What types of project are currently attracting the most investment in your jurisdiction (e.g. infrastructure, power, commercial property, offshore)?
Infrastructure projects will probably become very important in Belgium in order to deal with the traffic congestion. In Antwerp such infrastructure works have already started with the so-called “Oosterweel-project”.
Furthermore, the planned expansion of the Antwerp port will probably also attract interesting investment opportunities.
The renewable energy market continues to flourish with, for example, various projects for the installation of on shore and offshore wind turbine(s) (farms).
Another concept attracting investors is the concept of service flats. These buildings are designed to welcome senior citizens and are combined with a full range of services these people can benefit from.
Independent water and power projects continue to attract private investment. The tourism and real estate sectors are also experiencing an upturn in investment as foreign property developers and hotel brands seek to capitalise on the government’s initiatives and, in particular, the development opportunities presented by Integrated Tourist Complexes.
The Danish Government invests heavily in infrastructure such as metro stations and bridges. Furthermore, the Government has launched a new strategy for developing the hospitals, which has resulted in many tenders.
The larger cities have seen a great population growth and urbanisation in recent years and there is a severe housing shortage, causing increasing prices.
Finally, even more speculative investments as office space and warehouses seem to be attracting attention from investors.
Comercial properties, hotels and housing for touristic goals. Also, infrastructure projects.
In order to boost population distribution, reduce gap between regions, and reduce population concentration in Java Island, the government of Indonesia has been focusing on the development of public infrastructure network which will accommodate the inter-island, inter-province, inter-regency, inter-village, inter-region and other basic need's mobility. To achieve this goal, Indonesia government targeted the needs of prioritized investment in infrastructure sector valued IDR 5,452 trillion.
Although the government has concentrated most the APBN on the development of infrastructure, the involvement of private sector (both local and foreign) is expected to close the remaining gap on infrastructure projects.
Therefore, the Indonesian government has been trying to enhance the investment attractiveness by creating a more conducive environment for private sector participation through several polices such as:
a. Public Private Partnership (“PPP”) Directives through Presidential Regulation No.38/2015 which expands eligible sectors and offering more incentives to the private partner.
b. Indonesian Investment Coordinating Board (BKPM), now provides a centralised licensing point for certain sectors, which increase the efficiency of the investment approval process.
c. Enacting of the new Land Acquisition Law No 2 of 2012 to provide more certainty land acquisition process which has been one of the main obstacle in Indonesian development of infrastructure.
d. Establishment of PPP unit in the Ministry of Finance (“MoF”) who will be responsible for conducting project development for PPP projects.
Currently the New Mexico City Airport is the most important project, having an estimated value of US$13.3 billion. This project has by the time of the writing of this contribution approximately 300 companies, generating 160 thousand work positions.
Another relevant project is the Mexico City-Toluca Project (38 thousand million pesos). A project of 58 kilometres, including 4.7 kilometres of tunnels, six stations which expect to have 230 thousand passengers per day.
Another relevant transportation Project is the Fast train in Guadalajara which will cover 21.5 kilometres with 18 stations, to provide a daily Service to 233 thousand passengers.
In the areas of ports, the capacity will be duplicated from 260 to 520 million tons. The completion of 25 mayor strategic ports.
in the areas of transmission and distribution and power generation important projects are developing too.
As mentioned before, Colombia’s fourth generation highway concession program is considered by experts as the single largest public private partnership program in Latin America and the most ambitious infrastructure plan in the history of our country.
In the last 10 years, there have been at least 26 initial closures that involved more than 30 investors and the investment of approximately 21 Billion USD. For this year, national government is looking forward to make around 10 financial closures for different 4G projects.
Besides road infrastructure programs, it is also important to mention that over the last years Colombia has been developing specific schemes that allows the country for the financing of non - productive infrastructure through PPP projects. This type of infrastructure includes, for example, the construction of schools, prisons, housing and even public offices.
On the current year, Bogotá will open a bidding process for the DBOMT contract for the First Metro Line in the city with an initial investment of around USD $6 billion.
Currently, infrastructure is the type of projects attracting the most investment in Switzerland (tramway, railroad, transboundary railway Cornavin-Eaux-Vives-Annemasse, so-called “CEVA”, etc.) while commercial and residential property investments continue to remain on high levels.
A surge in the renewable energy industry is fuelled by new wind farms, large-scale solar photovoltaic and pumped hydro projects. The Australian Government is prioritising the development of pumped hydroelectric storage facilities through an expansion of the Snowy Mountains Scheme.
Inland Rail and metro
Government focus has rebalanced as between road and rail projects, with inland freight rail and capital city metro projects recently securing greater commonwealth expenditure. The Inland Railway project is the largest freight rail infrastructure project to be undertaken in Australia, and will extend from Melbourne to Brisbane through regional Victoria, New South Wales and Queensland.
Sydney second airport and Aerotropolis
The New South Wales and federal governments are focused on developing a new economic zone around Sydney's second airport, which is currently under construction in Badgerys Creek. In particular, this will involve the development of new road and rail connections across Western Sydney.
Infrastructure projects are currently attracting the most investment in Norway today. The Norwegian government has decided in the national transport plan that significant funds will be invested in infrastructure over the next years, mainly roads and railroads.
There will also be major investments in the power industry.
Sweden has a severe shortage of affordable housing. Swedish public infrastructure (such as the railway sector) also needs significant investments in the coming years. For example, unlike many other Western countries, Sweden is lacking a modern high-speed rail network.
