Chile Infrastructure Report

Providing expert analysis, independent forecasts and competitive intelligence on the Infrastructure industry.

Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast, BMI's Infrastructure Risk Reward Index, Market Overview and Company Profiles.

Why you should buy this report

  • Gain independent insight into the outlook for the infrastructure industry through BMI's 10 year forecasts
  • Understand the market through analysis of projects , investment plans and key players
  • Understand the threats to your operations and investments and protect your company against future risks
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Chile Infrastructure Report
Product Price
$1,295.00

BMI View : A robust project pipeline across energy, water, transport, residential and social infrastructure supports our highly positive outlook for Chile's construction sector, in 2016 and throughout the ten-year forecast period to 2025. The government is highly supportive of construction sector growth and has created an open investment environment via the extensive use of public-private partnerships (PPPs), particularly in the transport sector, and healthy access to project financing. While some downside risk is presented by falling revenues from key exports, private consumption and fixed capital investment are expected to remain in positive territory moving forward.

Latest Updates And Structural Trends

  • The government is committed to improving housing infrastructure, with 25,000 new residential units due to be built across the country. In the non-residential sector, a large number of hospitals and smaller health facilities are planned or under construction under the ongoing plan to invest USD4bn in the country's healthcare system - although we do note projects have been subject to extensive delays.

  • Roads continue to take the bulk of investment in the transport infrastructure segment. PPPs and concessions are used extensively in the transport sector and the already expansive project pipeline will receive a further boost from April 2016 launch of a USD1.4bn investment plan to improve roads in 12 regions of the country in the next five years.

  • Rising household and industrial consumption will ensure investment continues into Chile's power infrastructure. As well as new thermal power plants under development, we are also seeing extensive investment into renewables, particularly wind and solar power. The outlook is less positive for hydropower, where major projects continue to face public opposition.

  • Overall the large number of projects across the industry mean that we expect to see steady growth in construction industry value in the coming years. Following growth of 3.6% in 2016, we forecast annual average growth of 3.5% between 2017 and 2025, with construction industry value expected to reach USD40.6bn by the end of the current forecast period.i

Infrastructure - Construction Industry Forecasts (Chile 2015-2025)
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f 2025f
e/f = BMI estimate/forecast. Source: BCC, BMI
Construction industry value, CLPbn 11,864.83 12,741.94 13,641.22 14,538.10 15,567.13 16,671.84 17,691.43 18,776.90 19,896.26 21,123.79 22,320.58
Construction Industry Value, Real Growth, % y-o-y 2.25 3.59 3.86 3.87 4.08 4.03 3.38 3.07 3.00 3.36 2.59
Construction Industry Value, % of GDP 7.6 7.7 7.6 7.6 7.6 7.6 7.4 7.4 7.3 7.1 6.9

Risk/Reward Index

  • Chile ranks highest in our Latin America regional RRI, shortly ahead of Colombia and Mexico. Market-friendly policies and strong institutions have been the hallmark of the Chilean government, setting the benchmark for political stability in the region.

  • The risks of investing in Chile's infrastructure sector are minor compared to neighbouring countries. As such, the country scores almost double the regional average.

  • Chile's public-private partnership (PPP) and concession model is one of the most advanced in the region. This is reflected in the country's strong score for Industry Risks in our index.

Infrastructure Risk Reward Index (Chile)
Risk/Reward Index Rewards Industry Rewards Country Rewards Risks Industry Risks Country Risks
Source: BMI
59.0 52.1 42.5 69.9 75.0 80.0 71.7
BMI Industry View
7
Table: Infrastructure - Construction Industry Forecasts (Chile 2015-2025)
8
Table: Infrastructure Risk Reward Index (Chile)
8
SWOT
9
Industry Forecast
11
Chile - Robust Project Finance Outlook To Boost Infrastructure Growth
11
Latest Updates
11
Table: Construction And Infrastructure Industry Data (Chile 2015-2025)
11
Structural Trends
11
Transport Infrastructure - Outlook And Overview
16
Structural Trends
16
Table: Key Transport Projects
22
Energy And Utilities Infrastructure - Outlook And Overview
23
Structural Trends
23
Table: Key Energy & Utilities Infrastructure Projects
30
Residential/NonResidential Building - Outlook And Overview
31
Latest Updates
31
Structural Trends
31
Table: Key Projects: Construction & Social Infrastructure
36
Industry Risk Reward Ratings
37
Chile Risk/Reward Index
37
Rewards
37
Risks
38
Latin America Industry Risk/Reward Index
39
Table: Latin America Infrastructure Risk/Reward Index
46
Market Overview
47
Competitive Landscape
47
Table: EQS Data
47
Company Profile
50
Grupo ACS
50
Abertis
53
Methodology
56
Industry Forecast Methodology
56
Sector-Specific Methodology
57
Risk/Reward Index Methodology
61
Sector-Specific Methodology
62
Chile Infrastructure Report Q3 2016
Chile Infrastructure Report Q3 2016
- Business Monitor International Ltd Page 4
- Business Monitor International Ltd Page 4
Table: Infrastructure Risk/Reward Index Indicators
62
Table: Weighting Of Indicators
63

The Chile 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 Chile Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Chilean infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Chile to test other views - a key input for successful budgetary and planning in the Chilean infrastructure market.
  • Target business opportunities and risks in the Chilean infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Chile.
  • 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.