Brazil delaying key infrastructure projects

Brazi llooks set to delay a number of key infrastructure projects until 2016. The Brazilian Federal Government's planned transport sector concession tenders will see investments close to US$46.58 billion in all. But these will be pushed back to 2016 due to the difficulty of launching all auctions in 2015 due to technical, economic and political limits. The tenders are revised versions of those promised previously. However only the airport tenders having been launched with success. Due to revisions in the pl
March 25, 2015 Read time: 1 min
Brazil looks set to delay a number of key infrastructure projects until 2016. The Brazilian Federal Government's planned transport sector concession tenders will see investments close to US$46.58 billion in all. But these will be pushed back to 2016 due to the difficulty of launching all auctions in 2015 due to technical, economic and political limits. The tenders are revised versions of those promised previously. However only the airport tenders having been launched with success. Due to revisions in the plans, the technical studies are required to be updated for the majority of the projects. This in turn has led to delays. With approval from regulatory bodies and public consultations still required, this makes it difficult for the projects to be launched in 2015. The financing for the projects is also not yet secured, with BNDES not expected to maintain subsidised interest rates on financing for new projects.
Finance & Funding

Related Content

  • Road transport key to Africa's trade links
    February 17, 2012
    Road transport is the key to improving Africa's links within its own territory, and further afield as Patrick Smith reports. Development of road transportation is the key to the future of the African economy, and countries on the continent are making great strides. According to a report by a transport infrastructure expert at the New Partnership for Africa's Development (NEPAD), within the next 15 years the value of trade in Africa could reach US$250 billion if a $32 billion investment is made to integrate
    Read More
  • Innovative financing mechanisms for sustainable roads funding
    July 5, 2016
    Francesco Micci discusses innovation in funding methods All countries need an efficient and extended road transport system to sustain both the social development and the economic competitiveness. The latest trends show that the demand for road infrastructure is constantly growing, despite the negative impact of the financial and economic crisis on public and private financing. Global spending regarding road transport infrastructure actually accounts for roughly US$580 billion worldwide, and is projected
    Read More
  • German construction equipment industry’s sales rise 8 per cent
    February 18, 2015
    German manufacturers of construction equipment reported an 8% rise in sales, amounting to €8.4 billion. The level was higher than expected and equal to sales in 2006, according to the Construction Equipment and Building Material Machinery Association (VDMA). However, the VDMA, part of the German Engineering Federation, suggested that company profits may not have risen along with sales and tough times remain ahead. “Turnover is one thing, profit is another,” Joachim Strobel, deputy chairman of VDMA, said.
    Read More
  • Brazil’s road budget bubble bursting?
    March 30, 2016
    A shortage of funds could affects Brazil's road infrastructure plans. The country’s national department of transport infrastructure, Dnit, may have to halt activities in 2016 due to a lack of funds. Dnit manages the maintenance of existing roads in Brazil but has already had to suspend road paving and expansion works throughout the country due to a lack of finances. Unless further funds are found, Dnit will only be able to finance projects until August 2016. Dnit saw its budget for 2016 set at US$1.76 billi
    Read More

Highlighted Content