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Germany Infrastructure Report Q3 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: June 2009 Product Code: R302-6501 Description The German government’s EUR70bn stimulus plans for infrastructure projects are expected to have somepositive impact on the country’s construction sector in 2009. Based on new figures released by theGerman Federal Office of Statistics, BMI now predicts that Germany’s construction industry will see realgrowth of 0.44 % year-on-year (y-o-y) in 2009. This also represents a growth in the construction industryas percentage of GDP, making up 3.96% of total GDP in 2009 as opposed to 3.76% the previous year.Following legislation to increase competition in the utilities and power sector, many of the companiesinvolved are expected to move into mergers and acquisitions (M&As). A recent study by Accentureshows an estimated two mergers per week for the next two years. In May, German transmission gridoperator Vattenfall received offers from leading European operators for its EUR1.2bn high-voltagetransmission grid. Important developments have been registered in the transport sector, where A-model-style concessionsproceeded with the A5 Motorway contract being awarded to France's Vinci subsidiary Vinci Concessionsin February 2009. The project is the final of four A-model-type concessions to be awarded in Germany. The A-model concession scheme was first launched in 2005 and is expected to pave the way for publicprivatepartnerships (PPPs) in the construction of federal trunk roadsGermany achieved a score of 76 out of 100 in BMI’s Business Environment ratings, taking the topposition in Western Europe. The country's overall score has increased compared with last quarter with animproved score for infrastructure market. This is due to the country's maintaining of positive growth inthe construction industry over the short term, in part due to its infrastructure stimulus allocation. Germanyscored second, behind the UK, in BMI’s Project Finance ratings largely due to a weaker score inlegal/regulatory landscape. According to recently released data from statistical agency Eurostat, the German economy reported itslargest fall in GDP for nearly 40 years. The huge drop in global demand for manufactured goods, one ofthe mainstays of the German economy, has had a significantly negative effect. This is likely to trickledown to all aspects of infrastructure as both the government and industry are forced to cut spending in thesecond half of 2009. Table of Contents
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