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Slovakia Infrastructure Report 2014

Slovakia Infrastructure Report 2014 Market: New market analysis released


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2014-02-10 00:16:03 - Slovakia Infrastructure Report 2014 - a new market research report on companiesandmarkets.com

Slovakia appears to be stabilising its economy and as such we have upwardly revised our forecasts for 2014. We forecast the construction growth in 2013 will return into positive figures at 0.8% yo- y. For 2014, we expect this growth to be maintained - stronger growth being subdued as private investors wait to see how whether economic recovery will fully take hold. Weak demand is the major risk both in the infrastructure and residential and non-residential sectors. That said, European money will likely continue to support investment and government spending has been little impacted by austerity measures. As such, although our outlook is still muted, there is an improving outlook for the construction industry over 2014.

Key developments informing our forecast

 

 

include: Transport sector revival: More Public Private Partnerships (PPPs) have been awarded for the development of Slovakia highways. Over 2013 NDS awarded a contract worth EUR330mn (US$422.93mn) to a consortium of Doprastav, Strabag, Vahostav-SK and Metrostavwas to construct a 12km stretch of motorway in Slovakia. Under the contract, the consortium will construct the Svrcinovec-Skalite section of the D3 motorway. The EU and the Slovak government would provide funding for the project. The construction work is expected to be carried out for about three years. Also, the Government of Slovakia approved refinancing of the R1 Expressway project in Slovakia, on October 23 2013. A project bond, which will mature in 2039, will be issued in place of the original bank loan. The total worth of the project bond will be EUR1.25bn (US$1.72bn).

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Author:
Mike King
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