PRLog (Press Release) – Apr 02, 2011 – BMI View: Our view on the underlying risks to the infrastructure sector associated with political risk in Egypt has played out. In light of mass protests and calls for President Hosni Mubarak to relinquish his 30-year grip on power, BMI now takes a 'wait and see' approach to its assessment of Egypt's infrastructure market. Our forecasts for the overall construction industry value remain broadly the same, but we stress that they are merely provisional and will be subject to change when political turmoil in Egypt abates.
The main implications for Egypt's infrastructure market are:
* Egypt's nascent public private partnership (PPP) market has lost momentum and will only regain it once the political situation stabilises and some level of political continuity resumes. * We still see significant growth potential for the infrastructure sector, but its realisation is predicated on political stability. * Uncertainty over the future of the country's nuclear power project. Such a major project may indeed prove to be contentious under a new government and could be abandoned.
Growth in Egypt's construction sector has been strong in recent years and our previous assessment was that this growth trend was due to continue. This was prompted by high investor interest in infrastructure - particularly the nascent PPP/concessions market - as well as the plans for major investments in luxury residential and commercial projects and affordable housing. We believe that recent events will alter this trend and most likely growth will moderate over H111, as investors put projects on hold and attempt to avoid the considerable political risks that have engulfed the market.
We refrain from altering our previous forecasts because we do not yet have a clear idea of how the market will be effected and we therefore stress that these forecasts for Egypt's construction industry value are provisional and subject to change when the outlook becomes clearer over the coming months.
For more information or to purchase this report, go
0 komentar:
Posting Komentar