Brazil Infrastructure Report

Published 07 April 2015

  • 108 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Brazil Infrastructure Report

BMI View: We have downgraded our construction industry value growth forecast for 2015 as a result of the ongoing Lava Jato corruption scandal. There is strong potential for infrastructure projects to be impacted by cashflow shortages at contractors and thus we have downgraded growth to 0.2% , with further downside from 2016. Over the longer term the scandal could force a much-needed restructuring of the Brazilian construction sector.

Operation Lava Jato (car wash) - a widespread government investigation into contracting practices at Brazil's national oil company Petrobras - has implicated the construction sector. The investigation started in March 2014 and has initially identified 23 industry groups (including a number of contractors across the energy and construction space) which have been banned from participating in Petrobras contracts pending further investigation.

Key implications of this scandal:

  • We expect company cashflow to be hit hard, with the ability to raise financing constrained by the investigation and payment of work done for Petrobras halted. As such, we see the potential for work stoppage at construction sites, loan defaults and bankruptcies. In late March, Galvao Engenharia filed for bankruptcy protection and cited unpaid work as the cause.

  • We see the scandal delaying infrastructure projects, in addition to threatening the tendering of projects. The potential for government contracting bans, in addition to the weakened financial position of many domestic companies, raises the risk of limited interest in tenders and thus the potential for delays.

  • We have downgraded our 2015 construction industry value forecast to just 0.2%, with further downside. We see downside risk to our forecast from 2016. However, much will depend on the ongoing fallout from the scandal.

  • Over the long term, we see the scandal as potentially forcing the government address business environment challenges, which have long preventing international companies from...

Table of Contents

BMI Industry View
7
SWOT
9
Infrastructure SWOT
9
Industry Forecast
13
Construction And Infrastructure Forecast Scenario
13
Table: Construction And Infrastructure Industry Data (Brazil 2012-2017)
13
Table: Construction And Infrastructure Industry Data (Brazil 2018-2023)
14
Table: Brazil Transport Concessions
19
Transport Infrastructure - Outlook And Overview
23
Table: Transport Infrastructure Industry Data (Brazil 2012-2017)
23
Table: Transport Infrastructure Industry Data (Brazil 2018-2023)
24
Table: Brazil Transport Concessions Plan
27
Table: Brazil Highway Concessions
29
Table: Brazil Awarded Airport Concessions
31
Table: Brazil Railway Concessions
35
Table: Major Projects - Transport
36
Energy And Utilities Infrastructure - Outlook And Overview
55
Table: Energy And Utilities Infrastructure Data (Brazil 2012-2017)
55
Table: Energy And Utilities Infrastructure Data (Brazil 2018-2023)
56
Table: Brazil Power Auctions, 2013/14
57
Table: Major Projects - Energy & Utilities
64
Residential/Non-Residential Building - Outlook And Overview
74
Table: Residential and Non-Residential Building Industry Data (Brazil 2012-2017)
74
Table: Residential and Non-Residential Building Industry Data (Brazil 2018-2023)
74
Table: Major Projects - Residential/Non-Residential Construction And Social Infrastructure
78
Industry Risk Reward Ratings
80
Brazil - Infrastructure Risk/Reward Ratings
80
Risk/Reward Ratings
80
Rewards
80
Risks
81
Latin America - Infrastructure Risk/Reward Ratings
82
Table: Latin America Infrastructure Risk/Reward Ratings
88
Company Profile
89
Grupo Camargo Correa
89
Odebrecht
93
Global Industry Overview
98
Global Infrastructure Overview
98
Methodology
104
Industry Forecast Methodology
104
Sector-Specific Methodology
105
Risk/Reward Rating Methodology
109
Sector-Specific Methodology
110
Table: Infrastructure Risk/Reward Rating Indicators
110
Table: Weighting Of Indicators
111

The Brazil Infrastructure Report features BMI Research'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 Brazil Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Brazilian infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Brazil to test other views - a key input for successful budgetary and planning in the Brazilian infrastructure market.
  • Target business opportunities and risks in the Brazilian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Brazil.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

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 Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

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 company 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.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc