Skip to main content

High costs to build Latin American roads

A report from the European Court of Auditors has highlighted the high cost of building roads in Latin America. The report states that it costs seven times more to build roads in Latin America than in Europe. The study compared 24 road projects across Europe and Latin America that were carried out between 2000 and 2013. Each km of road costs around US$116,000 in Germany, $164,000 in Greece, $215,000 in Spain and $218,000 in Poland on average. This compares to $2 million in Mexico, between $800,000 and $1 mil
October 7, 2013 Read time: 2 mins
A report from the European Court of Auditors has highlighted the high cost of building roads in Latin America. The report states that it costs seven times more to build roads in Latin America than in Europe. The study compared 24 road projects across Europe and Latin America that were carried out between 2000 and 2013. Each km of road costs around US$116,000 in Germany, $164,000 in Greece, $215,000 in Spain and $218,000 in Poland on average. This compares to $2 million in Mexico, between $800,000 and $1 million in Peru, $700,000 in Bolivia and $1.3 million in Venezuela. The average cost to construct a road in Latin America is $1.2 million. Some of the high costs can be attributed to geographic or topographic issues. Building roads at altitude as in Peru or Bolivia for example boosts costs significantly, as working areas may be more remote with a need for worker accommodation and also as machines perform less well at high altitude. Building roads in mountain ranges, such as with Mexico’s Sierra Madre highway, boosts cost enormously as expensive tunnels or bridges may be needed and access may also be limited. In Latin America’ jungle areas, ground conditions can be poor and the need for drainage may be extensive.

Related Content

  • Fayat is positioned for growth
    January 6, 2017
    Market conditions are tough, according to Jean-Claude Fayat, executive managing director of the Fayat Group. He said, “From my point of view this crisis is not over. We have a slow recovery but this is a structural crisis and a new balance has to be found.” Despite the difficult conditions, the company is performing well and Fayat said, “Our group turnover is around €3.7 billion/year. We are a family group and we have never wanted to be on the stock exchange.” The European market has become less important
  • Fayat is positioned for growth
    April 18, 2013
    Market conditions are tough, according to Jean-Claude Fayat, executive managing director of the Fayat Group. He said, “From my point of view this crisis is not over. We have a slow recovery but this is a structural crisis and a new balance has to be found.” Despite the difficult conditions, the company is performing well and Fayat said, “Our group turnover is around €3.7 billion/year. We are a family group and we have never wanted to be on the stock exchange.” The European market has become less important
  • Legal battle for Croatia’s Peljeski Bridge contract continues
    April 19, 2018
    Only days after Croatia rejected initial complaints, contractors Astaldi, Ictas and Strabag said that they will submit new complaints over the Peljeski bridge winning bid. Croatian media report that Turkey's Ictas, Italy's Astaldi and the Austrian company Strabag are planning to submit a new complaint to the Croatian High Court against a decision by the state procurement authority DKOM to reject their previous complaints. At issue is the awarding of the Peljeski bridge and access roads project to the
  • Dressta seek greater dealership reach in key emerging markets to boost sales
    October 10, 2013
    Dressta, the LiuGong subsidiary, is striving to increase its dealership reach in key emerging markets such as Central and South America as it aims for higher machine sales. Speaking at a recent Dressta construction machine manufacturing press event at the company’s LiuGong-owned manufacturing plant and headquarters in Stalowa Wola, southern Poland, Dressta CEO Leslaw Holysz said, “We have no [dealership] presence in Mexico and Latin America, except for Panama. Panama is a very good country for us and we