Includes 3 FREE quarterly updates
BMI View: Chile’s strong business environment continues to attract investment. Combined with a wellfunded government stimulus programme, this investment is powering strong growth in the country’s construction industry, with year-on-year growth of 7.0% forecast for 2012. This is anticipated to slow slightly over the longer term, with annual average growth of 3.6% forecast between 2013 and 2021. The construction industry is expected to increase in value over our forecast period, from US$20.0bn in 2012 to US$36.8bn in 2021.
Key developments in the sector:
Despite undergoing a cyclical slowdown in domestic demand, Chile saw real GDP pick up in Q112 to 5.6% year-on-year (y-o-y), from 4.5% the previous quarter, thanks to a positive contribution from net exports. This stronger growth reading is in line with our own above-consensus 2012 real GDP forecast of 4.8%, although the precarious external environment means downside risks are significant and growing.
BMI View: Chile’s strong business environment continues to attract investment. Combined with a wellfunded government stimulus programme, this investment is powering strong growth in the country’s construction industry, with year-on-year growth of 7.0% forecast for 2012. This is anticipated to slow slightly over the longer term, with annual average growth of 3.6% forecast between 2013 and 2021. The construction industry is expected to increase in value over our forecast period, from US$20.0bn in 2012 to US$36.8bn in 2021.
Key developments in the sector:
- Chile is to invest US$83mn in road upgrades across Route G-21, which is also known as the Camino a Farellones. The Ministry of Public Works will receive bids for the improvement project between March 2012 and April 12 2013. The upgrades are scheduled to commence in 2014 and end by 2016.
- An appeals court overturned approval required for the construction of the Pirquenes coal-fired power plant, which is designed to have a capacity of 50 megawatts (MW). The tribunal termed the approval by the environmental authority as illegal because the authority granted permission without reviewing an environmental impact study (EIS). South World Business, the project's developer, has been asked by the tribunal to re-apply for approval and submit an EIS. The coaland biomass-fired project is estimated to take a construction period of 24 months, with a total investment of US$82mn.
- The Chilean Environmental Ministry has approved construction of the US$120mn Desaladora Sur desalination plant. The facility will be built by local water utility Aguas Antofagasta, with all of the city's potable water to be sourced from the process of desalination.
Despite undergoing a cyclical slowdown in domestic demand, Chile saw real GDP pick up in Q112 to 5.6% year-on-year (y-o-y), from 4.5% the previous quarter, thanks to a positive contribution from net exports. This stronger growth reading is in line with our own above-consensus 2012 real GDP forecast of 4.8%, although the precarious external environment means downside risks are significant and growing.
BMI Industry View
Chile Infrastructure SWOT
Market Overview
Competitive Landscape
Table: EQS Data
Building Materials
Latin America
Cement Forecasts
Table: Chile Cement Production and Consumption Data, 2010-2016
Table: Chile Cement Production and Consumption Long Term Forecasts, 2015-2021
Industry Forecast Scenario
Table: Chile Construction And Infrastructure Industry Data, 2010-2016
Table: Chile Construction And Infrastructure Industry Data, 2015-2021
Construction And Infrastructure Forecast Scenario
Transport Infrastructure
Transport Infrastructure Outlook and Overview
Major Projects Table – Transport
Table: Major Projects – Transport
Energy And Utilities Infrastructure
Energy and Utilities Infrastructure Outlook and Overview
Major Projects Table – Energy And Utilities
Table: Major Projects – Energy and Utilities
Residential/Non-Residential Construction And Social Infrastructure
Residential/Non-Residential Building Outlook and Overview
Major Projects Table – Residential, Non-Residential and Social Infrastructure
Table: major Projects – Residential, Non-Residential and Social Infrastructure
Risk/Reward Ratings
Chile’s Risk/Reward Ratings
Rewards
Risks
Regional Overview
Table: Americas Infrastructure Risk/Reward Ratings
Company Monitor
Grupo ACS
Abertis
Global Overview
Methodology
Industry Forecasts
Construction Industry
Data Methodology
New Infrastructure Data Sub-sectors
Construction
Capital Investment
Construction Sector Employment
Infrastructure Business Environment Rating
Table: Infrastructure Business Environment Indicators
Chile Infrastructure SWOT
Market Overview
Competitive Landscape
Table: EQS Data
Building Materials
Latin America
Cement Forecasts
Table: Chile Cement Production and Consumption Data, 2010-2016
Table: Chile Cement Production and Consumption Long Term Forecasts, 2015-2021
Industry Forecast Scenario
Table: Chile Construction And Infrastructure Industry Data, 2010-2016
Table: Chile Construction And Infrastructure Industry Data, 2015-2021
Construction And Infrastructure Forecast Scenario
Transport Infrastructure
Transport Infrastructure Outlook and Overview
Major Projects Table – Transport
Table: Major Projects – Transport
Energy And Utilities Infrastructure
Energy and Utilities Infrastructure Outlook and Overview
Major Projects Table – Energy And Utilities
Table: Major Projects – Energy and Utilities
Residential/Non-Residential Construction And Social Infrastructure
Residential/Non-Residential Building Outlook and Overview
Major Projects Table – Residential, Non-Residential and Social Infrastructure
Table: major Projects – Residential, Non-Residential and Social Infrastructure
Risk/Reward Ratings
Chile’s Risk/Reward Ratings
Rewards
Risks
Regional Overview
Table: Americas Infrastructure Risk/Reward Ratings
Company Monitor
Grupo ACS
Abertis
Global Overview
Methodology
Industry Forecasts
Construction Industry
Data Methodology
New Infrastructure Data Sub-sectors
Construction
Capital Investment
Construction Sector Employment
Infrastructure Business Environment Rating
Table: Infrastructure Business Environment Indicators