Industry Trend Analysis - Infrastructure Opportunities Tainted By Operational Risks - OCT 2017

BMI View: Tajikistan ' s construction and infrastructure industry has significant growth potential, supported by both domestic needs and its strategic location in Central Asia. However, we highlight that prospective investors will face sizable operating and security risks that challenge the financial viability of proposed projects.

Significant operating and security risks will continue to pose challenges to investment and growth in Tajikistan's construction and infrastructure industry, despite notable growth potential in the country. The country scores below-average across most of our Operational Risk indices, with labour, political and security issues being particularly pertinent concerns. For the construction industry, a shortage of skilled labour will pose challenges for the successful implementation of major infrastructure projects. However, if these concerns can be mitigated or accounted for, we note that there is a significant amount of capital available for investment in Tajikistan, especially from China and Russia owing to their geographic proximity and political ties. Thanks to its untapped mineral resources and strategic location in Central Asia, Tajikistan is a focal point for China's Belt & Road initiative, with several proposed transmission lines, oil pipelines and transport corridors running through the country. Opportunities will also come from growing domestic needs for power generation and transportation, both of which are facing capacity and reliability constraints.

Labour Risks a Primary Concern for Construction Sector

Central Asian Location
Tajikistan - Location of Country and Belt & Road-Designated Markets
Source: BMI

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