Delivering capital projects in CEE/CIS

Capital project managers expect an increase in infrastructure and capital spending in CEE over the next 12 months, but are looking to the private sector for financing:

• 59% of capital project managers expect expenditure increases in the next 12 months;
• 52% respondents went beyond their budget allocations in the last 12 months;
• 78% capital projects were delayed in the past 12 months.

Despite challenging economic conditions, 59% of people responsible for capital projects in Central and Eastern Europe expect an increase in expenditure on capital projects in the next 12 months. Optimism regarding capital spending prevails across all industries, most notably in the energy, utilities and mining industries and the transportation and logistics sector. However, there were marked differences across the region. Respondents from Russia and Poland, where big infrastructure projects are taking place, are the most optimistic, while their counterparts from the Czech Republic and Hungary, which are still experiencing the impacts of the economic crisis, voice lower expectations.

These are some of the findings of the first edition of PwC’s Delivering capital projects in CEE/CIS report, presented by Dennis Nally, PricewaterhouseCoopers Chairman, at the Saint Petersburg International Economic Forum on 21 June 2013.