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

  • Indian highway deals awarded
    February 21, 2020
    Two important highway projects have been awarded in Rajasthan State.
    Read More
  • ITS innovation will benefit transport in the Middle East
    May 29, 2013
    *Zeina Nazer, secretary general of ITS-Arab, introduces the rapid evolution of Intelligent Transport Systems in the Middle East and North Africa and talks about the special challenges and opportunities this represents, both for the industry and her organisation. Over the past six years, ITS-Arab has focused on promoting Intelligent Transport Systems (ITS) at the policy and decision making echelons, while developing ITS specifications at a project design level throughout the Middle East and North Africa (MEN
    Read More
  • Qatar developing highway expansion plan
    June 16, 2016
    Qatar is setting the wheels in motion for the development of a comprehensive highway network. Engineering firm KBR is working on a three year, US$185 million consultancy contract to manage Qatar’s highway construction and improvement programme. This package is an extension to KBR’s earlier contract, which the firm won in 2010. The new contract was awarded by Qatar’s Public Works Authority (Ashghal) and the highway network plans will form part of the country’s National Vision 2030 strategy. New and improved
    Read More
  • Russia seeks outside investment in road building
    November 6, 2012
    The Russian road building industry is on the verge of big changes as it bids to improve quality and speed of construction says Eugene Gerden The Russian road building industry is on the verge of big changes as the national government considers creating conditions to attract foreign companies to build roads in the country. According to a recent order of President Vladimir Putin, due to poor quality and high cost of road construction, there is a need for the development of a mechanism to attract foreign compa
    Read More

Highlighted Content