Local authorities to invest nearly €10bn by 2021

Over the next four years (2017-2020) more than 5,400 municipal building and construction projects will become a reality. Denmark’s 98 municipalities will invest almost €10bn, mainly for new schools and educational institutions, but also within culture, sport, leisure and health care. About €1bn euro will also be spent on new civil engineering projects annually.

The local authorities in Denmark’s 98 municipalities are going on a spending spree, the financial crisis apparently a distant memory. According to an analysis published by Byggefakta A/S, they will spend €9.53bn on new building and construction by 2021. Of the 5,543 projects, 26% will involve the construction of new schools and educational and research institutions.

The majority of the new buildings will be within health care service, followed by sport, leisure and culture, but civil engineering projects, with investment totalling almost €1bn annually, will account for the greatest expenditure. For this reason, local authorities have earmarked almost €3.54bn for investment.

Wide-ranging projects

A complete inventory of building and construction projects in the 98 municipalities would reflect the wide variation in the size of the projects. As a result, it makes sense that more than 3,000 of them will cost less than €670,000 to complete.

There are nevertheless over 340 projects worth more than €6.5m, making them attractive for foreign companies. For example: a new line for the Metro in Copenhagen will connect the main lines with a newly developed residential neighbourhood in a former harbour area north of the city. Combined, the building and construction projects are valued over €6.7m equals which is equal to 45% of the total investment capital.

 

Project size
 DKK (EUR)   Number of projects   Value in DKK (EUR)
5m< (€0.67m) 3,079 DKK 5.925bn (€790m)
5–10m (€0.67m-1.3m) 890 DKK 6.673bn (€890m)
10–25m (€1.3m-3.3m) 843 DKK 13.767bn (€1.8bn)
> 50m (€6.5m-) 342 DKK 31.458bn (€4.2bn)
Total 5,543 DKK 70.879bn (€9.53bn)

 

“Geographically, as luck would have it for foreign companies, the most valuable projects are located in large urban centres such as Copenhagen, Aarhus, Zealand and Esbjerg Municipality in the Region of Southern Denmark. It’s also important for foreign companies to remember that the rate of investment will decline as the period progresses. Local authorities expect to spend €3bn this year, but only an estimated €1.75bn in 2020,” says the director of Building Network, Mickey Lund.

Meet Danish stakeholders from some of the largest hospital and infrastructure projects at our exclusive construction conference 2017:

 

Construction Conference 2017

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