Actualités

Juillet 2023
Banque Asiatique de Développement (239 pages).

Quality infrastructure can give economies in developing Asia a critical boost by enhancing growth and reducing poverty, especially during times of economic crisis. However, the increasing demand for public funds for health, education, and social welfare programs diminishes their availability for infrastructure. Policy makers must therefore consider novel financing solutions to attract private investment essential for meeting the region’s expanding infrastructure needs.
Harnessing the positive spillover effects of successful infrastructure projects on economies is an approach that can do just that. Its potential to support financing breakthroughs depends on factors, such as the quality of construction, operations, and maintenance of physical and digital infrastructure, interconnectivity, population density, income levels, and financing access.
Infrastructure Spillover Impacts in Developing Asia explores the role of information and communication technology, transport, and water infrastructure development in driving trade, business performance, and tax revenues in the region. The book describes how these dynamics can promote private sector investment in infrastructure projects by creating a steady stream of income for prospective investors, offering valuable insights for policy makers, investors, and practitioners.

Juin 2023
Turner & Townsend.

Global construction markets are mirroring a turbulent economy, with elevated costs casting a shadow over the sectors outlook, exacerbated by long-term challenges over the availability of skilled resource. However, there remain pockets of strong opportunity, especially in the context of resilient infrastructure, public policy stimulus and new markets that are opening up.
High inflation continues to affect most economies, which has prompted the tightening of monetary policy through interest rate hikes. Rising borrowing costs and ongoing challenges with labour and material availability are just some other factors adding to immensely challenging construction market conditions.
This comes at a time when the outlook for future demand is becoming increasingly uncertain. Many investors are revaluating whether to green-light projects now or delay.
This is being reflected in softening in private sector demand in a number of sectors, but with strong appetite still seen in high-growth industries associated with environmental and societal transition, including data centres, advanced manufacturing facilities and corporate office fit-out.
On balance, the expectation is that these pockets of both public and private spending will not entirely offset increasing caution from investors and that markets are likely to shift down a gear. Against a backdrop of high inflation, that could provide an opportunity for supply chains to rebalance, construction markets to recalibrate and cost escalation to settle.
https://publications.turnerandtownsend.com/international-construction-market-survey-2023/

Juin 2023
InEight (45 pages).

Despite another stormy 12 months, it seems nothing will hold the global construction sector back from feeling confident and resilient. Soaring capital project spend has the industry in good spirits, but for how long? Labor and skills shortages, unreliable supply chains, cost inflation, and the threat of economic recession remain ever-present.
Digital transformation has long been lauded as the answer to many, if not all, of the construction industry’s weaknesses. With the pressure mounting, this belief is being put to the test, and this year’s results show an industry that is moving in the right direction.
Project certainty has increased this year, and respondents are resoundingly positive about the potential for technology to help maintain this trend. This year, we also reveal the tremendous impact that historic project data and industry benchmarks can have on project delivery.
However, a gap remains. While technology is being widely used to better execute everyday tasks, the value that connected data can have to improve project outcomes and support organizational success remains underappreciated. With unrelenting “big picture” challenges — from supply chain disturbances to the energy transition — the opportunities for technology
adoption have increased tenfold. And so too has the threat of inaction.
For those at the forefront, the availability of new technologies will transform project delivery models and best practices over the next few years, bringing a new era of relationships, shared risk and transparency.

Juin 2023
KPMG (40 pages).

The 2023 Global Construction Survey finds the industry in a cautiously optimistic mood, as the combination of widespread government infrastructure stimuli, the renewable energy revolution, increasing capital investment in strategically important sectors, and a post-COVID-19 pipeline create excellent opportunities.
In this, our 14th survey, we feature insights from almost 300 participants from both project owners and engineering and construction companies around the globe.
The responses show an industry still striving to improve on its record of performance and productivity and continuing to address a volatile environment, with continued supply chain disruption, and rising inflation of energy, materials and wages.
ESG has risen up the agenda, with an ambition to foster more diverse workplaces, decarbonize the construction value chain and create sustainable buildings and infrastructure.
And the industry is starting to embrace the power of technology to transform performance, with increasing use of mobile platforms and AI, and the growth of modular manufacturing to speed up projects and enhance quality and safety.

Mai 2023
Banque Mondiale / World Bank (354 pages).

