Philippe Dessoy

1. EUROPEAN INTERNATIONAL CONTRACTORS (EIC):
OUR MISSION, ACTIVITIES AND AGENDA
Philippe Dessoy
President European International Contractors (EIC)

2. Construction 2018 - Perspectives and Challenges, Sofia, 26 September 2017
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ABOUT EIC:
BASIC FACTS
Organisation: European industrial lobbying association founded in 1970, since the year
1984 autonomous association based in Berlin, Germany
Mission: (1) Represents the international interests of European construction industry
vis-à-vis EU Institutions, World Bank and other MDBs, MDBs, OECD and key non-governmental
stakeholders (such as FIDIC, NEC or CoST); and
(2) Established Networking platform for European contractors working internationally
Membership: Full Members are construction trade federations from 15 European
countries to which around 200 internationally active contractors are affiliated;
Associated Members are companies from construction-related sectors
Board: Board Members are internationally experienced contractors representing the senior
executive level of the leading European construction companies
Activities: EIC Positions are elaborated by specific Working Groups for topics such as:
Africa, Contract Conditions, Corporate Responsibility, Export Credits, World Bank Procurement.

3. Construction 2018 - Perspectives and Challenges, Sofia, 26 September 2017
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ABOUT EIC:
15 MEMBER FEDERATIONS
Vereinigung Industrieller Bauunternehmen
Österreichs (VIBÖ)
Confédération Construction
Schweizerischer Baumeisterverband (SBV)
Dansk Byggeri
Rakkenusteollisuus RT
Fédération Nationale des Travaux
Publics (FNTP) - SEFI
Hauptverband der Deutschen
Bauindustrie
Association Panhéllenique des Ingénieurs
Diplomés et Entrepreneurs des Travaux Publics
(PEDMEDE)
Associazione Nazionale Costruttori Edili
(ANCE)
Netherlands Association of International
Contractors (NABU)
Federação Portuguesa da Indústria da
Construção e Obras Públicas (FEPICOP)
Asociación de Empresas Constructoras y
Concesionarias de Infraestructuras –
(SEOPAN)
Sveriges Byggindustrier
Turkish Contractors Association (TCA)
Bulgarian Construction Chamber
+ Associated Company Membership:
14 companies from 10 countries

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China
Korea
Other
0
20
40
60
80
1995 2000
2005
2010
2016
Source: EIC Contracts Statistics 2015
With an accumulated total international construction turnover of around €180 billion in
2015, European international contractors are present on all five continents.
42% of international turnover are generated within Europe, 58% are generated overseas.
Europe
(cross-
border)
42%
North
America
16%
Latin
America
7%
Australia/Asi
a
13%
Middle East
13%
Africa
9%
ABOUT EIC:
EIC INTERNATIONAL MARKET SHARE
Whilst European international contractors have lost market
shares over the past decade (as well as U.S. and Japanese
firms) particularly to Chinese, Korean and contractors from
emerging economies, collectively, they remain a major power
in the international construction business.

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ABOUT EIC:
MAIN TASKS & OBJECTIVES
Promoting Good Business Practices
– Fair and balanced Contract Conditions, including effective dispute settlement mechanisms
– Innovative project delivery schemes (Early Contractor involvement, DB, EPC, PPP, Partnering),
– Most Economically Advantageous Tender instead of lowest price
– Sustainability and Corporate Responsibility
Creating a Conducive Financial Framework
– Improved flexibility of the OECD Export Credits regime (“Local costs rule”)
– EU Development Finance to catalyse additional commercial finance (“EU Blending”)
Networking & Services
– Semi-annual Conferences & Workshops
– Monthly EIC Newsletter

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EIC LOBBYING PRIORITIES 2018
INTERNATIONAL CONTRACT FORMS
March 2002 March 2003 May 2009 April 2011March 2000
EIC is a “friendly reviewer” to the FIDIC forms of contract for more than 40 years
Dialogue between EIC and FIDIC on the upcoming new suite of FIDIC Contracts
In 2018, EIC will update its EIC Contractor’s Guides to the new FIDIC forms of contract
EIC has been invited to provide feedback on new FIDIC Contract for Underground Works

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EIC LOBBYING PRIORITIES 2018
EXPORT CREDIT INSURANCE
Existing local costs restrictions in the OECD Consensus have a particularly negative
effect on the competitiveness of construction exporters from OECD countries: Whereas
exporters from manufacturing industries can incorporate more than 50% of “foreign content”
into their export contracts, contractors can only insure “local costs” up to 30%
EIC lobbies for a modification of the OECD Consensus to the extent that:
a. In general, export insurance for local costs shall be equal to (i.e. amount to 100% of)
export contract value;
b. In addition, EIC proposes to establish a new OECD Sector Understanding on Large
Construction and Engineering Projects, which recognises the fact that export of
engineering and construction services requires a higher amount of local content
(i.e. 100% plus of export contract value) than of other goods and services.
EIC Position will be discussed at OECD Consultation on Export Credits on 13/11/2017 in Paris

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EIC LOBBYING PRIORITIES 2018
EU DEVELOPMENT FINANCE
EU Commission has proposed an
External Investment Plan (EIP) to
support investments in African and
EU Neighbourhood countries
The EIP targets investments in
socio-economic sectors including
urban and social infrastructure
EIP will comprise a new guarantee
instrument, which will provide
partial guarantees to intermediary
financing institutions and private
sector developers
EIC will draft a Position Paper on how
to adapt this new financing tool to
infrastructure projects

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EIC LOBBYING PRIORITIES 2018
EIC POSITION ON CORPORATE RESPONSIBILITY (1)
In 2009, EIC and FIEC has published a Joint Statement on Corruption
Prevention in the Construction Industry:
European construction industry has confirmed its commitment and
advocates a holistic approach, our message is: „It takes three to tango“
(demand side, supply side and the “condoning” side)
Since 2012 EIC has officially endorsed and since 2014 EIC is
represented on the Board of the Construction Industry Transparency Initiative
In 2015/16 EIC has participate with a Board Member in the drafting of ‘
a new ISO Anti-Bribery Management System (ISO 37001)
In 2018 (or even at the end of 2017), EIC will publish its own Corporate Responsibility
Statement in order to respond to the demand of policy-makers and civil society

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PEOPLE PLANET PROSPERITY GOVERNANCE
Labour
Conditions
Climate
Change
Added Value
in Local
Communities
Business Ethics
Health &
Safety
Greening
Operations
Engaging
Stakeholders
Supply Chain
Management
Human Rights
Resource
Efficiency
Continuous
Learning
Anti-Bribery
Diversity Know-How
Transfer
EIC LOBBYING PRIORITIES 2018
EIC POSITION ON CORPORATE RESPONSIBILITY (2)

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EIC MARKET MONITOR
GLOBAL MARKET RETROSPECT
Asia lifted its share of global infrastructure spending from 49 percent to 59 percent
between 2007 and 2015.
In contrast, spending in Europe fell back between 2007 and 2015, partly in response to the
constrained state of government finances.

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EIC MARKET MONITOR
GLOBAL MARKET OUTLOOK
Global infrastructure investment needs amount to $90 trillion between 2017 and 2040.
This is 19 percent higher than would be delivered under current trends, and is an average of
$3.7 trillion per year
Asia will dominate the global infrastructure market in the years ahead as it does at
present

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EASTERN EUROPE:
CONSTRUCTION SECTOR OUTLOOK
Bulgaria GDP growth rate until 2030 is expected to be 2.9% on average, whereas its construction output will
amount to 3.2% in the same period
Poland GDP growth will broadly stabilize around 3% until 2030. Construction activities for the same period will
grow at a 2.6% rate
Slovak Republic will experience a GDP growth of 3% in 2017, with a 3.5% evolution until 2030 in construction
revenues
Romania grew by 4.8% in 2016, and will remain at an average of 3.1% until 2030. In the same period, their
investment plans in infrastructure will support their sector growth up to 3.7%
Hungary will experience an increase of 3.1% in their construction output until 2030, whereas GDP will evolve at
a 2% rate
Western Balkans are growing at an increasing pace, with regional growth projected to be 3.2%.
In the construction market, the annual evolution of the sector up to 2030 is expected to be around 3 - 3.8%
Source: Global Construction 2030 Report

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BULGARIA POLAND
SLOVAK
REPUBLIC
ROMANIA HUNGARY
WESTERN
BALKANS
World
Bank
3,300 588 nd 2,159 nd
2,900
EBRD 1,028 2,888 426 1,611 642 4,000
EIB 1,184 1,940 1,125 100 800 5,000
TOTAL 5,512 5,416 1,551 3,870 1,442 11,900
EASTERN EUROPE
CURRENT PORTFOLIO OF PROJECTS BY
INTERNATIONAL FUNDING INSTITUTIONS (MILLION €)
Sources: World Bank, EBRD, EIB

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CONCLUSION
EIC ROLE & FUNCTION
EIC is the only European federation representing the interests of internationally active
European contractors on the EU and global level.
EIC calls for a level playing-field for European international contractors on the global
construction markets and challenges the unfair business practices of non-OECD
competitors.
EIC lobbying activities are closely linked to the day-to-day business of its
internationally active member companies (for instance World Bank, EIB and EU PRAG
Standard Bidding Documents, FIDIC standard forms of contract, Innovative Financing
Instruments, Export Credit Insurance).
EIC gives its members a unique opportunity to network, exchange views and share
experiences in the context of its General Assemblies and Working Group Meetings.

16. THANK YOU FOR YOUR ATTENTION
European International Contractors
Phone +49 (0)30 / 212 86-244
Fax +49 (0)30 / 212 86-285
info@eic-federation.eu
www.eic-federation.eu