ENERGY

First Gen Corporation (First Gen) has the largest portfolio of power plants in the country that use clean, renewable, and indigenous fuels, such as steam, water, wind, solar, and natural gas. It has a diversified and flexible portfolio of assets that makes it well-positioned to address the growing demands of intermittent sources of energy as the world transitions to a fully renewable energy future. The company’s 65%-controlled Energy Development Corporation (EDC) is the largest vertically-integrated geothermal company in the world. It owns and operates 30 power plants across Luzon, Visayas, and Mindanao with 3,495.2 megawatts (MW) of installed capacity. The company has a strong track record in developing, financing, building, bidding for, and operating power generation projects that have made First Gen into a leading Independent Power Producer (IPP) in the Philippines. The company continues to forge pathways towards a decarbonized and regenerative future.     

Financial Performance

• The energy market was not spared from the economic slowdown wrought by the pandemic as the community quarantines significantly disrupted industrial activity and commercial business in the country. This led to a decline in electricity demand and subsequently to lower spot market prices during the year.
• The lower electricity demand and prices showed in First Gen’s financial performance for 2020 as the company reported lower earnings compared to 2019. The impact, however, was moderated by First Gen’s highly contracted portfolio, which is at 95% of total capacity. This tempered the company’s exposure to low and volatile spot market prices during the year.
• First Gen recorded an attributable recurring net income (RNI) of USD252.1 million, 11.4% lower than the USD284.4 million recorded in 2019. The RNI contribution decreased across all platforms as a result of lower spot market prices and lower sales volume in 2020.
• The natural gas platform reported a 5% decrease in its RNI contribution to USD184 million in 2020. This decrease can be mainly attributed to San Gabriel resulting from the incurrence of replacement power cost following the plant’s unplanned outage in September 2020, lower capacity fees during the Enhanced Community Quarantine period, and the expiration of its income tax holiday in April 2020. This was made worse by lower average selling prices and sales volume of Avion driven by lower electricity demand in 2020. The decrease was partially offset by the lower interest expenses of Santa Rita and San Lorenzo due to lower benchmark rates and higher revenues from ancillary services following the approval of Avion’s Ancillary Services Procurement Agreement (ASPA) contract with the National Grid Corporation of the Philippines (NGCP) in May 2020.
• The hydro platform recorded an RNI contribution of USD1.4 million in 2020, 90% lower than the USD13.5 million in 2019. This is attributed to lower spot market prices during the year, lower dam elevation, and lower irrigation requirements in the Pantabangan and Masiway reservoirs from the National Irrigation Administration, affecting plant generation. This decrease was partially offset by the commencement of FG Hydro’s 100-MW Power Supply Agreement (PSA) with Meralco and higher ancillary services revenues on account of higher sales volume and average selling price.
• EDC’s geothermal, wind, and solar platforms reported an RNI contribution of USD89.6 million in 2020, 8% lower than the USD97.8 million in 2019. The decrease is due to lower spot market prices and lower generation from its geothermal assets. The decrease was partly offset by higher revenues from Burgos Wind and Burgos Solar as a result of the feed- in tariff (FiT) rate escalation for 2016 to 2020 following ERC’s approval in December 2020.
• First Gen benefited from its deleveraging program, allowing the company to maintain healthy cash buffers during the pandemic. This has given the company ample liquidity and room to raise funding for its growth projects. As of December 2020, First Gen’s consolidated debt was reduced to USD1.9 billion from USD2.9 billion as of December 2015.

Key Highlights

Natural Gas

• During the Taal volcanic eruption and throughout the pandemic, First Gen’s natural gas plants continued to provide power to the grid. The Santa Rita and San Lorenzo plants continued to operate with a combined availability factor of 93% and a combined reliability factor of 97%.
• In June 2020, Avion was able to fully operationalize its ASPA with the NGCP. Under the contract, both of Avion’s units will provide ancillary services to the grid— one unit on a firm basis, while the other unit on a non-firm basis. This effectively reduces the plant’s merchant exposure while providing crucial reserves to the grid.
• Despite the challenges posed by the pandemic, First Gen achieved significant milestones in its Interim Offshore Terminal (IOT) project.
  • The company received the Permit to Construct, Expand, Rehabilitate, and Modify (PCERM) from the Department of Energy (DOE) for the project in September 2020. - The engineering, procurement, and construction (EPC) contract for the project was awarded to McConnell Dowell.
  • Moreover, First Gen entered into a Joint Cooperation Agreement (JCA) with Tokyo Gas in October 2020, allowing the two companies to jointly pursue the design, development, testing, commissioning, construction, ownership and operations, and maintenance of the IOT project.

Upon completion, the IOT project will allow First Gen to introduce liquefied natural gas (LNG) to the Philippines as early as the third quarter of 2022.

Geothermal 

• EDC continued to reap the benefits of its resiliency projects. In November 2020, the country was hit by three successive typhoons—Typhoons Quinta, Rolly, and Ulysses. The Bacon-Manito (BacMan) geothermal plant felt the onslaught of the typhoons. However, due to the structural improvements made in BacMan, it sustained only minor damage and was immediately able to get back to operations that provided much-needed energy after its pre-emptive eight-day shutdown.
• EDC’s geothermal expansion is well underway. Construction for the 29-MW Palayan Bayan binary plant, which is located within the concession of the BacMan geothermal project, started last November 2020. The project is scheduled to be completed in 2022. Once completed, the project will boost the power generation capacity of the BacMan geothermal project. Meanwhile, the 3.6-MW Mindanao 3 binary plant, located within the concession of the Mt. Apo geothermal project, is scheduled to complete construction by the first quarter of 2022.

Hydro 

• Despite mobility restrictions and delays brought by the COVID-19 pandemic, FG Hydro made some key progress in the development of the 120-MW Aya Pumped-Storage Project located in Pantabangan, Nueva Ecija. FG Hydro was able to progress with its Environmental Impact Study and securing key permits such as the Board of Investments registration and the Certificate of Non-Overlap from the National Commission on Indigenous Peoples (NCIP). Once completed, the project will enable FG Hydro to provide energy during peak periods and storing energy during off-peak periods.

Wind and Solar

• In July 2020, the Energy Regulatory Commission (ERC) approved the FiT rate adjustments for the years 2016 to 2020. This is the first adjustment since the start of the FiT program and has since benefited the Burgos Wind and Burgos Solar projects. Today, the Burgos Wind rate has been adjusted from PHP8.53/kilowatt-hour (kWh) to PHP9.8976/kWh, Burgos Solar 1 rate has been adjusted from PHP9.68/kWh to PHP11.2758/kWh, and Burgos Solar 2 from PHP8.69/kWh to PHP9.8248/kWh.
• First Gen’s clean and renewable energy plants have avoided the release of 13.6 million tons of greenhouse gas emissions (tCO2e), equivalent to removing approximately 2.9 million passenger vehicles driven for one year.

Looking Ahead

• With the continued expansion of power demand and further development of energy markets, First Gen continues to work on the development of the Santa Maria power plant, which will add approximately 1,200 MW of capacity to the portfolio, in conjunction with its efforts to develop the LNG terminal. Once completed, the project is expected to provide additional flexible and efficient gas capacity for the country, suited for the needs of the grid, especially as the country increases its dependence on intermittent renewable energy sources.
• First Gen is also ramping up efforts given the accelerating developments in Retail Competition and Open Access (RCOA) and in anticipation of the Green Energy Option Program (GEOP). In doing so, the company will be able to give more consumers and companies the ability to choose cleaner sources of power. In fact, First Gen’s retail electricity supplier (RES) subsidiaries, First Gen Energy Solutions, Inc. and Bacman Geothermal, Inc., were the first two companies to be granted an operating permit for GEOP by the DOE in October 2020, making the company ready to capture the market when the program opens.

Residential and Commercial Real Estate

Rockwell Land Corporation (Rockwell Land) is a pioneer in developing master-planned residential and commercial communities where residences, workspaces, and lifestyle hubs are integrated. Each development is carefully planned with the company’s signature innovation, exclusivity, and quality. Rockwell Land continues to bring its brand of luxury lifestyle to more key cities outside of Metro Manila.

Financial Performance

• In 2020, Rockwell Land posted a net income of PHP1.3 billion, a 56.7% decrease from the previous year’s PHP3.0 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA), likewise, dropped to PHP3.9 billion in 2020 from PHP6.0 billion in 2019. Meanwhile, total revenues for the year reached PHP10.7 billion. Financial performance was highly impacted by lower retail and hotel revenues due to lockdown- related restrictions and lack of mobility. Slower sales velocity and project completions also heavily impacted Rockwell Land’s performance.
• Demand for Rockwell Land developments slowed down in 2020, with reservation sales amounting to PHP6.7 billion.
• Rockwell Land’s operations were limited by the imposed lockdowns to curb the spread of the COVID-19 pandemic, impacting the company’s financial performance in the second quarter of the year. However, as the government eased lockdown restrictions, signs pointed towards recovery — an increase in reservation sales, mall traffic, and higher tenant sales.