Globally, 70 percent of greenhouse gas emissions emanate from cities. At the same time, cities are being hit increasingly by climate change related shocks and stresses, ranging from more frequent extreme weather events to inflows of climate migrants. This report analyzes how these shocks and stresses are interacting with other urban stresses to determine the greenness, resilience, and inclusiveness of urban and national development. It provides policymakers with a compass for designing tailored policies that can help cities and countries take effective action to mitigate and adapt to climate change.

Avril 2023
Banque Mondiale / World Bank (44 pages).

The recovery of private sector investments in infrastructure (also called private participation in infrastructure [PPI]), which began after the COVID-19 pandemic, has continued into 2022. In total, private sector investment commitments reached US$91.7 billion across 263 projects, equivalent to 0.25 percent of the gross domestic product (GDP) of all low- and middle-income countries. This represents a continued recovery towards pre-pandemic levels, with total commitments in 2022 surpassing the previous five-year average (2017-2021) by 4 percent.
Nevertheless, the total number of PPI projects in the region has declined to 263, indicating a reduction from the pre-pandemic level of 300 projects.
Most regions—except for Europe and Central Asia (ECA) and Sub-Saharan Africa (SSA) — recorded significant improvements in PPI compared to the previous year. Although SSA saw relatively lower PPI investment commitments compared to 2021, it achieved a noteworthy milestone of having 19 countries with PPI investment transactions, the highest recorded number in the database’s history.

Avril 2023
Arcadis (36 pages).

The report looks back at another highly disruptive year across global construction markets. The high construction price inflation that we first reported in 2021 broke out across most parts of the global economy in 2022. Even as domestic inflation hit double figures, construction price rises accelerated further, prompted by a unique combination of strong demand, supply chain disruption, tight labor markets and soaring energy costs.

Mars 2023
European PPP Expertise Centre -EPEC- (20 pages).

45 public-private partnership transactions reached financial close for an aggregate value of €9.8 billion. In value terms, the market increased by 17% compared to 2021. The number of projects increased by 2% compared to 2021.
The most active market was France both in terms of value and number of projects. 15 countries closed at least one public-private partnership project compared to 14 in 2021. Transport was the largest sector both in terms of value and number of projects.

Mars 2023
BCG / EDHECInfra (36 pages).

Infrastructure investments are increasingly becoming mainstream. They have emerged as one of the most attractive alternative investments today because data shows that they can withstand inflationary pressures and demand fluctuations better than other kinds of investments can. Although assets under management in the infrastructure industry were only around $0.3 trillion in 2015, they increased over the next seven years to reach $1.1 trillion in 2022—a growth rate of 21%, almost twice the 11% at which investments in all alternative assets grew. The large infrastructure funds got bigger, too; the ten largest funds that closed in 2022 raised $36 billion more that year than in 2021.
As governments try to rebuild the world’s infrastructure with an eye toward ensuring a carbon-neutral world, the infrastructure investments market will continue to expand. Several governments have sought to create environments more conducive to private sector investment in infrastructure businesses, especially since public finances are limited. In the US, the Infrastructure Investment Jobs Act (IIJA) and Inflation Reduction Act (IRA), enacted in 2021 and 2022, respectively, will boost infrastructure development. In the EU, the RepowerEU strategy will reduce the region’s dependence on fossil fuels. Our studies indicate, however, that the recent rise in infrastructure asset prices—along with the global economic uncertainty and changes in interest rate regimes—has introduced an element of volatility into the market.
The BCG-EDHECinfra study of the risks facing infrastructure investors and the returns that their investments generated found that asset owners did better than asset managers in 2022, and that infrastructure investors in Australia and New Zealand were the best performers geographically. Specialized infrastructure fund managers generated higher returns than multi-asset managers did last year, and UK pension funds topped North American pension funds, global insurers, and sovereign wealth funds.
The study also found that success in the current environment requires fresh approaches to investing and value creation. In fact, an analysis of the drivers of infrastructure investment performance over the past three years indicates that investors’ yields came primarily from declining debt and rising price-earnings multiples and that their performance on operational value creation was, at best, mixed.
Going forward, infrastructure funds will invest more in larger projects, which will take longer to evaluate, especially since there is currently a dearth of megaprojects. The larger funds will invest through development platforms, which channel public and private funds into projects that aren’t commercially viable. And the smaller funds will specialize by geography or sector. According to a survey that BCG conducted last year, infrastructure asset managers will continue to increase their investments in digital businesses, such as network utilities and data
infrastructure, and in sustainable businesses, such as renewable energy. This sector contains both older segments, such as solar power and wind energy, and newer ones, such as hydrogen, which is turning into a lucrative investment opportunity.
In 2021, demand for hydrogen was around 94 million tons, most of it in the form of gray hydrogen, which is produced from methane or natural gas and therefore isn’t environmentally friendly. But by 2050, demand for low-carbon hydrogen will approach 350 million tons per annum (mtpa) under a 2°C global warming scenario or 530 mtpa under a 1.5°C scenario. Governments and companies will have to invest approximately $6 trillion to $12 trillion between 2025 and 2050 to produce and transport enough low-carbon hydrogen to meet demand, according to BCG’s calculations.
Although investment opportunities will extend across the hydrogen value chain—from feedstock development and generation to hydrogen transportation and storage—$300 billion to $700 billion of that amount must be deployed soon, from 2025 to 2030. At each link in the value chain, the need for capital will vary by geography, with regional economic policies influencing infrastructure investors’ choices. Crucially, four novel strategies can help infrastructure investors gain first-mover advantage in the hydrogen industry.

