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

  • Sao Paulo’s Mario Covas ring road faces last section glitch
    April 10, 2015
    A consortium of Brazil's Mendes Junior and Spain's Isolux Corsán could lose its US$208 million contract to build part of the northern section of the Mario Covas beltway around the Brazilian city of São Paulo. The consortium, led by Mendes Junior, is falling behind schedule because of cash flow problems, according to São Paulo state highway company Dersa. The deal was signed in January 2013, local paper Folha de São Paulo reported.
    Read More
  • Peru capital ring road tangle
    June 27, 2016
    The project to construct a new ring road around Peru’s capital Lima is facing a difficult tangle that has to be unravelled. However the contractor tasked with the construction work, Grupo Ferrovial, is hoping to be able to make up time and start work in January 2017. The tangle needing to be addressed is between Peru’s Ministry of Transport and Communications and the authorities in the city of Lima as the two parties have not agreed the details of the project. The contractor believes it can start work in ti
    Read More
  • Vehicle emissions strategy
    July 3, 2012
    Environmental questions are facing the construction of the Martin-Presov highway in Slovakia. The European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) are waiting to receive approval to fund construction of the highway in Slovakia from the European Commission (EC). However the EC is not giving its approval for the loans at present until the Slovak Government provides answers as to why the route goes through a national park. Although the Slovakian Transport Ministry is k
    Read More
  • A new highway contract for Costa Rica
    March 5, 2020
    An addition to a new highway contract is planned for Costa Rica.
    Read More

Highlighted Content