Paul Butnariu, the president of the Chamber of Commerce and Industry Iași, was contacted by the economic publication Moldova Invest regarding the progress of the A8 Iași-Târgu Mureș highway and its impact on the regional economy
In a detailed discussion, Butnariu emphasized that the A8 highway project has been on the agenda of the Chamber of Commerce Iași since 2000. Over the past 25 years, numerous reports and memorandums have been issued, and discussions with authorities have intensified in hopes of seeing this project completed. However, progress remains slow, with few sections completed and many bureaucratic obstacles to overcome.
“The Iași-Târgu Mureș highway is a major European corridor, connected to two other important corridors: the A7 highway, from Bucharest to Siret, and the highway from Constanța to Nădlac. Although we have had the support of Iași’s parliamentarians in voting for the highway law and there is a European directive requiring the completion of these corridors by 2030, the works are delayed for various reasons. Contracting authorities omit necessary clarifications for contractors, and tenders are constantly postponed,” said Butnariu.
The Economic Impact of Lack of Infrastructure
Butnariu highlighted the negative economic impact of these delays. The Moldova region faces significant challenges in exporting products to Western Europe, primarily due to inadequate road infrastructure.
“75%-85% of Moldova’s foreign trade is conducted with Western Europe. The main export service of Romania and the Republic of Moldova is transportation services. Numerous trucks from these regions cross the Carpathian Mountains, and from Iași to the border, they have to pass through 126 localities, of which very few have bypasses. This leads to increased costs and a lack of competitiveness for products manufactured in the northeast of the country,” explained the president of the Chamber of Commerce.
The lack of adequate infrastructure discourages investments in the northeastern area, both from foreign and Romanian investors.
“The lack of infrastructure is the main factor discouraging these investments, not only foreign investments but also private Romanian ones. The Romanian government needs to support this disadvantaged region to close the gap with the rest of Europe. The northeastern region of Romania, along with the Republic of Moldova and the Chernivtsi region of Ukraine, is in a poverty belt,” added Butnariu.
Conclusive Examples from the Business Environment
The president of the Chamber of Commerce provided a concrete example to underline the negative impact of the lack of the A8 highway on local businesses. “We have clear evidence from a company in Iași that sends the same pair of shoes manufactured in the Iași-Târgu Frumos area to Italy. Transport costs make the pair manufactured in Târgu Frumos 5%-7% more expensive. This difference can mean the survival of a business in Iași or its relocation to Oradea,” said Butnariu.
Conclusions and Expectations
In conclusion, Paul Butnariu highlighted the business community’s frustration with the delay of this crucial project. “Although there are progressions, such as tenders for other express roads and highways in other regions, projects in Moldova remain stalled. The lack of action for the A8 highway is frustrating, especially in the context of prioritizing other infrastructure projects in Romania,” concluded Butnariu.
