India’s new highway projects finding funding

Funding has been found for a major highway project in India. The Asian Development Bank (ADB) is providing a substantial portion of the US$846 million of financing required for the 800km Visakhapatnam-Chennai Industrial Corridor (VCIC). In all the ADB will provide $631 million in the form of a series of grants and loans, which will be delivered in stages. Meanwhile the Indian Government will provide $215 million. The VCIC itself forms part of the 2,500km East Coast Economic Corridor (ECEC).
October 20, 2016 Read time: 2 mins
Funding has been found for a major highway project in India. The Asian Development Bank (ADB) is providing a substantial portion of the US$846 million of financing required for the 800km Visakhapatnam-Chennai Industrial Corridor (VCIC). In all the ADB will provide $631 million in the form of a series of grants and loans, which will be delivered in stages. Meanwhile the Indian Government will provide $215 million. The VCIC itself forms part of the 2,500km East Coast Economic Corridor (ECEC).

Meanwhile Canadian funding looks likely to help finance projects planned by the state-operated National Highways Authority of India (NHAI). The Canadian Caisse de Depot et Placement du Quebec (CDPQ), PSP Investments (PSP) and Brookfield Asset Management (BAM) are keen to help deliver financing for several major Indian highway projects. Discussions have been carried out between officials representing these funds and the NHAI. The Canadian funds are interested in participating in highway operations being run under the toll operate transfer investment model according to the NHAI. This could deliver as much as $10.46 billion in funding for the NHAI’s planned series of highway projects. Between March 2016 and the end of March 2017, NHAI intends to have constructed some 15,000km of national highways so additional funding sources will be of major benefit.

Finance & Funding Road Structures

Related Content

  • A bridge of hope?
    July 18, 2012
    As Russia prepares for a major Asia Pacific conference in nearly four years' time, the economic climate is felt in other countries in the region. Patrick Smith reports AUS$1 billion-plus suspension bridge is to be built to link the city of Vladivostok in the far east of Russia and Russky Island. Russia's President Dmitry Medvedev has signed an instruction for construction of the 3,150m long bridge, which is intended to provide access to the 24th Asia Pacific Economic Cooperation (APEC) summit, to be held o
    Read More
  • Serbia road project, funding secured
    February 19, 2019
    Construction of the 77km-long Merdare-Nis highway in Serbia is to benefit from external financing. A funding package worth €100 million is being supplied by the European Investment Bank (EIB) for the project. The funding will pay for work on a stretch of the route between Plocnik and Nis in southern Serbia. The highway will improve transport connections with neighbouring Kosovo when it is complete. This project forms part of a series of road building operations in the region, with extensive work having been
    Read More
  • Montreal's transport plans
    April 25, 2012
    Canadian city Montreal will invest US$$538 million (C$550 million) for infrastructure development at the eastern end of the city. Some of the funding will be used to decontaminate polluted industrial segments in the area, while the city will also provide annual funding for the Plan d'action de l'Est between 2011 and 2017. A key portion of the development project will be for the construction of the Pie IX rapid-transit corridor, which is scheduled to be completed by 2017. However, in order to finance the ove
    Read More
  • New road project for Nicaragua
    August 19, 2016
    The World Bank looks likely to supply funding that will help pay for a major road improvement project in Nicaragua. The US$75 million loan should be agreed by November 2016, if all goes to plan. The funding will pay for major improvement works for the road connecting Nicaragua’s capital Managua with the country’s second city, Leon. At present the route suffers heavily from congestion at peak periods and is unsuited to the traffic volumes it has to cope with. The construction work is expected to commence in
    Read More

Highlighted Content