Taiwan Infrastructure Q2 2011

Date: April 22, 2011
Pages: 92
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download
ID: T1927595A96EN

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Includes 3 FREE quarterly updates

BMI View: New historical data show that real growth for Taiwan's construction industry was 11.3% in 2010, with Q410 achieving real growth of 5.2% year-on-year (y-o-y). This suggests that the stimulus measures initiated in 2008 are beginning to wane and we continue to expect a slowdown in the construction industry over the medium term. However, recent announcements by the Taiwanese government – US$1.5bn on renewable energy investment and probable relaxation in laws barring Chinese participation in port projects – present upside potential to our forecast.

Key developments contributing to forecasts included:
  • In December 2010, the Taiwanese government has announced plans to invest TWD45bn (US$1.47bn) in renewable energy technology over the next five years, highlighting its commitment to the growth of the renewables sector. While these initiatives have resulted in only few tangible outcomes for the renewable sector, we believe that the ongoing support from the government, highlighted by this latest investment plan, will likely attract interest from investors and boost growth in the energy and utilities infrastructure sector.
  • In January 2011, Taiwanese authorities announced that they would permit Chinese investors – barring restrictions – to participate in build-operate-transfer (BOT) projects at Taiwan's ports, This relaxation in regulations – to take place in late 2011 – is another sign of China and Taiwan's growing closeness in the maritime sector, and is opening up infrastructure opportunities for companies from both sides.
  • In January 2011, construction of the TWD7.5bn (US$258mn) Kinmen Bridge connecting Kinmen Island and Lieyu in Taiwan was officially launched, KHL Group reported. The bridge will measure 5.4km in length and 15m in width and will be the world's longest sea crossing bridge. It is scheduled to be completed in 2016.

BMI anticipates Taiwan's economy will face strong macroeconomic headwinds that will stymie growth across the economic spectrum. The slowdown in exports (which accounts for 65% of Taiwan's GDP), the cooling of property prices and more subdued investment sentiment caused by deteriorating global conditions will have a moderating impact on construction industry growth, which we forecast to decelerate to 6.3% y-o-y in 2011. However, after this, we expect the value of the construction sector to remain at these levels, averaging real growth of 6.4% per annum between 2012 and 2015.
Executive Summary
SWOT Analysis
Taiwan Infrastructure SWOT
Taiwan Infrastructure Project Finance SWOT
Taiwan Economic SWOT
Taiwan Political SWOT
Market Overview
Building Materials
Global Materials
Building Materials: Global Demand to Hit New Highs In 2011
Asia Overview
Building Materials: Asia Will Be Key Global Growth Driver In 2011
Industry Forecast Scenario
  Table: Taiwan Construction And Infrastructure Industry Data, 2007-2015
  Table: Taiwan Construction And Infrastructure Industry Data, 2012-2020
Construction and Infrastructure Forecast Scenario
Transport Infrastructure
  Table: Taiwan Transport Infrastructure Industry Data
  Table: Taiwan Transport Infrastructure Industry Data
Transport Infrastructure Forecast Scenario
Transport Infrastructure Overview
Major Projects Table – Transport
  Table: Major Infrastructure Projects – Transport
Energy And Utilities Infrastructure
  Table: taiwan Energy and Utilities Infrastructure Industry Data
  Table: taiwan Energy and Utilities Infrastructure Industry Data
Energy and Utilities Infrastructure Forecast Scenario
Energy and Utilities Infrastructure Overview
Major Projects Table – Energy and Utilities
  Table: Major Infrastructure Projects – Energy And Utilities
Residential/Non- Residential Construction and Social Infrastructure
  Table: Taiwan Residential and Non-residential Building Industry Data
  Table: Taiwan Residential and Non-residential Building Industry Data
Residential/Non-Residential Construction Forecast Scenario
Residential/Non-Residential Construction and Social Infrastructure Overview
Business Environment
Taiwan Business Environment
Regional Overview
Asia Pacific Infrastructure Business Environment Ratings
  Table: Asia Pacific Infrastructure Business Environment Ratings
Project Finance Ratings
Taiwan Project Finance Ratings
Design and Construction
Commissioning and Operating
Overall Project Finance Rating
Regional Overview
Project Finance Ratings: Outlook For Asia Pacific
  Table: Design And Construction Rating
  Table: Commissioning And Operating Rating
  Table: Overall Project Finance Rating
Macroeconomic Outlook
  Table: Taiwan - Economic Activity
Political Outlook
Domestic Politics
Long-Term Political Outlook
Company Monitor
Kung Sing Engineering
BES Engineering
Global Overview
  Table: BMI's Core Views For Global Infrastructure
Industry Forecasts
Construction Industry
Data Methodology
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
  Table: Commissioning And Operating Phase – Transport
Sources 92
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