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

  • India highway planning
    May 10, 2016
    The Indian Government has set out plans to award highway projects worth at least US$8.84 billion during the next fiscal year. These projects will be offered under the hybrid annuity model, according to a report in the Economic Times. KPMG has stated that some 21 projects for a total of 1,500km and worth close to a third of that sum will be granted by the Indian Government in the current fiscal year. India’s Ministry of Road Transport and Highways has sought budgetary support from the Ministry of Finance an
    Read More
  • Kenya develops annuity road funding model
    May 8, 2015
    Kenya is introducing novel methods for funding its necessary road infrastructure development - Shem Oirere writes. Kenya has unveiled a new financing model for road construction and reviewed its design standards and construction methodologies, which forms part of a new strategy for the East African country. Under this new plan Kenya is planning to upgrade 10,000km of road, with these links featuring asphalt surfacing; the work being carried out over the next five years at a cost of US$2.8 billion. Despite t
    Read More
  • East Africa’s dream of a ‘Silk Road’ in sight
    October 22, 2021
    East Africa’s dream of a ‘Silk Road’ route to boost trade and transport is now in sight
    Read More
  • IRB wins India’s Agra-Etawah Bypass project on National Highway 2
    June 4, 2015
    IRB Infrastructure Developers has won the Agra-Etawah Bypass project with a winning bid of nearly US$416.5 million, Indian media reported. The project, awarded by the National Highways Authority of India (NHAI), will have six lanes built onto the Agra-Etawah Bypass in Uttar Pradesh state under NHDP Phase 5 of the Build-Operate-Transfer (BOT) Toll model. The 15km Agra-Etawah Bypass runs between the Uttar Pradesh cities of Agra - home to the iconic Taj Mahal mausoleum – and Etawah on the banks of Yamuna
    Read More

Highlighted Content