New market study, "Nigeria Infrastructure Report Q4 2010", has been published

Nov. 19, 2010 - PRLog -- Growth in Nigeria's infrastructure sector will continue to dramatically lag that of the economy as a whole, with GDP expected to average around 7.5% growth year-on-year (y-o-y) over the next four years compared to 0.5% y-o-y growth for infrastructure industry value. BMI notes that despite the country's high oil revenues and the government's reported commitment to infrastructure investment, the necessary funding is not filtering down to projects on the ground. We expect high-levels of risk, characterised by the fundamental flaws in the public procurement of infrastructure projects, to further precipitate the decline of infrastructure industry value as a percentage of total construction industry value.

Key themes this quarter:

* Nigeria's struggling power sector received a major boost in August 2010 following the approval of plans to construct a 700 kilovolt (kV) transmission grid by 2014, with a pledged US$3.5bn in loans from international finance institutions (IFIs). The announcement presents upside risks to our forecasts given that part of the country's severe power deficit is attributable to the dire state of its grids. Indeed, a lack of grid availability and reliability are often cited as significant deterrents to investment in the sector by aspirant independent power producers (IPPs) - which account for most private investment in the sector. However, while BMI welcomes the development, we remain cautious over the plans ambitious targets given the propensity for delays and corruption within Nigeria's power sector.
* The fundamental flaws within Nigeria's public procurement process were exposed once again following the government's cancellation of a NGN (US$420mn) contract to build a new runway at Nnamdi Azikiwe International Airport in Abuja. An investigation into the contract, awarded to Julius Berger Nigeria in December 2009, uncovered serious flaws in the procurement process, declaring that the bidding process was neither transparent nor competitive. The debacle typifies the deep seated problems within Nigeria's business environment, which continues to inhibit investment into much-needed projects, illustrated by the country's overall score of 42 out of 100 in BMI's Infrastructure Business Environment Ratings.
* While Nigeria's overall project finance environment remains poor, recent developments provide cause for tentative optimism. The most notable of these has been the Cross River State government's signing of a Public Private Partnership bill into law in August 2010. The law aims to create the necessary legal framework to facilitate and regulate the carrying out public-private partnerships (PPPs) in the state. The bill is the first of its kind in the country, according to the state governor, and paves the way for the establishment of a formal PPP legal framework in other parts of the country.

With the population due to reach 178mn in 2014, Nigeria's already vast infrastructure deficit looks set to increase further, with the country's high oil revenues failing to filter through to the infrastructure sector and wider population. Indeed, according to House Committee Chairman Bethel Amadi, as cited by the FT, only 15-20% of annual capital expenditure in the budget, equal to around US$4bn, actually translates into projects. Nigeria's Infrastructure Business Environment Rating illustrates the deep-seated problems in the sector, with the country posting an overall score of 47.5 out of 100. Issues with an opaque tendering process, high levels of corruption and a weak legal framework undermine more promising scores for infrastructure potential.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/94396_nigeria_infrastructure_r...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Nigeria Infrastructure SWOT
- Nigeria Infrastructure Project Finance SWOT
- Nigeria Economic SWOT
- Nigeria Political SWOT
Market Overview
- Nigeria
Industry Forecast Scenario
- Table: Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
Transport Infrastructure
- Table: Transport and Infrastructure Industry Data
- Transport Infrastructure Forecast Scenario
- Transport Infrastructure Overview
- Major Projects - New And Ongoing Projects
- Airports
- Ports
- Roads
- Railways
- Major Projects Table - Transport
- Table: Nigeria - Major Transport Infrastructure Projects
Energy And Utilities Infrastructure
- Table: Energy And Utilities Industry Data
- Energy And Utilities Infrastructure Forecast Scenario
- Energy And Utilities Infrastructure Overview
- Table: List of IPPs in Nigeria
- Major Projects - New And Ongoing Projects
- Power Plants
- Pipelines
- Water
- Major Projects Table - Energy And Utilities
- Table: Nigeria - Major Energy And Utilities Infrastructure Projects
Business Environment
- Nigeria Business Environment
- Rewards
- Risks
- Regional Overview
- Africa Infrastructure Business Environment Ratings
- Table: Regional Infrastructure Business Environment Ratings
Project Finance Ratings
- Nigeria Project Finance Ratings
- Design And Construction
- Commissioning And Operating
- Overall Project Finance Rating
- Regional Overview
- Project Finance Ratings: Outlook For Africa
- Table: Africa Overall Project Finance Rating
- Table: Design And Construction Ratings
- Table: Commissioning And Operating Ratings
Macroeconomic Outlook
- Table: Nigeria - Economic Activity
Political Outlook
Company Monitor
- Julius Berger Nigeria Plc.
- Setraco Nigeria Limited
Global Overview
- Core Views
- BMI's Core Views For Infrastructure Sector
Methodology
- New Infrastructure Data Sub-sectors: Methodology
- Infrastructure Forecasts: Methodology
- Sources
- Industry Forecasts
- Construction Industry
- Data Methodology
- Construction
- Capital Investment
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Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=9439...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.