From flower bridges to concrete bridges and gas pipelines

[Analysis by Tudor Cojocariu, of the Romanian Center for European Policies, for Info-Prim Neo] The relations between Romania and Moldova have developed inconsistently after the latter gained international recognition. At the start of the 1990s, the cooperation between the two states was marked by ‘flour bridges’ that were more than symbolic. They were a kind of approach that turned out to be a paradigm where only Romania worked because everyone expected it to offer solutions, resources and assistance in all the meanings. However, there was an urgent need for a change in the relations. That’s why the initiatives of the two governments endorsed at the joint meeting held in Iasi represent a signal that we gradually overcome the paradigm of flour bridges and go towards that of concrete bridges, gas pipelines and power lines. As regards the bridges over the Prut, the discussions became more consistent when Romania announced it will provide €100 million in assistance to Moldova. There were a series of ideas as to how this money should be spent, from the IT equipment of the schools to the construction of bridges. Unfortunately, the issue is now very unclear as there are misunderstandings between Bucharest and Chisinau and between different ministries of the two countries (Transport versus Development in Romania) concerning the exact location of these bridges. The officials involved give different names of settlements in interviews and pres statements (Leuseni, Leova, Nisporeni, and Ungheni) even if there are no feasibility studies or at least criteria of principle as regards the selection of the bridge or its nature – large European infrastructure project or local bridge? There are yet hopes that we will soon have one or several concrete bridges over the Prut, which will fluidize the transport of persons and goods between Moldova and the European Union. As regards the alternative of obtaining gas from Romania, the report of the Romanian Center for European Policies shows that there are reasons for optimism. After the joint meeting of the two executives, the two Prime Ministers announced that the Iasi – Ungheni gas pipeline will be ready this year. It has a great importance as it will enable Moldova to negotiate with Gazprom in a more relaxed way and to be connected to the European gas market through Romania. Moldova will be thus less dependent as regards the sources of energy. A bold solution that can be implemented if there is the necessary political would be to effectively integrate Moldova into the energy market of Romania. The natural gas consumption in Moldova is 1 billion cubic meters, almost ten times lower than the internal production of Romania. Currently, the internal market of Romania is strictly regulated – the internally sourced gas (cheap) is merged with the imported one (dear) and the resulting average price is paid by the consumer, which is the internal price of gas that is lower than the import price (it is in fact a kind of cross subsidization). If thinking creatively, the Romanian authorities may decide to export a part of the gas to Moldova. Anyway, the EU obliges Romania to liberalize the energy market and to become integrated into the regional networks, to have links with the gas pipes of Hungary (where a gas pipeline already exists) and of Bulgaria (where one is to be built). The gas pipeline to Moldova can thus become a part of Romania’s broader energy strategy. Moreover, the recent developments as regards the internal production – the possible exploitation of shale gas and the discovery by Petrom – ExxonMobil of 42 – 82 billion cubic meters of gas in the Neptun platform in the Black Sea – can essentially change the situation. Thus, Petrom may add the equivalent of the gas consumption in Moldova for 42 years to the internal production of Romania. As regards the construction of the gas pipeline Iasi-Ungheni, they are currently discussing the possibility of sharing the costs between the European Commission through the Joint Operational Program Romania – Ukraine – Republic of Moldova - one third and Romania –– two thirds. Theoretically, Bucharest will have to cover the costs that are to be incurred by Chisinau. Given that Romania contributes 50% of the funds to the abovementioned program, in fact it would cover about 80% of the costs of the gas pipeline that are assessed at €19 - 20 million. [Tudor Cojocariu, the Romanian Center for European Policies, for Info-Prim Neo]