Data presented in Deloitte report titled “Financial situation of construction companies. Perspectives of the construction market till 2020” let us to believe that the crisis in the construction sector, which is related to unprofitable infrastructural contracts as well as difficulties in a dialogue with public investor or limited number of bidding for projects with former UE perspective, is passing for good. The great chance of development is created by a new UE perspective and investments planned in the infrastructure which will total ca. 500 billion zlotys till 2020. According to analysis prepared by Deloitte, revenues of the 9 largest construction companies recorded on the WSE in Warsaw amounted 7,2 billion zlotys in the first half of the current year whereas last year in the same period they totaled 6,8 billion zlotys.
The increase in revenues by 6 per cent does not mean that we can talk about a significant improvement of the whole sector. However, the combination of this fact with increasing construction and mounting production by 7,3 per cent at the same time points out that construction industry probably survived the time of the worst crisis. In recent years, many companies went bankrupt. This tendency is still noticeable on the market, however in the first half of the year this proportion decreased by 21 per cent in comparison to the same period last year. Therefore, we can say about cautious optimism – comments Maciej Krokosiński, Manager in Audit Department in Deloitte.
Among stock exchange companies related to construction market, Budimex Group definitely dominates. It generated revenues exceeding 2 153 million zlotys in the period from January to June 2014. On further positions there are such enterprises as:
Polimex-Mostostal Group – 969 million zlotys;
Erbud Group – 709 million zlotys;
Mostostal Warsaw Group – 702 million zlotys;
PBG Group – 662 million zlotys;
Trakcja PRKil Group – 579 million zlotys;
Mirbud Group – 501 million zlotys;
Unibep Group – 462 million zlotys;
Elektrobudowa Group – 442 million zlotys.
The market value of the 9 largest construction companies recorded on the Warsaw floor increased from the end of 2012 to the end of June 2014 by 38,8 per cent.
According to Deloitte experts, there are many factors which favor the development of construction sector in Poland. These are i.a. macroeconomic aspects – envisaged increase of the GDP on the level of ca. 4 per cent in the nearest years and decrease in the level of a public debt to ca. 46 per cent.
Moreover, the new EU perspective for the years 2014-2020 is also important. Within its frameworks, Poland is supposed to receive 82,5 billion euro, 24,3 of which are intended for infrastructure, including in great measure the construction market – explains Jarosław Dąbrowski, chairman in Financial Advisory Department in Deloitte.
Experts in Deloitte point out that the construction sector may count on money from the European Union and estimated investments needs which are envisaged for the infrastructure in Poland till 2020 total ca. 500 billion zlotys. This amount includes primarily investments in road, railway, energetic and the one related to environment protection infrastructures. The fact of spending such substantial means constitutes a chance for improvement in construction companies’ situation, although the partnerships will notice it not until 2015 – explains Patryk Darowski, Manager in Financial Advisory Department in Deloitte.
3 x P
Public and private partnership is a relatively new formula of construction projects’ realization which grows at the annual average much greater interest and – according to experts in Deloitte – its application may turn out to be a chance for stable development of construction sector in Poland.
The largest PPP projects, which are being prepared, concern waste management (municipal incineration plants in Gdańsk and Łódź), building of hospitals (i.a. Poznań), constructions, developments and maintenance of roads (Lower Silesian and Kuyavian-Pomeranian Voivodeships) and cubature construction (residence halls, municipal houses and parking places).
These projects show the way for the further development of PPP in Poland. The biggest challenge is still the lack of adequate knowledge and experience on the side of public sector and difficulties in combining PPP with financing from EU means. In this context, we should appreciate the efforts made by the Ministry of Infrastructure and Development for proper regulation of issue concerning hybrid projects in a new perspective of financing. In the world, in well-developed countries as well as in still developing ones, there are many examples of successful PPP projects and construction companies engaged in realization of those designs are ready to move those experiences and good practices on the Polish basis – sums up Jarosław Dąbrowski.