station in less than 30 minutes increases to 75.5% (target) from 74% (the reference level) •(3.3.2) Increasing accessibility of rail freight transport: Adopt a rail freight rehabilitation plan for isolated wagons •(3.3.3) Increased transport accessibility for persons with reduced mobility: The number of main stations suitable for providing passengers with special needs at 84 (target), from 70 (reference level) •(3.4.1) Facilitation of road connections between main road corridors and cities of regional importance: The rate of detourways between main road corridors and cities of regional importance (Brașov, Carei, Tg. Jiu, Mihăileşti) at 100% from 0% (benchmark); Average road condition in good condition at 75% (target), from 50% (current benchmark) •(3.4.2) Improving road links with neighboring countries and facilitating the cross- border mobility of persons and goods •(3.5.1) Supporting the deployment of ITS in the road sector: Improving the ITS architecture compatible with VMS, from the incompatible (reference) •(3.5.2) Supporting the deployment of ITS in the rail sector: Rail sections operating with ERTMS at 100% of the new sections (target) 0% (reference) •(3.5.3.) Supporting the deployment of ITS in the inland waterway sector: The percentage of vessels using RIS will reach 60% (target), from 20% (current reference)

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Strategic Objective 3: Provide safe, accessible and clean transport solutions for the citizens

Program 3.4: Program 3.5: Program 3.1: Program 3.2: Program 3.3. Increased Connection of rural areas Development of Intelligent Safer transport Cleaner transport transport accessibility to major transport axes transport Systems

Measures of Program 3.2. Measures of Program 3.4. Measures of Program 3.1. M3.2.1.1. Defining and Measures of Program 3.3. M3.3.4.1.1. Developing Transregio M3.1.1.1. Defining and Measures of Program 3.5. implementing a system of M3.3.1.1. Increasing coordination roads implementing a system of progressively internalizing the M3.5.1.1. Dissemination of with urban public transport systems M3.4.1.2. Development of bypass progressive internalization of external costs generated by the information to road users through a routes external costs generated by the effects of GHG emissions and M3.3.1.2. Increasing the level of centralized information center and effects of rail and road accidents emissions in the transport sector intermodal integration with M3.4.2.1. Measures for the signage panels individual road transport development of Eurotrans roads M3.1.2.1. Increasing the degree of M3.2.2.1. Electrification and M3.5.1.2. Measure for the automation of signaling systems in rehabilitation of the Cluj-Oradea- M3.3.1.3. Developing and M3.4.2.2. Measures to reduce implementation of a secure parking stations and in current line Episcopia Bihor line generalizing the electronic ticketing waiting times at border crossing area for trucks in Romania system for rail passenger services points M3.1.2.2. Improved safety at level M3.2.2.2. Electrification and M3.5.1.3. Measures to promote crossings rehabilitation of the Craiova-Calafat M3.3.1.4. Integrating the electronic smart vehicles line ticketing system for rail transport M3.1.3.1. Improving the safety of M3.5.2.1. Generalization of the road infrastructure with the electronic ticketing systems M3.2.3.1. Support for the of urban public transport systems ERTMS signaling system for all M3.1.3.2 Improvement of road preparation of new urban transport projects on the TEN-T corridors safety management arrangements M3.3.2.1. Defininig a Rail Freight Rehabilitation Plan for Insulated M3.5.3.1. Implementation and M3.1.4.1. Acquisition of a laboratory M3.2.3.2. Monitoring the state of Wagons operation of cross-border river to harmonize data exchange on the fleet and preparing incentives information services (RIS) based on flight parameters for vehicle renewal M3.3.3.1. Applying the law on easy operational RIS data exchange access to transport infrastructure for M3.1.5.1. Improving safety along the M3.2.3.3. Studies and proposals on people with disabilities Danube alternative fuels and alternative engines

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The estimated budgetary resources needed for implementation of measures and achieving the Outcomes and impacts for 2017-2020 period is 2,179,055 (000 RON).

Strategic Objective’s program budgets Total value /year Total ,(000) RON 2017 2018 2019 2020

P.3.1 Safer transport 105 078 51 712 34 962 7 829 10 575 P.3.2 Cleaner transport 1 500 400 400 400 300 P.3.3 Increased transport 100 25 25 25 25 accessibility P.3.4 Connection of rural areas 2 031 996 1 064 808 627 478 46 919 292 791 to major transport axes P.3.5 Development of Intelligent 40 281 28 427 11 055 397 402 Transport Systems Total SO3 2 179 055 1 145 372 673 920 55 570 304 093

Program 3.1. Safer transport

Rationale. Safety of the transport system in Romania is an important goal for the Ministry of Transport, regarding the fact that it involves human life and the integrity of the transport system. The division of many responsibilities regarding safety amongst a number of stakeholders will undermine the ownership of this responsibility, therefore it is important that the Ministry of Transport is designated as lead public institution that is responsible for a safe and secure transport system. Road safety remains a mayor challenge in Romania. Alongside Lithuania, Latvia and Bulgaria, Romania finds itself amongst the EU-28 countries with the highest fatality rate in road traffic crashes. In 2016 alone the 1,913 victims died in road traffic crashes, this number is representing more than 95 fatalities per millions of population, and also accounts for an average of 5 fatalities a day. Compared to well preforming countries in terms of road safety, Romania’s fatality rate of pedestrians in road traffic countries is three times higher33. These rates have resulted in Romania becoming the second worst performing country terms of road traffic fatalities in Europe. Even though the real fatality rate of Romania has improved over the last decade, the average fatality rate for the last five years has flat lined. Moreover, the last 2 years the fatality increased from 1,893 to 1,913 victims. Therefore, no real improvements have been made in terms of road safety. This large number of fatalities is a burden on the health sector according to the WHO report on “Road Traffic Injury Prevention”, stating that a large share of middle income countries, as Romania, face a burden of traffic-related injuries that represent a 30 to 86 percent of all trauma admissions in hospitals. A significant contribution to improving Road Safety in Romania has been made in 2016, namely the adoption of the National Road Safety Strategy for 2016-2020. This strategy addresses road safety from an Inter-ministerial perspective and its main objective is halving the road toll fatalities by 2020 compared with 2010. This strategy provides a detailed action plan including medium and long-term actions, the MoT will ensure that the actions under its mandate will be implemented. Moreover, the

33 WB team analysis of Crash Database Road Traffic Police

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Inter-Ministerial Council for Road Safety will assure the implementations resulting from the National Road Safety Strategy and its Action Plan, this council will ensure strategic oversight. In addition, the MoT will ensure the accurate implementation of obligations resulting from the EU Directive on Road Infrastructure Safety Management. The rail sector has seen positive safety results, but the ministry has to ensure that this positive development is strengthened in line with EU road safety policies. As a result, CFR SA has to implement a program to increase the degree of automation of the signaling systems in stations and in the current line, which will generate positive results including in terms of increasing the productivity of the railway infrastructure operation activities. In addition, the ministry has to ensure that the number of deaths in the rail sector will be further reduced by implementing safety measures, such as reducing the number of dangerous rail sections and increasing the upgrading of railway signaling installations at level crossings. Regarding Air Safety, the Ministry will ensure correct implementation of both International and European obligations. The MoT defined general actions regarding the improvement of Air Safety as these are presented in the GTMP. The Ministry of Transport has the obligation to ensure safe and accessible transport for all citizens. Therefore, the Ministry will improve the travel conditions of persons with physical disabilities, in order to ensure the accessibility of the transport infrastructure. The Ministry of Transport is responsible for the safety of Inland Waterway and Maritime Transport. Under the mandate of MoT, the Romanian Naval Authority is directly responsible for civil navigation. The Ministry will ensure that port authorities will implement measures that will increase the port safety as well as ensure that relevant authorities will enhance their capacities regarding safety conditions on the Danube. Moreover, the Ministry will ensure that respective authorities strengthen their capacity regarding the Transport of Dangerous goods in inland waterway transport. In regard to Maritime Transport, the Ministry has to ensure that relevant authorities will enhance their capacities in reducing the loss of human life at sea. Given the prevalence of land transport within the national transport system as well as the very gap between rail and road transport in terms of safety, it appears that the most effective way to improve the overall safety level of the national transport system is to prioritize the promotion of high-security transport modes. In the field of land transport, this should mean the priority promotion of public transport by rail, through the adoption and implementation of measures likely to increase the attractiveness of rail transport services. Objectives. Program 3.1 is intended to achieve the following results by 2020: Result 3.1.1. Improving the global land transport safety Adopt a legislative package on implementing a system of progressive internalization of external costs generated by the effects of rail and road accidents Result 3.1.2. Improving the safety of rail transport Increase by 10% the number of centrally controlled installations for signaling in stations and in current line compared to the current situation Increase by 25% the number of automatic signaling installations with (semi) barriers to level crossings, in relation to the current situation Result 3.1.3. Reinforced road safety Ratio of treated Black Spots to 50% (target) from 0% (baseline)

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Ratio of new road infrastructure projects that was subjected a Road Safety Audit to 100% (target) from 0% (baseline) Percentage of effective implementation of winter maintenance targets to 100% (target) to 50% (baseline) Ratio of infrastructure projects subjected to Road Safety Inspection to 100% (target) from 50% (baseline) Result 3.1.4. Improved safety in air transport Compliance of civil aviation authority with the ICAO Safety Audits (target) from noncompliance (baseline) Result 3.1.5. Improved safety in inland waterway transport Percentage reduction of fatalities in inland waterway transport to 0% from 100% Description. The Program includes a varied set of measures, in the following domains:  Introduction of good practices;  Institutional re-organization;  Road Signage and road rectification. Success factors.  Coordination and involvement of all public institutions to fulfil the targets of the plan;  Involvement of all citizen, companies and private institution for a national cause. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(3.1.1.) To improve the global land transport safety

1 - Defining and implementing a system of progressive internalization of external costs generated by the effects of rail and road accidents

(3.1.2.) To improve the safety of rail transport

1 - Increasing the degree of automation of signaling systems in stations and in current line

2 - Safety improvements at level crossing

(3.1.3.) To improve the safety of road transport

1 - Improving the safety of road infrastructure

2 - Improvement of the road safety management

(3.1.4.) To improve safety of air transport

1 - Acquisition of a laboratory to harmonize data exchange on flight parameters

(3.1.5) To improve the safety of inland waterway transport

1 - Improving safety along the Danube

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Program 3.2. Cleaner transport

Rationale. As Member of the European Union, Romania is aligned with the EU objectives in terms of reduction of GHG emissions of and limiting the usage of fossil fuels in the transport sector. The objective from the 2011 EU White Paper is to reduce the emissions by 20% by 2020, compared with the 1990 level. This objective will be fulfilled by Romania but this situation is resulting from a slowdown in the economic activities in the 90s, rather than resulting from emission reduction measures. To illustrate, in 2012 Romania emitted still less than half of the GHG of 1990. It then appears more relevant to work towards meeting the target for 2030 namely aiming at a reduction of 40% of the emissions compared to the level of 1990. In order to reach this objective, Romania needs to undertake measures to limit the impact of carbon emissions resulting from its economic growth. The emissions from the transport sector account for 12.5%. This is less than the EU average of 19%. However, over the last decade there has been a steady increase of annual GHG emissions coming from the domestic transport sector, accounting by now for 93% of all transport emissions. The expected growth of the car ownership index will contribute to keeping this high rate. To slow down this growth, Romania has adopted a multi-sectorial strategy aimed at mitigating the effects of climate change and reducing GHG emissions (Romania National Climate Change and Low Carbon Green Growth Strategy 2016-2030). This strategy contains several actions in the domain of transport:  Increasing clean transportation options, in particular the rail transport. Several Programs in this ISP are addressing this issue.  Increasing the efficiency of urban transport, which contains a considerable number of daily transport movements. This objective can be reached, among other solutions, by the development of the Metro of Bucharest (see objective 2.2.2).  A varied range of economic measures, mostly additional taxation, but also development of innovative schemes and technologies to favor cleaner transportation. This Program, besides the investment in Metro and Rail transport, aims to provide overall technical support to other public authorities sharing the same objective. Objectives. Program 3.2 is intended to achieve till 2020 the following results: Result 3.2.1. Improve policies to reduce GHG emissions and NOx emissions in the transport sector Adopt a legislative package on the implementation of a system of progressive internalization of external costs generated by the effects of GHG emissions and NOx emissions in the transport sector Result 3.2.2. Improve policies to reduce GHG emissions and NOx emissions in the rail transport sector Launch investment projects to electrify another 264 km of railway line, compared to the current length of 2347 km of electrified railway line Result 3.2.3. Improve policies to reduce GHG emissions and NOx emissions in the road transport sector Reduction of CO2 emissions from the transport sector by 10% by 2020 (target) Description. The Program will comprise mostly technical advisory services and studies, aiming at the technical support of other public entities.

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Success factors.  The Ministry of Transport can allocate staff to support the policy;  The Municipalities are considering the improvement of urban transport as a priority and allocate the budget and policies required for this objective;  The rail sector reform is successful. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(3.2.1) To improve policies to reduce GHG emissions and NOx emissions in the transport sector

1 - Defining and implementing a system of progressively internalizing the external costs generated by the effects of GHG emissions and NOx emissions in the transport sector

(3.2.2) To improve policies to reduce GHG emissions and NOx emissions in the rail transport sector

1 - Electrification and rehabilitation of the Cluj-Oradea-Episcopia Bihor line

2 - Electrification and rehabilitation of the Craiova-Calafat line

(3.2.3.) To improve policies that reduce GHG emissions and NOx emmissions in the road transport sector

1 - Support to the preparation of new schemes for urban transport organization

2 - Monitoring of vehicle fleet condition and preparation of incentives for vehicle renewals

3 - Studies and proposals on alternative fuels and alternative motorizations

Program 3.3. Increased transport accessibility

Justification. A comparative statistical analysis on the accessibility of passenger transport by rail, carried out at the European level, shows that Romania has one of the lowest accessibility levels to railway stations. Less than 19% of customers can reach in less than 10 minutes a railway station, compared to an EU average of 31%, while 74% of Romanian customers are located less than 30 minutes from a railway station, compared to the EU average of 83%. Given that statistical analyzes show that there is no dependence between the accessibility level to railway stations and their network density, two relevant factors that can influence the accessibility of passenger rail transport remain:  The degree of adequacy of the railway stations’ location, given the distribution of the population in the territory. In principle, the margin of action in this respect is very limited, as it could involve the need to modify the existing rail network. At most, it may be a question of identifying the need to set up new stations (commercial halls, stopping points) to serve some communities with difficult access to rail transport.

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 Passenger access time to trains34. Reducing this time can be achieved by measures such as: - Improvement of public transport towards the railway stations, which is a valid measure for large cities and involves both the synchronization with urban transport system and the modernization of railway stations, as well as their configuration as intermodal facilities with interfaces between urban and rail transport. - increasing the level of intermodal integration with the individual road transport by car, by ensuring in the CFR stations car parking facilities for railroad customers35. - increasing the level of intermodal integration with the non-motorized individual transport (bicycles), by providing bicycle parking facilities in stations for railroad customers, and by providing facilities for transporting bicycles in passenger trains. An important aspect of increasing the accessibility to public transport services is the improvement of facilities provided to help people with reduced mobility. Measures to this end must ensure compliance with the European policy in the field and the European legislation governing this area. Objectives. Program 3.3 aims to achieve the following results by 2020: Result 3.3.1. Increased accessibility to rail passenger transport The rate customers who can reach in less than 30 minutes a railway station increases to 75.5% (target), from 74% (baseline) Result 3.3.2. Increased accessibility to rail freight transport Adopt a plan for the rehabilitation of rail freight transport for insulated wagons Result 3.3.3. Increased transport accessibility for people with reduced mobility Number of main stations able to provide access for passengers with special needs at 84 (target), from 70 (reference level) Description. The Program includes a set of various measures in the following fields:  Introducing good practices;  Institutional reorganization;  Coordination of investment programs. Success factors.  Coordinate and involve all public institutions in achieving the objectives of the plan;  Involve all citizens, companies and private institutions in this national cause. Measures. The main measures that will contribute to achieving the Program's results are presented below. The budgets allocated are indicated in Annex 1 and the results and targets for measures are indicated in Annex 3. (3.3.1) To increase accessibility to rail passenger transport

1 - Increasing coordination with urban public transport systems to reduce passenger access time

34 Measured from the point of origin of the trip (eg: the passenger's home) 35 The measure is valid for both urban and rural railway stations (especially for localities in major metropolitan areas)

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2 - Increasing the level of intermodal integration with the road transport by car through developing parking facilities at the railway stations

3 - Developing and generalizing the electronic ticketing system for rail passenger transport services

4 - Integrating the electronic ticketing system for rail transport with the electronic ticketing systems of the urban public transport systems

(3.3.2) To increase accessibility to rail freight transport

1 - Defining a plan for the rehabilitation of rail freight transport for insulated wagons

(3.3.3) To increase transport accessibility for people with reduced mobility

1 - Applying the law on easy access to transport infrastructures for people with disabilities

Program 3.4. Connection of rural areas to major road transport axes

Rationale. As in many former communist countries, the new activities connected to the market economy and economic growth concentrated in major cities and new needs of inter-regional connections appeared for the circulation of people and merchandises. The low quality of regional road infrastructure had a negative impact on the regional development, limiting the mobility of workers and constituting a continuous impediment to participating in activities outside the main transport axes. The Program aims to develop a network of regional and interregional road connections (“Transregio roads”) in harmony with the development of the core road corridors, with the purpose to have better access on major road corridors (defined as the objective 1.1). The Program also targets, for similar purposes, the connection to the networks of neighboring countries in addition to TEN-T corridors (“Eurotrans Roads”.) Objectives. Program 3.3 is intended to achieve by 2020 the following results: Result 3.4.1. Facilitate road connections between the main road corridors and the cities of regional importance Ratio of bypasses between main road corridors and cities of regional importance (Brașov, Carei, Tărgu Jiu, Mihailesti) to 100% (target) from 0% (baseline) Average road condition, to 75% in good condition (target) from 50% in good condition (actual baseline) Result 3.4.2. Improve road connections with neighboring countries and facilitate transboundary mobility for people and merchandise Reduced waiting time at border crossings (Constanța, Halmeu, Siret) Description. The construction and renovation of existing roads and bypasses, including bridges, tunnels, culverts and other engineering structures, commercial and parking facilities and associated access roads.

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Some minimum standards are required to ensure safety and facilitate traffic flow: suppression of level crossings, curves rectification when possible, bypasses, pedestrian bridges and speed reduction in densely populated areas, physical separation of lanes, additional lanes for slow vehicles in highest slope sections, facilitation of crossing. Success factors.  The corresponding CF and ERDF funds are successfully mobilized;  The fiscal capacities that enable the co-financing of the projects;  Efficient contractors are selected upon a procedure based on quality of work and reliability of the providers. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

(3.4.1.) To facilitate road connections between the main road corridors and the cities of regional importance

1 - Transregio roads development

2 - Development of bypasses

(3.4.2.) To improve road connections that facilitate transboundary mobility

1 - Measures dedicated to the development of Eurotrans roads

2 - Measures dedicated to the reduction of waiting time at border-crossings

Program 3.5. Development of Intelligent Transport Systems

Rationale. Given the growing importance of new information technologies, the implementation of ITS (Intelligent Transport System) has become an obligation to efficiently manage complex situations involving important traffic flows of goods and persons. Intelligent information can support better management of the traffic in order to avoid bottlenecks and safety risks. Mandatory safety and security controls can be automated and complex procedures (such as border crossing and custom clearance for any type of cargo identification and handling) can be dematerialized, data can be better exchanged and applications submitted before the physical arrival of goods. Large fleets (like an urban transport fleet) can be monitored and services can be adapted to the demand in real time. High speed in the rail sector and safe air navigation cannot be obtained without the support of telematics and telecommunication systems. Modern infrastructure systems such as TEN-T network cannot be fully operational without corresponding information systems, as described in the EU Regulation 1315/2013 regarding TEN-T guidelines. The usage of ITS services has an impact on all modes of transport and requires a global approach, within each sector, in order to determine which results are preferred, which operations can be facilitated, how the stakeholders will cooperate to exchange data, and which interfaces should be built between vehicles, infrastructure, passengers and cargo.

