In the Middle East we have seen a notable shift towards targeting private sector infrastructure investment as lower commodity prices hit fiscal capacity. Traditionally the region has leaned on hydrocarbons wealth to publicly fund infrastructure, but we have seen a growing number of PPPs and intentions to use PPPs announced. ...In the Middle East we have seen a notable shift towards targeting private sector infrastructure investment as lower commodity prices hit fiscal capacity. Traditionally the region has leaned on hydrocarbons wealth to publicly fund infrastructure, but we have seen a growing number of PPPs and intentions to use PPPs announced. Saudi Arabia s Vision ---- for example, announced in April, indicated plans to establish a PPP unit and employ the model to procure infrastructure more systematically. ...In May/June four projects reached financial close. In May Chile launched a new public infrastructure fund intended to use private capital for projects through the PPP model, in order to offset constrained government spending in light of lower copper prices.
...BMI View: Global construction growth will accelerate from ----, after weak emerging market performance dragged down the overall industry in ---- and ----. We expect this trend to begin to reverse, and emerging markets to begin to see growth accelerate again. ...Finally, in Central and Eastern Europe we see EU funding moving into projects, although slower than initially expected. Table: Global Construction Industry Data ---- ---- ----f ----f ----f ----f ----f Construction industry value, USDbn -,---.- -,---.- -,---.- -,---.- -,---.- -,---.- -,---.- - of GDP -.- -.- -.- -.- -.- -.- -.- - Real growth, y-o-y -.-- -.-- -.-- -.-- -.-- -.-- -.-- f = BMI forecast. Additionally, other BRICs are improving versus ----, although Russia and Brazil will see only a weak recovery. ...Table: Global Construction Industry Data ---- ---- ----f ----f ----f ----f ----f Construction industry value, USDbn -,---.- -,---.- -,---.- -,---.- -,---.- -,---.- -,---.- - of GDP -.- -.- -.- -.- -.- -.- -.- - Real growth, y-o-y -.-- -.-- -.-- -.-- -.-- -.-- -.-- f = BMI forecast.
...We are seeing growing investment into intelligent transit systems (ITS) as an overlay to existing transport infrastructure. In the Czech Republic in June the government announced a ---year ITS investment plan, amounting to EUR--.-mn. ...
