Market
The infrastructure sector can look back on what may, putting it mildly, be described as a difficult period. Ballast Nedam Infra has also had to contend with declining volumes of production for a number of years. The first signs of a recovery in market volume, however, became evident in 2004, a recovery that was sustained in 2005. Ballast Nedam Infra has, accordingly, had sufficient work on offer, although the stiff competition in the infrastructure market means that prices in this sector are still inadequate. Prices stabilised in 2005 and a slight upward trend is now discernible. Partly as a result of the anticipated increase in production volumes in the Civil Engineering sector (GWW), prices are expected to continue recovering gradually over the next few years.
 A good infrastructure is highly important for the Dutch economy. Ongoing investment is therefore required in order to maintain and improve the infrastructure. There is also a continuing public need for physical planning and the re-utilisation of space. The market is calling for solutions in the field of mobility, urban development and regeneration and water infrastructure. The generation and realisation of these solutions requires knowledge, creativity and innovation: competencies that clients are increasingly expecting of market players.
These market developments provide private players with the opportunity to take the initiative in developing and undertaking infrastructure projects. This has been reflected over the past year in the increasing amounts of non-traditional forms of cooperation entered into with the government such as Design-Build-Finance and Maintain (DBFM) contracts. Given the policies of the Dutch central and local governments, this trend is set to continue. Initiatives resulting in Public-Private Partnerships (PPP) frequently proved successful in 2005. After years of study, surveys and discussions, the time has come to seek infrastructural solutions in a PPP arrangement. The private sector, in particular, will undertake a greater financial participation than in preceding years. The decision by the government to test all infrastructural contracts in excess of 112.5 million euros for PPP suitability will certainly result in a greater volume of such contracts.
This market offers particular opportunities for companies capable of offering integral infrastructural solutions. Ballast Nedam Infra underlined its ability to do so with a number of projects in 2005 and has further improved its ability to exploit the market opportunities on offer.
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