international
construction
december 2014
6
W
O
RL
D
NEW
S
W
O
L
D
W
UK
B
a
l
fo
u
r B
ea
t
t
y h
a
s
co
nfirmed it
s
ch
ief fina
ncia
l
o
fficer D
u
nca
n M
a
g
ra
t
h
is
t
o
l
ea
ve t
h
e co
mp
a
ny nex
t
yea
r.
His
dep
a
rt
u
re co
mes
a
ft
er a
s
eries
o
f p
ro
fi t
w
a
rning
s
t
h
a
t
fo
rced t
h
e res
ig
na
t
io
n o
f
CEO
A
ndrew
M
cNa
u
g
h
t
o
n in M
a
y,
a
nd
w
h
ich
h
a
ve a
l
s
o
s
een ch
a
irma
n a
nd
a
ct
ing
CEO
St
eve M
a
rs
h
a
l
l
a
nno
u
nce
p
l
a
ns
t
o
l
ea
ve.
M
r M
a
g
ra
t
h
,
w
h
o
h
a
d
s
erved in h
is
p
o
s
t
fo
r t
h
e p
a
s
t
s
ix
yea
rs
,
w
il
l
s
t
a
y u
nt
il
a
s
u
cces
s
o
r is
fo
u
nd.
NETHERLANDS
T
h
e Eu
ro
p
ea
n
Inves
t
ment
B
a
nk
(
EIB
)
h
a
s
g
ra
nt
ed a
€
200mil
l
io
n (
US$
245
mil
l
io
n)
l
o
a
n
fo
r t
h
e u
p
g
ra
de o
f t
h
e A
9
mo
t
o
rw
a
y
s
o
u
t
h
o
f A
ms
t
erda
m.
T
h
e s
t
ret
ch
o
f k
ey
Net
h
erl
a
nds
ro
a
d bet
w
eenHo
l
endrech
t
a
nd t
h
e river Ga
a
s
p
nea
r D
iemen is
a
co
re ro
u
t
e s
erving
Sch
ip
h
o
l
A
irp
o
rt
,
A
ms
t
erda
m a
nd A
l
mere.
INDIA
T
h
e A
s
ia
n D
evel
o
p
ment
B
a
nk
(
A
D
B
)
h
a
s
a
p
p
ro
ved a
US$
3
5
0mil
l
io
n l
o
a
n t
o
u
p
g
ra
de dis
t
rict
ro
a
ds
in India
’
s
M
a
dh
ya
P
ra
des
h
s
t
a
t
e.
T
h
es
e fu
nds
w
il
l
co
ver 7
0%
o
f
t
h
e p
ro
j
ect
co
s
t
o
f US$
5
00mil
l
io
n,
w
it
h
t
h
e s
t
a
t
e g
o
vernment
o
f M
a
dh
ya
P
ra
des
h
p
ro
viding
t
h
e ba
l
a
nce o
f
US$
15
0mil
l
io
n.
T
h
e p
ro
j
ect
w
il
l
s
ee
t
h
e u
p
g
ra
ding
o
f s
o
me 1,
6
00 k
m
o
fma
j
o
r dis
t
rict
ro
a
ds
t
h
ro
u
g
h
l
a
ne
w
idening
,
s
u
rfa
ce imp
ro
vement
s
,
a
nd
s
t
reng
t
h
ening
o
f cu
l
vert
s
a
nd bridg
es
.
SPAIN
T
h
e Eu
ro
p
ea
n Inves
t
ment
B
a
nk
(
EIB
)
h
a
s
s
ig
ned a
n a
g
reement
w
it
h
Sp
a
in’
s
M
inis
t
ry o
f P
u
bl
ic W
o
rk
s
t
o
p
ro
vide a
€
3
5
0mil
l
io
n (
US$
43
0
mil
l
io
n)
l
o
a
n t
o
h
el
p
devel
o
p
a
do
z
en
new
ro
a
ds
a
nd u
p
g
ra
de s
even h
ig
h
w
a
y
s
ch
emes
t
o
t
a
l
l
ing
3
5
0 k
m.
T
h
e
s
ch
emes
a
re p
a
rt
o
f t
h
e t
ra
ns
-
Eu
ro
p
ea
n
t
ra
ns
p
o
rt
net
w
o
rk
(
T
EN-
T
)
.
EUROPE
T
h
e Eu
ro
p
ea
n B
a
nk
fo
r
Reco
ns
t
ru
ct
io
n a
nd D
evel
o
p
ment
(
EB
RD
)
h
a
s
crea
t
ed a
€
40mil
l
io
n
(
US$
5
0mil
l
io
n)
Infra
s
t
ru
ct
u
re P
ro
j
ect
P
rep
a
ra
t
io
n F
a
cil
it
y (
IP
P
F
)
.
