Central European road expansion

08 September 2010

Bechtel is lead contractor for construction of the Transylvania motorway in Romania

Bechtel is lead contractor for construction of the Transylvania motorway in Romania

While capital expenditure on Central European road infrastructure is expected to increase, the huge number of projects will mean that not all the ones expected to be financed from the current EU budget will be executed, a report predicts.

Market research company PMR estimates that after a 2% decline in 2009, the road construction market in Central Europe will develop at an average nominal rate of 5% in the coming years. It estimates that the value will exceed € 15 billion a year in 2012 and 2013.

Having produced a report called Road Construction Market in Central Europe 2010 - Development Forecasts & Planned Investments, PMR warns that the final shape of the EU budget for 2014 to 2020 will be crucial for countries in that region. The sheer number of projects will mean that not all the ones expecting to be financed from the 2007 to 2013 budget will benefit from that backing.

According to the report, Poland will exert the strongest influence on the region's road construction market. It represents 40% of the market's value and is currently preparing road infrastructure for the Euro 2012 football championships.

Thanks to sizeable investments in motorways and expressways, unprecedented in Poland's history, the Central European road construction market is expected to report a positive rate of growth.

In the period 2010 to 2013, Poland will account for two-thirds of the 1200 km of expressways in the region. The other countries in Central Europe will perform significantly better when it comes to motorways. Almost 60% of the 1700 km of new motorways expected to be constructed between now and 2013 will be in the five smaller countries in the region - Bulgaria, the Czech Republic, Hungary, Romania and Slovakia.

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