EEI to bid for P5.5 billion worth of projects

MANILA, Philippines - Yuchengco-led EEI Corp. plans to bid for at least P5.5 billion worth of local and overseas construction projects to fuel its growth.

These include projects in Singapore (valued at P1.5 billion) and Papua, New Guinea worth around $50 million or P2 billion. While the awarding of these projects have been delayed, EEI said it is confident of bagging these contracts to add to its current portfolio dominated by projects in the Kingdom of Saudi Arabia (KSA).

EEI is vying for the construction of the power plant of Alsons Consolidated Resources Corp. and JG Summit’s petrochemical plant. 

Aside from these industrial projects, EEI is also looking at bidding for several building projects including Circulo Verde, the San Miguel building in Makati and Tower 2 of Beacon in Makati.

EEI said increasing opportunities for local construction is expected to compensate for the anticipated lower earnings from KSA due to the delays in project biddings.

Revenues from the KSA are estimated to range between P17 billion and P20 billion annually.

In the first quarter this year, EEI reported a 10-percent growth in net income to P172.23 million, largely due to lower provisioning for income tax. Consolidated revenues , however, fell 13 percent to P1.64 billion on lower earnings from its overseas associate and joint venture, and decreased interest income and other income.

Domestic projects completed include the 60-story twin St. Francis Shang Towers of Shang Grand Tower Corp. in Mandaluyong City and the 18-story Acacia Grove Hotel and Condominiums project of CHMI Hotels and Residences Inc. in Alabang, Muntinlupa City.

Currently under construction are Phase 2 of GA Skysuites of Globe Asiatique Realty Holdings Corp. in Quezon City, the Sunlife Financial Philippines headquarters of Sunlife of Canada in Fort Bonifacio, the Princeton Residences of SM Development Corp., the SM 2ECom Building of SM Land Inc. and the BSP Pampanga Branch of the Bangko Sentral ng Pilipinas.

Likewise, the company is undertaking the P2.84-billion joint venture project with Hanjin Heavy Industries & Construction Co. Ltd. for the construction of Berth 6 of the Manila International Container Terminal of global port operator International Container Terminal Services Inc. (ICTSI). EEI has a 30 percent  stake in the project.

EEI is also providing construction services for overseas clients in its ISO 9001-certified steel fabrication plant in Sta. Maria, Bauan, Batangas. In progress is the package for the fabrication of piperack modules for Shaw Stone Webster Asia Inc. worth $57 million for the Singapore Parallel Train (SPT) olefins recovery project at Jurong Island, Singapore being built for Exxon Mobil Chemical Asia Pacific.

Other overseas projects of the company are the Inco Goro nickel mining project in New Caledonia, involving on-site piping, electro-mechanical and structural erection of the plant; and the $12 million Qatargas 3 & 4 onshore project for GAMA Qatar Co. WLL under the Chiyoda-Technip joint venture for pipe erection works of inlet facilities covering electro-mechanical works for utilities, offsite and off-plot areas. These are expected to be completed towards the end of the current year.

The company’s total domestic backlog as of end March 2010 had a net selling price of P5.33 billion, including the backlog of subsidiaries worth P371.91 million.