Constructions to rise by 10% due to infrastructure projects

Romania’s constructions market will continue to grow in 2005 by up to 10%, fuelled in part by large infrastructure projects, according to estimates by players in the constructions sector. This year will be the first year when the Brasov-Bors highway project, which is being implemented by US company Bechtel, will come into full swing, with subcontractors already selected and with financing secured.

“I think the market will grow by 8-10% in 2005,” said Emil Timofti, general manager of Hidroconstructia, Romania’s largest constructions firm, which relies on large infrastructure projects.

The volume of constructions works on the domestic market has reached a value of about 4.7 billion euros, in line with some estimations, meaning it is likely to reach 5 billion euros in 2005.

Last year, market players adopted a position of expectancy, announcing their willingness to work as subcontractors with Bechtel as part of the largest infrastructure project in Europe. At the end of last year, Bechtel published a list of subcontractors, which included some 33 firms, such as Tender SA, Hidroconstructia and the Marriott Hotel in Bucharest. The Transilvania highway contract is worth 2.2 billion euros.

The project has gained the attention of Romanian construction materials producers and suppliers, in particular cement, concrete and aggregates producers like Lafarge Romcim, Holcim Romania and Carpatcement Holding Romania.

The market growth will also be complemented by the construction of ring roads around some cities.
adrian.mirsanu@zf.ro