The Impact of COVID-19 on infrastructure projects and assets
The novel coronavirus (“COVID-19”) pandemic is unprecedented and its impact continues to threaten the survival of economies globally. The pandemic is affecting various industries and sectors, some more than others. The impact on infrastructure companies can be assessed during any of the following phases: development, construction and operations. EPC contractors are declaring force majeure and/or off-takers are defaulting. This is creating liquidity challenges resulting in funding gaps.
The Government might also prioritize its spending commitment in light of the pandemic, with a revised budget for 2020 focused more on recurrent expenditure, this could impact the annual gap in infrastructure investment in the short to medium term, except with interventions.
In this article, we highlight the impact of COVID-19 on infrastructure projects and assets and share key considerations for responding to the adverse effects of the pandemic.