Contracted Construction Drops 6.6% yoy In 2005 To USD 5 Bln.

All major construction types registered decline, except for the construction of buildings, which accounted for 47.7% of Ukraine’s overall construction volume. Land preparation works fell 9.2%, construction of finished buildings was down 5.7%, the number finished construction projects decreased by 17.7%. The construction of pipelines, communication lines and energy-supply lines decreased by 26.4%, construction for companies working in the energy, mining and processing segments decreased by 15.1%; road construction fell by 23.9%. Concorde Capital: Declines in segments were to some extent balanced due to growth in the largest segment – building construction by 3.7%. Contracted construction fell in 19 of Ukraine’s oblasts. Meanwhile, Ternopilska and Ivano-Frankivska oblasts posted the largest growth – by 8.4% and 8.2% respectively. Construction works in Kyiv grew by 5.5%. While the increase in housing construction is connected to growing household incomes – by 17% in real terms, decline in industrial construction is connected to slow-down of overall economic growth in the country, and postponement of construction, especially by those companies that faced re-privatization risks in 2005.