BMI's Executive Summary

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The Lithuanian construction industry has been receiving a fair amount of the European Union (EU)- approved Cohesion Fund assistance. BMI forecasts that the construction industry will grow at an average rate of 4.6% over 2008-12.

Lithuania's gross domestic product (GDP) grew 7.7% y-o-y and 2% quarter-on-quarter (q-o-q) in Q207. The country is investing the EU funds in crucial infrastructure projects in order to sustain the economic growth witnessed since accession to the EU. The domestic demand has been on the rise and has led to the country's sole cement manufacturer to suspend exports. With a view to completing existing works, the government has increased the allocation for construction and upgrade of roads in 2007 to US$462.32mn.

Major infrastructure projects on the anvil include a US$3-5bn nuclear power facility, construction of an undersea power grid connection between Lithuania and Sweden, a US$350mn railway project from the Lithuanian-Polish state border to the intersection of transport corridors I and IX, US$190mn Perkunkiemis residential project in Vilnius, construction of a US$184.03-237.2mn tram line in capital Vilnius, US$103mn Kena-Kybartai railway line project, and US$100mn Vilnius southern bypass.

However, high debt-servicing costs and rising domestic consumption are widening the current account deficit. Inflation is on the rise, but under control. The government is suspected to show favouritism in allotting contracts to a select few companies. High global fuel prices, increase in agricultural product prices and rising labour costs and shortages in the peak construction season are contributing to inflationary pressures, thereby delaying eurozone entry.

Despite this, BMI forecasts that the value of the construction industry will reach US$5.6bn in 2012, contributing in excess of 10.6% to the nation's GDP.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Lithuania's Economy In 2006

Lithuania's Construction Industry In 2006

Major Companies

Some Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: Lithuania — Major Infrastructure Projects

Table: Lithuania — Major Infrastructure Projects (continued)

Chapter 3 – Business Environment

Introduction

Table: Emerging Europe Business Rankings

Business Attractiveness Rankings — Methodology

Regional Overview

Lithuania: Business Environment Ranking

Economics — Long–term Risk

Politics — Long–term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

Lithuania Infrastructure SWOT Analysis

Chapter 5 – Industry Forecast Scenario

Table: Lithuania Infrastructure Data and Forecasts

Table: Lithuania Infrastructure Data and Forecasts (continued)

Risks

Chapter 6 – Macroeconomic Outlook

Economic Activity

Table: Indicators Of Economic Activity

Chapter 7 – Country Snapshot: Lithuania 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

AB YIT–Kaustas

AB Panevezio Statybos Trestas

Montuotojas

AB Hidrostatyba

Chapter 10 – BMI Forecast Modelling

How we generate our Industry Forecasts

Construction Industry

Sources

Chapter 11 – Appendix: Regional Demographic Data

Wages (ave labour force per annum), US$ PPP

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, US$bn

Competitive Landscape for Europe 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 European Infrastructure Sources

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BMI's European 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: