2013-10-09 13:41:08 - New Construction research report from Business Monitor International is now available from Fast Market Research
Although we expect the Ukrainian construction sector to return to growth from 2014, we see little likelihood of a complete recovery to 2007 levels during our forecast period to 2022, especially considering the 24.5% contraction the sector experienced in 2012. Weak government finances, an uncertain macroeconomic environment, the absence of private sector investments and completion of 2012 football tournament-led projects will be the major factors holding back construction spending. We see the infrastructure sub-segment performing better than the residential and non-residential construction segment, with railways and renewables leading the country's infrastructure potential.
2012 real contraction data for Ukraine's infrastructure sector came much larger than we initially expected, at nearly 25% year-on-year (y-o-y). We expect this contraction to continue in 2013, although
more modestly. The bright spots in the construction industry are the transport and the energy infrastructure segments. Key developments that help shape our relative more optimistic outlook for the infrastructure sector include:
Full Report Details at
- www.fastmr.com/prod/689086_ukraine_infrastructure_report_q4_2013 ..
* Growth potential in the railways and airports sub-sectors will help the overall transport industry to maintain strong growth. In January 2013 Prime Minister Nikolay Azarov revealed that the country will start construction of high-speed railways by the end of the year. Plans are also underway to modernise the local railway fleet. This will be in addition to the UAH16bn (US$1.99bn) likely to be spent by rail operator Ukrzaliznytsia on the electrification of 1,467km of railway track by 2016.
* In March 2013 Azarov announced plans to spend UAH7.2bn towards construction and repair of roads during the year, which will bring some much-required investment into the sub-sector. Vice Prime Minister Oleksandr Vilkul revealed that the investment is a part of a broader plan involving renovating over 9,000 km of roads over the next two years. He also revealed that some funds will also be allocated towards building a bridge over the Dnipro River in Zaporizhia, reconstructing the Kyiv-Kovel-Yahodyn and the the Stryi-Ternopil-Kirovohrad-Znamianka highways, and on the Sevastopol bypass.
* The electricity sector is also seeing an influx of renewable power investments, with solar and wind doing especially well. In April 2013 Danish wind turbine manufacturer Vestas was awarded a contract to install wind turbines at a new wind farm in Ukraine, reports Power-Technology. A report by the National Commission on the State Management of Energy revealed that the capacity of solar power stations in Ukraine increased two-fold in 2012, while that for wind power was up by over 32% y-o-y.
Despite these positive developments, Ukraine continues at the bottom of our Central and Eastern Europe risk/reward ratings, with an overall score of 45.1 out of 100. Although the prospects for Ukraine's infrastructure and construction sector have improved significantly for the medium and long term, the country's score is weighed down by high levels of corruption relative to the rest of Europe.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Infrastructure SWOT
- Construction And Infrastructure Forecast Scenario
- Table: Ukraine's Construction And Infrastructure Industry Data And Forecasts, 2011-2016
- Table: Ukraine's Construction And Infrastructure Industry Long-Term Forecasts, 2017-2021
- Transport Infrastructure - Outlook And Overview
- Table: Ukraine's Transport Infrastructure Industry Data And Forecasts, 2011-2016
- Table: Ukraine's Transport Infrastructure Long-Term Forecasts, 2017-2022
- Table: Major Projects - Transport
- Energy And Utilities Infrastructure - Outlook And Overview
- Table: Ukraine's Energy And Utilities Infrastructure Industry Data And Forecasts, 2011-2016
- Table: Ukraine's Energy And Utilities Infrastructure Long-Term Forecasts, 2017-2022
- Table: Major Projects - Energy And Utilities
- Residential And Non-Residential Building - Outlook And Overview
- Table: Ukraine's Residential And Non-Residential Building Industry Data And Forecasts, 2011-2016
- Table: Ukraine's Residential And Non-Residential Building Industry Long-Term Forecasts, 2017-2022
- Table: Major Projects - Residential/Non-Residential Construction And Social Infrastructure
Industry Risk Reward Ratings
- Ukraine - Risk/Reward Ratings
- CEE - Infrastructure Risk/Reward Ratings
- Industry Rewards Reviving
- Growing Risks
- Table: Central And Eastern Europe Risk Reward Ratings
- Competitive Landscape
- Table: EQS Industry Data
- Altis-Holding Corporation
Global Industry Overview
- Industry Trend Analysis
- Industry Trend Analysis
- Data Methodology
- Capital Investment
- Infrastructure Risk/Reward Ratings
- Table: Infrastructure Business Environment Indicators
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