New Market Report Now Available: Czech Republic Infrastructure Report Q2 2011

Feb. 28, 2011 - PRLog -- BMI continues to be pessimistic over short term growth opportunities in the Czech Republic's infrastructure sector, with the number of investments expected to slow considerably over the coming months and years. For this reason, following a 9.5% estimated contraction in industry value in 2010, we are forecasting growth of just 2% in 2011, with little upside potential.

The reasons behind our bearish short-term outlook are:

* One month freeze on all road and rail projects in late August 2010; although most projects have now resumed, some have been downsized and the project pipeline has been reduced substantially. Strict budget cuts in the transport ministry will mean fewer projects procured over the short term.
 * Delays to the CZK500bn Temelin nuclear power plant expansion project. Delays of between one and two years have been announced, owing to weak electricity demand and requests for more time from preliminary bidders. The project is unlikely to get under way until 2014.
 * Cuts to solar subsidies will put an abrupt end to the booming solar power sector in the Czech Republic which saw 411 megawatts (MW) installed in 2009 and close to 1 gigawatt (GW) in 2010. From March 2011, subsidies will be drastically cut, with a substantial drop in investment expected, and some backlash if a retrospective tax, which is on the table, is implemented.
 * Government budget cuts will impact construction as whole, with spending expected to be cut by CZK58.5bn (US$3.1bn) in 2011. As well as the transport sector, the education and agriculture sectors are expected to be cut, which could threaten school construction and irrigation projects.
 * General bearish attitude of investors to Central and Eastern Europe could rub off on the Czech Republic. The renegotiating of contracts for transport projects has dented the country's business environment and could put investors off the country and alienate those large construction companies who have had their fingers burnt.


Despite this short-term weakness, there is optimism over the longer term for the Czech Republic's construction sector in general and infrastructure sector specifically. Transport investments will be necessary over the longer term if the Czech Republic wants to secure its position as a key freight route linking east and west Europe. In terms of energy and utilities, plans to invest in transmission infrastructure and the nuclear power project, although delayed, should create value in the sector over the longer term. Indeed CEZ is cutting capital expenditure internationally in order to secure funds for domestic projects; however, some domestic projects also look to be on the chopping block. For these reasons, real growth is estimated to pick up gradually over our forecast period (2010-2019), reaching around 5% by 2019. Average growth over the next decade is estimated at around 3% per year.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/126854_czech_republic_infrastr...


Partial Table of Contents:

SWOT Analysis
- Czech Republic Infrastructure SWOT
- Czech Republic Infrastructure Project Finance SWOT
- Czech Republic Economic SWOT
- Czech Republic Political SWOT
Market Overview
- Czech Republic
- Building Materials Outlook Clouds Following Strong Early 2010 Rebound
- Global Overview
- Global Rebound in Demand for Building Materials
- Steel
- Cement Sector Outlook Remains Uncertain
- Outlook
- Continuing Underperformance As Building Materials Outlook Remains Uncertain
- Table: Holcim Cement Price/Volume Variance - Europe
Industry Forecast Scenario
- Table: Czech Republic Construction And Infrastructure Industry Data
- Table: Czech Republic Construction And Infrastructure Industry Data
- Construction And Infrastructure Forecast Scenario
Transport Infrastructure
- Table: Czech Republic Transport Infrastructure Industry Data
- Table: Czech Republic Transport Infrastructure Industry Data
- Transport Infrastructure Forecast Scenario
- Transport Infrastructure Overview
- Key Projects Table - Transport Infrastructure
- Table: Major Infrastructure Projects - Transport
Energy And Utilities Infrastructure
- Table: Czech Republic Energy And Utilities Infrastructure Industry Data
- Table: Czech Republic Energy and Utilities Infrastructure Industry Data
- Energy And Utilities Infrastructure Forecast Scenario
- Energy And Utilities Infrastructure Overview
- Power Sector Grows As Demand Returns
- Key Projects Table - Energy And Utilities Infrastructure
- Table: Major Infrastructure Projects - Energy & Utilities
Residential/Non- Residential Construction And Social Infrastructure
- Table: Czech Republic Residential And Non-residential Building Industry Data
- Table: Czech Republic Residential And Non-residential Building Industry Data
- Residential/Non-Residential Construction Forecast Scenario
- Residential/Non-Residential Construction And Social Infrastructure Overview
Business Environment
- Czech Republic Business Environment
- Rewards
- Risks
- European Infrastructure Underperformance Reflected In Moderate Rewards
- Table: Regional Infrastructure Business Environment Ratings
Project Finance Ratings
- Czech Republic Project Finance Ratings
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Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=1268...

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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.