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The Romanian government provides legal basis (law nr. 221/2012) and a general framework for the deployment of the ITS in the road sector, targeting four priority domains: 1. Optimal use of road data, related to traffic and passengers; 2. Continuity of the services of management of ITS of traffic and freight; 3. Application of ITS to road safety; 4. Vehicle – Infrastructure liaison. At present, the Ministry of Transport is not developing any specific projects but other public bodies and private companies were beneficiaries of CEF projects and the MoT is supporting their implementation which are fully contributing to its strategic vision. In the rail sector, a pilot project was implemented for testing the performance of ERTMS. On waterways, RIS is operational. The GTMP has also described some specific suggestions regarding each transport mode, which can be immediately adopted. This Program aims to support the ongoing implementation of ITS solutions in all modes of transport. Objectives. Program 3.5 is intended to achieve by 2020 the following results: Result 3.5.1. Support the implementation of ITS in the road sector Preparation of ITS architecture compatible with VMS (target) from not compatible (baseline) Result 3.5.2. Support the implementation of ITS in the rail sector Rail sections operating ERTMS, to 100% of new sections (target), from one pilot project section (actual baseline) Result 3.5.3. Support the implementation of ITS in the IWW sector Percentage of vessels using RIS, to 60% (target), from 20% (actual baseline) Description. The Program supports:  The deployment of information solutions for road transport users;  The implementation of ERTMS along main rail transport corridors with upgraded operational speed;  The implementation of VMIS and RNIS for the naval sector. Success factors.  The ITS functionalities and infrastructure is fully identified by all the potential beneficiaries and data providers at the stage of project preparation;  All the stakeholders are involved;  The public (individuals and companies) and the public managers are willing to take advantage of the new technologies;  There are sufficient specialists in the departments of the Ministry of Transport to give the impetus to the projects and monitor them. Measures. The primary measures that will contribute to achieving the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

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(3.5.1) To support the implementation of ITS in the road sector

1 - Measures dedicated to the diffusion of information to road users through a centralized information centre and Variable Message signs

2 - Measure for the deployment of a network of secure truck parking areas in Romania

3 - Measure for the promotion of intelligent vehicles

(3.5.2) To support the implementation of ITS in the rail sector

1 - Generalization of the ERTMS signaling system for all TEN-T infrastructure modernization projects

(3.5.3) To support the implementation of ITS in the inland waterway sector

1 - Implementation and operation of cross-border River Information Services (RIS) based on operational exchange of RIS data

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Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public

The Ministry of Transport has as mission to better serve the interest of the public. This goal can be achieved if the ministry delivers its promises as outlined within this institutional strategic planning, while using its available resources in an efficient manner. This requires a change in the areas of human resources strategic planning, and corporate governance in transport SOE’s. The Ministry will enhance its performance by a number of actions that include improved human resource management, efficient strategic planning, budgeting and monitoring and evaluation as well as improved procedure and organizational structure. Moreover, the Ministry will ensure a stable and professional management of the transport SOE’s. The ministry will improve its organizational structure and procedures in order to ensure efficient oversight of a large number of organizations that fall under its mandate. Therefore, the organizational chart of the Ministry has to focus on the content of the department’s duties and services that need to be provided to the public. The ministry will improve its services to the public by ensure appropriate staffing, reduced bureaucracy and introduction of information and technology systems. In order to ensure the implementation of the ISP there is need for efficiency in strategic planning, the Ministry’s budget process and monitoring and evaluation of the programs that are carried out. This ISP is aligned with good practices and will be generated internally by a specific procedure that is approved by the Ministry. The implementation of this planning has to be performed as collective exercises, involving the various departments of the ministry and its subordinated entities with a formal mandate (such as the Ministry Order). A collective approach will ensure better ownership and determine the various responsibilities for implementation. Monitoring and evaluation is important; however, this process has not been institutionalized in previous strategies, and assessment of indicators of achievements by using baseline and targets did not materialize. The Ministry will ensure monitoring and evaluation of this strategic planning. The process of budgeting and planning of the Ministry of Transport has to follow the Ministry of Public Finance’s calendar. At present the budgetary process in the Ministry consists mainly of listing the needed projects and estimation of resources needed. This has led to a confusing project portfolio without clear prioritized projects. The ministry will ensure that the budget preparation will be based on the strategic directions outlined in this ISP by using the General masterplan as basis for prioritization of programs. The ISP of the Ministry of Transport will provide the budget proposals for the programs of the ISP for the period of 2017-2020. As such the Ministry acknowledges that human resources are the key factor to achieve the goals that are outlined in this ISP. There is need of a management system that supports human resources planning and that improves individual staff performance and provides a string organizational capacity. To this end training and development of its staff is crucial but it requires continuous updating of procedures rules and techniques to enhance performance of the Ministry’s staff. As such the Ministry will develop appropriate plans for career development of tis personnel. The Ministry has a large part of Romania’s SOE’s under its mandate. While these SOE’s have an annual budget and long-term investment plans, the SOE’s do not have obligations to produce a regular updated medium-term business review or other corporate document that provide a strategic review, guidance and monitoring.

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Cooperate governance needs to be significantly improved, and the Ministry will ensure that SOE’s will provide strategic directions and have guidelines for good cooperate governance. The 4th strategic objective is based on Program 4.1, which aims to build a knowledge-driven, lean and information-based MoT administration, in order to: (i) more effectively fulfil its strategic function (through better mechanisms for formulating the MoT policy framework), and (ii) more efficiently deliver sector policies and services to its target beneficiaries (through an improved methodological approach). It supports measures aimed at improving the administrative capacity of sectoral policies management and implementation, with a view to achieving better functional performance of the Ministry and its coordinated and subordinated structures. Among these are: (i) enhanced capacities of MoT in project and budget planning and fund raising for delivering the ISP; (ii) enhanced capacities of MoT in organizing, monitoring and evaluating infrastructure and policy reforms projects; (iii) improving the management of human resources; (iv) ensured commercial management and transparency in SOE’s. The Strategic Objectives, and program outcomes are provided below:

•(1) Procedures for strategic planning and budgeting adopted and implemented (target) from no procedure in place (baseline) Impacts •(2) Absorbtion rate of Structural Funds to 50% by 2030, 30% by 2020, from 0% (baseline)

•(4.1.1) The organizational structure of the Ministry reflects the strategic plan (Target) Program •(4.1.2) Procedures for strategic planning and budgeting adopted and implemented; Quaterly monitoring reports (target) from no strategic Oucomes planning (baseline) •(4.1.3) Human resources management plan developed and adopted (target) from no plan (baseline)

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Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public

Program 4.1: Improve the administrative capacity of the sectoral policy management and implementation

Measures of Program 4.1. M4.1.1.1. Initiatives dedicated to the improvement of the organizational management of MoT M4.1.2.1. Procedures for strategic planning and budgeting M4.1.3.1. Initiatives dedicated to the improvement of human resources management

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The estimated budgetary resources needed for implementation of measures and achieving the Outcomes and impacts for 2017-2020 period is 184,584 (000 Lei).

Strategic Objective’s program budgets Total value /year Total ,(000) RON 2017 2018 2019 2020

P.4.1 Improve the administrative capacity of the sectoral 184 584 33 700 49 539 50 334 51 011 policy management and im- plementation Total SO4 184 584 33 700 49 539 50 334 51 011

Program 4.1: Improve the administrative capacity of the sectoral policy management and implementation

Rationale. The Ministry of Transport has developed an ambitious strategic planning in order to optimize its performances and improve the services to citizens and businesses of Romania. In order to effectively and satisfactory deliver the promises made in its strategic planning, there is a need to improve its management performances. The Ministry of Transport will therefore ensure the efficient implementation of activities that are provided in the Institutional Strategic Planning. This entails a planning with clear streamlined internal procedures and collaboration between the directorates in order to take ownership of responsibilities. This includes a streamlined budgetary process and monitoring and evaluation of the portfolios. This process has to be further defined upon the creation of a Public Policy Unit within the Ministry of Transport. Moreover, the Ministry will ensure a human resources management that is adapted to the organizational needs and the strategies that are envisaged in the Institutional Strategic Planning. Moreover, the Ministry will improve procedure to manage its subordinated entities, and SOE’s. As such the SOE’s will be subjected to professional management and appropriate corporate governance. Improve procedures and organizational structure of the MoT The Ministry will develop an organizational chart in order to better reflect the substance of the duties of the Ministerial departments, workflow and procedures required to implement the Strategic Plan. In order to provide better services to the Romanian public the ministry will ensure transparent staffing procedures and reduce bureaucracy by using electronic tools and ICT facilities. Ensure the efficiency of MoT in strategic planning, budget process and monitoring and evaluation The strategic planning has to implemented by the Ministry and its subordinated entities with a formal mandate such as a Ministerial Order. In addition, a collective approach between departments will ensure ownership of program responsibilities. Monitoring and evaluation is not a current practice of the MoT. The MoT will now use the ISP indicators as monitoring and evaluation tool. With regard to budgeting the MoT will introduce budgetary policies that are in line with the strategic directions of the ISP. The preparation of the annual budget has to be reformed in accordance with the annual budgetary ceiling of the Ministry of Public Finance and the indicative budget ceilings of the subsequent two years.

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Enhance human resource management adapted to organizational needs of MoT The professional development of the civil servants of the Ministry of Transport is a core objective of the ISP and it is critical for its successful implementation. As such staff has to be compensated and motivated by implementing the necessary training plans as well as there is need for feasible career development paths for civil servants. The public sector cannot compete with the private sector and is facing loss of competent and skilled staff. In order to address this problem and attract and maintain skilled staff, the necessary financial measures need to be taken. As such also the organizational chart needs to be linked with the open vacancies. In addition, the Ministry will establish an objective evaluation system to determine the individual development of its staff. A motivating compensation will be introduced based in individual evaluations and aligned with appropriate remuneration. As essential component of human resource management, the Ministry will ensure professional development training of its civil servants. Trainings will be based on the needs of employees and foreseen services to the public of the Ministry. Curricula for training will include the usage of Information Communication Technology tools, as such database management trainings, portals and document management solutions. Objectives. Program 4.1 is intended to achieve the following results by 2020: • Result 4.1.1. Procedures for strategic planning and budgeting adopted and implemented Ministry organizational structure reflects the Strategic Planning to “The procedure fully being implemented (target), from ‘The procedure not being implemented’ (baseline)  Result 4.1.2. Ensure the efficiency of MoT in strategic planning, budgeting process and monitoring and evaluation Procedures for strategic planning and budgeting adopted and implemented (target) from planning not implemented (baseline)  Result 4.1.3. Enhance the human resource management according to the organizational needs of the MoT Staffing plan developed and implemented

Description. Program 4.1 supports the measures aimed at improving the administrative capacity of the transport sector, in order envisage better organizational performance of the MoT and its subordinated structures. The Program consists of two categories of measures: i) specific measures, including capacity building, and ii) initiatives or policy principles that will reinforce all horizontal administration functions, but will require an intensive and permanent intra- and inter-institutional collaboration during the implementation period. Success factors. Measures. The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

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(4.1.1) To improve the procedures and organizational structure of the MoT

1 - Initiatives dedicated to the improvement of the organizational management of MoT

(4.1.2) Ensure the efficiency of the MoT in strategic planning, budget process and monitoring and evaluation

1 - Procedures for strategic planning and budgeting

(4.1.3) Enhance the human resource management according to the organizational needs of the MoT

1 - Initiatives dedicated to the improvement of human resources management

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IV. Arrangements for Implementation, Monitoring and Evaluation of the ISP

To be relevant, an institutional strategic plan must link to the government’s core policy and financial planning processes. Accordingly, the Ministry of Transport’s ISP 2017-2020 must guide the preparation of budget request, which will be prepared in 2016 for 2017-2020. It is noted that, although the budget contains expenditure projections for three years, it only provides activity and expenditure details for first year. However, over time, it is anticipated that greater attention would be paid to the second and third years. Accountability: With the parliamentary approval of the State Budget, the implementation of the strategic plan begins. The MoT, through its Management and Strategy Directorate and with the help of technical units, will prepare annual operational plans for the implementation of the ISP. They will serve as a basis for monitoring. This activity is extremely important as it enables senior management to identify and resolve potential challenges in advance. Monitoring and evaluation framework: A monitoring and evaluation framework is laid out in Annexes 2 and 3, and provides indicators and targets for the various planning levels (see Table below). Annex 1 provides an overview of the financial inputs. To the extent possible and in order not to overburden the Ministry of Transport, the ISP monitoring framework was designed so as to seamlessly integrate the indicators for which the reporting is mandatory at national and international level.. Data collection and management: An IT system for strategic planning and performance assessment has been developed with the format of the proposed structure of the ISP. The application will illustrate key functions of the ISP. The IT application is connected with GSG and MPF and the progress of ISP implementation is seen at all levels of execution and management. The progress against indicators is seen by all interested stakeholders and citizens, through an interface available for the public at large. Reporting: in deciding what to monitor and with what frequency, it is important not to overburden Ministry of Transport’s operational directorates. Typically, different levels of performance indicators require different reporting time frames. Thus: - Input and process/product indicators will be measured monthly, or at least quarterly; - Output indicators will be measured quarterly; - Outcome indicators will be measured semi-annually; - Impact indicators will be tracked annually. A diagram of the monitoring cycle of for the Ministry of Transport’s ISP is provided below.

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Figure 1. Monitoring cycle for Ministry of Transport’s Institutional Strategic Plan

ANNUAL SEMI-ANNUAL RESULTS RESULTS REVIEW: REVIEW: ALL OUTPUT, PRODUCT INDICATORS AND INPUT INDICATORS

JAN. APRIL JULY OCT.

QUARTERLY QUARTERLY QUARTERLY QUARTERLY REVIEW: PROCESS/ REVIEW: PROCESS/ REVIEW: PROCESS/ REVIEW: PROCESS/ PRODUCT AND PRODUCT AND PRODUCT AND PRODUCT AND INPUT INDICATORS INPUT INDICATORS INPUT INDICATORS INPUT INDICATORS

It is important to report to the Government, Parliament, stakeholders and general public on the progress being made towards the planned results, as per performance indicators and targets established. Although annual progress reports are not currently prepared, it will be critical that annual reports be produced and publicly released by Ministry of Transport in the future. Evaluation: Apart from the LIOP implementation, which is subject to regular ex-ante, mid-term and ex-post evaluations, the Ministry of Transport has not yet developed a formal approach to ex-post evaluation of its other Programs and policies. In the future, this activity will provide important information for implementing changes to the way in which Programs and policies are delivered. These changes will not affect dramatically the strategic plan. It will be desirable to strengthen the periodic evaluation of the entire Program portfolio that the Ministry of Transport is managing and outlined in the ISP, and preferably synchronize it with the POIM and (most probably) CEF evaluation calendar. This activity could be outsourced to the same evaluators who will cover the other programmed evaluations, and thus create synergies in the evaluation efforts, while also benefitting from a holistic view on the transport policy results. Updating the ISP. A full strategic planning process will be conducted at every four years. During the intervening years, Ministry of Transport will prepare an annual update to determine if any changes to the strategic plan are required. The update will require the completion of three activities: - Comparing the previous year’s actual versus planned results; these would be based on targets set in the strategic and operational plans; - Conducting an environmental scan to determine if any significant changes are required to the assumptions that underpin the current plan (see Chapter Context and Challenges); and - Adding one additional year to the plan.

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Year Set New Targets 2017 for 2021

2018 for 2022

2019 for 2023

By ensuring that the plan continues to cover at least three years beyond the planning year, the updated strategic plan can continue to inform the annual budget request, which also requires a three-year forecast. Most often, the vision, strategic goals and Program goals do not change unless a major event, such as an unforeseen economic crisis, occurs. The updating exercise should be completed by May 30 each year, which allows time for the collection and analysis of results achieved from the previous year.

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V. Multiannual and Annual Budgeting and Financing Sources

The viability of the 2017-20 ISP is determined by the availability of financial resources required for the implementation of the measures underneath each specific objective. Accession to the EU opened tremendous financial opportunities for the transport sector in Romania. Over the 2007-13 Programming cycle, Romania was entitled to receive funds from the EU budget, through the Cohesion Funds, European Regional Development Funds. Table 1. EU financial allocations in Romania for 2014-2020 (mil. EUR, 2011 constant prices)

Year 2014 2015 2016 2017 2018 2019 2020 Total

CF 486.32 486.32 486.32 486.32 486.32 486.32 486.32 3 404.25

ERDF 243.24 243.24 243.24 243.24 243.24 243.24 243.24 1 702.73

Total 729.56 729.56 729.56 729.56 729.56 729.56 729.56 5 106.98

Furthermore, the Connecting Europe facility (CEF) is providing an additional but adequate support to the preparation and the financing of several strategic projects listed in the present ISP. Despite the generous EU Programs envelope, securing adequate funding has remained a challenge to date when pursuing the institutional reforms. Certain relevant areas and services, either within the sector administration or under the portfolio of other government agencies – such the maintenance of the roads and railroads and the renewal of the associated equipment and engineering works that reached since long the end of their cycle of life – remain not accurately taken in account and under-funded. Equally important, there remain many policy areas with high relevance and high impact on transport and quality of life that are not funded through the MoT budget (such as municipal and regional public transport) and that require establishing effective complementarities between resources (that are abundant through other European programs but are scattered between numerous local bodies) and the overall policy managed by MoT in favor of public transport and rail transport.– more consistency and effectiveness could be obtained in the sector if the administrative separation between urban transport and national transport would not impede the development of initiatives. Both for policy areas, as well as for pursuing institutional reform priorities, MoT would be well served by a transition to Program budgeting. This should be useful for achieving a better articulation between the general sector goals, corresponding action plans and the resources that need to be allocated. Lastly, Romania needs to clearly identify and prioritize, by policy areas, an adequate balance between public and private resources that need to contribute to the development of the transport sector. The capacity of the sector to organize private public partnerships is underdeveloped and the Ministry of transport will not face easily to the challenges of such large infrastructure programs without the support of new financing partners.

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A budget outline that summarizes the core strategic objectives and the main measures is presented in Annex 1. Table 2. Financial resources for operationalizing the 2017-2020 ISP (thousand RON)

Year Total 2017 2018 2019 2020

Estimated amounts 47 814 649 12 001 138 14 304 807 10 850 531 10 656 174

The financial resources have been classified into three main categories: (i) resources from the state budget for national policies and administrative expenses, (ii) resources from the state budget for co- financing EU policies and (iii) resources from the EU budget. The figure below shows the ISP budget per funding source, with more than one third being covered by EU ERDF –CF and CEF funding. Figure 2. ISP structure by funding source ISP Structure by Funding Sources

EU funds 36% State budget 54%

Co financing 10%

The figure below illustrates the financial envelopes per year needed for the operationalization of the ISP over the 2017-20 period.

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Figure 3. Breakdown of financial envelopes, by year and strategic objective

Breakdown by year and Strategic Objective

SO1 SO2 SO3 SO4

12000000

10000000

8000000

6000000

4000000

2000000

0 2017 2018 2019 2020

The 2017 budget and the 2016-18 Fiscal-Budgetary Strategy were taken into account when planning the state budget allocations for national policies and EU Programs co-financing. The established ceilings were taken into account both for the level of co-financing and for the other types of expenses - classified under the state budget category for national policies. The EUR - RON exchange rate used is the same one used to substantiate the 2016 budget. The ISP relies on four strategic objectives and one budget Program. The number of Programs has increased significantly compared to the previous strategic planning that had been developed for the MoT. Despite its obvious complexity, this new ISP shows an increased consistency in terms of Programs and facilitates the implementation and monitoring process. The table below illustrates the breakdown of financial resources by strategic objectives. Over 68 % of the total resources allocated to the sector are directed towards the achievement of the strategic objective for infrastructure construction and renewal, including the maintenance objectives. Beside investment projects, one important action of the State in the sector is also the direct support to the public services of transport, with a policy of incentives to the operators of passenger rail service, metro and railways (SO2). Table 3. Breakdown of estimated financial resources, by year and strategic objective (thousand RON, 2017-2020) Strategic Objective 2017 2018 2019 2020 SO1 41 027 717 9 638 546 11 900 062 9 622 995 SO2 12 594 206 2 606 413 3 549 643 3 405 832 SO3 2 178 955 1 145 372 673 920 55 570 SO4 33 700 49 539 50 334 51 011

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As far as the budget management is concerned, a major institutional challenge is the stakeholders’ ability to implement the ISP, namely planning, executing and monitoring their budgets on defined programs. From an organizational and managerial perspective, the transition and monitoring of more budgetary programs represents the main challenge throughout the ISP lifecycle. Budget management by programs will also bring important changes in the budget departments of MoT.

