Middle East funding for Indian roads

Funding from the Middle East looks set to help develop new Indian highway projects. Some $15.6 billion from the Abu Dhabi Investment Authority (ADIA), a UAE-based sovereign wealth fund, will be directed towards highway projects in India. This will be used for 50 highway projects in India on a toll-operate-transfer (TOT) basis. The Indian Government is planning to award 104 highway projects under the TOT model that will allow investments by private equity firms, infrastructure developers and institutional in
February 15, 2016 Read time: 2 mins
Funding from the Middle East looks set to help develop new Indian highway projects. Some $15.6 billion from the Abu Dhabi Investment Authority (ADIA), a UAE-based sovereign wealth fund, will be directed towards highway projects in India. This will be used for 50 highway projects in India on a toll-operate-transfer (TOT) basis. The Indian Government is planning to award 104 highway projects under the TOT model that will allow investments by private equity firms, infrastructure developers and institutional investors such as pension and wealth funds. The TOT model will also allow the government to hand over operations of tolled roads to the private sector.

India’s Ministry of Road Transport and Highways says that it will increase the length of national highways to 200,000km from the existing 96,000km. This move will help cut congestion as around 40% of the country’s traffic uses India’s national highway network, despite this network comprising just 2% of the total road system. Some key projects are already in planning with $206.26 million being allocated for the east-west highway and plans for a second highway linking Dasna and Delhi that will feature 14 lanes. Meanwhile South Korean firm Daewoo Engineering & Construction (Daewoo E&C) will partner with Indian company L&T to construct the $480 million, six lane bridge spanning the River Ganges. The new route will stretch for nearly 23km and will be built in Bihar State.
Finance & Funding

Related Content

  • US$4.4 billion planned for Indian roads
    February 14, 2024
    US$4.4 billion of works are being planned for two Indian road projects.
    Read More
  • Challenges and investment opportunities in East Africa transport infrastructure Sector
    November 21, 2014
    East Africa offers considerable potential for transport infrastructure expansion and investment - Shem Oirere reports Infrastructure, infrastructure and more infrastructure is what is needed to make East Africa the favoured destination and Kenya, Tanzania, Uganda and Rwanda have unveiled grand plans to enhance the infrastructure both nationally and regionally.” This is how market analyst Deloitte introduced its 2014/15 budget analysis for the four countries in July.
    Read More
  • 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
  • Saudi Arabian capital Riyadh benefiting from major transport investment
    September 9, 2013
    Saudi Arabia is undergoing a series of upgrades to its transport network in a bid to improve Traffic flow rates and boost safety - Mike Woof reports. The massive growth in the use of motor transport worldwide since the start of the 20th century has transformed every country on the planet. But perhaps no country has changed more dramatically than Saudi Arabia, the world’s leading oil producer. At the start of the 20th century Saudi Arabia’s population was small and the country had few industries while it is
    Read More

Highlighted Content