Key Highlights

• Rockwell Land launched three residential projects in 2020, namely: Aruga Mactan Villas in Cebu, East Bay Larsen in Muntinlupa City, and 8 Benitez Suites in Quezon City.
• Three residential projects were likewise completed in 2020, namely: the Lorraine Tower of The Proscenium and Edades Suites, both at Rockwell, and Stonewell Acacia in Batangas. Meanwhile, Rockwell Land started turning over units in Edades Suites, Vantage West, and Terreno South Phase 1.
• Rockwell Land further expanded its landbank in 2020. Through a joint partnership with TGN Realty, Rockwell Land added 3.6 hectares for Rockwell North in Pampanga, thereby establishing its brand presence in the north.
• The COVID-19 pandemic and its resulting community quarantine measures affected Rockwell Land’s business as restrictions limited movements and slowed down foot traffic in its commercial developments. However, foot traffic started to pick up during the second half of the year due to the easing of quarantine restrictions. Rental concessions were also given to aid mall tenants during this difficult time.
• The lockdowns also resulted in some construction delays, affecting the target completion of certain projects. To compensate for these delays, Rockwell Land enforced catch-up plans to meet its commitments to stakeholders. Beyond just pushing for faster completion of its construction projects, Rockwell Land also improved its digital footprint to better cater to residential sales inquiries and the community’s needs.
• In 2020, the occupancy rate of office spaces remained at 99%, similar to the previous year. However, the average occupancy rate of retail spaces fell to 66% in 2020 from 94% in 2019, a result of the pandemic’s effect on retail businesses.
• As of 2020, a total of 11 out of 20 Rockwell properties are now powered by renewable energy, continuing the company’s environmental efforts. Of Rockwell Land’s total electricity consumption, 77% was sourced from renewable energy.

Looking Ahead

To rebound from the effects of the ongoing COVID-19 pandemic, Rockwell Land will improve its revenues and net income through its exciting product launches and by continuing to expand its brand presence in emerging cities. Due to the effects of the pandemic, there has also been an increased interest in horizontal developments in emerging cities. Moving forward, Rockwell Land will continue to provide diversified property options for its clients.

Industrial Real Estate

First Philippine Industrial Park (FPIP) is one of the fastest-growing contiguous industrial parks in the country and the preferred location of the world’s largest companies. FPIP remains true to its vision of advancing national development and job creation by catalyzing industrial growth, working with its more than 140 locators to generate almost 65,000 jobs.

Financial Performance

• The year started with the Taal volcano eruption in January, followed by the COVID-19 pandemic in March, which continues to this day. Several earthquakes and typhoons hit the Batangas area as well, making 2020 a challenging year for FPIP. Its revenues decreased slightly by 2.2%, to PHP677 million in 2020 from PHP692 million in 2019. The company’s revenues were affected by lower water volume sold and lower hotel revenues. Water revenues decreased by PHP11 million from 2019’s PHP178 million, attributable to the period during March to June when the locators’ operations were most affected by the enhanced community quarantine (ECQ). On the other hand, hotel revenues were lower by PHP19 million from 2019’s PHP35 million. Because of the pandemic’s impact on the hotel and tourism industry, 2020 saw a lower average occupancy rate of 34% versus the previous year’s 63%. Due to lower revenues, FPIP recorded a net income of PHP116 million in 2020, a 32.6% decrease from PHP172 million in 2019. In addition to the revenue shortfall, there were no land sales in 2020. In 2019, FPIP completed the sale of land to Komatsu, which contributed an additional PHP29 million in revenues and PHP19 million in net income that year.
• FPIP’s net income after tax reached PhP172 million in 2019, an 11% growth from PhP155 million in 2018, which is primarily driven by higher recurring revenues from leasing ready-built factories (RBF) and higher park charges from its new RBF locators. FPIP’s recurring revenues reached PhP687 million, up from PhP614 million in 2018. A new land lease with machine manufacturer Komatsu helped increase FPIP’s earnings in 2019. 

