Finance & Funding

Funding from Japan now looks likely to help pay for a highway project in Tanzania. The Japan International Cooperation Agency (JICA) is planning to offer US$1.4 billion for Tanzania’s New Bagamoyo Highway road project. The deal has yet to be finalised, but construction work should commence in June 2018, should all go to plan. Once the work starts, this will improve the connection between Mwenge and the Kawawa intersection.

Bulgaria has started work on a 12.6km section of Struma motorway between the southwestern towns of Blagoevgrad and Krupnik. A consortium led by Bulgarian construction company Agromah is building the section under a contract worth just over €71 million, according to the regional development ministry.

Bosnia has picked up a €221 million loan from the European Bank for Reconstruction to finance two road projects, including a Corridor Vc section. Up to €65 million of the a €221 million will be for flood damage repairs.

Despite political concerns and upheavals, Europe’s construction market is on the up, reports Graham Anderson Europe’s road building market is forecast to grow strongly in real terms up to 2019, as a strengthening economy boosts construction, creating investment and jobs. The market is predicted to grow by 16% between 2016 and 2019 and is being led by increases in the UK (39%), Norway (38%) and Poland (35%). In the UK, the market is buoyed by a number of major projects coming on stream, such as England’

A report by Off-Highway Research suggests that worldwide construction machine sales could increase 16% this year. On a global basis, sales of construction machines are expected to exceed 810,000 units in 2017, with a value of more than US$80 billion. The report says that most major territories will see growth during 2017. However China’s resurgence will be crucial, as crawler excavator sales in the country have more than doubled in the first half of 2017, compared to the same period last year.

Colombia's strong focus on infrastructure development from 2011-2017 has seen the country make vast improvements to its road network. In all the National Infrastructure Agency (ANI) has invested US$7.94 billion in the construction of 1,435km of new roads as well as over 200 new bridges. Colombia’s capital Bogota has benefited from a series of transport projects during this period. Meanwhile four highway projects will improve Bogota’s connections with the rest of the country.

Financing for a 240km toll road project that will connect Padang with Pekanbaru in Indonesia still needs to be finalised. A combination of loans from the Japan International Co-operation Agency (JICA) and PPP funding is expected to pay for the project. In all the project is expected to cost US$2.63 billion, with construction work intended to start in 2018.