The analyst expects the construction industry in Uruguay to expand by 1.4% in real terms in 2026 before registering an annual average growth rate of 3.8% from 2027 to 2020, supported by investments in transport infrastructure, renewable energy, housing, and manufacturing sectors. In mid-June 2026, the Inter-American Development Bank Group (IDB Group) approved the Country Strategy for Uruguay for 2026-2030. The plan, which was developed jointly with the Government of Uruguay, envisages investments of UYU175.3 billion ($4.2 billion) and seeks to consolidate the country as a hub for innovation and a benchmark for security. Of the total, the IDB will allocate UYU112.7 billion ($2.7 billion) to support public sector initiatives, while IDB Invest - which is the private sector institution of the IDB Group - will allocate the remaining UYU62.6 billion ($1.5 billion) to strengthen business investment. IDB Lab, which is the IDB Group’s innovation and venture arm, will continue to promote the entrepreneurial ecosystem and early-stage investment.
Forecast-period growth will also be supported by investments in water infrastructure projects to support long-term water supply resilience. In May 2026, Uruguay’s state-owned water utility, Obras Sanitarias del Estado (OSE) and the Development Bank of Latin America and the Caribbean (CAF) signed a UYU5.4 billion ($130 million) financing agreement for the construction of the Casupá dam in Florida department of Uruguay. The project involves the construction of the Casupá Dam, along with a logistics and operations center, material storage facilities, a new pumping line for the metropolitan area, and upgrades to existing water infrastructure systems. The prequalification process for construction companies is expected to conclude within the first half of 2026, after which an international public tender will be launched. Administrative procedures are expected to be completed by the end of 2026, with construction scheduled to begin in early 2027. The project is expected to be completed in Q3 2029. Additionally, over 700 direct and indirect jobs are expected to be created at the peak of construction. Upon completion, the project will increase the country’s freshwater reserve capacity from 80 million to 200 million m3. The new dam will store 118 million m3 of water, adding to existing reserves at Paso Severino and Canelón Grande.
Forecast-period growth will also be supported by investments in water infrastructure projects to support long-term water supply resilience. In May 2026, Uruguay’s state-owned water utility, Obras Sanitarias del Estado (OSE) and the Development Bank of Latin America and the Caribbean (CAF) signed a UYU5.4 billion ($130 million) financing agreement for the construction of the Casupá dam in Florida department of Uruguay. The project involves the construction of the Casupá Dam, along with a logistics and operations center, material storage facilities, a new pumping line for the metropolitan area, and upgrades to existing water infrastructure systems. The prequalification process for construction companies is expected to conclude within the first half of 2026, after which an international public tender will be launched. Administrative procedures are expected to be completed by the end of 2026, with construction scheduled to begin in early 2027. The project is expected to be completed in Q3 2029. Additionally, over 700 direct and indirect jobs are expected to be created at the peak of construction. Upon completion, the project will increase the country’s freshwater reserve capacity from 80 million to 200 million m3. The new dam will store 118 million m3 of water, adding to existing reserves at Paso Severino and Canelón Grande.
The Construction in Uruguay - Country Briefing (H1 2026) report provides detailed market analysis, information, and insights into Uruguay's construction industry, including:
- Uruguay's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Uruguay's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Uruguay. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Uruguay, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
