|
|
Iran Infrastructure Report Q1 2010Published by: Business Monitor International Published: Nov. 5, 2009 - 71 Pages Table of Contents
AbstractIn 2009, we expect the construction sector to expand by 0.74% in real terms to reach US$20.61bn, downfrom the 11% growth seen in 2008. BMI forecasts FY2009/10 growth of 1.4% for the economy as awhole, as the global economic crisis puts the brakes on Iran’s recent rapid expansion. Oil prices may havebeen trending up for the whole of this Iranian year (so far), but turning the economy around will takesome time. While the economy continues to expand at these low rates, BMI does not expect theconstruction sector to return to pre-crisis growth levels. By 2014, we expect the sector to reach a value ofUS$37.65bn, after posting a compound annual growth rate (CAGR) of just under 4% in real termsbetween 2009 and 2014. This compares with a CAGR of 12.8% between 2004 and 2008.However, if international sanctions intensify over Iran’s controversial nuclear programme, the countrymay begin investing even more resources in constructing a domestic oil refinery industry. In December2008, the country announced that it will build seven new refineries at a cost of US$27bn by 2013. Thisprogramme is becoming even more vital with the international community threatening to penalisecompanies that sell gasoline to Iran. According to Bloomberg in October 20009, Iran is planning to sellUS$555mn in bonds in order to help finance its refinery projects. In a major development in August 2009, it was announced that India is assessing plans to build a6,000MW gas-fired power plant in Iran. This will be connected to India via a 1,500km high-voltagetransmission line. The project will allow India to access Iran's gas reserves for electricity generationwithout participating in the pipeline project. According to the Hindustan Times, Indian power companyNTPC Ltd and Indian transmission company Power Grid Corporation of India Ltd (PGCIL) arecurrently assessing the project, which is estimated to cost US$10bn. The 6,000MW gas-fired power plantwould be located in Iran, and the majority of electricity generated - around 5,000MW - would then beexported to India. However, this project is dependent on the stalled multi-billion-dollar gas pipeline project supplying gasfrom Iran’s South Pars filed to India and Pakistan. According to the Fars News Agency in September2009, India is once again eager to join the project. Both India and Pakistan are facing energy shortagesand see the 2,700km pipeline as a vital supply route. Although talks over the project have been ongoingfor some time, India’s interest has waned, leading Pakistan and Iran to threaten to sign a bilateralagreement. However, India is now reportedly showing interest once again in the US$7.4bn project andthere is the possibility that a deal could be finalised this year. However, this could reduce the need forIndia to build a major gas-fired power plant in the country. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||