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Annex 1a: Budgetary Objectives and Programs for the period 2017-2020 (thousand RON)

TOTAL ,000 Total Value / years ,000 RON FINANCING SOURCES Code Strategic Objective / Program RON 2017 2018 2019 2020 State Budget Co-financing NEF SO1. Develop an integrated and environmentally friendly national transport system Optimizing the national transport system and P 1.1 maintaining a balanced and sustainable rail and road network 19,575,960 4,053,911 4,866,325 5,289,614 5,366,110 2,631,044 2,997,992 3,005,438 2,770,673 11,405,146 0 0 0 0 0 0 0 0 0 0

Development of road and rail infrastructure within the P1.2 main internal and international transport corridors 16,935,830 5,025,526 5,667,983 2,942,962 3,299,359 1,269,978 1,630,042 816,731 796,627 4,513,378 929,676 786,020 386,792 479,989 2,582,477 2,824,719 3,253,074 1,739,439 2,022,743 9,839,975 Increasing the operational capacity of the Danube River P1.3 and ports 4,515,927 559,109 1,365,754 1,390,419 1,200,645 134,129 244,166 233,069 272,952 884,316 93,790 239,900 228,358 179,299 741,348 330,036 882,842 928,992 748,394 2,890,264 Total 41027717 9638546 11900062 9622995 9866114 4,035,151 4,872,199 4,055,238 3,840,252 16,802,840 1,023,466 1,025,920 615,150 659,288 3,323,825 3,154,755 4,135,916 2,668,431 2,771,137 12,730,239 SO2. Develop a multimodal national transport system that is sustainable and efficient Increasing the competitiveness of rail passenger P 2.1 transport services 5969974 1489500 1508474 1486000 1486000 1,487,399 1,489,764 1,486,000 1,486,000 5,949,163 525 4,678 0 0 5,203 1,576 14,032 0 0 15,608 Development of an intermodal freight transport system, mainly served by environment-friendly transport modes P 2.2. 860.355 0 286.785 286.785 286.785 0 55 41 36 166 0 58 58 58 174 0 174 174 174 521 Strengthening the regional and municipal organization P 2.3. of public passenger transport 6615483 1116913 2038253 1916916 1541401 255,273 445,862 363,742 296,566 1,361,443 215,437 398,096 388,294 311,837 1,313,664 648,203 1,194,295 1,164,880 932,998 3,940,376 P 2.4. Creation of a single transport area in air transport 7888.905 0 2629.635 2629.635 2629.635 0 666 666 666 1,998 0 491 491 491 1,473 0 1,473 1,473 1,473 4,418 Total 12594206.26 2606413 3549643.42 3405832.4 3030317.42 1,742,672 1,936,347 1,850,449 1,783,268 7,312,770 215,962 403,323 388,843 312,386 1,320,513 649,779 1,209,973 1,166,526 934,644 3,960,923 SO3. Provide safe, accessible and clean transport solutions for the citizens P 3.1 Safer transport 105078 51712 34962 7829 10575 8,198 6,717 7,489 10,575 32,979 10,878 7,061 86 0 18,025 32,636 21,184 254 0 54,074 P 3.2 Cleaner transport 1500 400 400 400 300 400 400 400 400 1,600 0 0 0 0 0 0 0 0 0 0 P 3.3 Increased transport accessibility 100 25 25 25 25 P 3.4 Connection of rural areas to major road transport axes 2031996 1064808 627478 46919 292791 240,864 102,236 13,265 46,740 403,105 205,988 131,311 8,414 61,514 407,227 617,956 393,931 25,240 184,537 1,221,664 P 3.5 Development of Intelligent Transport Systems 40281 28427 11055 397 402 4,538 1,765 63 64 6,430 18,914 7,334 167 169 26,584 4,975 1,956 167 169 7,267 Total 2178955 1145372 673920 55570 304093 254,000 111,118 21,217 57,779 444,114 235,780 145,706 8,667 61,683 451,836 655,567 417,071 25,661 184,706 1,283,005 SO4. Optimize the performance of the Ministry of Transport to provide better services to the public Improve the administrative capacity of the sectoral P 4.1 policy management and implementation 33,700 49,539 50,334 51,011 184,584 33,700 35,773 36,567 37,344 143,384 0 2,000 2,000 2,000 6,000 0 11,766 11,767 11,667 35,200 Total Strategic Objective 33,700 49,539 50,334 51,011 184,584 33,700 35,773 36,567 37,344 143,384 0 2,000 2,000 2,000 6,000 0 11,766 11,767 11,667 35,200

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Annex 1b: Programs, Measures and Budget allocations 2017-2020

Total, Code Objectives, Programs, Measures State Budget, thousand lei Co-financing EU Funds thou. lei 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

TOTAL

SO1 Develop an integrated and environmentally friendly national transport system P.1.1. Optimizing the national transport system and maintaining a balanced and sustainable rail and road network Renewal of railway infrastructure as part of a 1.1.1.1 154 367 338 333 604 176 924 637 154 367 338 333 604 176 924 637 0 0 0 0 program of progressive recovery of accrued arrears Applying an intensive program to carry out the 1.1.1.2 89 879 230 000 230 000 220 800 89 879 230 000 230 000 220 800 0 0 0 0 current infrastructure repairs Current maintenance of the infrastructure for 1.1.1.3 1 150 000 1 300 000 1 450 000 1 450 000 1 150 000 1 300 000 1 450 000 1 450 000 0 0 0 0 permanent operation Reclassification of the railway network in relation to 1.1.2.1 0 0 0 0 0 0 0 0 0 0 0 0 traffic intensity Defining differentiated performance and 1.1.2.2 0 0 0 0 0 0 0 0 0 0 0 0 maintenance standards Balancing the allocation of budgetary resources for 1.1.3.1 0 0 0 0 0 0 0 0 0 0 0 0 the financing of land transport infrastructure Adopting and implementing a methodology for defining the financing needs of the railway 1.1.3.2 0 0 0 0 0 0 0 0 0 0 0 0 infrastructure in accordance with the provisions of Directive 2012/34/EU and of Law no. 202/2016 Adopting and implementing a multi-annual contract 1.1.3.3 of activity and performance for the railway 0 0 0 0 0 0 0 0 0 0 0 0 infrastructure manager Adopt and implement a definition of maintenance 1.1.4.1 needs based on network conditions and not on rules, 1.150.00 1.150.000 1.150.000 1.150.000 1 150 000 1 150 000 1 150 000 1 150 000 0 0 0 0 as well as a contract based on network conditions

1.1.4.2 Adopt and implement a multi-annual road 1 481 044 1 847 992 1 855 438 1 620 673 1 481 044 1 847 992 1 855 438 1 620 673 0 0 0 0

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maintenance performance contract P.1.2. Development of road and rail infrastructure within the main internal and international transport corridors Adoption and implementation of a priority program 1.2.1.1 for the renewal (rehabilitation) of the lines for the 0 0 0 0 0 0 0 0 0 0 0 0 railway thoroughfares Increasing the capacity of CFR SA to execute the line 1.2.1.2 0 0 0 0 0 0 0 0 0 0 0 0 repair works with its own resources Rehabilitation of railway sections of the TEN-T 1.2.2.1 1 150 502 1 027 577 118 348 348 145 233 780 456 181 81 591 212 184 229 180 143 263 9 187 33 630 network (Large Infrastructure OP) Rehabilitation of railway sections of the TEN-T 1.2.2.2 96 286 2 974 860 2 086 909 2 092 928 9 479 532 474 352 473 353 603 12 787 386 430 288 844 289 583 network (Connecting Europe Facility) 1.2.2.3 Rehabilitation of critical civil engineering works 94.382 13.019 2.335 115.464 16.798 2.530 1.740 23.381 19.391 2.622 149 22.936 1.2.2.4 Modernization of stations 17.130 34.737 6.861 0 10.295 34.737 6.797 0 1709 0 16 0 1.2.2.5 Modernization of electromechanical installations 128 262 69 959 85 890 79 354 28 305 11 170 13 713 13 861 24 987 14 697 18 045 16 373 Preparation of technical projects for the 1.2.2.6 25 653 52 528 31 357 1 688 20 719 49 071 31 357 1 688 945 1 153 0 0 electrification of railway sections 1.2.3.1 Completion of the Romanian highway network 2.859.419 1.225.416 296.604 88.063 0 2.859.419 1.225.416 296.604 88.063 2.859.419 1.225.416 1.2.3.2 Construction of major city bypasses 437.778 165.982 32.240 22.782 154.753 33.693 32.026 22.382 70 756 33 072 54 100 1.2.3.3 Modernization of the ring road of Bucharest 216 114 103 905 282 418 550 935 35 269 16 590 45 092 87 964 45 211 21 828 59 331 115 742 P.1.3. Increase the operational capacities of the Danube River and Ports Improvement of navigation conditions on the 1.3.1.1 31.634 71.932 8.147 5.304 117.016 0 0 0 4.745 10.790 1.222 796 Bulgarian-Romanian common section of the Danube Improvement of navigation conditions along the 1.3.1.2 4.960 11.873 39.719 35.214 4.910 1.979 1.707 444 42 8410 11.673 6.772 Danube between Călăraşi and Braila Improvements to shoreline protection along the 1.3.1.3 5 995 91 421 89 975 93 395 999 15 237 14 996 15 566 1 249 19 046 18 745 19 457 Sulina Canal 1.3.1.4 Rehabilitation of locks 232 268 159 241 66 728 0 82 269 58 512 23 993 0 37 500 25 182 10 683 0 1.3.2.1 Improving port Infrastructure in Constanța Port 136.484 108.524 20.232 0 22.299 17.714 3.296 0 28.546 22.703 4.234 0 Improvement of the port communication systems in 1.3.2.2 5.653 61.965 57.290 32.392 719 10.551 9.548 .399 945 13.142 11.935 6.748 Constanța Port 1.3.2.3 Renewal of utilities networks in Constanța Port 34.638 104.279 101.344 172.087 5.773 17.380 16.89 112.015 152.059 7.216 21.725 21.113

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Improvement of services for freight and passengers 1.3.2.4 0 286.114 265.200 265.200 0 47 686 44 200 44 200 0 59 607 55 250 55 250 transport in Constanța Port Improvement of the infrastructure and equipment of 1.3.3.1 107.477 470.406 741.794 597.053 17.160 75.107 118.438 95.328 13.548 59.295 93.503 75.259 ports on the Danube SO2 Develop a multimodal national transport system that is sustainable and efficient P.2.1. Increasing the competitiveness of rail passenger services 2.1.1.1 Improve the national legislative framework 0 0 0 0 0 0 0 0 0 0 0 0 2.1.1.2 Adopt and implement public service contracts 1486000 1486000 1486000 1486000 1486000 1486000 1486000 1486000 0 0 0 0 Establishment and operationalization of the Rail 2.1.1.3 0 0 0 0 0 0 0 0 0 0 0 0 Reform Agency 2.1.2.1 Adopt and implement a plan for cadenced services 0 0 0 0 0 0 0 0 0 0 0 0 Repair and maintenance of lines for the 2.1.2.2 3500 22474 0 0 1399 3764 0 0 525 4678 0 0 implementation of cadenced services Adopting and implementing a plan for the 2.1.3.1 0 0 0 0 0 0 0 0 0 0 0 0 procurement of rolling stock, as well as purchasing it 2.1.3.2 Ensuring the necessary rolling stock 0 0 0 0 0 0 0 0 0 0 0 0 Adopt and implement a multimodal integration plan 2.1.4.1 0 0 0 0 0 0 0 0 0 0 0 0 with the air passenger transport The realization of railway connections between 2.1.4.2 0 0 0 0 0 0 0 0 0 0 0 0 Bucureşti Nord and Henri Coandă Airport Multimodal integration with individual interurban 2.1.4.3 0 0 0 0 0 0 0 0 0 0 0 0 road transport Multimodal integration with urban passenger public 2.1.4.4 0 0 0 0 0 0 0 0 0 0 0 0 transport systems P 2.2. Development of an intermodal freight transport system, mainly served by environment-friendly transport modes Development of a network of public intermodal 2.2.1.1 terminals, as recommended by the General Transport 0 286.79 286.79 286.79 0 55.28 55.28 55.28 0 57.88 57.88 57.88 Master Plan of Romania Adopt and implement a strategic plan to provide a 2.2.1.2 0 0 0 0 0 0 0 0 0 0 0 0 container park for internal traffic

2.2.1.3 Define the business model regarding the involvement 0 0 0 0 0 0 0 0 0 0 0 0 of different actors of the railway system in the

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intermodal transport of containers Providing intermodal terminals with the necessary 2.2.2.1 0 0 0 0 0 0 0 0 0 0 0 0 equipment Improve the legal framework in order to increase the 2.2.2.2 attractiveness of RO-LA transport services and 0 0 0 0 0 0 0 0 0 0 0 0 intermodal semi-trailer transport services Defining and implementing a legal mechanism of 2.2.3.1 financial support for the intermodal rail-road 0 0 0 0 0 0 0 0 0 0 0 0 container transport operators Enhancing the competitiveness of the national rail 2.2.3.2 0 0 0 0 0 0 0 0 0 0 0 0 freight operator P 2.3. Strengthening the regional and municipal organization of public passenger transport Completing the national legislative framework in accordance with the principles established by the 2.3.1.1 0 0 0 0 0 0 0 0 0 0 0 0 European legislation on regional-interest public services for passenger rail transport 2.3.1.2 Modernizing the railway belt of Bucharest 0 0 0 0 0 0 0 0 0 0 0 0 Reformulate the administrative arrangements for 2.3.2.1 0 0 0 0 0 0 0 0 0 0 0 0 BMTA Restructuring the municipal public transport 2.3.2.2 0 0 0 0 0 0 0 0 0 0 0 0 companies Adoption and implementation of a general long-term 2.3.2.3 strategy for BMTA and the public transport services 0 0 0 0 0 0 0 0 0 0 0 0 in Bucharest 2.3.3.1 Creation of the new metro line “M5” 800.316 342.667 97.101 355.812 800.316 342.667 97.101 355.812 189.576 80.134 40.874 74.378 2.3.3.2 Creation of the new metro line “M6” 51.040 1.285.271 1.612.586 1.123.168 51.040 1.285.271 1.612.586 1.123.168 14.872 219.057 268.755 202.660 Extension of the line M4 with the new section Parc 2.3.3.3 61.134 168.106 25.020 254.260 61.134 168.106 25.020 254.260 16.186 108.000 25.020 0 Bazilescu- Străulești 2.3.3.4 Modernization of the metro lines 1,2, and 3 204.423 242.209 182.209 62.421 204.423 242.209 182.209 62.421 34.639 38.671 29.093 19.528 P 2.4. Achieve a single transport area in air transport Improvement of technical parameters of Romanian 2.4.1.1 0 2.630 2.630 2.630 0 666 666 666 0 491 491 491 Airports

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SESAR Deployment Program implementation 2015 – 2.4.2.1 0 0 0 0 0 0 0 0 0 0 0 0 Cluster 3 2.4.2.2 Optimization of available airspace 0 0 0 0 0 0 0 0 0 0 0 0 SO3 Provide safe, accessible and clean transport solutions for the citizens P.3.1. Safer transport Defining and implementing a system of progressive 3.1.1.1 internalization of external costs generated by the 0 0 0 0 0 0 0 0 0 0 0 0 effects of rail and road accidents Increasing the degree of automation of signaling 3.1.2.1 0 0 0 0 0 0 0 0 0 0 0 0 systems in stations and in current line 3.1.2.2 Improving safety at level crossing 0 0 0 0 0 0 0 0 0 0 0 0 3.1.3.1 Improving the safety of road infrastructure 51712 33612 404 0 8198 5367 64 0 10878 7061 86 0 3.1.3.2 Improvement of road safety management 0 1350 7425 10575 0 1350 7425 10575 0 0 0 0 Acquisition of a laboratory to harmonize data 3.1.4.1 0 0 0 0 0 0 0 0 0 0 0 0 exchange for flight parameters 3.1.5.1 Improving safety along the Danube 0 0 0 0 0 0 0 0 0 0 0 0 P.3.2. Cleaner transport Defining and implementing a system of progressively internalizing external costs generated by the effects 3.2.1.1 100 100 100 50 100 100 100 100 0 0 0 0 of GHG emissions and NOx emissions in the transport sector Electrification and rehabilitation of the Cluj-Oradea- 3.2.2.1 0 0 0 0 0 0 0 0 0 0 0 0 Episcopia Bihor line Electrification and rehabilitation of the Craiova- 3.2.2.2 0 0 0 0 0 0 0 0 0 0 0 0 Calafat line Support to the preparation of new schemes for urban 3.2.3.1 100 100 100 50 100 100 100 100 0 0 0 0 transport organization Monitoring of vehicle fleet condition and preparation 3.2.3.2 100 100 100 50 100 100 100 100 0 0 0 0 of incentives for vehicle renewals Studies and proposals on alternative fuels and 3.2.3.3 100 100 100 50 100 100 100 100 0 0 0 0 alternative motorizations

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P 3.3 Increased transport accessibility Increasing coordination with urban public transport 3.3.1.1 0 0 0 0 0 0 0 0 0 0 0 0 systems Increasing the level of intermodal integration with 3.3.1.2 0 0 0 0 0 0 0 0 0 0 0 0 the road transport by car Developing and generalizing the electronic ticketing 3.3.1.3 10 10 10 10 0 0 0 0 0 0 0 0 system for rail passenger transport services Integrating the electronic ticketing system for rail 3.3.1.4 transport with the electronic ticketing systems of the 15 15 15 15 0 0 0 0 0 0 0 0 urban public transport systems Defining a plan for the rehabilitation of rail freight 3.3.2.1 0 0 0 0 0 0 0 0 0 0 0 0 transport for insulated wagons Law enforcement for easy access to transport 3.3.3.1 0 0 0 0 0 0 0 0 0 0 0 0 infrastructures for persons with disabilities P 3.4 Connection of rural areas to major road transport axes 3.4.1.1 Transregio roads development 1.064.808 627.478 46 919 292.791 240 864 102 236 13 265 46 740 205 988 131 311 8 414 61 514 3.4.1.2 Development of bypasses (incl. In 3.4.1.1) 0 0 0 0 0 0 0 0 0 0 0 0 3.4.2.1 Measure dedicated to Eurotrans roads development 0 0 0 0 0 0 0 0 0 0 0 0 Measures dedicated to the reduction of waiting time 3.4.2.2 0 0 0 0 0 0 0 0 0 0 0 0 at border crossings P 3.5 The development of intelligent transport systems The diffusion of information to road users through a 3.5.1.1 centralized information centre and Variable Message 778 393 397 402 124 63 63 64 327 165 167 169 signs Measure for the deployment of a network of secure 3.5.1.2 27 649 10 662 0 0 4 414 1 702 0 0 18 587 7 169 0 0 truck parking areas in Romania 3.5.1.3 Measure for the promotion of intelligent vehicles 0 0 0 0 0 0 0 0 0 0 0 0 Generalization of ERTMS signalling system on all 3.5.2.1 0 0 0 0 0 0 0 0 0 0 0 0 projects on TEN-T corridors Implementation and operation of cross-border River 3.5.3.1 Information Services based on operational exchange 0 0 0 0 0 0 0 0 0 0 0 0 of RIS data

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SO 4 Optimize the performance of the Ministry of Transport to provide better services to the public P 4.1 Improve the administrative capacity of the sectoral policy management and implementation Initiatives dedicated to the improvement of the 4.1.1.1 0 5.080 5.080 5.080 0 5.080 5.080 5.080 0 1.080 1.080 1.080 financial management of MoT 4.1.2.1 Procedures for strategic planning and budgeting 0 6.700 6.700 6.600 0 6.700 6.700 6.600 0 0 0 0 Initiatives dedicated to the improvement of human 4.1.3.1 33 700 37 759 38 554 39 331 33 700 34 693 35 487 36 264 0 400 400 400 resources management

*Note – Budgetary values were indicated and established under the responsibility of MoT and its subordinated institutions; In the absence of these values, green amounts are presented as exemplary, strictly for the loading exercise in the IT application for ISP monitoring; MoTs and subordinate institutions can and should correct and modify these values, to comply with reality and to correct the planning during the ISP implementation

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Annex 2: Institutional Strategic Plan (summary table)

Note - Indicator values (benchmark and target) were indicated and established under the responsibility of MoT and its subordinated institutions; In the absence of these values, green values indicators are presented as exemplary, strictly for the loading exercise in the IT application for ISP monitoring; MoTs and subordinate institutions can and should correct and modify these benchmarks and target values, to comply with reality and to correct the planning during the ISP implementation.

