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.
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