Search

The 2014-2015 Romania Regional Development 2 Program is the continuation of the World Bank’s technical assistance to the Ministry of Regional Development and Public Administration (MRDPA). Building on the previous engagement, the current work addresses a fundamental question: given Romania’s persistent development challenges, how can the country do more with less when it comes to the public infrastructure it needs? The key is to enhance coordination and harmonization of different funding sources, particularly infrastructure programs financed from the state budget and from EU structural funds. The National Local Development Program (PNDL), managed by the MRDPA, is reviewed in depth, though the conclusions typically hold for all state-budget-funded programs. This synthesis report summarizes the main findings and recommendations from eight final reports and 24 knowledge sharing workshops organized in all eight regions in Romania in 2015. Several ‘bonus’ outputs were also produced, going beyond the terms of this technical assistance (three investment guides, an applicant guide, and an operational manual). This synthesis report – along with all the outputs it draws from – is meant as a practical tool for policymakers at the national, regional, and local level. It also seeks to inform a broader audience of private and nongovernmental stakeholders.

This study was conceived on the basis of a request by Ukraine’s Ministry of Agricultural Policies and Food (MoAPF). In 2013, the MoAPF explored the World Bank’s interest for investing in grain hoppers, following a deficit of hoppers and concerns about related difficulties for grain transport. In response, the World Bank secured resources from the Multi Donor Trust Fund for Trade and Development (TF016693) to carry out a review of grain logistics in Ukraine in order to better understand the challenges facing the sector. The objectives of this report are to assess the functioning of the grain logistics system, identify bottlenecks and put forward practical recommendations for investments and reform. Research points to five key drivers of current high logistics costs: (i) lack of regulatory clarity and sub-optimal management of public assets that create barriers to private investments; (ii) underutilization of river transport, (iii) underinvestment in rail transport; (iv) inefficiencies in storage management, and (v) excessive use of road transport. However, there are two important limitations of the report that should be taken into account. First, the ongoing crisis remains a source of uncertainty. It has so far had limited impact on grain production and logistics, yet access to finance has become more difficult and other impacts might arise in the future. Second, there are two areas that the report does not address: customs and ports. Both are important elements of logistics costs and deserve a comprehensive analysis in the future.