Reference Unit Target 2020 Target 2030 value Strategic Objective 1: Develop an integrated and environmentally friendly national transport system Impact indicators: Improvement of LPI (Logistic performance Index) 0 to 5 2.88 3.00 3.2 Impact indicators: Road travel time from Constanța to the Hungarian Border Hours 9.5 8 8 Program 1.1: Optimizing the national transport system and maintaining a balanced and sustainable rail and road network Result 1.1.1: Renewal of railway infrastructure as part of a program of progressive recovery of accrued arrears Outcome indicators: Increase of reconstruction works km/ year Km/ year 10 km 250* 350* Outcome indicators: Length of speed restrictions eliminated due to current repairs % - <50% < 50% extended by 50% Outcome indicators: Current maintenance of the railway infrastructure for permanent % performance year 2017 At least year 2017 At least year 2017 operation, with consequences on keeping the infrastructure performance parameters at least at the current level Result 1.1.2: Effective use of financial resources for the management of railway infrastructure Outcome indicators: Reduction in unit maintenance costs of the secondary rail network % Year 2017 < 20% < 20% compared to the current level Result 1.1.3: Ensure a fair and sustainable contractual and financial framework for the management of railway infrastructure

Outcome indicator: Increase the average technical speed of the network Km/h 70,1 71 72

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Reference Unit Target 2020 Target 2030 value Result 1.1.4: Ensure a fair and sustainable contractual and financial framework for the management of road infrastructure Outcome indicators: Increase the share of roads under the CNAIR administration that are % 52 55 60 in good condition Program 1. 2 Development of road and rail infrastructure within the main internal and international transport corridors Result 1.2.1. Improvement of railway infrastructure along railways in order to support the competitiveness of rail transport services in the internal passenger and freight transport market Outcomes indicators: Increasing the average speed of operation on the main rail lines Km/h - 55 55 - Line 200: Brașov-Sibiu-Arad-Curtici-border - Line 300: Bucureşti-Brașov-Cluj-Oradea-Episcopia Bihor-border - Line 400: Brașov-Siculeni-Deda-Dej-Baia Mare-Satu Mare - Line 500: Ploieşti-Bacău-Suceava-Vicşani-border - Line 600: Tecuci-Bârlad-Iași-Ungheni-border - Line 700: Pajura-Mogoşoaia-Urziceni-Făurei-Galați-border - Line 800: Bucureşti-Constanţa-Mangalia - Line 900: Bucureşti-Craiova-Timișoara Result 1.2.2. Improvement of railway infrastructure along TEN-T corridors in line with European Union standards on capacity, speed and interoperability with other networks Outcomes indicators: Increasing the average operating speed within the following railway Km/h - 55 80 networks - Rhine-Danube Corridor - The East / Mediterranean Corridor - The TEN-T core network - The TEN-T comprehensive network

Result 1.2.3. Improve road infrastructure in support of the TEN-T network in line with European standards on capacity, speed, safety and services

90

Reference Unit Target 2020 Target 2030 value Outcomes indicators: Increasing the average speed in the TENT-T main network Km/h 76,1 77,1 77,6 Outcomes indicators: Increasing the percentage of 4-lane roads in the road network % 8% 10% 15% under CNAIR Program 1.3: Increasing the operational capacity of the Danube river and ports Result 1.3.1: Improve the navigability of the Danube river and related channels Outcome indicators: Increase the number of days per year of navigability No. days 320 325 330 Result 1.3.2: Improvement of Constanța port operational capacities Outcome indicators: Container Design in Constanța port Mil. TEU/an 1.5 1.7* 2 Result 1.3.3 Improvement of the operational capacity of the inland waterway port network along the Danube River

Outcome indicator: Increase the capacity of inland freight transport Mil tone/an 26.8 32.2 35*

Strategic Objective 2: Develop a multimodal transport system that is sustainable and efficient 2016 2016 level Impact indicators: Rail modal transport share for passengers and freight Reference year 4.5% passenger 4.5% passenger 9.5% passengers

19% freight 20% freight 25% freight Impact indicators: Percentage of containerized freight through the Port of Constanța of % 14% (2014) 20% 25% the total throughput Program 2.1: Increasing the competitiveness of rail passenger transport services Result 2.1.1: Increasing the performance and efficiency of the public passenger transport system of national interest for rail passenger transport Outcome indicators: Increase in the current value of the total journey time of trains Train- km Year 2016 10% 20 % subject to the public service obligation (-)

91

Reference Unit Target 2020 Target 2030 value Result 2.1.2: Promoting high-attractiveness services for passenger rail transport % plan - 50% 100% Outcome indicators: Implementation plan for cadenced services, in line with the approved/ recommendations of the General Transport Master Plan of Romania implemented/ revised Outcome indicators: Increase in the technical speed of the lines set out in the cadenced % - 5% 5% services implementation plan Result 2.1.3 Logistics support for passenger rail services Outcome indicators: Increase in the transport capacity of the fleet of rolling stock % - 5% 20% intended for passenger transport in relation to the existing transport capacity Result 2.1.4. Integration of passenger rail transport into intermodal flows to increase people mobility

Outcome indicators: Achieving a certain pace of rail transport on Bucharest Nord - Henri No. of 50 200 300 Coanda Airport route passengers Program 2.2: Development of an intermodal freight transport system, mainly served by environment-friendly transport modes

Result 2.2.1: Priority promotion of intermodal rail-container transport Outcome indicators: Bucharest TEU 0 179 179 TEU handled daily from 0 TEU (reference level for 2017) to 179 TEU (2020) Timișoara 0 40 50 TEU handled daily from 0 TEU (reference level for 2017) to 40 TEU (2020) Cluj-Napoca 0 55 55 TEU handled daily from 0 TEU (reference level for 2017) to 55 TEU (2020)

Bacău

92

Reference Unit Target 2020 Target 2030 value TEU handled daily from 0 TEU (reference level for 2017) to 74 TEU (2020) 0 74 74 Oradea TEU handled daily from 0 TEU (reference level for 2017) to 25 TEU (2020) 0 25 25 Result 2.2.2: Promoting RO-LA transport and semi-trailer intermodal transport Outcome indicators: Achieving an average pace of 2 RO-LA trains per week No. train/week 0 1 2 Outcome indicators: Achieving an average pace of 1 semi-trailer per week No. train/week 0 0 1 Result 2.2.3 Increasing the competitiveness of intermodal transport on the internal market of freight transport Outcome indicators: Implementing a mechanism for financial support of railway and road Implemented operators involved in intermodal transport ensuring the compensation of the difference No No Yes yes/no between costs and revenues Outcome indicators: Complete the process of increasing the competitiveness of the Completed No No Yes national rail freight operator yes/no Program 2.3: Strengthening the regional and municipal organization of public passenger transport Result 2.3.1 Promotion of public service systems of regional interest for rail passenger transport in the area of influence of big cities Outcome indicators: Adoption of a law on the application of the provisions of Regulation Adopted No Yes Yes (EU) no. 1370/2007 yes/no Result 2.3.2 Promoting an integrated and efficient urban transport system in the Bucharest metropolitan area Full implementation of Outcome indicators: The Bucharest Metropolitan Transport Authority to be operational BMTA strategy Implementation Implementation the pilot joint and with a metropolitan public transport strategy adopted, as well as with an integrated adopted/ started completed project and key operational tariff system operational R&D recommendations

93

Reference Unit Target 2020 Target 2030 value Result 2.3.3. Development and modernization of urban transport services in Bucharest Outcome indicators: Kilometers of metro lines built up Km 0 0 19 Outcome indicators: Average number of passengers per day taking the metro Passengers/day 600 000 650 000 700 000 Program 2.4: Creation of Single area in Air transport Result 2.4.1: Airports in Romania will develop operational capacity in compliance with aviation safety regulations (Craiova, Sibiu, Cluj-Napoca, Timișoara and Henri Coanda - Bucharest) Outcome indicators: Increase in the space of the platform % - 40% 40% Outcome indicators: Increase in the number of aircraft flights at Henri Coanda Airport % 108. 566 Result 2.4.2: Romania will participate in the development of the Single European Sky Outcome indicators: Implementation in Romania of 4 new air traffic management Implemented No Yes Yes functionalities yes/no Implemented No Yes Yes Outcome indicators: Full implementation of the SESAR air traffic management program yes/no Strategic Objective 3: Provide safe, accessible and clean transport solutions for the citizens

Impact indicators: Reduction of fatal road traffic accidents (2010) -50% compared -50% compared Fatalities 100% with 2010 with 2020

2377 = 1188 = 594 Impact indicators: Reduction of greenhouse gas emission of the transport sector % 100% -10% -20% Impact indicators: Reduction of time of travel from sub-regional centres to highway or Hours - -20% -30% express road network

94

Reference Unit Target 2020 Target 2030 value Program 3.1: Safer transport Result 3.1.1. Global security of land transport Outcome indicators: Adopt a legislative package on the implementation of a system of Adoption- No Adoption Implementation progressive internalization of external costs generated by the effects of rail and road implementation accidents yes/no Result 3.1.2: Strengthening rail transport safety Outcome indicators: Increasing the number of centrally controlled railway and station % - 10% 15% signaling installations in current stations and lines Outcome indicators: Increasing the number of automatic signaling installations with % - 25% 30% (semi)barriers at level crossings as compared to the current situation Result 3.1.3: Strengthening road safety Outcome indicators: Reducing black points along roads % 138 50% 60% Outcome indicators: Effective implementation of winter maintenance targets % 70% 100% 100% Outcome indicators: Reducing the share of infrastructure projects subject to road safety % 0% 0% 100% audits Outcome indicators: The ratio of infrastructure projects subject to road safety inspection % 0% 100% 100% Result 3.1.4: Strengthening Air Transport Security Compliance with Recommendati Compliance with Compliance with Outcome indicators: Compliance of Civil Aviation Authority with ICAO safety standards the standard ons under audit audit (yes/no) implementation recommendations recommendations Result 3.1.5: Strengthening inland waterway transport safety

95

Reference Unit Target 2020 Target 2030 value Outcome indicators: Reducing the number of fatalities in the inland waterway transport No. of fatalities 81 - 40% compared to - 50% compared to (2010) 2010 2010 Program 3.2: Cleaner transport Result 3.2.1: Improved policies that reduce GHG emissions in the transport sector Outcome indicators: Adopting a legislative package on the implementation of a system of Adopted/ No Adopted Implemented progressive internalization of external costs from GHG and NOx emissions in the transport implemented sector Result 3.2.2. Improve policies to reduce GHG emissions and emissions in the rail transport sector Outcome indicators: Launching of investment projects for electrification of railway line Km 2347 2611 TBC CFR SA Result 3.2.3. Improve policies to reduce GHG emissions and emissions in the road transport sector Outcome indicators: Reduction of CO2 emissions in the transport sector % 0% 10% 20% Program 3.3: Increased transport accessibility

Result 3.3.1: Increasing the accessibility of rail passenger transport

Outcome indicators: Increase of the rate of customers who can reach a railway station in % 74% 75.5% 75.5% less than 30 minutes Result 3.3.2: Increasing accessibility of rail freight transport Outcome indicators: Adopt a rail freight rehabilitation plan for isolated wagons Adopted 50% / No 50% 100% implemented 100% Result 3.3.3. Increased transport accessibility for persons with reduced mobility Outcome indicators: Increase of the number of main stations suitable for providing No. stations 70 84 84

96

Reference Unit Target 2020 Target 2030 value passengers with special needs Program 3.4 Connection of rural areas to major transport axes Result 3.4.1. Facilitation of road connections between main road corridors and cities of regional importance Outcome indicators: The rate of bypasses between main road corridors and cities of % 0% 100% 100% regional importance (Brașov, Carei, Tg. Jiu, Mihăileşti) Outcome indicators: Average road condition in good condition % 50% 75% 75% Result 3.4.2. Improving road links with neighboring countries and facilitating the cross-border mobility of persons and goods Outcome indicators: Reducing the waiting time at border crossings (Constanța, Halmeu și Minutes 300 150 150 Siret) Program 3.5: Development of Intelligent Transport Systems Result 3.5.1: Support the implementation of ITS in the road sector Outcome indicators: ITS architecture compatible for VMS % 0% 100% compatible 100% compatible noncompatible Result 3.5.2: Support the implementation of ITS in the rail sector Outcome indicators: Ratio of rail sections operating with ERTMS % 0% 100% 100% Result 3.5.3: Support the implementation of ITS in the IWW sector Outcome indicators: Percentage of concerned vessels using RIS % 0% 20% 60% Strategic Objective 4: Optimize the performance of the Ministry of Transport to provide better services to the public

Impact indicators: Procedures for strategic planning and budgeting adopted, Procedure in Procedure adopted No Procedure implemented and in force place and implemented adopted,

97

Reference Unit Target 2020 Target 2030 value yes/no implemented and in force Impact indicators: Absorption rate of structural funds % 2016: 0% 30% 50% Program 4.1: Improving the administrative capacity of sectoral policy management and implementation Result 4.1.1: Improved procedures and organizational structure of the MoT

Outcome indicators: The organizational structure of the Ministry reflects Strategic Plan Report The procedure is The procedure is Not in place yet being being yes/no implemented implemented Result 4.1.2: Ensuring the efficiency of MoT in strategic planning, budgeting, monitoring and evaluation Procedures in Not yet in place The procedures are The procedures are Outcome indicators: The strategic and budgetary planning procedures adopted and place being being implemented yes/no implemented implemented Result 4.1.3: Enhance the human resource management according to the organizational needs of the MoT Outcome indicators: Human resources management plan developed and adopted Yes/ No No Plan developed Plan implemented

98

Annex 3: Programs and connected Measures, Output Indicators (summary table)

Note - Indicator values (benchmark and target) were indicated and established under the responsibility of MoT and its subordinated institutions; In the absence of these values, green values indicators are presented as exemplary, strictly for the loading exercise in the IT application for ISP monitoring; MoTs and subordinate institutions can and should correct and modify these benchmarks and target values, to comply with reality and to correct the planning during the ISP implementation.

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Program 1.1. Optimizing the national transport system and maintaining a balanced and sustainable rail and road network Result 1.1.1. Accelerated rehabilitation of railway infrastructure M1.1.1.1. Renewal of railway infrastructure as part of a program of progressive recovery of accrued arrears For assuring the maximum benefits regarding investments, CFR SA will elaborate in the shortest time possible a program regarding rehabilitation, that will prioritize the investments for railway segments with a high traffic density. The measure mainly concerns the gradual increase in the rate of renewal (re- establishment) of direct and current lines to the upper annual average of maturity on No. of km of railway sections in the renewal. It is recommended to keep the pace of rehabilitation of the railways at around 500- 600 km a year in order to avoid excessive railway traffic deregulation caused by implementation time railway works. The successful implementation of this measure is conditional on the of the ISP implementation of measure 1.2.1.2 "Increasing the capacity of CFR SA to execute with its [Km] / own resources the line renewal works". The measure also includes the renewal of structural elements (earthworks and works of 0 12,4 70 150 250 art) as well as of signaling installations, the state of which requires priority restoration works. The beneficiary of this measure is CFR SA in the quality of the infrastructure administrator. The measure is financed by the state budget.

99

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M1.1.1.2. Applying an intensive program to carry out the current infrastructure repairs Taking into account the backlog of renovation works there is need for a program to catch up with renovation works. This programme needs to be correlated with the main Reducing the number renovation programme. of speed restrictions 0 20% 35% 40% The main purpose of the measure is the accelerated elimination of line breaks that generate speed restrictions and dangerous points by intervening in restricted areas. The measure also aims at ensuring a normal repair pace of railway signaling installations. (%) The beneficiary of this measure is CFR SA in the quality of infrastructure administrator. The measure is financed by the state budget. M1.1.1.3. Current maintenance of the infrastructure for permanent operation The purpose of this measure is to maintain to a low level the probability of failure of some infrastructure components. From the point of view of traffic speeds, current maintenance is designed to prevent the gap between the design speed and the maximum speed allowed by the railway infrastructure. As a result, this action must be permanent and continuous. In order to increase the maximum speed allowed by the The level of funding railway infrastructure, current maintenance must be doubled by other actions such as coverage for current repairing defective infrastructure elements, renewals and / or upgrades that include maintenance 80% 90% 100% 100% speeding elements. % The success of the measure is conditional on ensuring the financing at the reference level established in accordance with the recommendations of the General Transport Master Plan (1,450 billion RON / year). The beneficiary of the measure is CFR SA in the quality of infrastructure administrator. The measure is financed by the state budget.

100

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 1.1.2. Efficient use of financial resources for managing railway infrastructure

M1.1.2.1. Reclassification of the railway network in relation to traffic intensity

The classification of the interoperable and the non-interoperable lines would need to be replaced by a more coherent and clear structure:

 The main network: this network represents a network of European standards with regard to maintenance and operations, and this network will assure the performance The network is revised demands that are needed in order to increase the competitivity of the railway 0% 50% 100% transport. (50%), and the program is adopted  A secondary network that is subjected to the performance moderation parameters. (100%) It is necessary to keep such secondary line open since the accessibility of railway transport needs to be guaranteed in the entire country and in each region.

The beneficiary of this measure is CFR SA in the quality of railway administrator. The measure is sustained by the state budget.

Detailed analysis M1.1.2.2. Defining differentiated performance and maintenance standards regarding the situation The measure intends to set up a maintenance plan taking in account the different level of each section of the of performance requested on the main network and the secondary network. railway with regard to maintenance needs The limitations of the performance parameters of the secondary network will lead to the limitation of the maintenance and operation costs. The beneficiary of this measures is (50%) and the CFR SA no the quality of infrastructure administrator. The measure is sustained by the adoption of 50% 100% state budget. performance parameters (100%)

101

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 1.1.3. Ensure a sustainable contractual and financial framework for the management of railway infrastructure  M1.1.3.1. Balancing the allocation of budgetary resources for the financing of land transport infrastructure  The measure is aims to prepare a medium term financial framework for the distribution The medium term of the public funds with regard to categories for spending (maintenance and financial framework rehabilitation works) with regard to deferent transport modes. This financial projection for the allocation of can be used in order to establish legal obligations for the MT and MFP with regards to budgetary resources to 0 transport 20% 80% 100% the allocation of public funds that are dedicated for transport. infrastructures is This framework should include rules with regard to the distribution of public funds prepared (20%), categorized by spending on; maintenance and reparation works, renovation and adopted and budgeted rehabilitation, and investments for development for the modes of transport that are in (80%) and being conformity with the General Transport Masterplan. implemented (100%)  Description and indicators need to be inserted  M1.1.3.2. Adopting and implementing a methodology for defining the financing needs of the railway infrastructure in accordance with the provisions of Directive 2012/34/EU and The methodology of of Law no. 202/2016 calculation is prepared The measure intends to transparently and fairly implement the Law no. 202/2016, (20%), adopted and whose main objective is to define the duties of the Romanian Rail infrastructure budgeted (80%) and 0% 20% 80% 100% manager, by the creation of a methodology of calculation of its financing needs and the being implemented review of the system of allocation of resources, fully in line with the Directive (100%) 2012/34/UE, and thus provide to CFR SA a more adapted and predictable financial  support from the state budget and the operators. M1.1.3.3. Adopting and implementing a multi-annual contract of activity and

102

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 performance for the railway infrastructure manager Contract prepared 50% 100% 100% 100% A multi-annual performance contract related to road maintenance signed between CFR (20%), adopted (50%) SA and the Romanian State would improve considerably the maintenance of the rail and ongoing (100%)/ network, as it would provide a long-term financing framework for maintenance forcing both parties to take a long-term view, take into account the necessary equipment acquisition and develop maintenance programs on the basis of future service demand. The multi-annual contract would comprise all the contractual, technical and financial elements to perform a performance-based maintenance activity, especially: - The traffic data and traffic projections for the activities - A maintenance plan - The indicators measuring the expected results and the level of performance during the provision of the services - A financial plan including charging system revenues - Description of equipment and human resources, outsourced activities. The newly created Rail reform authority would participate in the development of the contract through the budgetary allocation of the RRA in the budget of the Ministry of Transport. The action of the RRA is also supported by the Project Advisory Support Service Agreement (PASSA) contracted between BEI and the Ministry of European funds. The cost of the maintenance contract will be financed by the State Budget, and the beneficiary is CRF SA as rail infrastructure manager. Part of such objective can be subcontracted to private providers. The contract implementation would be signed for a period of 5 years, for the period 2017-2021.

103

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 1.1.4. Ensure a sustainable contractual and financial framework for road maintenance Condition-based maintenance contracts M1.1.4.1. Adopt and implement a definition of maintenance needs based on network conditions and not on rules, as well as a contract based on network conditions prepared (20%), Condition-based By paying contractors based on the level of service they deliver, output-based contracts maintenance contracts provide a clear financial incentive for contractors to meet performance standards of 100% adopted (50%), 0% 20% 50% road and the quality of maintenance works will improve. maintenance contracts implemented (100%)

M1.1.4.2. Adopt and implement a multi-annual road maintenance performance contract Concluding a performance contract with CNAIR A multi annual performance contract related to road maintenance signed between CNAIR and the Romanian State would improve considerably the maintenance of the Contract prepared road, as it would provide a long-term financing framework for maintenance forcing both (20%), adopted (50%) parties to take a long-term view, take into account the necessary equipment acquisition and implemented and develop maintenance programs on the basis of future service demand. (100%)/ The multi-annual contract would comprise all the contractual, technical and financial 0% 100% elements to perform a performance based maintenance activity, especially: 100% 100% 0% - The traffic data and traffic projections for the activities

- A maintenance plan

- The indicators measuring the expected results and the level of performance during the provision of the services - A financial plan including charging system revenues - Description of equipment and human resources, outsourced activities.

104

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 The preparation of the contract is supported by the Project Advisory Support Service   Agreement (PASSA) contracted between BEI and the government of Romania. The measure is financed by the state budget, and the beneficiary is CNAIR as the public   company in charge of the maintenance of the Romanian road network. Part of such  objective can be subcontracted to private providers. The contract implementation would be signed for a period of 5 years, for the period 2017-2021. Program 1.2. Development of road and rail infrastructure within the main internal and international transport corridors Result 1.2.1. To Improve the rail infrastructure along railway lines in order to support the competitiveness of rail transport services in the internal market of passenger and freight transport M1.2.1.1. Adoption and implementation of a priority program for the renewal (rehabilitation) of the lines for the railway thoroughfares There are 8 major axes identified for railway transport, that connect the capital city Bucharest with the following cities: Arad, Oradea, Satu Mare, Iași, Galați, Constanța, Timișoara.

