Our first PwC B&R Watch: Review of capital project and deal activity in the countries that fall under the Belt & Road Initiative (B&R). The review finds that over US$490bn of projects and deals were announced in 2016 across seven core infrastructure sectors (Utilities, Transport, Telecoms, Social, Construction, Energy and Environment). A third of all these were in China, with the remainder spread across the rest of the B&R region.
- PwC B&R Watch finds a positive picture in 2016, with an increase in the volume and the average dollar value of infrastructure projects
- In China, the average project size increased by 14% - largely driven by public expenditure on infrastructure as a central pillar of economic policy
- M&A activity points to a decline in volume and dollar value, reflecting a flight to quality and renewed focus on project economics.
- The review uncovers striking growth in the size of capital projects across the B&R region. The value of the average project was 47% higher than in 2015.