Infrastructure investment to support construction growth in Colombia
Colombia’s construction industry is expected to reach a value of US$73.6 billion in 2020 up from US$62.5 billion in 2015 (in real terms, measured at constant 2010 US dollar exchange rates), according to a report by Timetric's Construction Intelligence Center (CIC).
According to the report, the expansion in the country’s construction industry will be driven by investments in transport infrastructure, energy and utilities, and affordable housing projects. Additionally, government investment in public infrastructure and educational healthcare buildings as part of the 2016–2020 Development Plan will support the growth.
Infrastructure construction was the largest market in the Colombian construction industry during the review period, accounting for 39.6% of the industry’s total value in 2015. During the review period (2011–2015), output in the segment registered annual growth of over 10% a year.
Timetric’s CIC expects the infrastructure construction market to increase in importance over the forecast period; it is forecast to account for 40.7% of the industry’s total value in 2020. It is forecast that the segment will register annual average growth of 7%.
The expansion in the infrastructure construction market will be supported by the government’s plan to expand the road network. According to the El Ministerio de Transporte, roads and highways account for 80% of Colombia’s internal transport needs. Accordingly, the government will invest US$25 billion on 40 road infrastructure projects by 2020 under the 4G program.
The government is also focusing on renewable energy and is committed to reducing carbon emissions by 20% by 2030. Accordingly, it plans to increase the total installed capacity of renewables from 420MW in 2015 to 3,622MW by 2030 through a PPP model. In February 2016, the Ministry of Mines and Energy announced plans to spend US$700 million on the construction of 3.0GW wind power plant in La Guajira.
Infrastructure construction output (nominal, COP million)
About this report
This information is taken from the Timetric report: ‘Construction in Colombia: Key Trends and Opportunities to 2020'.
For more information visit: https://www.timetricreports.com/search/construction/“
CIC clients can access the report here: http://www.construction-ic.com/Reports/TableOfContents/construction-in-colombia-key-trends-and-opportunities-to-2020
About the Construction Intelligence Center
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Source: Company Press Release