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Major developments in Asia and Australia hit by govt inability to meet promises

And fewer major projects will then impact on property, construction and materials companies across the region, analysts are warning.

Worse yet, as private sector developments slow down, competition for government projects is likely to intensify, shrinking profit margins on the work.

At risk are hundreds of billions of dollars of work in Australia, China, Korea, Thailand and Taiwan, including new roads, rails, ports, housing, schools and hospitals.

According to Brent Mitchell, research manager at Shaw Stockbroking in Melbourne, Australia, endless consultations by the government and fights between states over which projects should have priority is delaying projects.

'It's nice to promise these things, but actually delivering through to spending it is a different matter,' he said.

The current political instability in Thailand will hold up major projects due to start between now and 2011 by many years. 'As political uncertainties make government policies incoherent, we don't have any hope that mega projects will happen soon under a new government,' said Kavee Chukitkasem, head of research at Kasikom Securities.

In China government housing, road, rail and airport projects are under threat from the credit crunch because a portion of the money is to come from local governments, whose revenue from land sales has dropped as property prices slide, according to Wang Jun, an analyst at BOCI Securities in Shanghai.

In South Korea, analysts said falling tax revenue will have an impact on infrastructure projects. Banks are curtailing lending to builders due to worries about their financial status.

'As the home market remains weak, competition will increase for government projects and margins will fall,' said Hyo Yim, an analyst at Daiwa Institute of Research in Seoul.