Slovenia Infrastructure Report 2016
BMI View: After five years of industry contraction, the construction sector is once again growing since2014, along with the economic recovery of the country. A slowly recovering economy, lower unemploymentand rising consumer confidence will provide a moderate increase for residential and non-residentialconstruction. While Slovenia's transport sector dominates the country's infrastructure industry, we highlightthe rising importance of gas interconnector projects in the energy and utilities sub-sector as some of themost important infrastructure projects going forward. These will receive EU funding related to diversifyingenergy sources and limiting Russian gas dependence.
We expect the Slovenian construction industry will grow moderately over the forecast period to 2025, at anaverage annual rate of 5.03%.
As for the construction subsector mix, there will be very little change in dominance over our forecast periodto 2025. Residential and non-residential construction will continue to represent roughly 57-58% of totalconstruction industry value; transport infrastructure about 31%; and energy and utilities about 11%.
Transport will contribute around 73% to total infrastructure value, with roads and bridges dominatingtransport spending. Energy and utilities will contribute 27% to infrastructure value over this period. Withinthe Energy and Utilities, we note water infrastructure, which has accounted for at least half of Slovenia'senergy sector value for many years, will begin to lose some of this long-held dominance to the powerplants, transmission grids and oil and gas pipelines subsectors, as they receive EU funding related todiversifying energy sources and limiting Russian gas dependence. This will notably be the case through gasinterconnector projects.
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