FACTS & FIGURES - Tecnimont ICB

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POWER
The general economic slowdown in 2008 clearly impacted the
overall volume of investments in the energy sector, although in a
more contained manner than in other markets. In fact, the
continued economic development of the BRIC and Latin American
countries sustained the demand for traditional gas- and coal-fired
power plants. Renewable energy projects were spurred on by the
high price of oil in the early part of the year, but were decelerated or
deferred in the second half. Following the merger with Maire
Engineering, Tecnimont aims to maintain its high profile and high
market share in the traditional energy sector, as well as expanding
its interests in new fields such as supercritical plants and
renewable energy. Maire Tecnimont’s most significant projects are
being implemented in Latin America and Eastern Europe, while an
important “green” power project is under way in Italy.
The Growing Power Market in Latin America
Latin American electricity and infrastructure markets have been a
magnet for international investors for many years. This is due to
improvements in the regulatory climate, the availability of new
technologies and the strong infrastructural development in many
countries. Brazil, the largest South American country, has seen
particularly strong growth. With more than 190 million people, the
country is one of the founder members of the BRIC club, together
with Russia and the Asian giants, China and India. In 2007 the Lula
government launched a programme to increase GDP growth to 5%
annually by improving employment and living conditions.
Investment in infrastructure and energy plays a major role. Brazil
is particularly well placed, thanks to its major conventional
hydrocarbon resources as well as its strategic position in ethanol
and biodiesel. The government has introduced several regulatory
reforms to encourage public and private investment in transport
and energy, which have stimulated a huge inflow of foreign direct
investment in recent years.
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