- Line 200: Brașov-Sibiu-Arad-Curtici-frontieră - Line 300: Bucureşti-Brașov-Cluj-Oradea-Episcopia Bihor-frontieră The no. of km of - Line 400: Brașov-Siculeni-Deda-Dej-Baia Mare-Satu Mare sections of railway that are implemented - Line 500: Ploieşti-Bacău-Suceava-Vicşani-frontieră during the - Line 600: Tecuci-Bârlad-Iaşi-Ungheni-frontieră 0 0 0 - Line 700: Pajura-Mogoşoaia-Urziceni-Făurei-Galați-frontieră implementation period - Line 800: Bucureşti-Constanța-Mangalia of the ISP - Line 900: Bucureşti-Craiova-Timișoara [Km] /

The projects that fall within this measure encompass a set of activities starting from civil

105

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 works to, the replacement of railway systems. In order to satisfactory parameters of operation and develop the attractiveness of rail transport for intercity transport. The measure is financed by CFR SA resources, state budget and European programmes. The plan of investment is prepared (20%), adopted and budgeted M1.2.1.2. Increasing the capacity of CFR SA to execute the line repair works with its own (80%) and being resources implemented (100%) To keep the attractiveness of the rail transport along national routes, it is important to 0% 20% 80% warranty the manager of infrastructure a sufficient level of resources to contribute to Percentage of the rail the renewal of the network following its own policy of investment and complement renewal works to be other programmes. executed by CFR SA on A plan of investment should be drafted and adopted to increase CFR SA investment proper funding [%] capacities, and the financial objective of this plan should be supported by the Romanian * A preliminary state, at financial and administrative level. estimation of the WB team regarding the 0% 0% 0% available data that needs to be confirmed by the ministry Result 1.2.2. To improve the rail infrastructure along TEN-T network in conformity with European Union standards regarding capacity, speed, safety and interoperability with other networks

M1.2.2.1. Rehabilitation of railway sections of the TEN-T network (Large Infrastructure OP) At the present stage, most of the Romanian rail infrastructure is in poor condition and Number of km of operated with an outdated technology. The part of the network which is included in the rehabilitated rail

106

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 TEN-T network should be rehabilitated to reach the technical parameters requested by section during ISP the European rail transport network. These ongoing activities of rehabilitation of implementation strategic sections must be pursued and are a first step for the redefinition of modern, [Km]/ market oriented rail services for passenger and freight.

The direct Beneficiary of the measure is CFR SA as infrastructure manager, and indirectly 0 all the rail operators that are undertaking services on the Romanian rail network. 757.6 * It is a tentative The projects under this measure include a set of activities from civil works to rail and 0 250 500 estimate by the WB system replacement, aiming at reaching European parameters for TEN-T rail sections. team based on The activities will implement all the common technical modules (GSM-R, ETCS) and available information conditions (Ex: 22.5 axle load) for the interoperability between European rail networks. that needs to be The financing of the measure is realized through: confirmed by the Ongoing European Programs for Cohesion funds devoted to large infrastructure (LIOP) ministry 2013-2020, including a group of “phased” ongoing projects of rail rehabilitation launched during the previous Program and new projects. During the investment cycle of the present ISP projects intend, as a priority, to complete the rail network along corridor IV, concentrating the investment in the North-western part of the corridor. In further steps, after 2020, additional projects that were prioritized by the General Transport Master Plan will be implemented along the other main routes, according to funding availabilities.

For 2017 there were approved certain additional projects that are in accordance with the sections that were prioritized by the General Transport Master plan, in special with the section along the northern corridor of Ploiești – Iași to the Moldovan border (which is also a priority in road sector) and the support to the south to the Bulgarian border – following the path of the pan-European corridor IX. The infrastructure supporting the sub-urban train service from Bucharest to Henri Coanda Airport is also renovated.

107

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020

M1.2.2.2. Rehabilitation of railway sections of the TEN-T network (Connecting Europe Facility) The connecting Europe Facility (CEF) which is financing the following projects: -Rehabilitation of the Brașov–Sighişoara railway section, Apața–Cața sub-section (2015- RO-TM-0362-W) between 2016 and 2020 and Brașov–Apața and Cața–Sighişoara sections (2014-RO-TMC-0639-W) between 2015 and 2020. Once the upgrade of all three sub-sections is completed, the length of the Brașov–Sighişoara section will be reduced from 130.27 km to 112.63 km and fully comply with EU requirements for the rail Core Number of approved Network. feasibility studies by 0 0 0 2 -Feasibility study for rehabilitation of Craiova- Calafat railway - 014-RO-TMC-0202-S GD (2015 -2020) [Unit]/ -Feasibility study for the rehabilitation of Craiova-Drobeta Turnu Severin-Caransebes 0 railway 2014-RO-TMC-0140-S (2015- 2017) Other feasibility studies to submit - Predeal Brașov - Infra Constanța POIM: Bucurest Nord Giurgiu (SF), Bucurest Nord HC

M1.2.2.3. Rehabilitation of critical civil engineering works Regional programs for the rehabilitation of The measure includes several groups of ongoing projects aimed at rehabilitating bridges, civil engineering works tunnels and other civil engineering works. The beneficiary is CFR SA The financing of the measure is realized by the present European Programs for Cohesion funds devoted to completed large infrastructure - POIM (2013- 2020) and by the state budget. [Unit]/ Several sets of projects are planned for implementation. These projects include the first 0 0 0 3 7

108

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 phase of the Bridge renewal project for Cluj, Craiova and Galați regions financed by CF funds and the allocation for Bucharest, Timișoara, Brașov and Iași from FEDER fund, both with additional state budget expenses. The modernization of the bridges over the Danube River will considerably facilitate the operations between Bucharest and Constanța. Construction activities for the new bridge of Gradistea between Bucharest and Giurgiu are also supported and included in the Measure 2.4.3.B related to the renovation of most promising lines.

M1.2.2.4. Modernization of Stations Stations modernized The measure aims at enhancing the quality of rail services by providing more attractive [Unit]/ stations for the travelers. It also aims to implement the norm NP 051-2001, related to the adjustment of public spaces to the needs of disabled people. The beneficiary of the measure is CFR SA as owner of the rail stations. 0 0 0 6 15 M1.2.2.5. Modernization of electromechanical installations

Modernization of signaling and interlocking systems: The measure aims to

modernize the organization and the technologies used for train movement Control centers control. The measure concentrates on the 19 train stations along the sections Siculeni - Adjud şi Ilia – Lugoj. The direct Beneficiary of the measure is CFR SA as modernized

infrastructure manager, and indirectly all the rail undertakings operating services [Unit]/ 0 0 19 on the rail Romanian network. The measure is financed by the European Union 0 from FEDER and by the state Budget.

109

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020

Signal system for detecting overheated axle and tight brakes - The measure intends to increase safety in operation by the installation of the mentioned Detection systems detection systems. The direct Beneficiary of the measure is CFR SA as deployed 0% 20% 50% infrastructure manager, and indirectly all the rail undertakings operating services on the rail Romanian network. The measure is supported by FEDER funds and [%]/ state budget. Level crossing modernization - The objective of the measure is to remove all the level crossings along the transport corridor in order to reach a higher Number of level commercial speed, but also to increase significantly the level of safety of the crossing modernized existing sites, as level crossings are critical locations where occur a large number [Unit]/ 0 0 50 150 of accidents between trains, vehicles and pedestrians. The direct Beneficiary of 0 the measure is CFR SA as infrastructure manager. The measure is supported by FEDER funds and state budget.

Centralized command for the Videle station - This renewal is made necessary by Centralized command the obsolescence of the present systems. The direct Beneficiary of the measure modernized is CFR SA as infrastructure manager, and indirectly all the rail undertakings 0 0 0 1 [Unit]/ operating services on the rail Romanian network. The project is supported by FEDER funds and state budget 0

M1.2.2.6. Preparation of technical projects for the electrification of railway sections Electrified sections Preparation of technical projects for electrification of rail sections. [Km]/ The project aims to ensure electrification of the sections Cluj-Napoca - Episcopia Bihor as 0 priority section according to the criteria of the transport master plan and the section 0 0 0 158+166 Doaga Tecuci Barbosi. The beneficiary is CFR SA. The measure is supported by FEDER funds and state budget. Result 1.2.3. Improve the road infrastructure supporting TEN-T networks in conformity with European standards regarding capacity, speed, safety and other

110

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 services M1.2.3.1. Completion of the Romanian highway network

Romania possesses over one of the less developed motorway networks throughout the whole European Union. This situation is affecting the easy circulation of people and goods between major cities and this underdevelopment is at the origin of major safety risks. The General Transport Master Plan has confirmed the purpose of developing a primary network of motorways along the major corridors and connecting the main cities.

The measure supports the development of ongoing construction of Highways on the

TEN-T network as part of the completion of the objective of improvement of the infrastructure supporting TEN-T networks to European standards in line with the construction standards of the Directive 1315-2013. The direct Beneficiary of the measure is the road investment agency of Romania (CNAIR). The implementation of the measure is realized through the ongoing European Program for Cohesion funds devoted to large infrastructure - POIM (2013- 2020) and comprising a Percentage of Km of group of “phased” ongoing projects already launched and some new projects. Highway constructed The measure includes: [100%]/ Highway Sebes-Turda 0 100% Highway Timișoara-Lugoj * it is a tentative Highway Brașov - Targu Mures - Cluj - Oradea estimate by the WB 0% 30% 80% Highway Lugoj-Deva team based on

Highway Orastie-Sibiu available information

Highway Nadlac-Arad that needs to be confirmed by the Highway Cernavoda-Constanța ministry Highway Arad-Timișoara and Bypass Arad (budgeted together)

111

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M1.2.3.2. Construction of major city bypasses The measure supports the finalization of the construction of the bypasses around several major cities, with the purpose to facilitate the traffic flows and protect the city centre Number of Km of from a growing traffic and congestion. bypasses constructed It includes: [Km]/ - the finalization of the construction of the Bypass “VO autostrăzii Bacău” on the north 0 south road corridor – a project consistent with all other measures aimed at upgrading * it is a tentative the road infrastructure along this corridor, identified in the GTMP as interconnection estimate by the WB corridor 3. team based on 0 100 150 175 km - the finalization of the construction of the Bypass “VO Suceava”, complementing the available information previous route to the north in direction of the Ukrainian border that needs to be - the finalization of the construction of the Bypass “VO Targiu Mures”, a major corridor, confirmed by the which is located along the western route coming from the Republic of Moldova, ministry identified in the general transport Master plan as interconnection corridor 5 - the finalization of the construction of the bypass of Constanța, enabling an easier access to coastal infrastructures of the black Sea (Ports, tourism). The beneficiary of the measure will be CNAIR. The funding is supported by European Cohesion funds.

M1.2.3.3. Modernization of the ring road of Bucharest Northern ring road 0 35 50 54 constructed The measure supports: [Km] - The finalization of the renovation of the northern part of the Bucharest ring road with two sections already under development (A1-DN7, A2-DN2) and financed with Cohesion funds; Southern ring road - The preparation of the studies and the completion of the construction works for the designed 0 30 40 48

112

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 southern part of the ring road, both supported by FEDER and for its part, state budget. [Km] The beneficiary of the measure will be CNAIR, previously known as CNADNR. * it is a tentative estimate by the WB team based on available information that needs to be confirmed by the ministry Program 1.3. Increase the operational capacities of the Danube River and Ports Result 1.3.1. Improvement of the navigability of the Danube River and associated canals to achieve its full transport operational capacities

Improvement of navigation conditions by hydrotechnical works The measures consist of the technical definition and implementation of a set of actions, mainly comprised of hydro technical works and dredging, in order to maintain and improve the operational conditions of the fairway for commercial and civil navigation and mitigate the impact of human activities towards the natural environment.

These actions are aligned with a larger multi-country Program implementing the 2010 EU

Strategy for the Danube Region, enforced by the NAIADES II package, which coordinates a multi-country effort aiming to exploit the full potential of Danube navigation by removing obstacles to navigability and to increase transport volumes on the Danube River by 20% by the year 2020. A Fairway Rehabilitation and Maintenance Master Plan was adopted in 2014 (Priority Area 1A of EU Danube strategy) and National action plans followed. Critical sections It is comprised of several projects: improved [Unit]/

113

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M1.3.1.1. Improvement of navigation conditions on the Bulgarian-Romanian common 2 0 0 1 2 section of the Danube The project of the improvement of navigation conditions on the common Bulgarian- Romanian Danube section (km. 845.5 - km. 375) is financed by the Connecting Europe Riverbanks improved Facility. (2015-RO-RM-0366-W – SWIM - SMART Waterway Integrated Management) with participation of the state budget estimated at 15%. [%]/ The main objective of the project is to ensure the fairway parameters recommended by * it is a tentative 0 30% 80% 100% the Danube Commission (to improve the navigational conditions) in two of the most estimate by the WB team based on critical sections of the Danube River and to secure the international navigation and ensure the passage of vessels throughout the year in these sections. available information that needs to be The action aims to improve the physical conditions of the riverbed and the river banks confirmed by the including islands. The project is implemented between 2016 and 2020. ministry The beneficiary is Galați Lower Danube River Administration.

M1.3.1.2. Improvement of navigation conditions along the Danube between Călăraşi and Project performance Braila [%]/ 0% 50% 75% 100% - Improvement of navigation conditions along Danube between Călărași and Brăila (km. 375 - km.175). The project aims at the realization of hydro-technical works to re- 0% equilibrate the water flows between the Danube River and one of its branches and * it is a tentative facilitate the navigation conditions. The project is programmed to start in 2017 and be estimate by the WB delivered in 2022. The beneficiary is the RA AFDJ Galați. The works are financed by the team based on cohesion funds, with participation of the state budget estimated at 15%. available information

that needs to be confirmed by the M1.3.1.3. Improvements to shoreline protection along the Sulina Canal ministry - Bank protection improvements along Sulina Canal. The project intends to facilitate the

114

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 navigation along the Channel by the realization of hydro-technical works and bank 0% 50% 75% 100% reinforcements. The project will also contribute to the protection of the natural Riverbanks improved resources affected by the climatic changes. The project is programmed to start in 2017 [km] / and be delivered in 2022. The beneficiary is the RA AFDJ Galați. The project is financed by the cohesion funds, with a participation of state budget estimated at 15%. M1.3.1.4. Rehabilitation of locks

The measure supports the modernization of pumping stations and other equipment for the renewal of the locks of Agigea, Cernavodă, Ovidiu, Galerii ape Mari Ovidiu and Năvodari. The project started in 2016 and aims to be delivered by 2021.The beneficiary is Locks rehabilitated - 0 0 6 RA ACN SA. The works are financed by the cohesion funds, with participation of the state [Unit] / - budget estimated at 15%. Result 1.3.2. Improvement of the operational capabilities of the Port of Constanța

M1.3.2.1. Improving port infrastructure Constanța Master Plan The measure supports a group of projects intending to enhance the port capacities for projects achieved commercial operations. (S1/S2/S3/S5/S6/S8/S1

The projects are part of the Constanța Port short term development plan (designated by 0/S13/S14)/ 2 4 6 9 the code S and their respective number) and should be implemented in 2017. The 0 projects are financed by the cohesion funds, with a participation of state budget estimated at 15%. Dredging works It includes: Completed - The deepening of the fairways and basins in the port of Constanța. The project would [%]/ eliminate some limitations of navigation and maneuvers by dredging the channels (S1) - (2017-2020). The origin of funding is ERDF funds. 0

- The development of a specialized anchorage in an area with great depth. (Dana D80). 25% 50% 75% 100% The measure intends to enhance the capacity of the port to for the handling of cereals Development of D80

115

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 and will also contribute to a better organization of port activities. (S2) – (2017-2021). The completed origin of funding is ERDF funds. [%]/ - Upgrading basic port infrastructure, constructing a new state of the art on-shore waste collection and treatment facility, upgrading the signaling system in the port basin and CEF actions realized the fairway, and purchasing one technical vessel. The origin of funding is CEF funds and the period of implementation is 2016-2019. [%]/ 25% 50% 75% 100% The beneficiary of the measure will be the port of Constanța and all operators who may * it is a tentative need such infrastructure. estimate by the WB team based on available information that needs to be confirmed by the ministry

M1.3.2.2. Improving port communication systems The measure supports a group of projects intending to enhance the port Rail development communications taking into account the present traffic loads and the foreseen completed 25% 50% 75% 100% development of the activities in the area. [%]/ The projects are part of the Constanța Port Short Term Development Plan (designated by 0% the code S and their respective number) and should be implemented in 2018. The projects are financed by the cohesion funds, with a participation of state budget estimated at 15%. Rail track doubled 25% 50% 75% 100% It includes: [%] - The development of the rail transport capacities in the port of Constanța Sud Agigea. At 0% present time, the three existing lines are already saturated at peak periods. (2018-2022) - Doubling of the railroad Agigea Ecluza- Ferry Terminal, for the same purpose (S6)- Additional lanes build

116

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 (2018-2022). to Gate 7 25% 50% 75% 100% - The expansion to 4 lanes of the road to Gate 7, which is used by most of the trucks [%]/ heading to the Port (S8) - (2018-2022). 0% - The expansion to 4 lanes of the road to gate 10 and 10bis, resulting in the opening of the gate 10bis (S10) - (2018-2022). Additional lanes build 25% 50% 75% 100% The beneficiary of the measure will be the port of Constanța and all operators who may to gate 10 need such infrastructure. [%]/ 0% * it is a tentative estimate by the WB

team based on available information that needs to be confirmed by the ministry M1.3.2.3. Renewal of utilities networks Improved utilities The projects are part of the Constanța port short-term development plan (this group is networks identified by codes S13 and S14) and should be implemented between 2017 and 2021 [%]/ 25% 50% 75% 100% (electrification and gas) and between 2018 and 2022 (heating systems). The projects are 0% funded from the Cohesion Funds, with a contribution from the state budget estimated at * it is a tentative 15%. estimate by the WB The project includes investments in the field of power supply, lighting, gas supply, water team based on heating systems and other similar projects. available information The beneficiary of the measure will be the port of Constanța. that needs to be confirmed by the

117

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 ministry

M1.3.2.4. Improvement of services for freight and passengers transport

The measure supports a set of projects intending to enhance the port facilities for operating RoRo services and passenger services, taking into account the foreseen development of such services. The projects are part of the Constanța Port short term development plan (designated by New terminal Ro-Ro the code S and their respective number). The projects are financed by the cohesion operational funds, with a participation of state budget estimated at 15%. [Yes/No] It includes: No No No No Yes - a new unified terminal for RoRo operations and car carriage operations in Port New passenger Constanța Sud (S3) It should be implemented from 2017 to 2021 terminal operational -The creation of a new terminal for passengers, from the RORO3 and RORO 4 moorings– [Yes/No] No No No Yes (S5) It should be implemented from 2018 to 2022 or later. No The beneficiary of the measure will be the port of Constanța. Result 1.3.3. Improvement of the operational capability of inland waterways ports network along the Danube River

M1.3.3.1. Improvement of the infrastructure and equipment of ports Rail development The measure supports a group of projects intending to enhance the port communications taking into account the present traffic loads and the foreseen completed development of the activities in the area. [%]/

118

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 The projects are part of the Constanța Port Short Term Development Plan (designated by 0% 25% 50% 75% 100% the code S and their respective number) and should be implemented in 2018. The projects are financed by the cohesion funds, with a participation of state budget Rail track doubled estimated at 15%. [%] 25% 50% 75% 100% It includes: 0% - The development of the rail transport capacities in the port of Constanța Sud Agigea. At present time, the three existing lines are already saturated at peak periods. (2018-2022) - Doubling of the railroad Agigea Ecluza- Ferry Terminal, for the same purpose (S6)- Additional lanes build (2018-2022). to Gate 7 25% 50% 75% 100% - The expansion to 4 lanes of the road to Gate 7, which is used by most of the trucks [%]/ heading to the Port (S8) - (2018-2022). 0% - The expansion to 4 lanes of the road to gate 10 and 10bis, resulting in the opening of the gate 10bis (S10) - (2018-2022). Additional lanes build 25% 50% 75% 100% to gate 10 The beneficiary of the measure will be the port of Constanța and all operators who may need such infrastructure. [%]/

0%

* it is a tentative estimate by the WB team based on available information that needs to be confirmed by the ministry Program 2.1. Increasing the competitiveness of rail passenger services

119

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 2.1.1. Increasing the level of performance and efficiency of the public service system of national interest for the rail passenger transport

M2.1.1.1. Improve the national legislative framework in line with the principles The national established by the European legislation on public passenger transport services regulations related to passenger public With regards to the provision of the EU regulation 1370/2007 a legal mechanism was transport are reviewed implemented for the subvention of railway public transport services through which the (20%), new methods of 0% 20% 80% 100% state can impose the operator to charge prices that are compatible with the prices of implementation are road transport and compensated by public funding. The measure aims to review and adopted (80%) and improve the implementation of the regulation as, in the last years, the compensation led being implemented to limitations in the volume of passenger railway transport. (100%) M2.1.1.2. Adopt and implement public service contracts based on monitoring the performance of rail passenger services

The measure would be comprised, among alia, of the following initiatives:

• A contract between the Ministry and the operators based on level and quality of services on the most promising lines and not mainly on production of passenger.km.

