This report describes the results of theFunctional Review of the transport sector in Romania. Duringits early transition years, Romania implemented radicalstructural reforms in the institutions of the transportsector, but over the last decade there has been concern thatthese changes have not led to tangible improvements intransport policy administration nor in the efficiency andeffectiveness of the main delivery institutions in therailway and road sectors.The Review has tried to discernthe main reasons for these shortcomings and to identifyremedial actions. It focuses on three main challenges: theadministration of the transport sector as a whole; thecorporate governance of state-owned road and railwaycompanies; and the priorities for the companies themselves.Attention is also given to budgeting issues andopportunities for greater private sector participation.