Key Highlights

• Despite the challenges brought about by the Taal eruption, numerous typhoons, earthquakes, and the ongoing pandemic, the park has remained operational, with on-ground operations teams on hand to assist locators, without a single day of downtime. FPIP put in place comprehensive FPIP-locator communications plans, business continuity plans, stringent health and safety protocols, and crisis management briefings as further support to its locators throughout the year, helping keep operations running, businesses afloat, and employees safe. This response allowed locator operations to generally stabilize and approximate pre-pandemic levels in terms of the number of operational locators, employee attendance, and employee headcount.
• In 2020, FPIP and First Industrial Township (FIT) was home to 143 locators. These locators generated a total of 64,710 jobs, approximating the number of jobs recorded in 2019. FPIP welcomed Hi-P International Limited, a Singapore- based electro-mechanical solutions provider that manufactures and assembles home and personal care devices, as a new locator in 2020. Occupying an estimated 23,000 square meters (sqm) of factory space, Hi-P is expected to further enhance the industrial ecosystem within the park, all while contributing towards export revenues and creating potentially thousands of jobs for Filipinos.
• Two new clusters of ready-built factories (RBF) were completed in 2020. Close to 30,000 sqm of leasable warehouse and factory space was added, bringing FPIP’s total lease space of its RBFs to almost 140,000 sqm. This additional space provides both new and existing locators much-needed room to expand their operations, secure their supply chains during and after the pandemic, and adjust their manufacturing processes under “new normal” conditions.
• Despite the pandemic, demand for leasable factory and warehouse space continued to be robust. RBF X, with a total area of roughly 25,000 sqm, was already fully leased out before its completion, bringing FPIP’s 2020 RBF average occupancy rate to about 92%.
• FPIP also completed key infrastructure projects in 2020. This includes the Iconic Bridge and Phase 1 of the Consuelo R. Lopez Park, FPIP’s first recreational area. Other infrastructure projects, such as the planned workers’ dormitory, retail hub, and expansion area of the Consuelo R. Lopez Park, all remain on track in terms of development.
• In line with FPH’s new mission statement, FPIP recalibrated its purpose to building resilient, robust, and regenerative job-centered communities. To reach this goal, FPIP partnered with Singapore- based urban planning authority Surbana Jurong in completing its Conceptual Masterplan Report in January 2020 for the township community project. As part of the next steps, the company has started to work with leading local urban master planning experts toward localizing and further refining the conceptual masterplan, including the creation of micro-districts within the existing park. These micro-districts will host several industrial and commercial facilities catering to both locators and their employees. These facilities include public, open, and retail spaces intended to foster community collaboration, and dormitory housing intended to enhance livability for workers, in-transit trainees, and students.
• Throughout the continuous community quarantine periods, FPIP remained fully operational, with on- ground operational teams to ensure the same level of park management and utilities support available to locators. FPIP has extended help to locators to ensure businesses were kept afloat and workers protected. The assistance included seminars on the pandemic response, managing workers, and locator site inspections to make sure workspaces comply with IATF, DOH, and DOLE requirements.
• On December 10, 2020, the Philippine Economic Zone Authority (PEZA) awarded FPIP the Green, Healthy, Smart, and Sustainable Ecozone Award for its “notable commitment to promoting healthy industrialization and sustainably designed, smart, and green economic zones.” FPIP was one of only two ecozones to receive this award.

Looking Ahead

• Despite the challenges brought about by the COVID-19 pandemic, FPIP remains on track with its transformation from a world-class industrial park to a regenerative, resilient, and robust job-centered community. FPIP continues to cater to demand from companies considering the Philippines as a manufacturing hub, all while simultaneously expanding its locator base by catering to technology-driven high value-adding industries, as well as expanded back-end or shared service operations.
• To help recover from the effects of the COVID-19 pandemic, FPIP’s reboot plan is the company’s roadmap towards survival, recovery, and growth. It summarizes the FPIP’s key initiatives which aim to accomplish four priority objectives, namely:
  1. keeping FPIP and locator businesses afloat and safe;
  2. strengthening recurring revenue streams, controlling expenses, and ensuring sufficient working capital;
  3. laying the groundwork for recovery and growth by enhancing the industrial and commercial base; and
  4. strengthening organizational capability and capacity.
• FPIP will focus on strengthening its core businesses of industrial land sales and leasing, and park management and utilities, all while building on its commercial property business line and laying the groundwork for consumer business and township-building. FPIP will likewise simultaneously work towards addressing the needs of its fast-growing workforce by enhancing work-life quality in and around the park, providing options that allow for dignified livelihood, as well as thoughtful living and recreational spaces that help build communities within FPIP. By helping strengthen employee recruitment and retention, such initiatives will allow FPIP to further grow its demographic base while simultaneously enhancing both the industrial and commercial core businesses.

By doing so, FPIP will see the enhancement of its recurring revenue streams from the current industrial business unit, as well as incremental revenues from its emerging business lines.

The underlying foundation for FPIP’s expansion and transformation plans remains firmly rooted in its desire to help grow businesses and industries, creating more jobs and uplifting the lives of many Filipinos.

Manufacturing

First Philec, Inc, (FPI) is the pioneer and leader in electrical transformer solutions in the Philippines. With over 50 years of experience, First Philec has been a trusted name in distribution transformers. Currently, FPI is the preferred provider of local power distribution utilities and electrical cooperatives, supplying nearly 60% of the nation’s distribution transformer needs. 

Financial Performance

• FPI closed 2020 with PHP1.9 billion in revenues, a 20.8% decrease from the PHP2.4 billion recorded in 2019. This decrease was primarily driven by a decline in sales to commercial and industrial customers brought about by the COVID-19 pandemic, with its resulting community quarantines restricting mobility.
• Similarly, FPI’s recurring net income declined by 27.0% to PHP358.1 million in 2020 from PHP490.6 million in 2019. This decline is primarily due to higher operating expenses, mainly driven by an increase in manpower costs on other benefits and incentives, and investments in process digitization efforts.

Key Highlights

• Even though pandemic-related lockdowns impacted FPI’s customers, the market remained intact. In 2020, FPI secured a three-year partnership with Meralco, a major customer, in the largest and longest award for pole-type transformers in the industry.
• The enhanced community quarantine (ECQ) brought on by the COVID-19 pandemic temporarily halted FPI’s operations from mid-March until the end of April. FPI had a cautious start in May, gradually reaching up to 80% of its operations in June and then back to full operations by July. All backlogs were recovered by mid-September, and no issues were encountered in acquiring orders from customers.
• Despite challenges posed by the pandemic, FPI secured new customers in 2020. FPI signed Cebu III Electric Cooperative (CEBECO III) and Quirino Electric Cooperative (QUIRELCO) as new electric cooperative customers. Further, FPI also added 35 new customers to its property, commercial, and industrial (PCI) segment, including DMCI, Modern Asia Hotel, and Philippine Hattori Construction. With the addition of these distribution utilities, commercial, and industrial customers, FPI now serves more than 350 customers.
• FPI continues to innovate to produce quality products that use the most advanced materials and processes, ensuring consistent value for clients and users. The high-efficiency transformers offered by FPI are aligned with the conglomerate- wide mission towards decarbonization. An average 50-kilovolt-ampere (kVa) amorphous transformer is 100 watts lower on “no-load- loss” versus a traditional silicon design, saving 867 kilowatt-hours (kWh) per year on power avoidance. This is equivalent to about 36.5 trees in terms in terms of absorption of CO2.
• In 2020, FPI accelerated the timely rollout of its Distribution Transformer Monitoring System (DTMS). The system can be retrofitted to existing transformers, allowing FPI to remotely collect real-time data on the performance of its products. The rollout of the DTMS was crucial to help customers adapt during the community quarantine, as energy demand quickly shifted from industrial and commercial to residential.

Looking Ahead

• Staying abreast of global megatrends and shifts in needs of the electric utility industry, FPI will continue to provide products and services of quality, efficiency, reliability, and relevance to its customers. This includes designing products in consideration of climate change, ensuing shifts in weather conditions, and increasing penetration of renewables in our energy system.
• FPI is poised to launch its 100% recyclable/ biodegradable transformer by the end of 2021, making it the country’s first green transformer. With longer transformer life and a remanufacture strategy, this will translate to lesser energy usage by avoiding the production of new materials to create transformers. Less waste will also go to the environment. With a 100% recyclable/ biodegradable transformer, FPI will further reduce its environmental impact.

Construction

With over 50 years of quality construction experience, First Balfour, Inc. (First Balfour) participates in nation-building by delivering world- class engineering and construction services to the sectors of energy, utilities, transport, and high-value buildings. A Quadruple A contractor, First Balfour has also diversified its businesses to include distinct capabilities in geothermal well drilling and equipment rentals through its wholly-owned subsidiary, ThermaPrime Drilling Corporation, and its Plant and Equipment Division, T1 Rentals, respectively. 

Financial Performance 

• First Balfour recorded a consolidated revenue of PHP6.5 billion in 2020, a slight decrease from 2019.
• The bottom line significantly declined with an 83.4% drop in Net Income After Tax (NIAT) from PHP290 million in 2019 to PHP48 million in 2020. Work disruptions resulting from community quarantines due to the COVID-19 pandemic mainly drove this decrease. This amount includes COVID-19 and ECQ-related expenses but, despite these financial challenges, First Balfour continued to support its employees through the payment of their salaries and benefits and the provision of financial assistance to its daily wage earners.
• Despite the challenges in the continuity of its operations, First Balfour’s order generation almost doubled from PHP2.7 billion in 2019 to PHP5.2 billion in 2020, enabled by the company’s continued customer engagement and dynamic tender team arrangements. Moreover, order backlog by year-end stood at PHP9.6 billion, a 3.2% increase from the PHP9.3 billion recorded in 2019. First Balfour is well-positioned for sustained growth as it continues to bid for power and energy, transport infrastructure, water infrastructure, and specialized building projects.

Key Highlights

• Impacted by the COVID-19 pandemic and the imposition of lockdowns, construction activities on two complex projects — the Cebu-Cordova Link Expressway (CCLEX) Project in the Visayas and the Novaliches-Balara Aqueduct 4 (NBAQ4) Project in Luzon — were shut down for several weeks beginning March. Despite these challenges, First Balfour and its joint venture partners maintained skeletal crews who continued work until activities had returned close to normal by the third quarter of 2020. Once operations fully resumed, strict protocols and health measures were put in place to protect each project’s workforce while continuing to deliver service to clients.
• The completion of the CCLEX, project which aims to ease traffic congestion between Mactan and Cebu, is now more than 60%. Six of 14 stay cables in each side of the main bridge’s towers have already been installed. As the remainder of the project continues to progress well, the Cebu Link Joint Venture anticipates the project to be completed in April 2022. Once completed, the 8.5-kilometer toll expressway, which connects mainland Cebu from Cebu City to Cordova in Mactan Island, will be the longest bridgeway structure in the country.
• Project completion of the NBAQ4, which aims to deliver bulk water from the La Mesa Dam to Balara in Quezon City, is at 70%. Tunnel excavation has passed the 4-kilometer mark and is expected to be completed in June 2021, allowing tunnel breakthrough in the third quarter of 2021. Once completed and commissioned, the new aqueduct will be capable of delivering 1,000 million liters per day (MLD) to treatment plants, ensuring the reliability and security of its raw water transmission system.
• Through First Balfour’s record of delivering quality service that meets customer expectations, the company has repeat orders from EDC. This includes various maintenance works worth PHP820 million. Aside from these, EDC also awarded First Balfour the engineering, procurement, and construction (EPC) contract for the 23-MW Palayan Binary Geothermal Power Plant in Manito, Albay. EDC also awarded the second phase of its Bilateral Steam Exchange project in Leyte, a new 11-kilometer pipeline network which will optimize the use of steam to improve plant efficiency.
• In the specialized building sector, First Balfour won the design-and-build package of two Shelter-in-Place facilities for the LNG terminal project of First Gen in Batangas City and the site development works package for a new 50,000-square-meter manufacturing of D&L Industries.
• In the water infrastructure sector, First Balfour and its new joint venture partner Tedagua secured the EPC contract for Manila Water’s PHP2.7- billion East Bay Phase 1 water treatment plant project in Pakil, Laguna. The joint venture will work on the design and construction of a 50-MLD water treatment plant, which will sustain water supply and prevent shortages in response to the region’s increasing water demand.

Looking Ahead

• First Balfour is well-positioned for growth as it continues to bid for projects in its core markets, which include power and energy, water infrastructure, transport infrastructure, and high-value buildings. The company’s equipment rental business, T1 Rentals, is also ready to take advantage of opportunities given the increased activity in the Philippine infrastructure sector.
• The company is also gearing to address various opportunities and trends impacting the construction industry. Due to First Balfour’s solid track record, the company is ready to address the opportunity of increasing demand for infrastructure in the country, especially with the government likewise increasing its budget for infrastructure. This increasing demand is also driven by the steadily growing population and urbanization. On the other hand, building infrastructure needed to mitigate the extreme effects of the climate crisis should be in First Balfour’s niche, which includes capabilities for projects creating water supply resiliency.