Orders from power companies are expected to provide a major impulse for the development of Poland’s construction sector in the coming years - this is the conclusion of a debate over the future of the construction industry which was held as part of the European Economic Congress in Katowice.
Representatives of the largest construction companies operating in Poland took part in the debate. They share a view that the future of the construction industry is closely linked to the implementation of investment projects in the power sector.
These projects are relatively infrequent as they are extremely costly to execute and investors are hard put to find the necessary funding. However, as Poland’s power infrastructure is out of date, these investments projects are both required and unavoidable. Other significant components of construction companies’ portfolios in the coming years will include infrastructural, roadwor, railroad and environmental construction contracts.
The debate also touched upon the difficulties faced by companies engaged in infrastructural projects. In the opinion of the representatives of construction companies, time delays involved in this type of projects are frequently due to deficiencies in documentation, difficulties caused by expropriation or compensatory proceedings and ill-prepared projects. As far as residential construction is concerned, developers and contractors alike believe that after they have regained access to credit lines - thus overcoming issues related to finding funding for new projects - the situation in this market segment will be conditional on the availability of mortgage loans for home buyers.
Source: PMR Publications