Construction in Bulgaria - Key Trends and Opportunities to 2018

Published: Oct, 2014 | Pages: 65 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)


Synopsis
This report provides detailed market analysis, information and insights into the Bulgarian construction industry, including:
The Bulgarian construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs for each project type in Bulgaria
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Bulgarian construction industry
Profiles of the leading operators in the Bulgarian construction industry.
Data highlights of the largest construction projects in Bulgaria 

Summary
The Bulgarian construction industry recorded a compound annual growth rate (CAGR) of 9.41% during the review period (2009?2013). The industry contracted during the review period, as a result of a -25.8% decline in foreign direct investment (FDI) from BGN1.2 billion (US$853.1 million) in 2009 to BGN915.7 million (US$601.6 million) in 2012. However, FDI increased by 0.3% in 2013 to reach BGN918.4 million (US$623.3 million). However, this is still below its 2009 peak. The industry will be supported by allocation of cohesion policy funds, and government focus on infrastructure construction. The industry's output is, therefore, expected to record a CAGR of 2.54% over the forecast period (2014?2018). 
Scope
This report provides a comprehensive analysis of the construction industry in Bulgaria. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Bulgaria using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in Bulgaria 
Reason To Buy
 Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies
Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate business strategies using Timetric's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors 
Key Highlights
 According to the Bulgarian National Statistical Institute (NSI), the average seasonally adjusted construction production indices increased from 82.3 during the first seven months of 2013 to 85.0 during the first seven months of 2014. Moreover, the total number of permits increased from 4,271 in the first half of 2013 to 4,316 in the first half of 2014. The number of residential building permits increased from 1,915 to 2,136, administrative buildings permits increased from 64 to 91, whereas other building permits fell from 2,292 to 2,089 during the same period. The gross value add of the construction industry in real terms fell from BGN726.0 million (US$492.7 million) in the second quarter of 2013 to BGN719.0 million (US$484.1 million) in the second quarter of 2014, whereas in nominal terms, it declined from BGN1.0 billion (US$678.7 million) to BGN933.2 million (US$628.4 million) during the same period. The construction industry is, therefore, expected to grow at slower pace over the forecast period. 
In 2013, the government adopted a draft partnership agreement with the European Union (EU) for the use of the investment funds allocated to the country for the 2014-2020 period. Until the end of 2020, BGN19.5 billion (US$13.2 billion) is expected to be invested, of which BGN14.8 billion (US$10.0 billion) will be allocated through Cohesion Policy Funds, which is the EU's approach to achieve the objectives set in the Europe 2020 strategy. These cohesion policy funds will be distributed by seven operational programs, such as transport infrastructure, science and education, innovation and competitiveness, environment, human resource development and good governance. In total, BGN4.5 billion (US$3.1 billion) will be invested in rural development, and BGN171.9 million (US$116.7 million) in the fisheries and maritime sector. This move to increase the country's economic growth and competitiveness will support the growth of the construction industry over the forecast period. 
Bulgaria's long-term railway infrastructure development plan includes the modernization and construction of the railway network along the east?west axis, as well as the refurbishment of important domestic and international railway lines. In addition, factors such as high fuel costs, road congestion, and environment protection policies emphasize the need to improve rail infrastructure. Under the Transport 2014-2020 operational program, several rail infrastructure projects, such as the rehabilitation and modernization of the Plovdiv-Burgas and Septemvri-Sofia lines, will be covered. However, only BGN976.8 million (US$662.9 million) is allocated under the Transport 2014-2020 program, less than the BGN7.8 billion (US$5.3 billion) required to completely upgrade and rehabilitate the country's rail network. Investments to improve the country's rail network will support the growth of the rail infrastructure category over the forecast period. 
Bulgaria lacks an efficient waste-management system, and still has 113 operational waste dumping sites that do not meet the terms of the EU landfill directive. However, the country has set a target to achieve 50% recycling of municipal solid waste by 2020. Under the National Waste Management Plan 2014�-2020, the country aims to become a zero-waste society by reducing landfill waste and constructing 55 waste-treatment systems. The country's need to address waste management is likely to support marginal growth in the waste-processing plant category over the forecast period. 
Bulgaria has set a target to achieve a 16.0% share of renewable energy in the gross final energy consumption, and increase energy efficiency by 25.0% by 2020. According to Eurostat, in 2012, Bulgaria achieved its set target for 2020. Moreover, the country is suffering from electricity oversupply, due to low domestic consumption, and increasing solar and wind capacity. Therefore, the government reduced its feed-in-tariff by 20.0% for solar and wind producers. This move is likely to impact the electricity sector, resulting in the slow growth of the energy and communications infrastructure category over the forecast period.

 1 Executive Summary
2 Market Overview
2.1 Key Trends and Issues
2.2 Benchmarking by Market Size and Growth
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Enemo AD Kozlodui
8.1 Enemo AD Kozlodui - Company Overview
8.2 Enemo AD Kozlodui - Business Description
8.3 Enemo AD Kozlodui - Main Services
8.4 Enemo AD Kozlodui - History
8.5 Enemo AD Kozlodui - Company Information
8.5.1 Enemo AD Kozlodui - key competitors
8.5.2 Enemo AD Kozlodui - key employees
9 Company Profile: Transstroy-Burgas AD
9.1 Transstroy-Burgas AD - Company Overview
9.2 Transstroy-Burgas AD - Main Products and Services
9.3 Transstroy-Burgas AD - Company Information
9.3.1 Transstroy-Burgas AD - key competitors
9.3.2 Transstroy-Burgas AD - key employees
10 Company Profile: Geotechmin OOD
10.1 Geotechmin OOD - Company Overview
10.2 Geotechmin OOD - Main Products and Services
10.3 Geotechmin OOD - Company Information
10.3.1 Geotechmin OOD - key competitors
10.3.2 Geotechmin OOD - key employees
11 Company Profile: Glavbolgarstroy Holdings AD
11.1 Glavbolgarstroy Holdings AD - Company Overview
11.2 Glavbolgarstroy Holdings AD - Main Services
11.3 Glavbolgarstroy Holdings AD - Company Information
11.3.1 Glavbolgarstroy Holdings AD - key competitors
11.3.2 Glavbolgarstroy Holdings AD - key employees
12 Company Profile: Yavor Plc
12.1 Yavor Plc - Company Overview
12.2 Yavor Plc - Main Services
12.3 Yavor Plc - Company Information
12.3.1 Yavor Plc - key competitors
12.3.2 Yavor Plc - key employees
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is This Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 - BDHL - St Sofia Resort - Bulgaria
Table 3: Commercial Construction Project 2 - BRL - Melia Bakerville Resort - Bulgaria
Table 4: Commercial Construction Project 3 - Mostovik - BurgAs Ocerium - Bulgaria
Table 5: Industrial Construction Project 1 - Sofia Municipality - Ya Waste Treatment Plant - Bulgaria
Table 6: Industrial Construction Project 2 - LAZ - Gabrovo Bus Factory - Bulgaria
Table 7: Industrial Construction Project 3 - Avanstar - Knezha Textile Factory - Pleven Province
Table 8: Infrastructure Construction Project 1 - Metropolitan EAD - Sofia Metro Development - Bulgaria
Table 9: Infrastructure Construction Project 2 - RIA - Struma Motorway - Bulgaria
Table 10: Infrastructure Construction Project 3 - RIA - Struma Highway Twin Tube Tunnel - Bulgaria
Table 11: Institutiol Construction Project 1 - MoJ - Ya Prison Development - Sofia
Table 12: Institutiol Construction Project 2 - UoEV - Var Student Housing and Sports Complex Development - Bulgaria
Table 13: Institutiol Construction Project 3 - UoR - Kanev Center Development - Ruse
Table 14: Residential Construction Project 1 - Rialto Developments - Var South Bay Seaside Residence - Bulgaria
Table 15: Residential Construction Project 2 - Marneur - ArgishtPartez Residential Complex - Bulgaria
Table 16: Residential Construction Project 3 - GLPD - Aivazovsky Park Complex: Phase I - Bulgaria
Table 17: Enemo AD Kozlodui, Key Facts
Table 18: Enemo AD Kozlodui, Main Services
Table 19: Enemo AD Kozlodui, History
Table 20: Enemo AD Kozlodui, Key Employees
Table 21: Transstroy-Burgas AD, Key Facts
Table 22: Transstroy-Burgas AD, Main Products and Services
Table 23: Transstroy-Burgas AD, Key Employees
Table 24: Geotechmin OOD, Key Facts
Table 25: Geotechmin OOD, Main Products and Services
Table 26: Geotechmin OOD, Key Employees
Table 27: Glavbolgarstroy Holdings AD, Key Facts
Table 28: Glavbolgarstroy Holdings AD, Main Services
Table 29: Corporacion GEO, SAB de CV, Key Employees
Table 30: Yavor Plc, Key Facts
Table 31: Yavor Plc, Main Services
Table 32: Yavor Plc, Key Employees
Table 33: Bulgarian Construction Output by Project Type (BGN Million), 2009-2013
Table 34: Bulgarian Construction Output by Project Type (BGN Million), 2013-2018
Table 35: Bulgarian Construction Output by Cost Type (BGN Million), 2009-2013
Table 36: Bulgarian Construction Output by Cost Type (BGN Million), 2013-2018
Table 37: Bulgarian Construction Output by Activity Type (BGN Million), 2009-2013
Table 38: Bulgarian Construction Output by Activity Type (BGN Million), 2013-2018
Table 39: Bulgarian Construction Value Add by Project Type (BGN Million), 2009-2013
Table 40: Bulgarian Construction Value Add by Project Type (BGN Million), 2013-2018
Table 41: Bulgarian Commercial Construction Output by Project Type (BGN Million), 2009-2013
Table 42: Bulgarian Commercial Construction Output by Project Type (BGN Million), 2013-2018
Table 43: Bulgarian Commercial Construction Output by Cost Type (BGN Million), 2009-2013
Table 44: Bulgarian Commercial Construction Output by Cost Type (BGN Million), 2013-2018
Table 45: Bulgarian Commercial Construction Output by Activity Type (BGN Million), 2009-2013
Table 46: Bulgarian Commercial Construction Output by Activity Type (BGN Million), 2013-2018
Table 47: Bulgarian Commercial Construction Value Add by Project Type (BGN Million), 2009-2013
Table 48: Bulgarian Commercial Construction Value Add by Project Type (BGN Million), 2013-2018
Table 49: Bulgarian Industrial Construction Output by Project Type (BGN Million), 2009-2013
Table 50: Bulgarian Industrial Construction Output by Project Type (BGN Million), 2013-2018
Table 51: Bulgarian Industrial Construction Output by Cost Type (BGN Million), 2009-2013
Table 52: Bulgarian Industrial Construction Output by Cost Type (BGN Million), 2013-2018
Table 53: Bulgarian Industrial Construction Output by Activity Type (BGN Million), 2009-2013
Table 54: Bulgarian Industrial Construction Output by Activity Type (BGN Million), 2013-2018
Table 55: Bulgarian Industrial Construction Value Add by Project Type (BGN Million), 2009-2013
Table 56: Bulgarian Industrial Construction Value Add by Project Type (BGN Million), 2013-2018
Table 57: Bulgarian Infrastructure Construction Output by Project Type (BGN Million), 2009-2013
Table 58: Bulgarian Infrastructure Construction Output by Project Type (BGN Million), 2013-2018
Table 59: Bulgarian Infrastructure Construction Output by Cost Type (BGN Million), 2009-2013
Table 60: Bulgarian Infrastructure Construction Output by Cost Type (BGN Million), 2013-2018
Table 61: Bulgarian Infrastructure Construction Output by Activity Type (BGN Million), 2009-2013
Table 62: Bulgarian Infrastructure Construction Output by Activity Type (BGN Million), 2013-2018
Table 63: Bulgarian Infrastructure Construction Value Add by Project Type (BGN Million), 2009-2013
Table 64: Bulgarian Infrastructure Construction Value Add by Project Type (BGN Million), 2013-2018
Table 65: Bulgarian Institutiol Construction Output by Project Type (BGN Million), 2009-2013
Table 66: Bulgarian Institutiol Construction Output by Project Type (BGN Million), 2013-2018
Table 67: Bulgarian Institutiol Construction Output by Cost Type (BGN Million), 2009-2013
Table 68: Bulgarian Institutiol Construction Output by Cost Type (BGN Million), 2013-2018
Table 69: Bulgarian Institutiol Construction Output by Activity Type (BGN Million), 2009-2013
Table 70: Bulgarian Institutiol Construction Output by Activity Type (BGN Million), 2013-2018
Table 71: Bulgarian Institutiol Construction Value Add by Project Type (BGN Million), 2009-2013
Table 72: Bulgarian Institutiol Construction Value Add by Project Type (BGN Million), 2013-2018
Table 73: Bulgarian Residential Construction Output by Project Type (BGN Million), 2009-2013
Table 74: Bulgarian Residential Construction Output by Project Type (BGN Million), 2013-2018
Table 75: Bulgarian Residential Construction Output by Cost Type (BGN Million), 2009-2013
Table 76: Bulgarian Residential Construction Output by Cost Type (BGN Million), 2013-2018
Table 77: Bulgarian Residential Construction Output by Activity Type (BGN Million), 2009-2013
Table 78: Bulgarian Residential Construction Output by Activity Type (BGN Million), 2013-2018
Table 79: Bulgarian Residential Construction Value Add by Project Type (BGN Million), 2009-2013
Table 80: Bulgarian Residential Construction Value Add by Project Type (BGN Million), 2013-2018
Table 81: Timetric Construction Market Definitions