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Construction / Infrastructure in Western Europe

  • Eurozone Construction Output Falls For Second Month

    EUROPEAN UNION, 2017/08/22 Eurozone construction output decreased for the second straight month in June, Eurostat reported Friday. Construction output declined 0.5 % month-on-month in June, bigger than the 0.2 % decrease seen in May.

  • Belgium to build 600MW power plant in Iran

    BELGIUM, 2016/07/10 A Belgian company will build a new 600-megawatt combined cycle power plant near Tabriz city, northwest of Iran, Reza Hosseini, deputy chief of the Center for Investment Services of East Azerbaijan Province, said. The F class power plant will be built near Soufian power plant within 3-4 years, Hosseini said, IRNA news agency reported June 30.

  • German construction sector study:

    GERMANY, 2015/11/28   Introduction German construction sector: Boom years are over, confidence falling despite stable profitability and slight growth in gross production in 2015 - up 2% Public housing puts brake on stronger growth in the sector, private housing growing steadily – gap continues to widen  Insolvencies in sector expected to fall by 3% in 2015; but construction sector still has second highest number of insolvencies nationally Property prices are a risk factor: purchasing power unable to keep pace with sharply rising prices.     Text of the news ​The spirit of optimism that prevailed in Germany’s construction sector in recent years has largely disappeared and confidence in the sector is falling, according to Euler Hermes' study on the industry. During the boom from 2010 onward, German construction companies fared relatively well, particularly compared to their ailing European neighbors. Nevertheless, they had to lower their sights slightly in 2015, with growth in gross production at 2% vs 3% in 2014 and 5% on average between 2010 and 2013. The profitability of German construction firms remains stable however, and leverage is low. Insolvencies are expected to be slightly down in 2015.   Nearly 17% of all bankruptcies in Germany occur in the construction sector – the second highest figure "After wholesale and retail, the construction sector suffers the highest number of insolvencies in Germany; nearly 17% of all bankruptcies happen to construction companies," said Ludovic Subran, chief economist at Euler Hermes Group. "In 2015, we expect the number of cases to fall by around 3% to approximately 3,900 insolvencies (2014: almost 4,000). This is good news, even though the level is still relatively high overall. German construction companies are faring better than their European counterparts however. In France we estimate that around a quarter of all corporate insolvencies are in the construction sector."   Public housing putting brake on sector, much stronger growth in private sector The main drivers behind the relatively good position of Germany’s construction sector compared to the rest of Europe are private housing and robust demand in the property market. Euler Hermes' economists expect this trend to continue.    "The brake on growth in the construction industry is clearly public housing," explained Thomas Krings, chief risk officer at Euler Hermes Germany. "Development is lagging way behind the private sector due to half-hearted infrastructure programs. For 2015, we anticipate 1% growth against 3% in private housing, which is increasingly the industry’s driving force. In 2010, both sectors were still on a par in terms of their order books – now there is a 60 percentage point gap between them, a trend which is being intensified by demographic developments. Urban growth is increasing: almost 10% in recent years. Net migration is also rising by around 13% per year based on current expectations or even more, given the current refugee figures. The knock-on effect of this will be an increase in demand for housing.”   Widening gap between growth of disposable net incomes and that of property prices In addition to the wide gap between private and public housing, the unequal growth of sharply rising property prices and disposable net incomes is another risk factor for the future development of the sector. Euler Hermes believes this imbalance is set to continue in 2015 and 2016.   "Between 2007 and 2014, property prices rose by nearly 5% a year," said Krings. "Admittedly we expect this to flatten out to around 4% over the next year, but with purchasing power up only 1.8% on average in 2015-2016, it has no chance of keeping pace. This is a risk factor for the sector, and we will keep a close eye on it, along with future interest rate movements and public investment."

  • Construction output in the 19-country eurozone

    EUROPEAN UNION, 2015/11/24 Construction output in the 19-country eurozone came in weaker in August next a rebound in the previous month, official data showed Monday. The seasonally-adjusted production in the construction sector fell by 0.2 % month-on-month in the euro area, said Eurostat, the statistics agency of the EU. The reading reversed a 0.4 % increase in July. The monthly decrease in construction output in the euro area was due to civil engineering activity falling by 0.3 % and building construction by 0.2 %, said the agency.

  • Russian Pipeline Halt Raises Concern in Balkans

    EUROPEAN UNION, 2014/12/18 Serbian Prime Minister Aleksandar Vucic said on Tuesday that Moscow’s decision to scrap the planned pipeline, citing EU pressure, was bad news for Serbia. “Serbia invested six, seven years in that project. Much effort and much work have been put in since the initial signatures were signed,” Vucic said. The pipeline, which was supposed to pump gas from Russia through Bulgaria and Serbia to western Europe, was cancelled by President Vladimir Putin on Monday next opposition to the project from the EU, which said it may break competition rules. Vucic said that Serbian citizens should not worry about gas supplies this winter. “But it would be better if we had South Stream. Serbia would have energy security,” he added.

  • Balkans: EU intensify cooperation for key infrastructures

    EUROPEAN UNION, 2013/11/08 European and International Financial Institutions have agreed to intensify their cooperation on key infrastructure investment in the Western Balkan nations. The European Commission announced in this context its intention to use up to 1 billion euros from the new Instrument for Pre-Accession Assistance to fasten funding in this area for the 2014-2020 programming period. Combined with funds from the Financial Institutions, the EU funds aim to attract private capital that could finance at least 10 billion euros of investment in the Western Balkans, targeting key priorities of the beneficiary nations inclunding infrastructure and economic development.

  • The underground boulevard is aimed at easing traffic in the central area.

    ITALY, 2013/09/04 The consortium whose name has not been revealed has offered to build the 1,200 metre-long stretch of road for 57 million euro.

  • Skopje Trade Fair to get €130 Million Upgrade

    MACEDONIA, 2013/03/19 Apart from the existing exhibition space and a multi-purpose hall, the companies plan to build two shopping malls, a business and entertainment centre, office buildings, a hotel and multi-storey car parks. ”ERA City will be one of the major complexes in Southeast Europe,” ERA board chairman Gvido Omladic said in Skopje. 

  • Transport Minister Mile Janakieski

    MACEDONIA, 2013/01/07 Macedonia says that the priority will be given to the construction of the railway line leading to Albania. The minister said that the European Union had by presently announced the call for a project and tendering documentation for the construction of a new railway section from Kicevo to the Albanian border as part of the pan-European transport Corridor 8.

  • EU Grants Macedonia €50m for Infrastructure

    MACEDONIA, 2013/01/01 Macedonia says that the priority will be given to the construction of the railway line leading to Albania. The minister said that the European Union had by presently announced the call for a project and tendering documentation for the construction of a new railway section from Kicevo to the Albanian border as part of the pan-European transport Corridor 8. Macedonia as well plans to use the money to construct the unfinished railway line leading towards Bulgaria inclunding to reconstruct several existing sections of pan-European corridor 10 that links the country to Serbia to the north and to Greece to the south.
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