• A competitive bidding process in line with the EC Regulation 1370/2007 would replace the present negotiated public service contract. Public service contracts concluded • A remuneration for the enhancement of the quality of service resulting from under a competitive Operator’s investments. This action is expected to contribute to the renewal of rolling bidding process stock and more satisfying services for the public.

• Equal access to rolling stock between operators through a common stock acquired by an independent company managed by the Ministry of Transport. [Yes/No] No Yes Yes Yes The measure is financed by the state budget, on the budget of the Ministry of Transport. M2.1.1.3. Establishment and operationalization of the Rail Reform Agency

120

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 The implementation of major reforms for the renewal of managerial practices for the rail sector should be carried out by an independent railway structure that will operate under the Ministry of Transport supervision. Government Ordinance no. 62/2016 has created, for this purpose, the Rail Reform Agency.

The main action of RRA will be: The staff is recruited •The restructuring of the rail network for the purpose of focusing on an efficient (30%), the work transport network. program is approved

• The award of public service contracts only on the basis of invitations to tender. (50%), the program is • The performance indicators for railway passengers’ public transport that will being implemented serve as the basis of public services contracts awarded. (100%) • The elaboration of Programs for reducing costs and for streamlining and improving the quality of public services for railway public transport. % 50% 100% 100% 100% The above-mentioned Program could consist of the following activities: • Introduction of services with equal interval timetables. • New management systems for rolling stock. • Rationalization of assets portfolio (…) In order to ensure effective implementation of the reform, a separate budget and staff will be allocated to RRA. The establishment of the RRA is financed by the state budget. Support in terms of technical assistance is expected from the EIB through the PASSA project. The measure is starting in 2017 and will continue throughout the ISP duration. Result 2.1.2. Promote highly attractive services for passengers' rail transport M2.1.2.1. Adopt and implement a plan for the implementation of cadenced services, in The development plan accordance with the recommendations of the General Transport Master Plan of Romania for services with 0% 20% 80% 100% The successful modernization of the railways between Constanța and Bucharest will regular interval

121

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 depend on the development of railway services that are satisfactory, high speed, timetables is comfortable, and well regulated. The measure will sustain the modernization of principle confirmed (20%), the lines that connect Bucharest to the most important neighboring cities. operational measures are defined (80%) and implemented (100%)

M2.1.2.2. Repair and maintenance of lines for the implementation of cadenced services The number of The measure sustains investments (works and civil equipment) for the following sections sections that are of railways: proposed București - Brașov, Timișoara - Arad, București - Buzău, București - Craiova, Pașcani - Iași, [Units]/ București - Constanța, București - Pitești. The technical documents will be made in 1 between 2017 și 2018, but the project will be implemented in 2019 and 2022. The 1 2 4 8 beneficiary is CFR SA. It is financed by FEDER and the state budget.

122

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 2.1.3. Logistics support for rail passenger transport services The acquisition plan M2.1.3.1. Adopt Adopting and implementing a plan for the procurement of rolling stock, for new rolling stock is as well as purchasing it prepared (20%), the The age of the rolling stock became an important issue for the development of the acquisition planning is passenger services. A large part of the rolling stock used for passenger transport is above approved (80%) and 35 years, with some units even over 60 years old. The services are not attractive at all for budgeted (100%)lar 0% 20% 100%  potential new users, and also generates maintenance and logistic issues. path time tables of The measure aims at the preparation of a acquisition plan for rolling stock, with services is confirmed emphasis on the needs of new rolling stock for sections with regular interval timetables. (20%), the operational The measure is financed by the state Budget, the beneficiaries being the passenger rail measures are defined operators. (80%) and implemented (100%) M2.1.3.2. Ensuring the necessary rolling stock to meet the obligations to provide adequate public passenger transport services and better performance The acquisition plan Following the previous measure, the acquisition plan should be launched and the for new rolling stock is process of acquisition ongoing before the end of the present ISP being implemented In the context of the LIOP there are foreseen funds that assure the aquisition of (yes/no) equipment so that railway operations can be carried out as established in the contracts No No Yes Yes of ARF.

123

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 2.1.4 Integration of rail passenger transport into intermodal flows designed to increase people's mobility M2.1.4.1. Adopt and implement a multimodal integration plan with the air passenger transport The measures consist in the preparation of an action plan in the following sectors:  The multimodal integration of airway transport with the development of rail The development plan connection for the major airports of Romania. for intermodal  The multimodal integration with road transport, individual and inter-urban with integration of railways the development of passenger transport by car and railway passenger transport. is prepared (50%), the 0% 25% 50% 100%  The coordination of railway transport with public transport in major cities operational measures (busses, trams, metro) with the goal of facilitating the best possible connectivity are defined and of all parts of the city. budgeted (100%) The measure is financed by the state Budget, the beneficiaries being the passenger rail operators. It can be also supported by a technical assistance programme from international donors. M2.1.4.2. The realization of railway connections between Bucureşti Nord - Aeroportul Henri Coandă Phase I The measure intends to improve the interface between the rail services from Gara de Not Phase I Phase I Progress of the project com- Nord and the airport Henri Coanda, with 2.3 km of additional line (from Odaile to complet- com- complet- [Phases I and II] pleted Airport), a new terminal and an upgraded service. (Phase 1) ed pleted ed

The new terminal will also connect with the metro M6 in 2021. (Phase 2) The measure is financed by the state Budget and the Structural funds (POIM). M2.1.4.3. Multimodal integration with individual interurban road transport RO-LA systems for The measure aims to the implementation of the RO LA systems for individual vehicles individual vehicles No No No Yes according to the development plan for intermodal integration of railways prepared (Yes/No)

124

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 above. Beneficiaries and origin of funding will be determined by the development plan. M2.1.4.4. Multimodal integration with urban passenger public transport systems The measure aims to the implementation of projects of integrated systems of transport integrated systems of created by a cooperation agreement between the railways operators and the local urban /suburban/ No Yes Yes Yes transport authorities, and developed according to the development plan for intermodal intercity transport integration of railways. (Yes/No) Beneficiaries and origin of funding will be determined by the development plan. Program 2.2. Development of an intermodal freight transport system, mainly served by environment-friendly transport modes Result 2.2.1. Priority promotion of intermodal rail-container transport M2.2.1.1. Development of a network of public intermodal terminals, as recommended by the General Transport Master Plan of Romania GTMP envisages the closure of the new Bucurestii Noi platform and the construction of a new terminal with improved capacity, located near the Bucharest ring road and the Bucharest highway in order to have the possibility to be transported in a trimodal terminal connected to the Danube-Bucharest Canal. Bucharest: project The measure includes all necessary actions for the preparation of the area: prepared, PPP signed, 0% 20% 50% 100% - Land acquisition or re-allocation and ongoing project - Connection to utility networks - Soil preparation, operational surfaces reinforcement, drainage systems - Rail and road connections - Warehouses A period of implementation from 2017 to 2020 is foreseen.

125

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 The beneficiaries of the measure must be identified with regard to the final institutional arrangements. * prepared project (20%), signed financing contract (50%), ongoing project (100%) Development of a network of public intermodal terminals for main cities These densely populated cities are located around the main hubs of transport networks Timișoara: project and are important places for production, transformation and final deliveries. However, prepared, PPP signed, 0% 20% 50% 100% they already have logistical areas, because the containerization rate of goods should and ongoing project progress in Romania and their capacities should be strengthened for the future.

The measure includes all necessary actions for the preparation of the area: Cluj: project prepared, - Land acquisition or re-allocation PPP signed, and 0% 20% 50% 100% - Connection to utility networks ongoing project - Soil preparation, operational surfaces reinforcement, drainage systems - Rail and road connections Bacau: project 0% 20% 50% 100% - Warehouses prepared, PPP signed, and ongoing project A period of implementation from 2017 to 2020 is foreseen.

The beneficiaries of the measure must be identified with regard to the final institutional Oradea: project arrangements. 0% 20% 50% 100% The measure will be financed by ERDF funds, the state budget and the local budget, with prepared, PPP signed, the support of private operators. and ongoing project * prepared project (20%), signed financing contract (50%), ongoing project (100%) M2.2.1.2. Adopt and implement a plan to provide a container park for internal traffic Plan adopted and implemented - No Yes Yes Yes / No

126

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M2.2.1.3. Define the business model regarding the involvement of different actors of the Model defined - Yes Yes Yes railway system in the intermodal transport of containers Yes / No Result 2.2.2. To promote RO-LA transport and intermodal semi-trailer transport M2.2.2.1. Providing intermodal terminals with the necessary equipment

The RO-LA transport (rolling road) as any trailer transportation technique necessitates specific equipment in terms of space of maneuvers, docks, rolling stock, etc. The measure intends to rehabilitate or equip the terminal areas and develop RO LA along Project of RO-LA promising routes. services are The beneficiary of the measure will be the multimodal transport operators. The strategic determined (20%), the stakeholders and plan for the development of intermodal transport will identify financial sources, such as 0% 20% 80% 80% state budget, private investments, PPP and European incentives at the time of the financing sources are preparation of projects. identified (80%), the projects are launched * RO-LA services are determined (20%), stakeholders and sources of financing are (100%) identified (80%), projects are launched (100%) M2.2.2.2. Improve the legal framework in order to increase the attractiveness of RO-LA transport services and intermodal semi-trailer transport services

In order to increase the economic competitiveness of the RO LA transport (which Improved draft law generates important social and environmental benefits but is suffering of the unfair and incentives competition with road transport) some temporary corrective measures should be measures are prepared adopted (incentives, tolls and taxation…) and all legislative obstacle removed. (20%), adopted and 0% 20% 80% 80% The new legislative framework will be a dedicated chapter of the law on intermodal budgeted (80%), and in transportation of result 2.2.3. force (100%)

127

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 2.2.3. To enhance the competitiveness of intermodal transport on the internal market of freight transport M2.2.3.1. Defining and implementing a legal mechanism of financial support for the intermodal rail-road container transport operators Improved draft law In order to increase the economic competitiveness of containerized transport and and incentives combined transport (which generates important social and environmental benefits but is measures are prepared suffering of the unfair competition with road transport) some temporary corrective (20%), adopted and 0% 20% 80% 80% measures should be adopted (incentives, tolls and taxation…) for intermodal budgeted (80%), and in transportation and all legislative obstacle removed. force (100%)

Plan adopted and M2.2.3.2. Enhancing the competitiveness of the national rail freight operator – plan of implemented - No Yes Yes measures adopted and implemented Yes / No Program 2.3. Strengthening the regional and municipal organization of public passenger transport Result 2.3.1. To promote public service systems of regional interest for rail passenger transport in the area of influence of big cities M2.3.1.1. Completing the national legislative framework in accordance with the principles established by the European legislation on public services of regional interest Elaboration of the plan for passenger rail transport (20%), approval and The purpose of the measure is to introduce the objectives and legal provisions aligned to budgeting of the plan

Regulation 2007/1370 in order to facilitate the organization of public passenger (80%), implementation transport services on a regional scale. of the plan (100%) 0% 20% 80% 100% The measure is financed from the state budget.

M2.3.1.2. Modernization of the railway belt of Bucharest Number of km of The project of the 68-km railway ring around Bucharest has three stages: renovated and built

128

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 - Stage I: Bucharest Nord - Domnşti - Progresu (western railway belt) railway network railway ring [Km] Tbc Tbc Tbc 68 and Bucharest Nord - Băneasa - Pantelimon (northern railway belt). - Stage II: the railway connection with the Metro network (Precision Metro Line - 1 and Berceni Metro Line - 2) through modal nodes. - Stage III: Progresu - Pantelimon - Nord Nord (eastern railway belt) railway link. The beneficiary of the measure is CFR SA, the measure will be financed from the state budget, supplemented by cohesion funds. Result 2.3.2. To promote an integrated and effective urban transport system in Bucharest metropolitan area M2.3.2.1. Reformulate the administrative arrangements for BMTA The Bucharest Metropolitan authority for Urban Transport should be able to effectively fulfil its duties as the delegated managing authority for the urban public transport and A new regulation is the legal disposition at the basis of its creation should be revised if necessary, and produced (20%), implemented. approved (50%), Given that the responsibilities have been transferred to the BMTA the necessary implemented (100%)/ resources in staff should also be transferred. This measure is financed by the budgetary resources of the MoT, included in its mission 0% 20% 50% 100% 100% of organization and regulation of the transport sector in Romania. It should be implemented in 2017. M2.3.2.2. Restructuring of the Municipal public transport companies Restructuring the operating entities/companies is necessary to make it possible to The restructuring is implement the principles of fair competition embodied both in EU Regulation 1370/2007 prepared (50%), and Romanian Law 92/2007. It is recommended that RATB would have to be required to approved (70%), in account separately for their trolleybus, tram and bus operations and that the bus course of operation should also be restructured into a number of separate profit centers in implementation

129

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 preparation for a move to a system of competitive tendering. It is necessary that any (100%) 0% 0% 50% 100% public owned carrier should be constituted as a regular commercial company, subjected 0% to a bankruptcy constraint. Subsidy should not be given preferentially to such carriers. Instead there is need for fair competition for these subsidized franchises. This measure is financed by the budgetary resources of the Ministry of Transport, and are comprised in its mission of organization and regulation of the transport sector in Romania and by the resources of the Municipality of Bucharest and BMTA in their mission of organization as well as the regulation of the local public transport. Technical assistance may be mobilized. The measure will be carried out between 2018 and 2020.

M2.3.2.3. Adoption and implementation of a general long-term strategy for BMTA and

Bucharest public transport services. A common strategy is defined (20%), the Coordination of bus, tramway and metro routes will initially require the elaboration of a development plan is general strategy for an integrated network. From that vision should be defined the prepared (50%), the procedures both for physical investments and for any route planning. development plan is in This measure is financed by the budgetary resources of the Ministry of Transport, course of comprised in its mission of organization and regulation of the transport sector in implementation Romania and by the resources of the Municipality of Bucharest and BMTA in their (100%)/ mission of organization and regulation of the local public transport. Technical assistance 0% 0% 20% 100% may be mobilized. It should start before 2020. 0% Result 2.3.3. To develop and upgrade the urban transport services of Bucharest M2.3.3.1. Creation of the new metro line “M5” The network of Bucharest Metro was conceived half a century ago and is no more Number of tunnels corresponding to the natural development of the city. It was then considered necessary built [km] / to develop new lines and complete the existing lines, in order to align the transport

130

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 services with the present urban planning schemes. 16,2 - 7 The M5 line is under construction, offering a connection from the densely populated south western area to the eastern part of the city, crossing all present and future lines. Number of stations The western section Raul Doamnei – Eroilor (incl Valea Ialomitei) is being completed and built 10 should be delivered in 2020, the Eastern section Eroilor – Universitate –Iancului would [Unit] / - stations be constructed between 2017 and 2023. The entire line will be finalized later to reach 22 stations, 2 depots 1 depot the Pantelimon station.

New rolling stock will be purchased for the operations. - 13 trains Purchased trains [Unit] The projects are financed by the Cohesion Funds and the state budget. The Beneficiary is / the Metro company Metrorex S.A. 43

M2.3.3.2. Creation of the new metro line “M6” Number of km of In line with the previous orientations, the metro line M6 should connect the area of tunnel built 0 0 0 0 Baneasa which became very active, the Baneasa Airport and reach Henri Coanda [km] / 14.2 International Airport. It would comprise 12 stations. It includes rolling stock acquisition

(9 trains). Number of stations The projects are financed by the Cohesion Funds and the state budget, with the support build of the JICA and of the state budget. The Beneficiary is the Metro company Metrorex S.A. 0 0 0 12 [Unit] / 12 stations The project is forecasted to start in 2017 and be completed in 2020.

Purchased trains [Unit] 12 / 12 trains M2.3.3.3. Extension of the line M4 with the new section Parc Bazilescu- Straulesti Number of km of 2.24 km 1 depot 1 1 The extension to the north-western part of the city is expected to bring additional tunnel built passengers to the M4. It is comprised of the construction of a parking facility close to the [km] / 2.24

131

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 terminal and of a depot. The project has started and should be delivered in 2020. Number of stations built 2 1 park & 1 1 The project is financed by the Cohesion Funds and the state budget. Depot and parking [Unit] / stations ride are exclusively financed by the state budget. The Beneficiary is the Metro company 2 stations, 1 depot Metrorex S.A. Depot built 1 depot 1 1 [Unit] / 1 depot Parking completed 1 11 1 [Unit] / 1 M2.3.3.4. Modernization of the lines M1, M2, and M3 Modernization of access gates to the Metro: The project includes the acquisition of new Advancement of the equipment for modernizing and facilitating access to the station for lines 1, 2 and 3 installation of new 100 % 100 % 100 % 100 % (automatic gates, ticketing machines…) – enhancing the attractiveness of the services access gates 41 41 41 41 and the safety in case of urgent evacuation of the station. The project is financed by the [%]/ 100%, 41 stations stations stations stations stations cohesion funds and the state budget and should be implemented in 2017.

Modernization of the ventilation systems: The project aims to renovate the ventilation systems of the lines (electro-mechanical installations, software, architectural modifications). Ventilation is a core system of the metro for comfort and safety in case Advancement of the 100 % 100 % 100 % 100 % of fire. The measure is financed by the cohesion funds and the state budget and should replacement of 6 6 stations 6 6 be implemented in 2017. ventilation system stations & 5 cross- stations stations & 5 stations & 5 & 5 Modernization of the equipment on line 2: The project aims to replace 19 km of track, [%] 100% cross- cross- cross- modernize the systems and enhance the comfort and accessibility of the line. The project stations stations stations is financed by the cohesion funds and the state budget and should be implemented from

2017 to 2020. The Beneficiary is the Metro company Metrorex S.A. 50%

9,5 km

132

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Advancement of the 25% 25% track modernization 4,75km 4,75km [Km] 100%, 19 km 0 Program 2.4. Achieve a single transport area in air transport Result 2.4.1 Romanian airports and civil aviation will comply with ICAO safety audits and recommended practices and procedures regarding aviation safety M2.4.1.1. Improvement of technical parameters of Romanian Airports The GTMP has determined a set of investments regarding infrastructure and equipment improvement for all significant airports in Romania. These actions should enable the Romanian air transport system to take advantage of a growing demand for air transport from and to Romania, in improving the capacities of their built assets and operation The investment systems and manage more efficiently and safely the passenger and cargo flows. The program is approved 2014-2020 actions are focusing on 6 key airports, aerodromes and the acquisition of (20%), budgeted (50%) some technical equipment (Craiova, Sibiu, Bacău, București Otopeni, Cluj Napoca, and and in course of Timișoara). The POIM selects 2 priority airports – Craiova and Tulcea. This list of implementation intervention is presently in course of revision and is not yet available at the time of the (100%)/0% preparation of the present ISP. 20% 50% 100% 100% The projects should be financed with FEDER funds and state budget. The beneficiaries will be the Managing bodies of the Airports. Result 2.4.2. To participate in the Single European Sky Program M2.4.2.1. SESAR Deployment Program implementation 2015 –Cluster 3

The Single European Sky Air Traffic Management Research and Development (SESAR) project aims to modernize air traffic management in Europe and represents the Project progress/ technological pillar of the Single European Sky strategy. It aims to provide the EU with a 0% 0% 50% 90% 100% high performing air traffic management infrastructure by 2030, in order to l enable safe

133

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 and environmentally friendly flight operations. The measure contributes to the deployment of SESAR and it is aimed at facilitating the coordinated and synchronized deployment of a cluster of 24 Implementation Projects (IPs) in EU Cohesion Member States. These IPs are aligned with the Pilot Common Projects (PCP), as defined in Regulation (EU) No 716/2014 and are expected to achieve enhancement in terms of ATM performance. This Action includes IPs in four of the six ATM Functionalities (AFs) described in the PCP; in particular: • AF1 Extended Arrival Management (AMAN) and Performance Based Navigation (PBN) in high density Terminal Manoeuvring Areas (TMAs) • AF3 Flexible Airspace Management (ASM) and Free Route • AF4 Network Collaborative Management • AF5 Initial System Wide Information Management (SWIM) The measure is financed by the Connecting Europe Facility and the state budget and should be implemented from February 2016 to December 2020. This Planning of implementation is in line with the deployment target dates indicated in Regulation (EU) No 716/2014. The beneficiary is Romatsa. M2.4.2.2. Optimization of available airspace Synchronized PBN Implementation Cohesion Europe (SPICE) 2015-EU-TM-0266-W - Performance Based Navigation (PBN) exploits the advanced Area Navigation (RNAV) capabilities of modern aircraft to enable efficient airspace design and the systemization of air traffic routes. The Action ‘SPICE' concerns the deployment of Project progress/ PBN procedures in four Cohesion Fund Member States, the equipment of aircraft with PBN capabilities and the deployment of navigation infrastructure. The measure is financed by the Connecting Europe Facility and Program and the state 0% 0% 50% 90% 100% budget between 2016 and 2020.

