BMI's Executive Summary

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Brazil possesses well-developed agricultural, mining, manufacturing and service sectors and is one of the fastest-growing economies (also the ninth-largest globally) in the world. Development in infrastructure is being driven by public-private partnerships (PPP), whereas the Brazilian construction industry is being spurred by strong government investment. Private-sector interest in the construction segment has been increasing, as is evident from the growing number of public offerings on the stock exchange.

The leading construction companies are well entrenched in the country and are significant players outside Brazil. The federal government's growth acceleration plan Programa de Aceleração do Crescimento (PAC) was unveiled in January 2007. It is expected to facilitate faster turnaround of construction projects that are in the pipeline. The programme also involves funding projects in the oil and gas, transportation and sanitation sectors and aims to spur BRL500bn (US$235bn) of infrastructure development during 2007-2010. For instance, the government recently announced the expansion and modernisation of the country's main international airport, Guarulhos, at a cost of US$832mn. The government has announced the allocation of funds for various states for urbanisation, slum rehabilitation and sanitation, among others.

However, the nation's transport infrastructure suffers from inadequate funding and lack of focus, leading to slow progress in the development of roadways and port terminals. Private investment generated through PPP has been beneficial only at the regional level. The laws regarding foreign companies are not liberal and stipulate that they either have a Brazilian partner or be established in Brazil in order to provide construction services.

Despite the risks, BMI forecasts an average construction-industry growth rate of 3.0% during 2008-2012. Foreign investment in construction, coupled with increased government expenditure, is likely to fuel the industry growth rate. The government is also conducting preliminary studies regarding linking of various cities by rail, road, waterways and airways. Increased focus on infrastructure by the government is likely to spur further growth in the sector.

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Executive Summary

Chapter 1 – Industry Trends And Development

Market Overview

Brazilian Economy In 2006

Brazilian Construction Industry In 2006

Major Companies

Some Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Residential And Commercial Construction

Tourism

Table: Brazil major infrastructure projects

Chapter 3 – Business Environment

Introduction

Business Attractiveness Rankings — Methodology

Breakdown Of Ratings

Breakdown Of Components

Regional Overview

Brazil: Business Environment Ranking

Politics — Long–Term Risk

Structural Economic Risk

Competitive Environment

Anticipated Sector Growth

Chapter 4 – SWOT Analysis

Brazil Infrastructure Industry SWOT

Brazil Economic SWOT

Brazil Political SWOT

Brazil Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table Brazil's Infrastructure Industry Forecasts

Risks

Chapter 6 – Macroeconomic Outlook

Table: Brazil — Economic Activity

Chapter 7 – Competitive Landscape

Table: Brazilian Construction Industry —Key Players

Chapter 8 – Company Profiles

Odebrecht

Votorantim

Andrade Gutierrez

Camargo Corrêa

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Latin America Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Latin American Infrastructure Sources

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BMI's Latin American Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: