Friday 15 February 2008

New EADS deal concluded (Nov 11, 2005)

Initially published in www.romania-report.ro -- Nov 11, 2005


A new contract regarding the integrated border security system for Romania, as re-negotiated with EADS group, was signed. It is worth €524.5 million (as compared with the at least €650 million figure resulted from the former Social-Democrat government deal in 2004), said Vasile Blaga (Minister of Administration and Interior - MoAI) on Friday.

During a press conference after closing the deal, Blaga added that this present version eliminates overlapping with EU financed programs in the same area. “Eliminating overlaps shall secure us access to PHARE and Schengen funds worth €450 million,” Blaga said.

In August 2004, the former Romanian government awarded EADS a deal of €650 million together with a subcontracting option of another €350 million.

In February, this year, the present Romania government announced it would re-negotiate the old contract.

The manner of closing this old contract forced the MoAI chiefs to issue a complaint near the local High Court, back in June, against the former under-secretary of state Toma Zaharia.

Later, President Basescu gave a decree for sacking Anton Gagiu, the former PMU chief that controlled the project’s implementation with the MoAI.

At the end of October, the EC report (Chap. 24) expressed concerns regarding Romania’s capability to finance the management of the future EU borders and asked for immediate actions with this respect.

The new contract signed by Romanian MoAI and EADS group is expected to provide the needed solutions for Romania’s border security and also to help removing the ‘red flag’ which EC placed in front of the ‘Justice and Internal Affairs’ accession chapter.

Romania Report

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