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
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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 ManagementCEO / 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
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
GSG / Single European Sky ATM research
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.
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.
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
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