Brazil budget cuts cause project delays

Brazil’s Transport Ministry is to postpone 30 major projects due to budget cuts. The Ministry of Transport says that 30 projects that would have been launched in 2015 will now be postponed due to the reduced budget. The cut is estimated to be between 30% and 40% of the Ministry's budget, cutting up to US$2.04 billion in funding. Instead the Transport Ministry will now focus on projects that are already complete or close to being finished. However those projects considered to be of value to the national econ
April 30, 2015 Read time: 2 mins
Brazil’s Transport Ministry is to postpone 30 major projects due to budget cuts. The Ministry of Transport says that 30 projects that would have been launched in 2015 will now be postponed due to the reduced budget. The cut is estimated to be between 30% and 40% of the Ministry's budget, cutting up to US$2.04 billion in funding. Instead the Transport Ministry will now focus on projects that are already complete or close to being finished. However those projects considered to be of value to the national economy will be given priority. These projects include the expansion of the BR-163 highway, as this route is key to the transportation of foodstuffs in the Central-West region. The list of projects now likely to be postponed has not so far been released however due to concerns over the potential political backlash. When this list becomes available it is likely to trigger criticism.
Finance & Funding

Related Content

  • Sourcing road financing for East Africa’s network expansion
    December 4, 2015
    East Africa’s ambitious road expansion programme is seeing the network expand significantly – Shem Oirere writes The East Africa countries of Kenya, Tanzania, Uganda and Rwanda have announced ambitious road sector expansion plans in the 2015/16 financial year. This is despite their national budgets being weighed down by huge deficits and persisting lack of capacity to spend resources allocated to the sector in previous years. With the huge budget deficits, the countries will have to look for alternati
    Read More
  • Brazilian bridge and highway project tenders
    April 7, 2014
    A series of major project tenders are opening in Brazil. The Brazilian Government has announced five new road tenders to be launched in 2014. The highway sections run for a total distance of some 2,625km. This programme of works will lengthen the country’s highway network by some 2,282km, with the work costing an impressive US$7.39 billion in all.
    Read More
  • Brazil’s roads budget faces cuts
    May 14, 2019
    A series of major road projects in Brazil have had their budgets cut. Construction works for 56 motorway projects have seen budgets cut, and in some instances removed altogether. The Brazilian national department for transport infrastructure (Dnit) had a previous budget of US$1.59 billion for road development projects. This has now been cut to $1.04 billion, less than 33% of the budget for 2014. Projects to have been hit include widening the BR-316 in Piau State, widening the BR-364 in Rondonia State, build
    Read More
  • Road user charging comes to the UK?
    December 14, 2017
    A new funding scheme for England’s proposed Major Road Network was greeted with enthusiasm by local authorities which partly pay for road upkeep. But this enthusiasm may be premature, explains Alan Pauling*
    Read More

Highlighted Content