2013-12-08 01:11:44 - Recently published research from Business Monitor International, "Chile Infrastructure Report Q1 2014", is now available at Fast Market Research
We maintain our positive outlook on Chile's construction industry on the back of an investor-friendly business environment, political stability, and a strong pipeline of projects. However, we forecast a moderate slowdown in real growth for 2013 and 2014 to 6.4% and 5.6% respectively, compared with high 8.1% in 2012, but this is still a promising outlook. In addition, we expect the Chilean construction industry value to more than double in the next decade, reaching US$47.3bn by the end of our forecast period in 2022. There is a strong pipeline of infrastructure projects, particularly in the energy and utilities sector, as the mining industry continues to demand additional power and the country has significant potential for renewable energy.
Full Report Details at
- www.fastmr.com/prod/723440_chile_infrastructure_report_q1_2014.a ..
Key developments in the industry:
* Robust investment in mining infrastructure: BHP Billiton and Rio Tinto have announced a US$3bn investment in the construction of a new seawater desalination plant to support operations at Chile's biggest copper mine - Escondida. This investment shows the commitment of these mining giants to maintaining and expanding their presence in Chile.
* Commitment to the ports: Valparaiso Port General Director, Harald Jaeger, has announced a US$723mn investment that includes the expansion of Terminal 1 (operated by TPS), the expansion of the South Access junction and construction works in progress in Terminal 2. This investment will double the port's transfer capacity to reach 2mn TEUs per year.
* Renewables sector continues to expand: Total announced in September 2013 that it will develop, in conjunction with Swiss company Etrion and Spanish developer Solventus Energias Renovables, a 70MW solar PV farm in the Atacama Desert. The project is expected to cost US$200mn, with 70% of this cost to be financed through the Overseas Private Investment Corporation, and is due online in 2015. Crucially, the solar facility will be developed without relying on government subsidy support; the largest solar project in the world to be built in this way.
* The unanimous passing by parliament of the upward revision to the country's renewable energy targets in September 2013 confirms our constructive view of the Chilean market. The bill indicates that Chile will source 20% of the energy mix from renewables by 2025, including micro hydropower (the previous target was 10% by 2020). The bill is now scheduled to be submitted for enactment into law.
* Chile continues to claim the top spot in our Latin America regional Risk/Reward Ratings this quarter, followed by Mexico and Colombia. Market-friendly policies and strong institutions have been the hallmark of the Chilean government and President Sebastian Pinera's administration has set the benchmark for political stability in the region. Despite presidential elections, we do not see any immediate threats to Chile's Risk/Reward Ratings score of 62.2 points out of 100, way above the regional average of 45.8 this quarter.
Report Table of Contents:
BMI Industry View
- Construction And Infrastructure Forecast Scenario
- Table: Chile Construction And Infrastructure Industry Data, 2011-2016
- Table: Chile Construction And Infrastructure Long Term Forecasts, 2017-2022
- Transport Infrastructure - Outlook And Overview
- Major Projects Table - Transport
- Table: Major Projects - Transport
- Energy And Utilities Infrastructure - Outlook And Overview
- Major Projects Table - Energy & Utilities
- Table: Major Projects - Energy and Utilities
- Residential/NonResidential Building - Outlook And Overview
Industry Risk Reward Ratings
- Chile Risk/Reward Ratings
- Latin America - Infrastructure Risk/Reward Ratings
- Populist Policies Perturb Investors
- Table: Latin America Infrastructure Risk/Reward Ratings
- Competitive Landscape
- Table: EQS Data
- Grupo ACS
Global Industry Overview
- Table: Latin America PPP Round-Up
- Industry Forecast Methodology
- Sector Specific Methodology
- Risk Reward Rating Methodology
- Sector Specific Methodology
- Table: Infrastructure Risk Reward Rating Indicators
- Table: Weighting Of Indicators
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.