Finance & Funding

Nepal’s Ministry of Physical Infrastructure and Transport Management has been allocated US$524.48 million in the 2015-16 budget for developing infrastructure projects in the country. The country is faced with an additional challenge at present of repairing the links wrecked by the powerful earthquake that caused extensive damage all across Nepal. A budget of $309.8 million is being used for the Postal Highway, while a budget of $189.4 million has been set for the Mid-Hill highway. Some $97.1 million is bein

A dispute between the European Commission (EC) and Hungary has halted the flow of funds for road construction projects. The move has seen the EC officially suspending its payments for road construction projects in Hungary. This move means that funding worth €1.15 billion is not being provided. As a result, Hungary is now considering turning to the European Court of Justice to appeal for the funding stream to be revived.

Brazil's Treasury Ministry has confirmed that the rate of return for the upcoming highway concession auctions is to be set at 9.2%, up from the 7.2% used in the previous round of tenders in 2013. The lower return is to ensure that the road tolls are lower. However, critics said the measure is not high enough and many contractors are looking for a rate of return of at least two digits, Brazil media reported. Even the increased rate as it stands will not lead to a greater number of contractors tendering fo

Vietnam has major plans to develop its transportation infrastructure by 2020. The work required could cost in the order of US$45.9 billion. Of this, some 64.1% will be required to improve the national road system. The State Budget has so far provided approximately 30-40% of the financing required. However, the country has a need for international investment to further develop its transportation system. One of the barriers to PPPs has been a lack of clear policy on indirect government support. Another proble

A series of road concessions will be put out to tender in Colombia. The country’s government intends to put 11,000km of road projects out for concession by December 2018. So far 34 of the 4G highway tenders have been set into motion, including 17 as contracts, another 14 that have been awarded and three that are in the process of being awarded. Two projects from the second phase of the 4G road programme, the Sisga-El Secreto highway and the Puerta de Hierro project, have been given the green light to start

China’s northwest province of Shaanxi plans to increase its spending on highways by 22% to nearly US$8.9 billion, according to an official statement. World Highways reported last year that Shaanxi was to spend nearly $5.8 billion in 2014. Of the total, nearly $5.8 billion has been allocated for five highway construction projects totalling 261km. Within 2015, there will be 600km of new highways in the province, raising the total highway length to over 5,000km by the end of 2015. Meanwhile, 11 new

Austrian construction group Strabag will modernise the A10 Oswaldibergtunnel for Asfinag, Austria’s national motorway operator. Work on both tubes, each 4.3km long, will start this month and be finished in June 2017. The €34 million contract includes upgrading the road and tunnel surfaces as well as reinstalling all electrical and mechanical equipment. Thomas Birtel, chief executive of the Strabag Group, said in a statement that the contract will be covered by the group’s construction, engineering and c