Boston, MA -- (SBWIRE) -- 01/08/2014 -- We do not expect a significant improvement in construction growth in 2014, as several factors - namely a near-term decline in the project pipeline and a slowdown in China's economic activity - are likely to dampen construction activity in 2013 and continue into 2014. We are therefore forecasting full-year real growth for Hong Kong's construction sector to reach 2.2% in 2014, from 1.5% growth in 2013. However, we reiterate that this outlook does not mean a dearth in growth opportunities in Hong Kong over the long term, as the government has a large number of construction projects planned over the coming years.
Key Developments In Hong Kong's Infrastructure Sector:
- In August 2013, France-based construction firm Bouygues Construction secured a US$1.53bn contract to design and construct a 4.2km undersea road tunnel in Hong Kong. The contract was secured through subsidiaries Dragages Hong Kong and Bouygues Travaux Publics. The project will include building a twin-tube tunnel, each tube with a diameter of 14 metres (m). The tunnel will connect the New Territories, north of Hong Kong, to Lantau Island. Two tunnel-boring machines will be used for the tunnel, which will be 50m below sea level. Forty-two cross-passages will connect the two tunnel tubes at every 100m. The project is expected to be completed in 2018.
- In November 2013, CLP Holdings announced that its wholly owned subsidiary CLP Power Hong Kong reached an agreement with China South Power Grid (CSG) to each acquire half of the 60% interest in Castle Peak Power (CPP) held by ExxonMobil. CLP Power will acquire the 30% stake for a cash consideration of HKD12bn. In a separate arrangement, CLP Power will also purchase ExxonMobil's 51% stake in Hong Kong Pumped Storage Development (PSDC) for HKD2bn. Following the completion of the transactions, CLP Power will hold 70% of CPP and 100% of PSDC. CSG will own the remaining 30% of CPP. To finance the acquisitions, CLP has secured a HKD10bn loan from HSBC. The stake sale is expected to be completed in mid-2014.
View Full Report Details and Table of Contents
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Construction research reports at Fast Market Research
You may also be interested in these related reports:
- Brazil Infrastructure Report Q1 2014
- China Infrastructure Report Q1 2014
- India Infrastructure Report Q1 2014
- Canada Infrastructure Report Q1 2014
- Indonesia Infrastructure Report Q1 2014
- Cameroon Infrastructure Report Q1 2014
- Czech Republic Infrastructure Report Q1 2014
- Vietnam Infrastructure Report Q1 2014
- Oman Infrastructure Report Q1 2014
- Angola Infrastructure Report Q1 2014