EEI banks ae on infra projects to shield property from headwinds

MANILA, Philippines — Construction giant EEI Corp. expects the government’s ongoing infrastructure programs to support demand for its domestic construction services this year amid the impact of global trade tensions and the current challenges in the property sector.

EEI, one of the country’s leading construction companies, has multiple mega infrastructure projects in the pipeline, including big-ticket railway projects.

The company expects revenue growth in its construction segment to be largely driven by government infrastructure projects, to be supported by those coming from the private sector, which the company said is showing signs of recovery as previously delayed capital projects begin to resume.

Internationally, EEI said that its overseas joint venture, Al Rushaid Construction Co. Ltd. (ARCC), is shifting its focus toward shorter-term maintenance projects, which carry lower risks.

It said the ARCC team continues to be very cautious and selective in bidding for projects that would provide accretive support to the business while restructuring efforts are ongoing.

The company’s unworked portion of existing contracts as of end-2024 stood at almost P38.20 billion, which includes ARCC’s backlog of P12.51 billion.

Last March, EEI announced a change in ownership following a management buyout by its president and CEO Henry Antonio.

The management company controlled and led by Antonio has acquired RYM Business Management’s 20 percent interest in EEl.

“With this management buyout, the executive team of EEI intends to make considerable headway in transforming the business by diversifying into real estate development and power,” the company said.

EEI expects to gain considerable traction around initiating these new business ventures this year.

EEI Realty Corp., for its part, is exploring other areas in Luzon for industrial use to serve as the future business hub of the EEI Group and build up its leasing portfolio.

EEI Realty is also looking at the potential development a 16-hectare portion of the property into a residential community that is equipped with renewal energy source.

EEI Power, on its end, is eyeing to diversify its power contracting business to include design and construction of transmission lines, managed services as well as mechanical, electrical, plumbing and fire protection services in its portfolio to effectively address client needs.

EEI Power’s solar rooftop business is also expected to grow significantly this year, fueled by rising electricity costs and growing market shift toward sustainable energy.

As a power generation company, EEI Power said it is actively looking at acquiring shares from existing power plants while developing its own to fuel its growth and presence in the renewable energy space and other technologies and rebuild its power generation portfolio.