Project complexity in Bolivia

RSSCost increases are being seen on work to the second phase of Bolivia’s Villa Tunari-San Ignacio de Moxos road project. The work looks likely to cost an extra US$250 million as the route will have to avoid the TIPNIS national reserve. The Bolivian Government made the decision to reroute the highway following appeals from the country’s indigenous community. However coca farmers are now appealing against this ruling, while farmers in neighbouring Brazil are also requesting guarantees on land use relating to the project. The new route is likely to push the cost of the project to $670 million. The project is also coming under pressure from Brazil, which is providing some of the funding for the work. The Bolivian Government now has to set a time scale for construction and has also to complete discussions over funding with 3432 Brazilian National Development Bank BNDES. In addition there are claims that the road project was overpriced in the first place and calls for an investigation. Brazilian construction firm 1511 OAS will carry out the scheme once finally approved.