New Market Research Report: Argentina Infrastructure Report Q1 2011

Dec. 17, 2010 - PRLog -- Political risk is elevated in Argentina following the death of former president, Nestor Kirchner, which potentially marks the end of a policy course underpinned by populist rhetoric and policies. The political situation is therefore thrown into a deeper state of flux than previously (when 2011 elections were the main political risk on the horizon). Initial market reactions indicated that a change of policy course to more investor and private sector friendly policies is widely anticipated. A more conducive political environment can certainly boost infrastructure investments, especially public-private partnerships (PPPs), but until the dust settles on the political front we refrain from changing the forecasted trend for Argentina's construction industry value.

Our core forecast scenario continues therefore to price in the US$10bn Chinese credit agreement for Argentina's railways as the main factor that will drive growth in infrastructure in the coming years, with risks to the upside. Official data for the first half of 2010 indicate a slightly slower recovery in Argentina's construction industry than originally anticipated by our forecasts, which have been revised down accordingly.

Railways continue to offer the greatest potential for growth, while tenders released for transmission grids will also create value for the sector in the coming years:

* The US$10bn credit line from China for Argentina's railways is going to be a key thrust behind growth and most likely will resurrect the plans for the country's high speed railway, which only a few months earlier the government said was unable to finance. Of course, this will also drive industry value, which is forecasted to experience anaemic growth over 2010.
* Railway projects that have been earmarked for funds include, inter alia, the rehabilitation of the Belgrano railway, the freight corridors in the north and centre of the country, as well as metros in Buenos Aires and Cordoba. The biggest hope, however, is for the revival of the US$2.9bn highspeed railway project, which was declared unviable in June 2010, owing to a lack of funding.
* In November 2010, the government launched a tender for the construction, operation and maintenance for two 132 kilovolt (kV) transmission lines, part of the Norte Grande transmission project. The two lines will be in the provinces of Corrientes and Missiones. The IDB has approved loans worth US$880mn for the two projects and bids are due in by December 21 2010.
* BMI notes that with investor risk likely to be further heightened over the medium term (2011- 2015), ahead of the upcoming presidential and parliamentary elections in October 2011, we see scope for delays in the implementation of large-scale infrastructure projects.

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Report Table of Contents:

Executive Summary
SWOT Analysis
- Argentina Infrastructure SWOT
- Argentina Infrastructure Project Finance SWOT
- Argentina Economic SWOT
- Argentina Political SWOT
Market Overview
- Argentina
Industry Forecast Scenario
- Table: Argentina Construction And Infrastructure Industry Data
- Table: Argentina Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
Transport Infrastructure
- Transport Infrastructure Overview
- Major Projects - New And Ongoing Projects
- Ports
- Roads
- Rail
Energy And Utilities Infrastructure
- Energy And Utilities Infrastructure Overview
- Major Projects - New And Ongoing Projects
- Power Plants
- Pipelines
- Water
- Major Projects Table - Energy And Utilities
- Table: Argentina -- Major Infrastructure Projects - Utilities
Residential/Non- Residential Construction and Social Infrastructure
- Residential/Non-Residential Construction Forecast Scenario
- Residential/Non-Residential Construction And Social Infrastructure Overview
- Major Projects - New And Ongoing Projects
- Industrial
Business Environment
- Argentina Business Environment
- Rewards
- Risks
- Regional Overview
- Americas Infrastructure Business Environment Ratings
- Table: Regional Infrastructure Business Environment Ratings
Project Finance Ratings
- Design And Construction
- Commissioning And Operating
- Overall Project Finance Rating
- Regional Overview
- Project Finance Ratings: Outlook for Americas
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
Macroeconomic Outlook
- Table: Argentina - Economic Activity
Political Outlook
- Long-Term Political Outlook
Company Monitor
- Skanska Latin America
- Roggio
- Techint
Global Overview
- Table: BMI's Core Views For Global Infrastructure
Methodology
- Industry Forecasts
- Construction Industry
- Data Methodology
- Construction
- Capital Investment
- Construction Sector Employment
- Infrastructure Business Environment Rating
- Table: Infrastructure Business Environment Indicators
- Project Finance Ratings
- 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
- Sources

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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.