New Market Report Now Available: South Africa Infrastructure Report Q1 2011

Jan. 27, 2011 - PRLog -- The contrast between the third and fourth quarters of 2010 could not be starker for South Africa's construction industry. A flurry of construction activity in the run up to the 2010 FIFA World Cup in June- July has unravelled leaving a dearth of contracts, a bloated budget and a construction industry that is haemorrhaging jobs. Developments since the games show that BMI's core view on South Africa's infrastructure sector is playing out. We stipulated that there would be a rapid unwinding of public contracts for major infrastructure projects. BMI accordingly expects South Africa's construction industry to grow by a modest 2.45% to ZAR89.1bn (US$12.2bn) in 2010.

Recent key developments include:

* A major source of revenues for the construction companies in South Africa has been public infrastructure operators such as Eskom and Transet. Therefore, BMI considers difficulties encountered by Eksom as it attempted to raise financing for its ZAR385bn (US$50bn) capex plan, to be a crucial threat to the potential growth of orders for the domestic construction sector. Upside to this threat is provided by President Zuma's announcement on October 23 2010 that the government is planning power sector investments of up to ZAR800bn (US$115bn). The announcement was vague, therefore it remains unclear if this is part of the ZAR846bn long-term infrastructure plan for the country, or a new pledge altogether.
* It emerged in October 2010 that Sanral is to award ZAR8bn (US$1.2bn) less in contracts in FY10/11 and FY11/12: it will award contracts totalling just ZAR10bn (US$1.4bn). The reduced expenditure is due to the high cost of the Gauteng Freeway Improvement Project which is due for completion in Q211. Sanral expects to embark on its next project by 2012. The most important is likely to be the upgrade, expansion and operation of the N1/N2 Winelands toll road near Sandhills and the Bot river in the Western Cape, South Africa.
* The country has registered a growing ambition to capitalise on renewable energy in recent months - specifically wind power. The World Bank's Clean Technology Fund was planning to invest US$85mn in renewable energy and co-generation projects in South Africa. If Suzlon Energy's plans to install 800MW of wind capacity in South Africa go ahead, then the country will go from being a non-entity in the wind power space to a major growth market in Africa, in league with Morocco and Egypt.

However, the Master Builders Association of Africa (MBSA) considers the state of the infrastructure sector to be dire. The MBSA has arranged a crisis summit for early-2011 and called on those in the industry to isolate bottlenecks which are leading to construction job losses. These job losses are expected to continue into 2011.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/110384_south_africa_infrastruc...


Partial Table of Contents:

Executive Summary
SWOT Analysis
- South Africa Infrastructure Industry SWOT
- South Africa Infrastructure Project Finance SWOT
- South Africa Economic SWOT
- South Africa Political SWOT
Market Overview
- South Africa
Industry Forecast Scenario
- Table: South Africa Construction And Infrastructure Industry Data
- Table: South Africa Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
Transport Infrastructure
- Table: South Africa Transport Infrastructure Industry Data
- Table: South Africa Transport Infrastructure Industry Data
- Transport Infrastructure Forecast Scenario
- Transport Infrastructure Overview
- Table: Length Of Road Infrastructure Network In South Africa
- Major Projects - New And Ongoing Projects
- Airports
- Ports
- Roads
- Railways
- Major Projects Table - Transport
- Table: Major Infrastructure Projects - Transport
Energy And Utilities Infrastructure
- Table: South Africa Energy and Utilities Infrastructure Industry Data
- Table: South Africa Energy and Utilities Infrastructure Industry Data
- Energy And Utilities Infrastructure Forecast Scenario
- Energy And Utilities Infrastructure Overview
- Major Projects - New And Ongoing Projects
- Power Plants And Transmission Grids
- Pipelines
- Water
- Major Projects Table - Energy And Utilities
- Table: Major Infrastructure Projects - Energy & 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
- Social Infrastructure
- Construction
- Industrial
Business Environment
- South Africa Business Environment
- Rewards
- Risks
- Regional Overview
- Africa Infrastructure Business Environment Ratings
- Table: Regional Infrastructure Business Environment Ratings
Project Finance Ratings
- South Africa 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: South Africa - Economic Activity
Political Outlook
- Domestic Politics
- Long-Term Political Outlook
Company Monitor
- Eskom
- Transnet
- Murray & Roberts Group (M&R)
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
-

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=1103...

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

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.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

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.