T
h
is
u
nit
w
il
l
p
rep
a
re p
ro
j
ect
s
in l
ine w
it
h
EB
RD
p
o
l
icy o
bj
ect
ives
,
w
h
il
e p
ro
viding
ex
p
ert
is
e o
n p
u
bl
ic p
riva
t
e p
a
rt
ners
h
ip
s
(
P
P
P
s
)
a
nd co
mmercia
l
is
ed p
ro
j
ect
s
.
T
h
emo
ve fo
l
l
o
w
s
a
s
t
a
t
ement
by
t
h
e EB
RD
a
nd o
t
h
ermu
l
t
i-
l
a
t
era
l
infra
s
t
ru
ct
u
re fina
ncers
t
o
t
h
e effect
t
h
a
t
inves
t
ment
a
ro
u
nd t
h
e w
o
rl
d is
l
a
g
g
ing
no
t
beca
u
s
e o
f t
h
e l
a
ck
o
f
fu
nds
,
bu
t
beca
u
s
e o
f a
l
a
ck
o
f via
bl
e
a
nd w
el
l
-
p
rep
a
red p
ro
j
ect
s
.
HIGHLIGHTS
GLOBAL
Funders highlight
lack of ‘bankable
projects’
D
e velo
p
m ent
ba
nk
s
sa
y a
la
ck
o
f go
o
d p
r o
j
ect
s
ra
t
h
e r t
ha
n a
la
ck
o
f fina
nce is
h
o
l
ding
ba
ck
glo
ba
l
infra
st
ru
ct
u
r e invest
ment
T
he seven major multi-lateral development banks (MDBs), plus the
InternationalMonetaryFund (IMF) have issued a statement on global
infrastructure development, aimed at the leaders of the world’s 19
largest economies plus representatives of theEuropeanUnion (G20.
Although theMDBs collectivelyfinanceUS$130billionof infrastructure
projects a year, they say there is still a shortfall between what is being
built and what needs to be built – the so-called ‘infrastructure gap’. A
joint statement from theMDBs and IMF said, “The infrastructure gap in
emerging and developing economies is broadly estimated at over US$ 1
trillion per annum.”
The statement added that the problemwas not somuch the availability of
funds, butmore the lackof financiallyviableprojects. “The critical barrier to
achieving anuplift in infrastructure investment in emerging anddeveloping
economies is not a lack of available finance, but an insufficient pipeline of
bankable projects ready to be implemented,” it said.
In response, the MDBs said they were strengthening their project
preparation facilities (PPFs). Other initiatives include developing a
harmonised approach among to project preparation and supervision,
including the use of standard procurement policies and documents, and
environmental and social safeguards.
The statement was issued by the African Development Bank (AfDB),
AsianDevelopment Bank (ADB), European Bank for Reconstruction and
Development (EBRD), European Investment Bank (EIB), Inter-American
Development Bank (IDB), IslamicDevelopment Bank (IDB),WorldBank
and the IMF.
US
Output
growth
Construction spending in the US
was up +3.3% in the 12months to
the end of October, compared to
the same time last year, at US$ 971
billion. This was a +1.1% increase
from the 12-month rolling total to
the end of September.
The year-on-year increase was
drivenby theprivatenon-residential
sector, which was up +6.4%
compared to a year ago. However,
this component of construction
was down -1.0% compared to the
previousmonth.
Other growth areas included
private residential construction,
which was up +1.9% compared to
a year ago, and +1.3% compared
to the previous month. However,
these gainswere underminedby the
public construction sector, which
was down -2.3% compared to a
year ago.However, itwas up+1.5%
compared to the previous month –
the biggestmonth-on-month gain.
Commenting on the figures
from the US Census Bureau, Ken
Simonson, chief economist at the
Associated General Contractors of
America (AGC) said, “Whileoverall
construction spending jumped
by more than +1% in October,
the gain followed two months of
stagnation. Public construction
was the fastest-growing segment for
themonth but the slowest-growing
over the past year and for the first
10months of 2014 combined.”
UKRAINE
Sarcophagusmilestone
Novarka, a 50-50 joint venture
between Vinci and Bouygues, has
completed jackingworkon thenew
confinement structure for theNo.4
reactor at the former Chernobyl
nuclear power plant in Ukraine.
The reactor went into meltdown
on April 26, 1986 and was
subsequently encased in a concrete
sarcophagus.
The new structure comprises
two semi-arches, each of which
has undergone three jacking
operations since November 2012.
This followed remediation work,
excavation and construction of
foundations at the assembly area
located adjacent toNo 4 reactor.
The next stage will involve
connecting the two halves of
the structure together, installing
ventilation, power supply and
control-command systems and then
pushing the confinement structure
over the current sarcophagus.
The project is being financed
by the Chernobyl Shelter Fund,
administered by the European
Bank for Reconstruction and
Development (EBRD).The budget
to remediate the Chernobyl site is
€ 1.5 billion (US$ 1.85 billion).
