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New Report on Infrastructure Sector in Lithuania

Research and Markets has announced the addition of the "Lithuania Infrastructure Report 2011" report to their offering.

The Lithuania Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Lithuania's infrastructure industry.

The value of Lithuanias construction sector continued to be slashed through 2010 just as its economy continued to contract. Following a deep economic contraction over 2009 when GDP shrank by nearly 15% year-on-year (y-o-y), the forecast for 2010 shows that growth will remain in the red at -1.5%. The report expects the country's construction industry to weaken by a much sharper 12% to LTL4.9bn (US$1.89bn) in 2010 and does not see growth resuming until 2012.

Recent key developments include:

  • In a watershed moment for Lithuania's energy sector, the government finally shut down its 26- year-old Soviet-era nuclear power plant on December 31 2009, in accordance with European Union safety regulations. The closure of the plant at the end of 2009 also saw Lithuania's status as a regional energy exporter diminish; a position further threatened by Russia commencing construction of the two-unit Baltic Nuclear Power Plant in February 2010, in the western exclave of Kaliningrad. The energy ministry announced that a deadline for bids to build a new nuclear power plant, estimated to cost EUR3-5bn (US$4.1-6.8bn), had passed on November 10 2010.

  • The paramount concern in Lithuania's infrastructure sector has been the energy deficit the country faces on the back of Ignalina Nuclear Power Plants closure in late-December 2009. The closure of the plant, which was anticipated for years, ensured that the energy industry would dominate the wider construction sector throughout the year. Nonetheless, 2010 saw some movement on port and rail projects, as the project to expand and redevelop Klaipeda port edged along and a feasibility study commenced on a rail link between Lithuania, Estonia, Latvia and Poland. Moreover, transport ministers from Lithuania, Belarus and China managed to sign off a declaration before the end of 2009 to develop the East-West Transport Corridor. The declaration, signed in late-December, commits the countries to cargo transport route that would strengthen trade between Europe and Asia.

  • Facing the prospect of a second consecutive full year in recession, the Lithuanian government announced in mid-2010 that it was considering the sale of state-owned assets in order to scrape together sufficient funds for the construction of a much-needed nuclear power plant (NPP). BMI notes that, if successful, the sale of state-owned energy and real estate companies will provide crucial capital for the struggling project.

This report forecasts a further contraction of 5.97% in 2011 before the construction sector resumes a growth rate of 2.25% in 2012. The sector should expand at a faster rate of 6-7% y-o-y thereafter through to 2020.

Companies Mentioned:

  • AB YIT Kaustas
  • AB Panevezio Statybos Trestas (PST)

Source: http://www.researchandmarkets.com/

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