Romania Infrastructure Report Q4 2009: Industry Report

Romania Infrastructure Report Q4 2009

Product Type: Market Research Report
Published by: Business Monitor International
Published: August 2009
Product Code: R302-7705

Description

We continue to forecast a fall in construction sector output in Romania during 2009. In fact, we have revised our forecast slightly this quarter, to a real contraction of 4.3% in construction output for the year as a whole, compared with the previous forecast for a 3.2% annual fall. Aside from concerns about the impact of the recession on the availability of public funds for infrastructure spending, this revision also reflects the effect of the recession on private business demand (including demand for office and warehouse space) and residential property demand. For 2010, we continue to expect near zero real construction sector growth (0.2% for the year as a whole), as the recession - and the strain on public finances - will take time to ease, according to our core scenario.

This quarter we update our analysis of regional construction giant STRABAG SE and Transelectrica, the Romanian transmission and system operator. STRABAG, the parent company of STRABAG SE, is being weighed down by acquisitions made at the top of the market last year. Transelectrica is in a relatively good position, having continued to generate a profit in Q109, despite Romania entering a sharp recession during the quarter.

E.ON Romania announced that it will slash investments in electricity and gas networks in Romania by 26% to RON245mn (US$81.7mn) in 2009 compared with the earlier planned amount of RON331mn (US$110.4mn), reports NewsIn (June 2009). The company has taken this decision because of the ongoing global financial crisis. The company's earlier plans for 2009 included replacement of about 40% of its pipeline web, adding to the 850kms of pipeline that were repaired during the past four years, and to the 1,450kms that were replaced earlier.

Table of Contents

Executive Summary
Market Overview: Romania
Global Overview: Governments To The Rescue: The Global Surge In Infrastructure Spending; Table: Infrastructure Stimulus Plans List
SWOT Analysis: Romania Infrastructure Industry SWOT; Romania Political SWOT; Romania Economic SWOT; Romania Business Environment SWOT
Major Infrastructure Developments And Key Projects: Transport Infrastructure Overview; New And Ongoing Projects; Roads And Bridges; Railways; Energy And Utilities Infrastructure Overview; Stable Power Infrastructure; New And Ongoing Projects; Power Plants And Transmission Grids; Pipelines; Water; Construction Overview; New And Ongoing Projects; Residential Construction; Commercial Construction; Industrial Construction; Major Projects Table; Table: Romania Major Projects - Transport; Table: Major Projects - Utilities; Table: Major Projects - Construction
Industry Forecast Scenario: Table: Romania - Infrastructure Industry Forecast; Industry Forecast Overview; Risks; Commodities
Business Environment: Central And Eastern Europe Infrastructure Business Environment Ratings; Table: Regional Infrastructure Business Environment Ratings; Limits of Potential Returns; Risk To Realisation Of Potential Returns; Project Finance Ratings; Table: Design And Construction Rating; Table: Commissioning And Operating Rating; Table: Overall Project Finance Rating; Foreign Direct Investment; Labour Force; Legal Framework; Tax Regime; Corruption; Macroeconomic Outlook; Table: Romania - Economic Activity
Political Outlook
Company Monitor: Transelectrica; STRABAG SE
Country Snapshot: Romania Demographic Data: Section 1: Population; Section 2: Education And Healthcare; Table: Vital Statistics, 2005-2030; Section 3: Labour Market And Spending Power; Table: Employment Indicators, 2001-2006; Table: Consumer Expenditure, 2005-2010 (US$); Table: Average Annual Wages, 2006-2010
BMI Forecast Modelling: How We Generate Our Industry Forecasts; Construction Industry; Sources; Business Environment Ratings; Ratings Overview; Table: Infrastructure Business Environment Indicators; Project Finance Ratings Methodology; Table: Design And Construction Phase; Table: Commissioning And Operating Phase - Commercial Construction; Table: Commissioning And Operating Phase - Energy And Utilities; Table: Commissioning And Operating Phase - Transport

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