Key T rends And D evelopments
- With continued strong backing from the Colombian government for the sector, we maintain our outlook of a healthy annual average real construction growth of 8.5% between 2014 and 2018.
- Strong economic growth - with real GDP growth of 5.1% forecast for 2014 - and expansion in coal, mining, oil and gas extraction, coupled with the multiple signed free trade agreements are creating significant demand for new capacity and better quality infrastructure. Improved access to ports and adequate highways will be essential if the country is to meet the expected increase in exports.
- New rules regulating tax changes and force majeure will significantly reduce the risk of investing in Colombia's ambitious road infrastructure programme. These measures will facilitate access to financing and will also strengthen the Public-Private Partnership (PPP) model in the country.
- These regulatory changes follow a new infrastructure law that was approved in November 2013 and empowers the ANI to alleviate the existing bottlenecks. The new law aims at facilitating land acquisition and the expropriation of grounds considered to be needed in the public interest. Furthermore, according to the new law, as of January 2014, infrastructure permits will be prioritised over mining permits.
Risk Factors Still Present
- Colombia scores just 3.7 out of 10 for corruption in the country risk section of our infrastructure Risk/Reward Ratings, following several corruption scandals within Colombia's public works sector. This...
The Colombia Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Colombia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Colombian infrastructure and construction industry.Key Benefits
CoverageBMI Industry View
- Benchmark BMI's independent infrastructure industry forecasts for Colombia to test other views - a key input for successful budgetary and planning in the Colombian infrastructure market.
- Target business opportunities and risks in the Colombian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Colombia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.
These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).Industry Trends
Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:
Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.Building Materials Overview
The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.Business Environment Rankings
BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.BMI Industry & Economic Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).
Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
We have upwardly revised our construction industry forecast for Colombia to 15% y-o-y real growth in 2014 and maintained a strong 9.6% for 2015. This is on the back of strong momentum in the transport infrastructure sector, particularly road projects . Our positive outlook for the country is supported by a maturing PPP framework, diverse sources of project finance , and an improving business environment .