Mars 2023
Banque Mondiale / World Bank (132 pages).

This Rapid Damage and Needs Assessment (RDNA2) is part of an ongoing effort—undertaken jointly by the World Bank, the Government of Ukraine, the European Commission, and the United Nations, and supported by other partners—to take stock of Ukraine’s damage and losses from Russia’s invasion.
Just as importantly, it aims to assess the scale of economic and social needs for Ukraine’s survival during the war and its prospering afterward.
Considering a full year of war, as of February 24, 2023, direct damage in Ukraine has reached over US$135 billion, with housing, transport, energy, and commerce and industry the most affected sectors. Damage is concentrated in the frontline oblasts, particularly Donetska, Kharkivska, Luhanska, Zaporizka, Khersonska, Mykolaivska, and in oblasts that were brought back under government control, such as Kyivska and Chernihivska. Disruptions to economic flows and production, as well as additional expenses associated with the war, are collectively measured as losses and amount to some US$290 billion. Ukraine’s gross domestic product (GDP) shrank by 29.2 percent in 2022, and poverty increased from 5.5 percent to 24.1 percent in 2022 (based on the poverty line of US$6.85 per person per day).
Reconstruction and recovery needs, as of February 24, 2023, are estimated at about US$411 billion. Integrated into these needs are critical steps toward becoming a modern, low-carbon, disaster- and climate-resilient country that has aligned with European Union policies and standards in view of being ready to join the European Union, and where the population’s vulnerabilities are addressed and people live in prosperity. While the financing envelope is overwhelming, experience from other countries shows that a phased approach to reconstruction is critical.
The report also estimates the implementation priorities for 2023 at around US$14 billion. These are focused on the most urgent needs, including restoration of energy, housing, critical and social infrastructure, basic services for the most vulnerable, explosive hazard management, and private sector development. Around US$9 billion in direct government expenditure will lay the groundwork for a safe, prioritized, achievable, and efficient reconstruction and recovery. This will be complemented by investments by state-owned enterprises (SOEs) and support to sustain and catalyze the private sector, including de-risking investment and trade. While the government has already taken steps to meet some of these needs, this report identifies a need for an additional US$11 billion in financing, including around US$6 billion in furtherfunding of the government budget and close to US$5 billion to facilitate critical investments by SOEs and the private sector.

Février 2023
Banque Asiatique de Développement -BASD- / Asian Development Bank (82 pages).

This report analyzes how the pandemic has impacted investment in infrastructure in Southeast Asia and assesses how infrastructure development can help drive economic recovery and support sustainable growth.

Février 2023
European PPP Expertise Centre (30 pages).

This report covers a wide range of PPP transactions (e.g. design-build-finance-operate, designbuild-finance-maintain, concession arrangements which feature a construction element, the
provision of a public service and risk sharing between the public and private sector, and can include regulated assets), regardless of the type of financing provided by the EIB (e.g. project finance, sovereign lending). Portfolio loans to small PPP projects and investments in equity PPP funds are not listed in this report.