134

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Program 3.1. Safer transport Result 3.1.1. To improve the global land transport safety

M3.1.1.1. Defining and implementing a system of progressive internalization of external Preparation of a costs generated by the effects of rail and road accidents financial appraisal of the external cost of Aligned with the strategic objective of fair competition between rail and road transport, each mode of the measure intends to study the possible option of a re-allocation of the safety cost transport and their policy to the transport users and operator for each mode. possible re-allocation 50% 100% The measure is financed by the state budget, the allocation of technical assistance will [progress of the study] be studied. Result 3.1.2. To improve the safety of rail transport

M3.1.2.1. Generalization of ERTMS signaling system on all projects on TEN-T corridors Major railways projects TEN- T of The measure aims to implement the ERTMS on all new renovated lines. The measure is already financed by the renovation works on the European corridor (Program 1.1) and Program 1.1. are the beneficiary is CFR SA. The implementation of ERTMS will follow the schedule of the implemented completion of each individual project. [%] 25% 50% 75% 100%

M3.1.2.2. Measure for safety improvements at level crossing In 2015, 80 fatal crashes occurred in the Romanian railway sector (EUROSTAT) and Number of sites Romania was the third worst performer in Europe regarding railway fatalities. improved The measure aims to reduce the number of fatalities that take place at level crossings [Unit]/ 20 30 40 80 (17 fatal accidents in 2015), segments where a large part of incidents occur. * it is a tentative estimate by the WB The measure aims to: team based on -Support the removal of level crossings, if possible, by developing new infrastructure available information

135

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 -Enhance the level of safety at level crossing by introducing adequate road signaling and that needs to be supervision confirmed by the - The measure is financed by FEDER funds and state budget, and programmed in the ministry POIM to be implemented between 2017 and 2019. The beneficiary is CFR SA. Result 3.1.3. To improve the safety of road transport M3.1.3.1. Improvement of safety of road infrastructure Reducing black points along roads by 50% (target), from 138 (initial value) The existence of Black Spots on the road network (segments of the road with a high concentration of accidents) demonstrate the influence of infrastructure and road signage on road safety. The challenge is not only the maintenance of road infrastructure, but also the management of road traffic, in order to limit risk at high risk locations such as crossings, Number of black spot densely populated areas and dangerous curves. Road safety needs to be taken into identified and account during all phases of the road infrastructure process. removed The measure consists in a set of initiatives to adapt the legislation and deliver guidelines [Unit]/ to the project managers and designer to mitigate the risks of accidents during the 70 preparation of the new projects. 138 The measure is composed of the following: The measure is comprised of: - The correct transposition and implementation of the 2008/96/CE Directive regarding Road Infrastructure Safety Management - Law nr. 265/2008 - The revision of the methodology regarding the identification, classification and mitigation measures concerning the Black Spots on the road networks, referring to the GTMP as well as law 265/2008

136

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 - A shorter time of reaction between identification of the road infrastructure safety problems and their remediation - The preparation of a Design Handbook related to safety and good practices during the preparation of infrastructure projects – existing norms and standards for design and construction must be updated if necessary -The implementation instructions for the ITS plan resulting from the law 221/2012, transposing the Directive 2010/40/UE. Article 3 of this law addresses especially the issues of Road Safety. The beneficiaries will be all public and private entities participating in the conception and the improvement of road infrastructure. The measure should be launched in 2017 and will have a continuous implementation period throughout the ISP cycle. The action will be financed by the state budget (Ministry of Transport), but its practical implementation will also be supported by other Programmes related to road design and construction M3.1.3.2. Measure for the improvement of road safety management Number of Road 50 100 150 200 The lack of road safety infrastructure management results into negligence of road Safety Auditors Trained infrastructure safety measures taken. The Ministry will set up an accurate road safety infrastructure management system, in order to address road safety challenges and 10 20 30 40 adequately support development and implementation of effective safety intervention. Number of Road CNAIR, as national company of road infrastructure management is in place to provide Safety Audits carried such management and set up a detailed action plan aimed at strengthening the out management process. Road Safety management should be ensured during all phases of * it is a tentative the infrastructure process (planning, design, construction, pre-opening, full operation, estimate by the WB maintenance and renewal) team based on The measure entails the following: available information

137

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Ensure that obligations that are arising from national and European legislation according that needs to be to road safety management are fully in place (Directive EC 2008/ 96) and law 265/2008. confirmed by the This includes carrying out: ministry -Road Safety Impact Assessments -Road Safety Audits for Infrastructure Projects -Appointment and training of sufficient road safety auditors (ARR) -Safety ranking of high risk crash clusters -Network Safety ranking -Safety Inspections Result 3.1.4. To improve safety of air transport M3.1.4.1. Measure for the acquisition of a laboratory to harmonize data exchange for flight parameters The major tasks of this laboratory is to download, decode and analyze various types of

Tape & Solid State versions of flight data recorders (FDR, CVR, QAR, GPS), performance analysis, flight animation, and research and development on the relevant investigation The acquisition is done (20%) The laboratory is techniques. The purpose is to assist the investigation team to find the root cause of a problem by recovering the sequence of events through reconstruction of the particular operational (100%)/ event by using computing technologies. This will allow the air accident investigation 0% organization to identify more accurately and more quickly the causes of an aircraft 0% accident and to issue safety recommendations in order to prevent future serious 20% 100% 100% incidents or accidents.

The measure is financed by FEDER funds and state budget, and should be programmed throughout the ISP period. The beneficiary is the Civil Aviation Safety Investigation and Analysis Center – CIAS

138

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 3.1.5. Improved safety in inland waterway transport

M3.1.5.1. Improving safety along the Danube Number of improved Measures to reduce the number of deaths in inland waterway transport and maritime critical locations transport *It is a tentative In recent years, several cases of fatalities in accidents on the Danube waterways have estimate of WB team 0 5 10 15 been reported. The Ministry will address the loss of human lives by taking appropriate based on available measures, such as: information, which - appropriate alert needs be confirmed by -waterway and port cleaning. the ministry Program 3.2. Cleaner transport Result 3.2.1: Improved policies that reduce the GHG emissions in the transport sector M3.2.1.1. Defining and implementing a system of progressively internalizing external costs generated by the effects of GHG emissions and NOx emissions in the transport sector

Measure to support the assessment of new fuel tax, vehicle registration, parking and access to city centers Number of people

The measure is one of the actions of the multi-sectoral strategy aimed at reducing the allocated to the clean effects of climate change and reducing GHG emissions. The Ministry of Transport should transport plan in MoT provide specific technical guidance in this area and support the preparation of [Staff] / - regulations. 0 5 5 8 The action will be funded from the State Budget (Ministry of Transport, in partnership with other institutions) as part of the Ministry's current tasks in providing transport expertise to the other state institutions.

139

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 3.2.2 To improve policies to reduce GHG emissions and NOx emissions in the rail transport sector

M3.2.2.1. Electrification and rehabilitation of the Cluj-Oradea-Episcopia Bihor line Electrified sections The project aims to ensure electrification of the sections Cluj-Napoca - Episcopia Bihor as [Km]/ priority section according to the criteria of the transport master plan and the section 0 Doaga Tecuci Barbosi. The beneficiary is CFR SA. The measure is supported by FEDER 0 0 0 158+166 funds and state budget.

M3.2.2.2. Electrification and rehabilitation of the Craiova-Calafat line Electrified sections The project aims to ensure electrification of the sections Cluj-Napoca - Episcopia Bihor as [Km]/ priority section according to the criteria of the transport master plan and the section 0 Doaga Tecuci Barbosi. The beneficiary is CFR SA. The measure is supported by FEDER 0 0 0 85 funds and state budget. Result3.2.3 To improve policies that reduce GHG emissions and NOx emissions in the road transport sector Number of people M3.2.3.1. Support to the preparation of new schemes for urban transport organization allocated to the The measure is multi sectorial and aims at minimizing the negative effects of climate sustainable urban change and the limiting the production of greenhouse gasses. MoT needs to provide planning scheme in technical guidance within this field so that the urban schemes can be set up. MoT 0 3 3 5 The measure is financed by the state budget (MoT in collaboration with other [Staff] / - institutions), and the MoT will deliver expertise from the transport perspective

M3.2.3.2. Monitoring of vehicle fleet condition and preparation of incentives for vehicle renewals No. of persons The measure is one of the strategic multi sectorial measures that aims at limiting the appointed to monitor

140

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 effects of climate change and the emission of greenhouse gasses. MoT needs to provide the vehicle fleet 0 3 3 5 technical guidance within this field so that the urban schemes can be set up. [Staff] / The measure is financed by the state budget (MoT in collaboration with other institutions), and the MoT will deliver expertise from the transport perspective. M3.2.3.3. Studies and proposals on alternative fuels and alternative motorizations The measure is one of the actions of the multi-sectoral strategy aimed at mitigating the effects of climate change and reducing GHG emissions. The Ministry of Transport should provide specific technical guidance in this area and support the preparation of the plans. Number of people 0 3 3 5 The action will be financed from the state budget (Ministry of Transport, in partnership assigned to alternative with other institutions) as part of the Ministry's current tasks in providing transport fuels within MoT expertise to the other state institutions. [Staff] / -

The measure includes the implementation of the CEF CNG (Compressed Natural Gas) project in Romania: the initial launch of a fuel supply network (mains gas) along the core network corridors - 2015-RO-TM-0373-M. The objective is the initial launch of a network of compressed gas supply stations on the market, followed by dissemination to facilitate the spread of this type of fuel on the Romanian market.

The network of CNG stations will be deployed around central urban nodes, Timișoara and Bucharest, as well as around other major cities along the core network corridors Installing CNG stations 0 1 1 1 such as Arad, Constanța, Craiova, Deva, Drobeta Turnu-Severin, Pitesti, Sibiu to [Unit]/ simultaneously cover potential demand from long-distance carriers and potential 0 demand from urban transport in the most populated areas. Communicating, disseminating, collecting best practices and contributing to improving the legal and regulatory framework are part of this action. It started in March 2016 and the completion of the installation of 9 compressed natural gas stations is planned for the end of 2019.

141

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Program 3.3. Increased transport accessibility Result 3.3.1. To increase accessibility to rail passenger transport M3.3.1.1. Increasing coordination with urban public transport systems to reduce passenger access time The measure intends to coordinate all passenger public transport services and timetables to reach a better integration between railways service and urban transport The review of possible services (metro, tramways, buses). corrective measure is performed (50%) and 0% 0% 50% 80% This is a transversal measure that should be applied to new project and progressively to specific guidance are existing services. formulated (100%) The Ministry of transport will proceed to a review of possible interventions and formulate specific projects. The beneficiaries will be the managers of the related infrastructures. M3.3.1.2. Increasing the level of intermodal integration with the road transport by car through developing parking facilities at the railway stations The measure intends to develop car parking facilities create new parking areas close to railways stations and major nodes for urban transport services (metro, tramways, buses) The review of possible to facilitate the access to public transport services. corrective measure is performed (50%) and 0% 0% 50% 80% This is a transversal measure that should be applied to new project and progressively to specific guidance are existing services. formulated (100%) The Ministry of transport will proceed to a review of possible interventions and formulate specific projects. The beneficiaries will be the managers of the related infrastructures. M3.3.1.3. Developing and generalizing the electronic ticketing system for rail passenger

142

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 transport services The procurement The measure will increase the traveling standards for passengers. This includes the ticket process of electronic 0% 0% 50% 100% control, ticket purchase, improving relations with the passengers. devices is finalized (50%), the new device The beneficiaries will be the passenger train operators. The measure will be financed by is in service (100%) the operators’ budget. M3.3.1.4. Integrating the electronic ticketing system for rail transport with the electronic ticketing systems of the urban public transport systems The scheme for integration of In connection with the previous measures, and the objective of a better integration electronic ticketing is between railway transport trips and urban transport trips, this measure intends of an finalized (50%), the integration of ticketing emission and control. new organization is in 0% 50% 100% The beneficiaries will be the urban and passenger train operators. The measure will be service (100%) 100% financed by the operators’ budget. Result 3.3.2. To increase accessibility to rail freight transport M3.3.2.1. Defining a plan for the rehabilitation of rail freight transport for insulated wagons The efficient management of isolated wagon in terms of punctuality, number of loading / unloading points and safety is a key challenge for the accessibility of rail freight services The stakeholders are to a higher number of domestic shippers. consulted (20%), the plan is prepared (60%), 20% 60% 100% The measure intends to prepare a set of actions to support and develop efficiently this the plan is adopted segment of rail services. (100%) The measure is financed by the state budget, with possible participation of shippers and operators. The beneficiaries are the shippers and rail freight operators.

143

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Result 3.3.3. To increase transport accessibility for people with reduced mobility M3.3.3.1. Law enforcement for easy access to transport infrastructures for persons with disabilities Numerous physical barriers may prevent disabled passengers, or aged persons from using public transportation such as urban bus or tram services, trains, as well as airplanes.

Laws and regulations are in place in Romania, for instance the Government Decision

74/2014 for the accessibility to rail infrastructure and rolling stock, or the legislation transposing the EU regulation 1107/2006 for the access to airports and airplanes for Number of stations persons with reduced mobility. This regulation states that persons with reduced mobility adapted to disabled or disabilities are entitled to receive the necessary assistance in airports and on board of people during ISP aircrafts. The MoT needs to ensure the implementation of these laws for the modes of implementation transport. [Unit] / 0 20 25 30 35 The measure aims to support the full implementation of these obligations. * it is a tentative It will develop and ensure implementation of recommendations for completing the estimate by the WB public facilities with escalators, elevators, designated waiting areas and rest places to team based on access to varied modes of transport and make possible reduced waiting times, vocal available information information and effectiveness of assistance to disabled people and monitoring of the that needs to be results. The measure puts emphasis on better access to public transport in major cities. confirmed by the ministry The recommendation is permanently in force and will have a continuous implementation throughout the ISP period. The action will be financed by the state budget (Ministry of Transport) but its practical implementation will also be supported by all Programs related to buildings, roads, rail and metro station design and construction.

144

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 Program 3.4. Connection of rural areas to major road transport axes Result 3.4.1. To facilitate road connections between the main road corridors and the cities of regional importance

M3.4.1.1. Transregio roads development Ongoing works on Transregio roads Length of renovated The Transregio roads are connecting regional centres and the highways and express roads during ISP networks and are comprising bypasses to avoid city centres. They provide as much as [Km] / possible comfort and safety for the drivers and aim to minimize the impact of road traffic 20% 60% 80% 100% on the surrounding environment.

They are an important tool for regional development and will increase the overall quality Technical of road transport for many citizens. documentation Projects include, among others: prepared - Rehabilitation of the DN6 Alexandria – Craiova [Unit] / 0 - Modernization of DN 5 (Bucharest) 0 1 2 3 - Rehabilitation of DN56 Craiova - Calafat

- Rehabilitation of DN66 (Rovinari - Petrosani) * it is a tentative - Modernization of DN73 Pitești – Brașov estimate by the WB - Rehabilitation of DN76 (Deva - Oradea) team based on - Road and bridged rehabilitation on DN (Giurgiu ) available information that needs to be - Rehabilitation of the section Pitești - Rm,Vâlcea – Racovița 200 500 1000 1063 confirmed by the Transregio roads technical documentation preparation ministry The measure intends to prepare the technical documentation and finance the construction of the following projects for road renovation on FEDER funds and state budget:

145

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 - A1 - Titu - Bâldana - Târgoviște – Sinaia - A3 connection with the airport Henri Coanda - Section Campina Sacele Length of constructed bypassed during ISP M3.4.1.2. Development of Bypasses [Km]/ The measure supports the completion of the bypasses on several major cities, with the * it is a tentative purpose to facilitate traffic flows and protect the city centres from growing traffic. estimate by the WB It includes the bypasses of Brașov (2016-2018), Caracal (2016-2017), Sacuieni (2016- team based on

2018), Carei (2016-2018),Tg Jiu,(2016-2017), Tecuci (2016-2018), and Mihailesti (2016- available information 2018). The FEDER funds will finance the projects. The beneficiary is the CNAIR. that needs to be 10 20 30 36.83 confirmed by the ministry Result 3.4.2. To improve road connections with neighboring countries and facilitate transboundary mobility for people and merchandise

M3.4.2.1. Eurotrans roads development Major TEN-T rail Eurotrans roads link highway and express roads to the neighboring countries' road projects under the network. These are sections of national roads with two or four lanes, which facilitate Program 1.1 are 25% 50% 75% 100% cross-border traffic. These are necessary links to develop cross-border intensive activities implemented at local level and to cross borders more easily within the EU or in neighboring countries. [%] / 0% The renovation of "ET Banatica" Timișoara - Moraviţa (Serbian border) will be implemented with priority, and funding should be provided from the Cohesion Fund and from the state budget. The technical documentation will be drawn up in 2017.

146

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020

M3.4.2.2. Measures dedicated to the reduction of waiting time at border-crossings The custom infrastructure has an important role in the accessibility and the assurance of an efficient traffic flow at transnational crossing points. At present the usual waiting time of 3 to 4 hours can be quantified as a distance of 210- 270 km that could have been travelled. During busy periods the time can increase to 7 hrs.

The measure aims at modernization of the infrastructure at the border points of Constanța, Halmeu and Siret in order to eliminate traffic jams resulting from excessive Modernization of the waiting time. The measure is composed of the following actions: infrastructure at the - The development, extension and the modernization of infrastructure at border border points crossings including the customs offices and aligned buildings; [Unit]/ - The acquisition of specific equipment in order to support the custom officers in improving the efficiency of their non-disruptive controls, for example better scanning 0 0 1 2 3 equipment; - Support for research on the causes of delay at border crossings and exit points for goods, and support for research in order to identify new projects. The beneficiary is ANAF and the Ministry of Transport, the measure is financed by the LIOP in the specific objectives. Program 3.5 The development of Intelligent transport systems Result 3.5.1. To support the implementation of ITS in the road sector

M3.5.1.1. The diffusion of information to road users through a centralized information centre and Variable Message signs

Romania is beneficiary of the Early Warning Intelligent System for Road Transportation Risks project financed by the CEF - 2015-RO-TM-0435-W and state budget.

147

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 The overall objective of the action is to improve traffic safety and reduce congestion of the Romanian Road Core Network by putting in place a compatible, accessible and The Ministry follows interoperable intelligent transportation system (ITS) that will provide real time traffic the implementation of and travel information services in all European languages via web, mobile and through a the project and the

DATEX II access point. It will enable the development of a national centre for traffic results are analysed control, operated by the MTI and the police, for the collection and the diffusion of [Yes/No] information to road users and the introduction of the system of Variable Message signs. Yes Yes Yes Yes Start date: October 2016 End date: September 2018; the beneficiary is the department of special communication; the Ministry of Transport is supporting the project. M3.5.1.2. Measure for the deployment of a network of secure truck parking areas in

Romania

The company O&M is beneficiary of the project “Setup and ITS connectivity of safe and The Ministry follows secure truck parking areas in Romania 2015-RO-TM-0137-M” (2016-2018). With the aim the implementation of of providing European truck drivers with appropriate information on the availability of the project and the safe and secure parking places, a specific ITS software program and a mobile application results are analysed will be delivered through the project, which is comprising the renewal and construction [Yes/No] Yes Yes Yes Yes of 4 parking sites. The Ministry of transport is supporting the project.

