DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/d34498/russia_infrastruct) has announced the addition of the "Russia Infrastructure Report Q2 2011" report to their offering.
The Russia Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Russia's infrastructure industry.
Based on 9-month 2010 official data, BMI's forecasts for Russia's construction sector for 2010 have played out, with industry value real growth in the sector coming at -2.2% on an annualised basis (BMI were forecasting -2%), and industry value of RUB2trn. They have revised up their 2011 forecast based on more bullish macroeconomic outlook, and they have also priced in the effects of the 2018 World Cup preparations, which BMI anticipate will accelerate from 2014 onwards. They maintain their core view that political risk is the main element that can ultimately curtail growth as public policy remains opaque, convoluted and subject to frequent change and government meddling in the corporate sector raises scope for delays in major projects.
The 2018 World Cup win has prompted a change in BMI's long term forecasts, with growth accelerating especially in the non-residential and residential construction sector. However, BMI see risks in implementation of projects, especially related to project cost overruns.
Infrastructure associated with the export of commodities (pipelines, ports and transport infrastructure to support oil and gas output in East Siberia) are the sectors that present the highest growth potential as their development predicates growth in the natural resources sector, therefore have been prioritised by the government.
The market reaction for the construction companies in Russia was moderate following the announcement of the 2018 World Cup win, especially when compared to gains Middle Eastern construction-related equities registered. BMI believe that the muted reaction indicates: i) confused market sentiment on who will benefit from this event, ii) concerns regarding execution risks and costs, iii) and the small relative value of the preparations compared to other infrastructure initiatives and the size of the economy.
Investment plans for ports in northern Russia are apparently gathering pace in light of the progress made on the Northern Sea Route, which allows the passage of liquid bulk as well as dry bulk cargo. Though volumes are going to be moderate compared to other shipping routes, the progress of the NSR is nonetheless prompting major investment plans for ports and auxiliary transport infrastructure.
Activity remains depressed in the residential and non-residential construction sector, and the respite offered by major infrastructure projects (especially in the power sector, oil and gas pipelines and ports) will not be sufficient by itself to drive overall construction sector growth. However, a recovery trend appears to be firmly in place and so BMI see an upside to their forecasts.
Privatisation is also a theme for 2011, not really having materialised in 2010 as the government seeks to finance the budget deficit (forecast to be US$73bn in 2010, or 6% of GDP) by offloading of assets. Transport and energy assets have been earmarked among the 5,500 state-owned companies in which the state plans to divest stakes.
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Key Topics Covered: SWOT Analysis
- Russia Infrastructure SWOT
- Russia Infrastructure Project Finance SWOT
- Russia Economic SWOT
- Russia Political SWOT
Market Overview
- Russia
Industry Forecast Scenario
- Construction and Infrastructure Forecast Scenario
Transport Infrastructure
- Transport Infrastructure Forecast Scenario
- Transport Infrastructure Overview
Energy and Utilities Infrastructure Forecast Scenario
- Energy and Utilities Infrastructure Overview
- Oil and Gas Pipelines
- Major Projects Table - Energy and Utilities
Residential/Non- Residential Construction and Social Infrastructure
- Residential/Non-Residential Construction Forecast Scenario
- Residential/Non-Residential Construction and Social Infrastructure Overview
- Major Projects Table - Residential/Non-Residential Construction and Social Infrastructure
2018 World Cup
- Major Concerns Expressed In FIFA Evaluation Report of Russian Bid
- Russia World Cup Preparations - FactBox
Business Environment
- Russia Business Environment
- Rewards
- Risks
- Regional Overview
Eastern Europe Infrastructure Business Environment Ratings
- Project Finance Ratings
- Russia Project Finance Ratings
- Design and Construction
- Commissioning and Operating
- Overall Project Finance Rating
- Regional Overview
- Macroeconomic Outlook
Political Outlook
- Domestic Politics l
- Domestic Politics ll
- Long-Term Political Outlook
Industry Forecasts
- Construction Industry
- Data Methodology
- Construction
- Capital Investment
- Construction Sector Employment
- Infrastructure Business Environment Rating
- Project Finance Ratings
Companies Mentioned:
- Mostootryad No.19
- Russian Railways (RZD)