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WORLD NEWS
CONSTRUCTION EUROPE
SEPTEMBER 2013
VIETNAM
The Asian Development Bank has approved a
US$410 million (€307 million) loan to support
construction of the Second Southern Highway. The
road, which connects Ho Chi Minh City in Southern
Vietnam to the Mekong Delta and southern coastal
regions, will include two cable-stayed bridges with
a combined length of 5km, as well as access and
interconnecting roads totalling 26km. The project
is expected to cost a total of US$860 million (€644
million), with additional funding from the Australian
Agency for International Development, the Export-
Import Bank of Korea and the Government of
Vietnam.
CANADA
Contractor SNC Lavalin said it is seeking extra
sources of liquidity after penalty charges in Algeria
and confusion over a payment in Libya dragged
on its first half results. For the six-months to the
end of June, net profit stood at CA$15.9 million
(€11.5 million), reduced from CA$98 million (€70.7
million) for the same period last year. The company
warned that a number of its current projects would
continue to require working capital, and said it
was considering various possibilities for funding,
including potential asset sales.
US
Manufacturer Tognum is to invest US$22.5 million
(€16.9 million) expanding new diesel engine test
facilities at its MTU Aiken plant in Graniteville,
South Carolina. The funds will double the centre’s
development capacity with the addition of two new
test cells for off-highway diesel engines. The new
Aiken research and development facility opened in
April this year and cost US$40 million (€30 million)
to build. Construction of the new engine test cells is
scheduled to begin in September and be completed
by March 2015.
EAST AFRICA
The World Bank it is to provide US$340 million (€255
million) to support East Africa’s Regional Rusumo
Falls Hydroelectric Project, which will provide 80MW
of power to Burundi, Rwanda and Tanzania. The
project is located 97km west of Lake Victoria, Africa’s
largest lake by area, which borders Tanzania. The
overall project cost is US$469 million (€351 million).
The funding is the first to be approved under
the World Bank’s Great Lakes Regional Initiative,
launched in May this year.
LIBYA
A €963 million contract to construct the first section
of a 1,700km coastal motorway in Libya has been
awarded to a consortium led by newly-merged
Italian contractor Salini Impregilo. The consortium
also includes Italian construction services company
La Società Italiana per Condotte d’Acqua and
contractors Impresa Pizzarotti & C and Cooperativa
Muratori & Cementisti. Salini Impregilo has a 58%
share of the contract, which will be financed by the
Italian government. The project is the first, 400km
section of the road from the city of Marj to Emsaad,
on the Egyptian border. It includes construction of
12 bridges, both 2.2km long.
WORLD IN BRIEF
Contractor Bam International has completed the steel roof for the new 25,000-
seat Hazza Bin Zayed Stadium in Al Ain, 150km east of Abu Dhabi, United Arab
Emirates. Construction of the football stadium started in 2012 in is due for
completion by the
end of this year – the
contractor is aiming
for a construction time
of 16 months. The
stadium will boast a
floor area of 45,000m
2
and also feature a
six-storey commercial
building and a sports
complex, as well as new
roads, car parking and
landscaping.
SAUDI ARABIA
€17 billion metro contracts
contract was awarded
to the BACS consortium
led by US contractor
Bechtel to design and
build lines one and two,
covering 63.3km. The
consortium partners
also include Almabani
General Contractors,
Consolidated Contractors
Company and Siemens.
Meanwhile, Spain’s
FCC leads the FAST
consortium which was
awarded a US$7.8 billion
(€5.8 billion) contract to
deliver lines four, five and
six – covering 72.5km.
The consortium includes
Samsung, Alstom,
Strukton, Freyssinet Saudi
Arabia, Typsa and Setec.
A further US$5.2 billion
(€3.9 billion) contract was
awarded to the Arriyadh
New Mobility consortium,
which consists of Salini
Impregilo, Ansaldo,
Bombardier, Larsen &
Toubro and Nesma. These
companies will build the
longest line of the new
underground network –
the 40.7km line three.
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Saudi Arabia’s Arriyadh
Development Authority
(ADA) has awarded
three contracts
totalling US$22.5 billion
(€16.9 billion) for the
construction of a 176km,
six-line metro network in
the capital, Riyadh.
The network will feature
85 stations and operate
with driverless electric
trains. Construction is
scheduled to begin in the
first quarter of 2014.
At US$9.5 billion (€7.1
billion), the largest
GLOBAL
Growth is forecast for
equipment market
Worldwide construction machinery sales to
reach €142 billion by 2017
T
he global construction equipment market is forecast to see average annual
growth of 6% between 2012 and 2017, according to market research company
Freedonia Group, which said the value of the sector would rise from US$142
billion (€106 billion) in 2012 to US$189 billion (€142 billion) in 2017.
Freedonia said the strongest growth would be in the Asia Pacific region, where the
market for equipment is forecast to grow an average of 8.3% per year to reach US$93.4
billion (€70 billion) by 2017. This is more than double its value of US$40.6 billion (€30.4
billion) in 2007, and will represent almost half of global demand for construction
equipment.
All other regions are expected to see growth below the 6% global average. The
strongest will be Africa and the Middle East, where the market is expected to see an
average annual rise of 5.5%, to reach US$9.6 billion (€7.2 billion) by 2017.
Western Europe is also forecast for relatively strong growth of 5.1% between 2012
and 2017. However, this was the weakest region of the world in the crisis years, with an
annual average decline of 3.4% between 2007 and 2012. This means that at US$23.1
billion (€17.3 billion), the value of its construction equipment market in 2017 will be
just above the 2007 level of US$21.4 billion (€16 billion).
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