BMI's Executive Summary

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Chile is one of the most stable economies of Latin America. Though the nation derives a majority of its revenues from copper exports, it is now making a concerted transition to other sectors. Populated by about 3,500 contractor-players, the construction industry of Chile is forecast to contribute an estimated 9% to the nation's gross domestic product (GDP) in 2007. According to BMI's newly released Chile Infrastructure Q407 Report, the Chilean construction industry is forecast to register an average growth of 3.05% during 2008-2012.

The Chilean economy has been thrown open to liberalisation with an extensive privatisation policy. Infrastructure, especially roadways, has improved substantially since the adoption of build-operatetransfer (BOT) concessions to maintain commercially viable roads. Construction demand in the form of housing units is also expected to drive the growth in the industry where more than 500,000 units are planned to be built by 2010. Proposed free trade agreements (FTAs) with Malaysia, Thailand and Ecuador in 2007-2008 are expected to provide an additional boost to the construction industry.

In spite of the bright horizon, the Chilean construction industry is still very labour intensive. Also, building material costs are bound to be affected by any flare-up in global oil prices. Further, the industry is highly fragmented with few local contractors having the ability to handle major infrastructure projects. On the macro front, much of the economic activism also hinges on the cross-border energy equation with Argentina as well as China's unquenchable thirst for Chilean copper.

On a positive note, Chile's government envisages US$3.5bn worth of infrastructural development over 2006-2008 under the BOT framework. The construction industry is also expected to gain from a spurt in mining-related construction, as well as developments in the retail domain. According to BMI, the Chilean construction industry is forecast to be valued at US$16.89bn by 2012, contributing around 9% to Chilean GDP.

Contents

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Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Developments

Market Overview

Chile’s Economy In 2006

Chile’s Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 3 - Key Projects

Transport

Utilities

Mining

Residential And Commercial Construction

Table: Chile--Major Infrastructure Projects

Introduction

Table: Americas Business Rankings

Business Attractiveness Rankings – Methodology

Regional Overview

Chile: Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 - SWOT Analysis

Chile Infrastructure Industry SWOT

Chile Political SWOT

Chile Economic SWOT

Chile Business Environment SWOT

Chapter 5 - Industry Forecast Scenario

Table: Chile Infrastructure Industry Forecast

Table: Chile Infrastructure Industry Forecast (cont)

Risks

Chapter 6 - Macroeconomic Outlook

Table: Economic Activity - Historical Data And Forecasts

Chapter 7 - Country Snapshot: Chile Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Chapter 8 - Competitive Landscape

Table: Key Players

Chapter 9 - Company Monitor

Cemento Melón

Empresa Constructura Tecsa

Empresas Delta

Chapter 10 - BMI Forecast Modelling

How we generate our Industry Forecasts

Construction Industry

Sources

Chapter 11 - Appendix: Regional Demographic Data

Wages (ave per annum), US$

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, US$bn

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: