Major recent developments include:
* In March 2011, President Rafael Correa publicly called for private investors to finance infrastructure projects in the country. In a related statement, Production Minister Nathalie Cely announced that the government is seeking US$7.5bn in infrastructure concessions over the next five years, with port and airport concessions up for grabs. While some Spanish and Brazilian companies have reportedly registered interest, we do not believe that Ecuador's infrastructure sector holds much attraction for private investors, owing to political and financial concerns.
* BMI's country risk analysts believe that it is increasingly likely that Ecuador will return to the international capital markets in 2011, issuing much-needed dollar debt in order to stave off a looming currency crisis and fund further fiscal deficits. While some respite has been afforded to state coffers in the form of higher oil prices, we believe that infrastructure fund raising will nonetheless take a hit. Indeed, with illiquid local debt markets, and international financiers unlikely to lend for projects given the business environment, financing - if forthcoming - will come at a premium. China and multilaterals will therefore remain the most likely sources of funding.
* The signing of a contract renegotiation agreement in February 2011 between Ecuador and private consortium Corporacion Quiport - for the construction and operation of the new international airport in the capital city - brings more than a year of negotiations to a close. The protracted dispute has severely delayed the commissioning of the new airport and illustrates the substantial risk for investors operating in Ecuador's business environment, which remains far from market orientated.
* In October 2010, the Ecuadorean government created a bank designed to facilitate greater lending to low-income families. The lending body, an arm of the country's social security institute intends to approve US$845mn in mortgage loans in 2011, according to Bloomberg, and will allocate a further US$600mn for the financing of housing projects. As a result, residential construction is expected to surge in 2011, having been subdued in recent years.
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While a number of international companies are present in the country's construction industry, recent political events make the outlook yet more uncertain for foreign investors. Thus Ecuador, along with Venezuela, continues to present the highest level of investor risk in Latin America. Indeed, expropriation of private sector assets has occurred in both countries and continues to be a threat. Prevalent corruption, as well as unpredictable political, legal and regulatory environments heightens risks, making both countries precarious places in which to invest.
Report Table of Contents:
SWOT Analysis
- Ecuador Infrastructure SWOT
Market Overview
- Ecuador
- Special Focus - Odebrecht And The San Francisco Hydropower Project
- Special Focus - The Quito International Airport Concession
Building Materials
- Global Materials
- Latin America Overview
Industry Forecast Scenario
- Table: Ecuador Construction And Infrastructure Industry Data
- Table: Ecuador Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
Transport Infrastructure
- Transport Infrastructure Overview
- Table: Competitiveness Of Ecuador's Infrastructure
- Major Projects Table - Transport
- Table: Major Infrastructure Projects - Transport
Energy And Utilities Infrastructure
- Energy And Utilities Infrastructure Overview
- Major Projects Table - Energy And Utilities
- Table: Major Infrastructure Projects - Energy & Utilities
Residential/
- Residential/
- Major Projects Table - Residential/
- Table: Major Infrastructure Projects - Residential/
Business Environment
- Ecuador Business Environment
- Rewards
- Risks
- Regional Overview
- Latin America Infrastructure Business Environment Ratings
- Table: Americas Regional Infrastructure Business Environment Ratings
Company Monitor
- Isolux Corsan
- Semaica, Sevilla y Martinez CA
Global Overview
Methodology
- Industry Forecasts
- Construction Industry
- Data Methodology
- New Infrastructure Data Sub-sectors
- Construction
- Capital Investment
- Construction Sector Employment
- Infrastructure Business Environment Rating
- Table: Infrastructure Business Environment Indicators
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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.
