Brazilian highway projects face funding issues

In Brazil financing issues have hit a number of transport projects in Minas Gerais state. The Banco do Brasil is holding back funds for planned work. As a result the state government of Minas Gerais has halted work on 32 construction projects. The Banco do Brasil has not provided the expected US$345.86 million for the work to be carried out. The finances were arranged by the central government through its funding programmes. The projects include a section of the MG-437 road between Sabara and Nova Lima. The
December 10, 2014 Read time: 2 mins
In Brazil financing issues have hit a number of transport projects in Minas Gerais state. The 7052 Banco do Brasil is holding back funds for planned work. As a result the state government of Minas Gerais has halted work on 32 construction projects. The Banco do Brasil has not provided the expected US$345.86 million for the work to be carried out. The finances were arranged by the central government through its funding programmes. The projects include a section of the MG-437 road between Sabara and Nova Lima. The Banco do Brasil may however release the sum in 2015.

Meanwhile in Piaui state the authorities are cancelling a Banco do Brasil loan originally intended for urban mobility projects. The state authorities only received $88.4 million, instead of the $230 agreed through the Prodesencolvimento 2 funding programme signed in January 2013. The urban mobility projects now on hold include a new ring road and several overpasses.
Road Structures Finance & Funding

For more information on companies in this article

Related Content

  • Poland's highway plans to go ahead
    May 15, 2012
    In Poland, the European Investment Bank has committed itself to maintaining its loan agreement for the A1 highway, despite recent problems over the project. The e1.1 billion loan that the EIB had agreed with Autostrada Poludnie for construction of a 180km section of the A1 highway from Strykow to Pyrzowice, will now be placed at the disposal of the Polish highway authorities. To carry out the work, Poland has to raise a further e503 million, which could be obtained from an issue of road bonds. Autostrada Po
    Read More
  • Czech republic to fund infrastructure projects
    May 10, 2012
    The authorities in the Czech Republic are counting the cost of bungled planning for a series of infrastructure projects. The works will now have to source funds from the Czech Government following a ruling by the European Court of Auditors that the tender processes for the projects were flawed. The original plan was that the EU Operational Programme Transport would have paid for the works but instead, the Czech Government will finance the projects itself. However, only one project will have to be almost 100
    Read More
  • Highway 99 revisited
    March 6, 2024
    David Arminas recently returned to Seattle for an inside look at some of the features of the now-complete SR99 tunnel that was a World Highways key project report in November 2017.
    Read More
  • Russia’s new high speed highway – with Italian investment
    January 30, 2020
    Italian investment will help to build a major high-speed highway in Russia
    Read More

Highlighted Content