A new report by the World Bank says $93 billion a year is needed over the next decade to bolster infrastructure in Africa. The analysis of roads, ports, power and water utilities, information- and communication-technology networks, and airports in 24 African countries found nearly $45 billion a year currently is being spent on infrastructure in Africa. Most of that is being financed by African taxpayers and consumers. However, inefficiencies in the continent’s infrastructure systems is causing money to be wasted. The study concludes that addressing inefficiencies and waste in Africa’s infrastructure systems could yield an additional $17 billion in available
With the economic slump battering tax receipts, state budgets remain in dire shape and the pain may continue into fiscal years 2011 and 2012, according to preliminary findings from the National Governors Association and National Association of State Budget Officers. Photo: National Governors Association NGA's Scheppach says states will feel biggest impact of slump two years after recovery starts. The groups on Nov. 12 released preliminary findings from their next biannual Fiscal Survey of the States, due out soon. Scott Pattison, executive director of the budget officers' group, says that for fiscal 2009 and 2010 "We are seeing the worst
China will push the U.S. into second place as the world’s biggest construction market before the end of the next decade, according to a new forecast of the next decade called Global Construction 2020 (CG2020). Photo: Oyibosonline.com Will oil weath fuel growth in Nigeria’s main city, Lagos? + Image Photo: Global Construction With its construction sector set to rise at an annual average of 6.3% for the next five years, the U.S. will be among the world’s top 12 fastest-growing markets. But it will lose its pre-eminent position, according to the forecast. While CG2020’s predictions are presented to one decimal
The financially intimate relationship between contractors and insurers is more complicated this year, with contractors looking for relief from carriers on collateral or retained funds to cover deductibles for claims under workers’ compensation and liability policies. Photo: Richard Korman / ENR Liberty Mutual’s Conroy says there have been many conversations about credit. Those issues were among the thornier ones mentioned by carriers, brokers and contractors at the International Risk Management Institute’s construction conference held Nov. 2-5 in Oxon Hill, Md. With ample capacity for builders risk, general liability and workers’ compensation and with pricing generally soft, no one was concerned
The decline in construction activity this year was broader, steeper and faster than many economists anticipated as private non-residential building markets succumbed to the credit crunch and many public markets waited for stimulus funding to be delivered. The consensus of this year’s batch of forecasts for construction in 2010 says the worst is over, but most gains will be the result of percentage comparisons with dismal 2009 numbers, while market fundamentals will be unable to sustain much forward momentum. Wall Street analyst sometimes call this activity a “dead-cat bounce.” Slide Show Source: McGraw-Hill Construction. Annual percent change for dollar volume
New construction starts in September fell 7% from the previous month to a seasonally adjusted annual rate of $399.1 billion, according to McGraw-Hill Construction, of which ENR is a unit. On a year-to-date basis, starts through the first three quarters of the year were down 32% from 2008’s level, including annual declines of 385 for housing, 37% for nonresidential building and 17% for nonbuilding construction. “September’s decline is one more reminder that the very modest upward trend that seemed to take hold during the spring will be uneven and at times halting,” Robert Murray, MHC’s chief economist. Source: McGraw-Hill Construction
The economic downturn has provided a good climate for the rare water utility that has available cash. Potential bidders are crowding pre-bid meetings, materials prices have fallen steeply, and many bid prices have dropped 15% to 40% below engineering estimates. “If you’re an owner, it’s a good environment for bidding,” says John Boisvert, chief engineer with Pennichuck Water Works, an investor-owned water utility in New Hampshire. Photo: CH2M Hill The Buckman Direct Diversion project, the largest municipal water-supply project in New Mexico, did not receive any stimulus funds. Photo: San Francisco Public Utilities Commission Pipes will feed a new $114-million
Between nearly $50 billion in federal stimulus money and massive bond programs moving ahead in several states, funding for the transportation sector has been flying high this year. But the realities of the recession, coupled with heated debate over future funding streams, could bring the market back to earth in the coming years. Photo: Sanbag Stimulus funding is helping support an $800-million Interstate widening project through downton San Bernardino. Photo: WSDOT The $595-million Snoqualmie Pass East, which broke ground in August, is part of Washington state’s $5.8-billion 2009-2011 plan. Related Links: The Top Owners Sourcebook Complete Report Story Overview: The
The U.S. Energy Dept. has awarded $3.4 billion for “smart-grid investment grants” to modernize the electric power network and boost its efficiency and reliability. The 100 federal grants, funded by the American Recovery and Reinvestment Act, will be supplemented by more than $4.7 billion from the private sector, DOE says. The program will include installation of hundreds of thousands of “smart” meters, “phasor measurement” sensors and other equipment. Among the six smart-grid grant categories, integrated and crosscutting systems will receive $2.15 billion and advanced metering infrastructure projects $818 million.
Following three years of precipitous decline, the construction market may have finally hit bottom and be in the early phase of a rebound with housing leading the way. McGraw-Hill Construction is forecasting that total construction starts will climb 11% to $466.2 billion in 2010, following an estimated 25% decline in 2009. The forecast was announced at the 2010 Construction Outlook conference in Washington, D.C. Photo: Bruce Buckley Robert Murray delivered the McGraw-Hill Construction forecast. Related Links: See How Last Year’s Forecast Measured Up After a 39% drop in construction between 2006 and 2009, an improving residential market and signs of
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