Finance & Funding

The state government of Maharashtra in India has named BrihanMumbai Municipal Corporation (BMC) as preferred bidder for construction of Mumbai’s Coastal Freeway worth around US$1.36 billion. The 35.6km freeway, subject to clearance from the central government in New Delhi, will run from Mumbai’s business district, called Nariman Point, to the northern suburb of Kandivli. Coastal Freeway, which runs beside the sea, on reclaimed lands, landfill sites and some small bridges, is the alternative to the mor

The state government of Victoria in Australia will pay the East West Connect consortium US$258 million to cancel construction of Melbourne’s East West Link road tunnel. The payoff is to cover the consortium's bidding, design and pre-construction costs and draw a line under the deal that has been mired in financial controversy for years. The federal government slammed Victoria’s decision to bail out of the project as “an obscenity’’ that will cost 7000 jobs, according to a report in The Australian news

Colombia's national agency for infrastructure, Agencia Nacional de Infraestructura (ANI), has announced the second wave of 4G motorway projects made of nine projects that will require US$5.64 billion. Four proposals were received for the first of these projects, the Puerta de Hierro-Palmar de Varela-Cruz del Vizo motorway, a 202km road will require around $470 million. L:ast November World Highways reported that a major programme of PPP road construction concession contracts is due for Colombia. It wa

The Russian Government has set a budget of US$1.11 billion which it is allocating for a series of road construction projects in its regions. This federally funded budget for road construction in Russia’s regions in 2015 does represent an increase from the previous year’s spending. In 2014 $1.026 billion was spent on regional road projects. However, the $1.11 billion is still a reduction from the original regional road spending plan for 2015 of 13.3%. The budget has had to be cut due to Russia’s current econ

Fonplata, a multilateral fund set up by Argentina, Bolivia, Brazil, Paraguay and Uruguay, has unveiled a project to integrate roads in south-west Paraguay. The work to six section in total will include construction of new roads as well as upgrading and repairs to others. The cost is estimated to be around US$186 million, according to a report in the Paraguayan newspaper La Nacion. The Ministry of Public Works and Communications will contribute with 75% of the funds, whereas the Paraguayan government t

Serbian road contractor Putevi Srbije will build around 2.4km of access roads around the town of Ljig in central Serbia, according the state Ministry of Construction, Transport and Infrastructure. The access roads will be for the Corridor 11 motorway, which is under construction from the Serbian capital Belgrade running southwest into Montenegro, ending at the Adriatic coastal tourist town of Bar. The Belgrade-Bar motorway will be around 280km long and be the main link for a ferry service from the Ita

Amid concern over cost rises, Bangladesh has issued a request for expression of interest to engage a consultant for the proposed the Karnaphuli River Tunnel. The estimated cost to build the Karnaphuli Tunnel has risen by US$205 million, according to the government’s Bridge Authority. A report in the Financial Express newspaper said the original 2km tunnel proposal was prepared two years ago based on a feasibility study. According to Bridge Authority officials, the cost to build the 3.4km tunnel has ri

The Asian Development Bank (ADB) will lend Azerbaijan US$100 million of the $133 million that the country estimates it will need for road development in 2015-2017. The money is part of the ADB’s $250 million to Azerbaijan for development of energy and transportation infrastructure. Total cost of all the work is around $332 million in total. Within this amount, ADB has earmarked $40 million for development of renewable energy sources. World Highways reported in November that Azerbaijan’s minister of tr

Austrian contractor STRABAG is facing a major challenge with regard to a highway project in Hungary. The Hungarian Government has decided to halt construction work on the M4 highway. STRABAG was working on the €106 million project to build the new highway. In addition, the Hungarian Government has further complicated the challenges faced by STRABAG and sub-contractors working on the project by calling for any subsidies given out so far to be repaid.

The Republic of Mordovia has plans to construct and rebuild some 100km of roads. With this plan in mind, the government has set a budget of US$102 million to invest in its transport system during 2015. The plans include work to the eastern bypass around capital, Saransk. Additional funds will be allocated for the development of internal road network and improvement of settlements. The project forms part of the preparation in hand for the 2018 FIFA World Cup.