Reduced State investment in capital projects will see a decline in construction output over the next 18 months, the Construction Industry Federation (CIF) said today.
New research from the CIF, which will be published on a bi-monthly basis, shows the value of Government projects currently out for tender is substantially below its commitments, and in some cases the projects have a time lag of between two and three years.
The data was compiled by analysing public procurement notices.
The proportion of tendered projects that actually commenced could be as low as 60 per cent, the CIF said.
It found that less than €45 million of new public construction projects were awarded over January and February. More than €300 million of pre-qualification notices were issued in January and February, with more than €200 million in February. However, the majority of that figure was was for one major road project.
The research calculated that the aggregate value of projects that will be short-listed in 2010 will be between €1 billion and €1.5 billion. Based on a 60 per cent conversion rate, new public construction projects could be worth between €600 million and €900 million, with no certainty over when such projects will begin.
In contrast, the Government has made a commitment to invest €5.5 billion in 2011, 2012 and 2013.
The majority of projects the Government will invest in during 2010 will are already underway or are close to completion, the CIF said.
"It will be impossible for the State to maintain infrastructure investment at even the very reduced levels set out in last December's budget based on the identified pipeline of projects," the CIF said in a statement today.
