Brazil’s road budget bubble bursting?

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
March 30, 2016 Read time: 1 min
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 billion, the same as in 2015, to cover maintenance and work on some 55,000km of roads. However, 40% of this sum went to pay off debts accumulated over previous years. The budget was further limited by the imposition of priority projects in a number of cities, which cost a further $406.15 million.
Finance & Funding

Related Content

  • Private owners seek a buyer for the UK’s only toll road, M6 Toll
    February 15, 2016
    Britain’s only toll road, the motorway M6 Toll, is up for sale by its owners, a consortium of banks that hope to recover some of the €2.45 billion of debt. The 27 owners of M6 Toll, including Crédit Agricole, Commerzbank and Banco Espirito Santo, took over the 43km pay-as-you-go toll road from infrastructure group Macquarie in December 2013 after a debt restructuring. Midland Expressway Limited (MEL), part of Macquarie Atlas Roads, continues to operate the six-lane motorway around the English city of
    Read More
  • EBRD sets out new loans for Coratia’s road agency, Hrvatske autoceste
    April 1, 2016
    The European Bank for Reconstruction and Development (EBRD) and Hrvatske autoceste – a state-owned company in charge of the construction, maintenance and tolling of Croatia’s motorways – have signed a loan of up to €250 million. The EBRD’s sovereign-guaranteed loan will come in two tranches. The first €200 million will be used to refinance a portion of HAC’s sovereign-guaranteed debt falling due in 2016. The remaining €50 million will finance operational and efficiency improvements and may serve as a
    Read More
  • Italian manufacturer body Unacea reveals machine exports
    October 31, 2014
    The Italian construction equipment manufacturer body Unacea has revealed comprehensive information on machine sales and exports. The data shows that construction machine sales in Italy grew 12% in the first nine months of 2014. However exports fell 7% and Unacea believes that the export performance of Italian manufacturers on the world market will have shrunk by the end of the year compared with the figures for 2013. Over the first nine months of 2014, construction equipment sold in the Italian market sto
    Read More
  • Roads to Recovery after the pandemic
    January 11, 2021
    IRF president Bill Halkias shares the Federation’s view on post-Covid
    Read More

Highlighted Content