Government spending on infrastructure remains one of the key drivers for the construction industry in Hong Kong, with a significant number of large-scale projects underway. These include the Hong Kong-Zhuhai-Macau Bridge, the Guangzhou-Shenzhen-Hong Kong Express Rail Link, the Hong Kong International Airport third runway, the Tuen Mun-Chek Lap Kok road link, the Central Kowloon Route highway and the Sha Tin to Central MTR link.
Hong Kong has been the subject of consistently high private sector investment in commercial and residential property for many years, with some of the world’s highest rents per square metre for office and residential space. This has driven the development of numerous commercial and residential projects across Hong Kong.
In addition, Hong Kong is seeing significant investment in projects in the culture, leisure and sport sector, with West Kowloon Cultural District, Kai Tak Sports Park and Airport City among the most high-profile of these.
Currently infrastructure projects are attracting the most investment. In transport, these include Crossrail 2, the High Speed 2 rail link between London and the West Midlands, and a programme of major road improvements (with regional transport projects supported by government programmes such as the Northern Powerhouse and the Transforming Cities Fund). In power we are seeing increasing investment in renewable energy and several new nuclear projects (including Hinkley Point), while in housing the government has set an optimistic target for housebuilders to build 220,000 new homes a year. Government investment via the National Infrastructure and Construction Pipeline is expected to be £600bn over the next 10 years.
London’s commercial property market remains strong, attracting investment from overseas investors and serviced office providers.
Despite this, due to the challenges identified above, industry confidence and growth remains sluggish.
Industrial and power projects continue to attract significant investment in the United States. This is particularly true as regulations and legal standards applicable to power generation and industrial regulation continue to be relaxed. In addition, we anticipate a major upswing in infrastructure projects. This is particularly true as state and federal governments increasingly turn to public private partnerships (P3) as a method for financing and delivering major U.S. projects. The Trump Administration and the U.S. Congress also state that there will be a major federal investment in infrastructure in the next couple of years. If a law is passed providing large sources of federal dollars for infrastructure projects, we anticipate that we will see a major increase in road, bridge, and transportation projects in the United States.
The infrastructure projects are currently attracting the most investment locally.
A major focus for the UAE in the short term are the projects associated with the World Expo to be held in 2020 in Dubai. In addition to the construction that is taking place at the expo site itself, there are significant infrastructure projects being executed as part of the wider project, including extension of the metro route, and a number of utility and power related projects.
As the governments of the Emirates look to diversify investment portfolios, investment in the construction industry is increasing. At a public level, there is significant investment in power projects throughout the UAE as it looks to invest in new infrastructure and decommission out of service or inefficient sites. Due to their scale and complexity, these projects require and attract foreign Contractors with expertise in this area. Specifically, waste management infrastructure is an emerging and developing market in the region and attracting significant interest from foreign entities.
A steady number of residential projects continue to be introduced to the market. This growth is supported (to an extent) by the growing numbers of units which are made available for purchase by non-Emirati residents who are keen to enter the UAE property market.
The coalition agreement of the new government envisages investing heavily in social housing construction. Investments in transport infrastructure will continue to be very high. Commercial construction is currently benefiting strongly from rising demand for office workplaces and an investment offensive by Deutsche Bahn.
The public sector is making high levels of investment in the realm of infrastructure. In the area of railway tunnels, the Brenner Base Tunnel, the Koralm Tunnel and the Semmering Base Tunnel are currently under construction. In Vienna, construction on a new underground line has commenced, which is largely being constructed by means of mined excavation.
High levels of investment are also being made in residential construction in Vienna, because the population of the capital city is growing rapidly.
Traditionally, offices have been one the most attractive assets for investors on the French real estate market. Demand is still strong today, especially for prime buildings located in the Paris area and in other large Cities.
Apart from this traditional sector, the development of e-commerce has generated a strong need for logistic projects, which currently attract a strong interest from national and international investors.
We note that there is increasing interest in energy related construction works which are attracting the most investment, given that Greece is gradually becoming an energy transport centre (Trans-Adriatic Pipeline, Interconnector Greece - Bulgaria, Alexandroupolis LNG project, expansion of national gas network etc.). Investment is also expected to increase for the exploration and production of hydrocarbons that were recently uncovered in certain onshore and offshore areas of Greece, which the Greek government has leased with long term contracts to local and international oil companies. Finally, as discussed, tourist properties are also attracting local and foreign investment given that the number of tourists visiting Greece has increased exponentially (with no signs that this trend will be reversed in the future).
The Public Investment Fund is planning the construction of US$ 500 billion Neom City on 26,500 sq km of land on the Red Sea and Gulf of Aqaba coast. Another major project is the Al-Qiddiya entertainment and sports project on 334 sq km in the Riyadh region.
In recent years, there has been a huge increase in infrastructure investment consequent upon the Chinese Belt and Road Initiative (previously known as the One Belt One Road Initiative). This includes the launch of several mega-projects such as the East Coast Railway, MRT, and the Singapore-Malaysia High Speed Rail. However, many of these projects are currently being reviewed by the new government, with a view to downscaling, suspending, or even termination, and re-tendering.
There has also been an unprecedented increase in large-scale property projects being undertaken in Malaysia. For example, the development of Iskandar Malaysia has attracted billions of dollars in foreign investments – including the adjacent US$100 billion development of Johor’s Forest City. Other examples of large-scale property projects in Malaysia include the Tun Razak Exchange in Kuala Lumpur and Harbour City in Melaka. However, there has been a recent reduction in foreign investment in the property sector in Malaysia, primarily attributable to the mismatch in supply and demand (see paragraph 27 above).