148

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M3.5.1.3. Measure for the promotion of intelligent vehicles The measure intends to promote the eCall system. eCall (based on the European emergency number 112) is the emergency call system that automatically alerts rescue The Ministry follows services in case of vehicle crashes. Romania is one of the beneficiary of the CEF project the implementation of

I_HeERO 2014-EU-TA-0582-S and state budget which is supporting the initiative in 17 the project and the member states. results are analysed The Ministry of transport is supporting the project and will join its development when [Yes/No] Yes Yes Yes Yes the infrastructure of communication will enable it. Result 3.5.2 To support the implementation of ITS in the rail sector

M3.5.2.1. Generalization of ERTMS signalling system on all projects on TEN-T corridors Major railways projects TEN- T of The measure aims to implement the ERTMS on all new renovated lines. The measure is already financed by the renovation works on the European corridor (Program 1.1) and Program 1.1. are the beneficiary is CFR SA. The implementation of ERTMS will follow the schedule of the implemented completion of each individual project. [%] / 0% 25% 50% 75% 100% Result 3.5.3. To support the implementation of ITS in the inland waterway sector M3.5.3.1. Implementation and operation of cross-border River Information Services based on operational exchange of RIS data The MoT participate to The Ministry of Transport is beneficiary of the CEF project RIS COMEX (to be the project and implemented between 2016 and 2020) which is a project consisting of two twinned exchange experience Actions: 2015-EU-TM-0036-W and 2015-EU-TM-0038-W. Based on the outcomes and key and know-how with all agreed concepts of the TEN-T study "RIS enabled European IWT Corridor management" participating countries

(2012-EU-70004-S), the project RIS COMEX will join the forces of 13 partner countries to [Yes/No] improve cross-border cooperation with a view to achieving a service for the whole Yes Yes Yes Yes corridor, with common data quality, equal service level and unique access. The RIS

149

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 COMEX project aims for implementation and operation of cross-border River Information Services based on operational exchange of RIS data. These RIS-based Corridor (information) services shall allow for traffic management by the authorities and transport management by the logistics sector. Program 4.1. Improve the administrative capacity of the sectoral policy management and implementation Result 4.1.1. To improve the procedures and organizational structure of the MoT

M4.1.1.1. Initiatives dedicated to the improvement of the financial management of MoT The measure supports the following initiatives: Project preparation phasing -The schedule - Prepare with the support of the Beneficiaries an overall schedule of project is prepared (20%), the 20% 20% 100% 100% preparation phasing in line with the ISP period, fiscal space and priorities of GMP. schedule is - Develop and disseminate annual and multi-annual budget programs for the full implemented (100%) / use of internal and external funds allocated. 0% - Review the conditions of success and failure of recently planned PPP projects and reformulate an improved policy to be implemented during the ISP period. Success and failure of - Enhance monitoring capabilities for the projects’ implementation rhythm to recently planned PPP detect and mitigate potential delays. projects- The review is 20% 100% 100% 100% - Increase the workflow in the phasing of EU funds application, project set up and prepared (10%), a new invoicing and reach the objective of high absorption rate of past and present Structural policy is prepared for Fund Program. further approvals The measure has to be implemented throughout the ISP period. It is financed on the (100%) / budget of Ministry of Transport to the benefit of its agents. Opportunities for planning 0% TA projects may be sought. Result 4.1.2. Ensure the efficiency of the MoT in strategic planning, budget process and monitoring and evaluation

150

Output indicator / Unit / Target values

Baseline 2017 2018 2019 2020 M4.1.2.1. Procedures for strategic planning and budgeting Annual and multi- Develop and disseminate annual and multiannual budget programs for the full use of annual budget 20% 100% 100% 100% assigned internal and external funds. programs - schedule is prepared (20%), schedule is imple- mented (100%) / 0%

Result 4.1.3. Enhance the human resource management according to the organizational needs of the MoT M4.1.3.1. Initiatives dedicated to the improvement of human resources management The measure addresses the need for a permanent specialized staff, who have to be selected, employed and kept within the organization according to the ministry’s actual needs. It is critical to meet existing staff specialization needs, especially personnel that is Organization of skilled in new technologies or in contract management. It is also necessary to efficiently capacity building manage the career path of personnel and limit the turnover of expert staff. sessions - The measure supports the following initiatives: The implementation of - Human resources management and adaptation to the organization needs. This Programs is scheduled measure is meant to improve staff structure, as well as processes such as staff (20%), the Programs recruitment and employment, task assignment to specialized staff, staff motivation, in are performed (100%)/ 20% 100% 100% 100% order to reduce staff turnover within the MoT administration. 0% - Vocational training, learning and expertise of the ministry’s specialized staff: according to the identified needs and the recommendations established in the annual evaluation process and included in the Annual Training Plan at the organization level, which will determine the training requirements through specialized courses.

The measure has to be implemented throughout the ISP period. It is financed on the budget of Ministry of Transport to the benefit of its agents. Opportunities for planning TA projects or Twinning projects may be sought.

151

Annex 4: Institutional Profile

This annex provides the framework of national and international legislation as well as normative acts that are relevant for the MoT and the functioning of the MoT. Further, the organizational chart of the MoT is provided, followed by an overview of the institutions that are subordinated and coordinated by the MoT.

In the subsequent sections below, the normative acts and public policy strategies that sustain the operations of the MoT. European, national, and international treaties are listed in subsequent order, followed by the existing strategic documents regarding the Transport and Infrastructure sector.

I. EU Regulations and Normative acts General36  Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the Trans-European transport network and repealing Decision No 661/2010/EU

 Regulation (EU) no 1316/ 2013 of the European Parliament and of the Council establishing the Connecting Europe Facility, amending Regulation (EU) no 913/2010 and repealing Regulations (EC) 680/2007 and (EC) no 67/2010EC White Paper on Transport 2011: Roadmap to a Single European Transport Area - towards a competitive and resource efficient transport system

Air sector37,41  Regulation (EC) no 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community  Regulation (EC) no 1316/2013 of the European Parliament and the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010  Regulation (EC) No 300/2008 of the European Parliament and the Council of 11 March 2008 on common rules in the field of civil aviation security and repealing Regulation (EC) No 2320/2002  Regulation (EC) no 720/2011 of July 2011 amending regulation (EC) no 272/2009 supplementing the common basic standards on Civil aviation security as regards the phasing-in of the screening of liquids, aerosols and gels at EU airports  Regulation (EC) no 72/2010 of 27 January 2010 laying down procedures for conducting Commission inspections in the field of aviation security

36 http://mt.gov.ro/web14/domenii-gestionate/alte-domenii/cooperare-internationala/cooperare-internationala- afaceri 37 http://mt.gov.ro/web14/domeniul-aerian/193-domenii-aerian-avsec-legislatie-comunitara

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 Regulation (EC) (358/2010) of 23 April 2010 amending Regulation (EU) No 185/2010 of 4 March 2010 laying down detailed measures for the implementation of the common basic standards on aviation security  Regulation (EC) 357/2010 amending Regulation (EU) No 185/2010 of 4 March 2010 laying down detailed measures for the implementation of the common basic standards on aviation security  Regulation (EC) 297/2010 amending Regulation (EC) No 272/2009 supplementing the common basic standards on civil aviation security  Regulation (EC) 185/2010 laying down detailed measures for the implementation of the common basic standards on aviation security  Regulation (EC) no 18/2010 amending Regulation (EC) No 300/2008 of the European Parliament and of the Council as far as specifications for national quality control programs in the field of civil aviation security are concerned  Regulation (EC) no 272/ 2009 on supplementing the common basic standards on civil aviation security laid down in the Annex to Regulation (EC) No 300/2008 of the European Parliament and of the Council  Regulation (EC) no 216/2008 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency, and repealing Council Directive 91/670/EEC, Regulation (EC) No 1592/2002 and Directive 2004/36/EC  EP and Council Directive of June 2003/42 regarding air traffic regulation  Regulation (EC) 996/210 regarding air traffic accidents  Regulation (EC) 319/2014 regarding taxation and air traffic safety Railway sector38  Regulation (EU) no 1370/2007 of the European Parliament and of the Council on public passenger transport services by rail and road repealing Council regulations (EEC) Nos 1191/69 and 110/70  EC Directive 2012/34/CE regarding the Single European Railway Space  EC Directive 2008/57/EC on Interoperable Railway Systems  Railway package for Infrastructure  Development of a railway signalling system ERTMS/ETCS  Directive 2004/49/EC- Railway Safety  Directive 2008/ 68/ EC and Directive 96/49/EC- Transport of dangerous goods, including modification and previous amendments  Commission Implementing Regulation (EU) 2017/6 of 5 January 2017 on the European Rail Traffic Management System European deployment plan

38 http://mt.gov.ro/web14/domenii-gestionate/feroviar/domenii-feroviar-reglementari

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Intelligent Transport Systems39  European Directive 2010/40/ EU of the Parliament and of the Council on the framework for the deployment of Intelligent Transport Systems in the field of road transport and for interfaces with other modes of transport  Commission Delegated Regulation no 305/2013 supplementing Directive 2010/40/EU of the EP and of the Council with regard to the harmonized provision for an interoperable EU-wide eCall  Commission Delegated regulation no 885/2013 supplementing ITS Directive 2010/40/EU of the European Parliament and of the Council with regard to the provision of information services for safe and secure parking places and truck and commercial vehicles  Commission Delegated Regulation no 886/2013 supplementing Directive 2010/40/EU of the EP and the Council with regard to data and procedures for the provision where possible of road safety- related minimum universal traffic information free of charge to users

II. National legislation and normative acts38,40,41,42, 43, 44  Attribution of the Ministry of Transport, Government Decision nr. 21/2015  Government Ordinance 7/2012 Adopting Decision on report orientation Intelligent Transport systems  Ordinance of the government regarding the modification and the completion regarding defining the framework of the operational schedule of driving, breaks, resting periods of vehicle drivers and the utilization of registration machines in order to register the functioning of the activities.  Regulation regarding the Romanian Aviation Civil Regulation regarding the supervision of the dissemination of air navigation services, RACR-SSNA edition 02/2008  Law 59 on the modification and the completion of the Government ordinance nr. 81/2000 regarding the certification of vehicles and their implementation of technical norms regarding road safety, environmental protection, by preforming periodical technical checks.  Law nr. 928 of 15.12.2015 regarding the approval of the emergency ordinance on the completion and modification of the emergency ordinance of the Government nr. 47/2013 regarding measures in the domain of structural instruments that regard the beneficiaries of financial funds that re not reimbursable.  Government Decision nr. 50 of 21.01.2015, regarding the organization and functioning of the Ministry of Transport.

39 http://mt.gov.ro/web14/domenii-gestionate/alte-domenii/sisteme-de-transport-inteligente/sisteme-transport- inteligente-acte 40 http://mt.ro/web14/informatii-de-interes-public/legislatie/897-legislatie-2015 41 http://www.caa.ro/reglementare/operatiuni-zbor and http://www.caa.ro/reglementare/legislatie-generala 42http://mt.gov.ro/web14/domenii-gestionate/aerian/domenii-aerian-reglementari 43 http://mt.gov.ro/web14/domenii-gestionate/naval/domenii-naval-reglementari 44http://mt.gov.ro/web14/domenii-gestionate/rutier/domenii-rutier-reglementari

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 Government Decision nr. 163 of 09.03.2015 regarding the annulment of the budget, income and spending regarding the national airport company “ Airport of Bucharest” – under the authority of the MoT.  Government Decision nr. 187. 19. 03. 2015. Regarding the adaptation of the budget; income and expenditures of the Romanian Auto Register- under the authority of the Ministry of Transport.  Government decision on the modification of the annexes nr 3,5 and 6 regarding the Government decision nr 877/210 regarding the interoperability on the modification of the annexes nr. 3,5 and 6 regarding the interoperability of the railway network.  Government Decision nr 359 of 25.05.2015 for the modification of the Government Decision on the organization and functioning of the Ministry of Transport  Government decision regarding the approval of the organizational and functional attributions of the Council of coordination for intelligent transport systems.  Government decision nr. 589/2014 for the modification and completion of the activation of the procedures of expropriation of properties that require additional onsite works for the „Autostrada Orăştie-Sibiu“  Government decisions nr. 664 of 01.09.2015 in order to approve the organization of the ministry of transport, in October 2015 for the reunion of the ministers of transport with the regional organization for economic cooperation in the Black Sea region (OCEMN), preceded by the reunion of the expert groups.  Government decision 868 of 31-10-2015 on the approval of the administration regarding the bilateral recognition for the qualification of marines that are obtained by professional qualifications, by completing the professional qualification of the central commission for the navigation of the Rhine and the Ministry of transports of Romania, signed in Strasbourg on the 4th of December 2014  Law 203 of 16 may 2003 regarding the realization, development, and modernization of the transport network of National and European interest.  Law 14/1995 for the ratification of the convention for protection of the Danube river  Law nr 109/ 2014 regarding the approval of the emergency ordinance of the Government nr. 11/2013 for the modification and the completion of the Government Ordinance nr, 27/2011 regarding road transport  Law nr. 8/2012 for the Government Ordinance nr. 21/2012 regarding the foundation of the Metropolitan Authority for Bucharest Transport  Law nr. 18/2012 for the Government Ordinance nr. 26/2011 regarding the foundation of the State inspectorate for Road Transport Control  Government Ordinance nr 101/ 2013 regarding the modification of the State inspectorate for road transport controls  Ordinance nr. 11/2013 for the modification of the government ordinance 27/2011 regarding road transport  Ordinance 26/2011 regarding the foundation of the State Road Transport Inspectorate

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 Ordinance 21/2011 regarding the foundation of the Authority of Metropolitan Transport in Bucharest  Ordinance for the approval of a regulation regarding increasing road safety and destination amounts collected by the authorized personnel entrusted with inspection and control from the application of sanctions specific to road transport.  Government Ordinance nr. 22/1999 regarding the administration of ports, waterways, usage of fluvial infrastructure that is part of the public space, as well as the dissemination of transport activities in the ports and waterway sector, republished, modified and previous amendments.  Government Ordinance nr. 42/1997 regarding Maritime transport, and internal waterways, republished modified and previous amendments  Government Decision nr 517/ 1998 regarding the foundation of the National Company “Administration of the Maritime Port of Constanța” – S.A. including previous amendments  Government Decision nr. 518/1998 regarding the National Company Administration of the Maritime Danube Port of Galați, including previous amendments  Government Decision nr. 519/1998 regarding the National Company Administration of Navigable Waterways S.A. Constanța, including previous amendments  Government Decision nr. 5201998 regarding the National Company Administration of Danube river S.A. Giurgiu, including previous amendments  Government Decision nr. 492/2003 regarding the organization and the functioning of the Autonomous Directorate “Administration of the lower Danube River, Galați  Government Decision nr. 1133/2002 regarding the organization and functioning of the Romanian Naval Authorities, including modifications and previous amendments  Government Decision nr. 525/1998 regarding the foundation of the National Company “ Radionav” including modification and previous amendments  Government ordinance nr. 33/2004 regarding the foundation, organization, and functioning the Romanian Organization of Saving human life on the Sea- ARSVOM, approved by law nr.337/2004  Government Decision nr. 449/ 2003 regarding the organization and functioning of the Romanian Centre for the preparation and perfecting of the personnel and the naval transport CERONAV and the modification and completion ulterior  Ordinance 8/2011 amending and supplementing the law on issuing, managing and monitoring traveling documents provided to pensioners of war, veterans and widows of war  Government ordinance nr. 1289/2011 regarding the completion of normative acts from the road domain  Government ordinance nr.1088/ 2011 regarding the organization and the functioning of the State Inspectorate for control of Road Traffic  Government decision 1373 of 28 October regarding the regulation supply and road transport of divisible goods on public roads in Romania

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 Government Decision nr. 606/2015 for the modification and the completion of the Government Decision nr. 626/1998 regarding the organization and functioning of the Romanian Railway- AFER as well as the modification of the annex 2 regarding the government decision 21/2015 regarding the organization and functioning of the Ministry of Transport  Government Ordinance nr. 802/2015 regarding international transportation of dangerous goods  Government Decision nr. 581/1988 regarding the institution of the National Railway Company “ C.F.R” – S.A.  Law nr 8. Of 18 February 2004 for the allocation of the capacity in railway infrastructure and certification of rolling stock  Government Decision nr. 817. Of July 2005 regarding the long term strategy of the railway sector  Law nr. 55 of 16 march 2006 Railway Safety  Government Decision 53/ 2011 for the approval of methodological norms for application of law nr. 255/2010 regarding expropriation for public utilities necessary to achieve the objective on local county and national level  Law nr. 213/ 1998 regarding Public Property  Law nr. 50/1991 regarding the authorization of construction workers  Government Ordinance nr. 117/210 for the approval of the regulation of accidents investigations and incidents.  Government Ordinance nr. 7/2005 for the approval of the content of technical and economical documentation regarding investments  Government Decision 28/2008 regarding the content of technical and economical documentation regarding investments  Government Ordinance nr. 4/2010 regarding the foundation of national infrastructure for Special Information in Romania  Government Decision nr 117/2010 for the approval of the Regulation of Railway accidents and their investigation  Government Decision nr 643/ 2010 for the approval of the conditions regarding rents by C.F.R. S.A.  Government Decision nr 454/2014 regarding the approval of the additional act nr. 1 for 2014 regarding the contract of activities for the National Railways Company C.F.R. S.A.  Government Decision nr 560/2009 regarding measures for implementation EU Regulation 1008/2008  Government Ordinance nr 29/1997 regarding the Civil Aviation Code  Law nr 257 of May 201 regarding actions against unauthorized airplanes in the Romanian Air space

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 Government decision nr. 405 of 1993 regarding the foundation of the Romanian Civil Aeronautical Authority  Government Decision nr. 455 of 2011 regarding airport tariffs  Government Decision nr. 912 of 2010 regarding approval of national flight conditions  Ordinance nr 743/2016 regarding measures for the application of regulation EU 2015/340 of the EU Commission regarding the establishment of common air traffic rules for providing air traffic services  Ordinance nr. 1464/2016 regarding the implementation of the EU regulation 340/2015 on technical procedures and licensing of air traffic

III. International treaties  International Convention regarding the regulations for navigation on the Danube (Belgrade, 1948) ratified trough the decree nr. 298 of 30 October 194837  UN convention on Maritime Law, Montego Bay 1982, and the accession of the accord of Agreement on the implementation of Part XI of the United Nations Convention on the Law of the Sea, concluded in New York on July 28, 1994, ratified by Romania by Law no. 110/199637  International Convention, Convention of Chicago, regarding civil international aviation, signed on 07.12.1944 37  Eurocontrol Convention, International Convention regarding the cooperation for security of air navigation, signed 13 December 1960 37, 41  Bilateral Agreement Bulgaria and Romania “Danube Fab Agreement” on a functional airspace, signed on 5 September 201537,41

IV. Strategic documents  Government Program 2017-202045  General Transport Masterplan Romania, 22 September 2016  Sectorial Strategy for the medium term regarding the decentralization of the Ministry of Transport, approved for the Government decision 1030/2008 (M. of. Part I nr. 663 of 23.09.2008)  National Strategy for Anticorruption period 2016-2020  National Strategy for the Sustainable Development of Romania, Horizon 2013-2020-2030  Intermodal Strategy Romania 2020, approved by OMTI nr. 475 of 20.06.2011  National Strategy for Road Safety (2016-2020)  National Strategy for the Management of Waste 2014-2020, approved by the government decision no. 870/2013

45 http://mt.gov.ro/web14/documente/strategie/politici-programe/Programul_de_guvernare_2017-2020.pdf

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 Strategy for Privatization CFR Marfă

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V. Organizational chart of the Ministry of Transport (Government Decision nr.21/2015)

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VI.Organizational chart Railway Reform Authority HG nr 98/07.03.2017

VII.Subordinated Institutions of the Ministry of Transport46 1. Romanian Road Authority -ARR 2. State inspectorate for controls in Road Transportation 3. Metropolitan road authority Bucharest 4. Independent Company Romanian Auto Register -ARR 5. Romanian National Company of Road Infra Management -CNAIR 6. Romanian Naval Authority -ANR 7. National Centre for Railway Qualification and Education -CENAFER 8. Romanian Agency for saving human life on the sea – ARSVOM 9. Higher Education for Education in România 10. Romanian Centre for the Preparation and perfecting of personnel for Naval Transport CERONAV 11. Centre for Investigation and Analytics for the Security of Civil Aviation – CIAS 12. Aero club of România 13. Centre for Investigation and Analysis of Civil Aviation- CIAS 14. S.C. National Company of Airline Transport ROMATSA

VIII. Institutions under Authority of the Ministry of Transport47 (Ordinance 431 of 10-04-2014) 1. National Society for the Romanian Railways – S.N.C.F.R. – R.A 2. National Railways Company “ CFR” -S.A.

46 http://mt.gov.ro/web14/domenii-gestionate/rutier/domenii-rutier-unitati 47 http://mt.gov.ro/web14/documente/interes-public/ordine-ministru/omt431001.pdf

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3. Society for National Railway Transport of goods “CFR Marfă” – S.A. 4. National Railway Society for Passengers Rail Transport “ CFR Călători” - S.A. 5. Society of Active Railway Administration “SAAF” – S.A. 6. Society for Touristic Railway Transport “ S.F.T -C.F.R” S.A 7. Agency for Romanian Railway Investigations AGIFER 8. Sports Club Rapid 9. Society for Commercial Transport of the Metro of Bucharest “ METROREX” – S.A 10. National Company of “ Bucharest Airport” S.A. 11. National Society for the International Airport of Constanță Mihail Koglăiceanu” S.A. 12. International Airport Timișoara “ Traian Vuia” S.A. 13. Administration of the Arian Traffic Services ROMATSA 14. Romanian Auto Register RAR 15. Commercial Association ‘Telecommunication” C.F.R -S.A. 16. Commercial Association “ Grup Explotare si Întreținere Palat” C.F.R – S.A 17. National Company for Administration of Ports Constanța S.A 18. Autonomous Direction “Administration of Lower Danube River” S.A. Constanța 19. National Company “Administration of the Danube Maritime Ports S.A. Galați 20. National Company of the Administration of the Danube River Ports S.A. Giurgiu

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Competența face diferența!

Proiect selectat în cadrul Programului Operațional Capacitate Administrativă, cofinanțat de Uniunea Europeană din Fondul Social European

Competence makes a difference!

Project selected under the Administrative Capacity Operational Programme, co-financed by the European Union from the European Social Fund

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