This construction company offers sustainable solutions in the infrastructure and energy sectors.
With operations in Africa and Latin America, Propav has almost 30 years' experience in various fields of engineering and infrastructure development, particularly roads, transport, renewable energy, sanitation, assembly work and industrial maintenance.
What makes a leading Brazilian group in the infrastructure, industry and energy sectors establish its centre of operations and management for international projects in Spain?
After consolidating our activity in the Brazilian market and gaining some international experience, the group launched a corporate strategic plan to build a broad process of internationalisation and modernisation, by developing a comprehensive international culture that, combined with new management processes and coordinated and consolidated corporate governance, would be able to merge the group's expertise and expand the frontier of business opportunities. And this led to the establishment of its parent company in Spain. Propav thus became what it is today: a Spanish infrastructure group with operations worldwide.
The choice of Spain was the result of the country's favourable environment for the installation of multinational companies and its human talent, with numerous highly qualified professionals of interest to our sector.
Spain is also a global hub for the infrastructure industry, and it is very important to be close to the key players in the business model, including financial agents and suppliers of capital goods and high added value services. In addition, Spain occupies a geostrategic position between Latin America and Africa, which are our priority markets.
Which areas are you most specialised in and what are your objectives?
Throughout our almost 30 years' experience in various areas of engineering and infrastructure development, at Propav we have worked mainly in the fields of roads, renewable energies and industrial assembly and maintenance projects. At the moment our activity is focused on implementing sustainable infrastructure projects and developing renewable energy projects, especially due to our business culture, which includes a strong commitment to sustainability.
We have an end-to-end value proposition since we operate throughout all the project phases, from conducting the studies that make a project technically feasible to the actual construction phase. As part of our business model, we also offer optimised financial solutions, including equity and debt components, hence our strong link with global investors in infrastructure projects, banks, development agencies, export credit agencies and other major financial institutions to guarantee project bankability.
What led Propav Infraestructuras to see Africa as one of its markets?
Although there is generally a negative perception of African markets, fortunately this is changing. Improvements in the business environment, increased legal certainty and the establishment of favourable investment frameworks are leading to a greater presence of international companies in these markets. This is borne out by the interest of governments – mainly European and Asian – in promoting the presence of their companies.
Propav Infraestructuras began its activity in Africa in 2014, and we prioritised some of these markets due to their potential. There is an urgent need to develop infrastructure, and we want to be part of the transformation process on the African continent in the coming decades.
Sustainability is the group's lodestar. What does this commitment mean from an operational point of view?
At Propav we have a strong commitment to sustainability, as the core of the business is to offer solutions that serve as a tool for transforming society. So as part of our business culture and corporate governance we see sustainability management as a key element of the project and not as a risk. The Sustainable Development Goals are our compass for enhancing the value of our projects. Our approach is based on identifying new solutions that contribute to the circular economy, generating value and improving society. This is why we are committed to developing local capabilities and to the energy transition.
Does the market value this commitment?
Fortunately, companies have for some time now become increasingly aware of the environment, and have sought to contribute to safeguarding and respecting the environment for future generations. It is essential for companies to be committed to sustainable development, since this generates social, economic and environmental value. Sustainability is here to stay and and it has become a priority for large, medium and small companies that play an important role in social and economical change and in responding to the challenges facing society. Moreover, this is even more relevant in terms of internationalisation, since sustainability is not only a factor to take into account , but it is above all a differentiating element in an increasingly competitive market.
How is the holding company organised?
The Propav Group is organised into several companies that act in a synergistic and complementary way in their respective markets and areas of action, whether in the industrial, civil infrastructure or energy sectors, among others. Spain is our organisation's main headquarters and decision-making centre, and all our international projects from Latin America to Africa are directed and managed from here. Since we have no projects in development in Spain at present, our activity today is 100% international, because, although we had a very satisfactory experience in the construction of a solar plant in Zaragoza, we currently do not have projects under development in the country, and we are committed to offering solutions from Spain for the markets where we operate.
The company's board of directors and management will be located in our Madrid offices, along with all the managerial and project planning staff. Moreover, our multicultural teams are being enhanced by the recruitment of Spanish professionals, who contribute to creating the international culture we as a group are pursuing.
How is the business growing and what are the prospects for 2021?
Despite the current circumstances, which have affected most economies, Propav has enjoyed positive growth both this year and last. Activity in Latin America and Africa has been maintained without any major alterations, since we mainly work on strategic projects for our clients. Likewise, our business model means that we can act in an agile and efficient way, which helps make us very competitive and decisive when implementing our projects.
As for our expectations for 2022 and the coming years, the estimates are very positive, especially after the implementation of our internationalisation plan from Spain.
This new journey we have embarked on is a challenge for Propav Infraestructurs, but what sets us apart from the competition is the company's team, the group's experience, and our vision of putting the client at the heart of our business by searching for multidisciplinary and sustainable solutions. We are therefore confident we will achieve our goals for the coming years.