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United States Infrastructure Report Q1 2010Published by: Business Monitor International Published: Jan. 15, 2010 - 148 Pages Table of Contents
AbstractThis quarter BMI has introduced a new data series for infrastructure and its subsectors (transport and energy & utilities). This is an effort to address a significant deficiency in the availability of globally comparable, infrastructure-specific indicators and forecasts across a wide range of countries. BMI's new infrastructure data series enables users to quantify trends and growth patterns in the infrastructure sectors of the 35 main emerging and developed markets out of the 62 countries in BMI's infrastructure service. Infrastructure in the US is finally receiving the attention it has needed for some years, if not in terms of funds allocated, at least in terms of an awareness of the funds needed. The top-up stimulus package (the Jobs Bill) that is currently on the Senate floor has a weighty infrastructure component to it, far bigger than that seen in the earlier Recovery Act. At the same time, international infrastructure investors are starting to get their foot in the door, winning both engineering, procurement and construction (EPC) contracts and public-private partnerships (PPP) contracts.These positive moves for the sector follow what BMI expects to be the largest contraction in the US construction industry since the unbroken downward trend began in 2005. In BMI’s Q110 US Infrastructure Report we are forecasting a 13% contraction in industry value in real terms to reach a nominal value of US$503.12bn. Increasing levels of federal funding are expected to enter the sector in 2010, and continue to buoy the sector over our forecast period. As such we expect positive growth from 2010 until 2018. Increased private sector investment is also expected following significant progress made in PPP projects over the past quarter. The transport sector was buoyed by the financial close of two high-profile road PPPs. The first is the Port of Miami Tunnel project, which reached financial close in October 2009. The project is being developed by the Miami Access Tunnel consortium, which includes Bouygues and Meridiam Infrastructure. The project is the second PPP in Florida to reach financial close in 2009, and highlights the state’s attractiveness for PPP investment. The second is the US$2bn North Tarrant Express toll highway, which reached financial close in December 2009. The Cintra-led NTE Mobility Partners consortium that was awarded the project used a combination of Private Activity Bonds, TIFIA loans and equity to secure financial close. Also in the transport sector, Highstar Capital’s Ports America secured its second port PPP in the US of 2009. In November, Ports America Chesapeake agreed to lease Baltimore's Seagirt Marine Terminal for a 50-year period. The concession includes an investment requirement for the port’s infrastructure. The concrete progress being made regarding PPPs in the transport sector is good news for US infrastructure, which will benefit from the capital that private investors can raise. With state and federal budgets already stretched thin, private capital will be crucial in upgrading the country’s crumbling infrastructure. In the utilities sector news has been dominated by renewables projects. The development of new wind and solar power capacity illustrates the growing market for renewables in the US, where companies have been attracted by incentives such as federal loan guarantees. In September the US Department of Energy (DOE), along with the US Treasury, handed out the second round of grants for renewable energy projects under the American Recovery and Reinvestment Act (Recovery Act), bringing the total to US$1bn. The grants were approved under section 1603 of the Recovery Act, which provides financial support for clean energy projects in the form of direct payments in lieu of tax credits. Get Full Details About This Report >> |
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