Business Monitor International


Central America Infrastructure Report

Published 03 June 2014

  • 112 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Central America Infrastructure Report

BMI View:   We currently forecast an average of 3.3% real growth in Central America's construction industry value for 2014 (excluding Panama). We highlight Costa Rica as a regional outperformer due to its strong project pipeline and investor-friendly business environment. W e expect Honduras to c onsiderably underperform and undergo a deep industry contracti on in 2014, mainly as a result of falling private investment.

We see high risks, small scale and limited growth opportunities across the region as a whole. A crucial factor underpinning our forecasts for infrastructure investments in future years is political and security risk. This is a particular concern in El Salvador, Honduras, and Guatemala where high levels of crime, homicide, violence, and insecurity exacerbate operational risks for companies willing to invest in those countries. As such, we believe that local and regional companies (especially Mexican and Brazilian), as well as Chinese players which have a stronger appetite for risk, are best placed to benefit from the opportunities on offer in the region.  In this context, we also highlight Spanish companies which have an established presence in the region.

Despite the small size of their construction industries, Central American countries present a wide range of small-scale opportunities (albeit the inter-oceanic canal projects) as the region aims to bridge its infrastructure gap. However, these markets are faced by strong challenges in the form of deep-run corruption, high levels of inequality, and unsophisticated institutions.

  • Public-Private Partnerships: A number of countries in the region are pursuing public-private partnerships (PPPs) to develop infrastructure. For example, Guatemala - which established a PPP agency in November 2011 - is hoping to launch its first concession for Line 1 of the Guatemala City passenger railway in 2014. El Salvador announced in December 2012 that a PPP model will be used to develop the Cuscatlán...

Table of Contents

BMI Industry View
5
SWOT
7
Industry Forecast
9
Construction And Infrastructure Forecast Scenario
9
Table: Central America - Construction And Infrastructure Industry Data, 2011-2017
9
Table: Central America - Construction And Infrastructure Long Term Forecasts, 2017-2022
11
Transport Infrastructure - Outlook And Overview
19
Table: Major Projects - Transport
25
Energy & Utilities Infrastructure - Outlook And Overview
29
Table: SIEPAC Details
35
Table: Major Projects - Energy & Utilities
36
Residential/Non-Residential Building Outlook And Overview
40
Table: Major Projects - Construction And Social Infrastructure
45
Industry Risk/Reward Ratings
48
Central America Risk/Reward Ratings
48
Latin America Risk/Reward Ratings
50
Table: Latin America Regional Infrastructure Risk/Reward Ratings
58
Market Overview
59
Competitive Landscape
59
Table: EQS - Industry Data
59
Company Profile
62
Constructora MECO (Costa Rica)
62
Global Industry Overview
65
Europe, Middle East, Africa
65
Dubai Confidence Up, Mega-Spending Status Quo In The Region
66
Low Yields Push Capital Further Into Infrastructure
67
Turkey Shines As South Africa and Poland Struggle To Recover
69
Natural Resource Boom Drives SSA Infrastructure Investment
70
Latin America
72
Table: Planned Elections: Latin America 2013
78
Asia
80
Methodology
88
Data Methodology
88
Construction
89
Capital Investment
91
Table: Infrastructure Business Environment Indicators
92

The Central America Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Central America Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Panamanian, Guatemalan, Nicaraguan, Salvadoran, Costa Rican, Belizean, Honduran infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Panama, Guatemala, Nicaragua, El Salvador, Costa Rica, Belize, Honduras to test other views - a key input for successful budgetary and planning in the Panamanian, Guatemalan, Nicaraguan, Salvadoran, Costa Rican, Belizean, Honduran infrastructure market.
  • Target business opportunities and risks in the Panamanian, Guatemalan, Nicaraguan, Salvadoran, Costa Rican, Belizean, Honduran infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Panama, Guatemala, Nicaragua, El Salvador, Costa Rica, Belize, Honduras.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Rankings

BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc