FPH Business Segments

First Gen Corporation (First Gen) has the largest portfolio of power plants in the country that uses clean and renewable 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 for clean and reliable power as the world transitions to a fully renewable energy future. The company’s 65%-controlled Energy Development Corporation (EDC) is the largest integrated geothermal company in the world. First Gen owns and operates 30 power plants strategically located in all three main island grids of the Philippines with 3,495.2 megawatts (MW) of installed capacity.

Financial Performance

•  First Gen’s revenues rose to USD2.2 billion in 2021, an 18.4% increase from the USD1.8 billion recorded in 2020. The increase was mainly due to increased power demand as the country emerged from the first year of the pandemic and favorable market prices. This was likewise supplemented by higher fuel revenues.

•  First Gen reported an attributable recurring net income (RNI) of USD252.4 million in 2021, which remained relatively flat from 2020. Numerous baseload plants on the grid experienced extended outages in 2021, leading to higher spot market prices. The gains from the increased demand and higher prices were offset by replacement power costs during planned and unplanned outages experienced by First Gen’s plants in 2021.

•  The Avion plant reported stronger income contribution in 2021 on the back of higher electricity sales generated from its Ancillary Services Procurement Agreement (ASPA) with the National Grid Corporation of the Philippines (NGCP). Santa Rita registered increased earnings in 2021 following the reduced finance costs resulting from the lower interest rates and average loan balance supplemented by the lower current income tax expenses resulting from the reduction of corporate income tax rates under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. 

•  Despite top-line growth resulting from higher average spot market prices coupled with lower finance charges and current income tax, EDC still reported a decline in earnings primarily caused by higher replacement power costs incurred due to steam supply issues and unplanned outages encountered during the year.

•  EDC raised PHP5.0 billion in the first tranche of its ASEAN Green Bond issuance in June 2021. This was the first ASEAN green bond offered by a local power company registered with the Securities and Exchange Commission (SEC). By investing in the ASEAN Green Bonds, the public can support and participate in the financing of  renewable energy projects. The green bonds will help EDC support the implementation of its growth projects, as well as fund its maintenance capital expenditure projects.

•  On October 11, 2021, global private equity investment firm KKR, through Philippines Clean Energy Holding, Inc., further acquired 7.3% of First Gen’s outstanding common shares from a successful voluntary offer that began on September 1, 2021. The offer was a 17.0% premium to the last closing price on August 26, 2021, at PHP28.30 per share and a 12.0% premium to the three-month volume-weighted average price. As of end-2021, KKR owns and holds approximately 19.9% of First Gen’s outstanding common shares. This additional investment is a testament to the confidence that KKR has in the future of the country, of First Gen, the capability of its management, and its strategic choices.

Key Highlights

NATURAL GAS

• Gas supply restrictions continued in 2021 due to the decline in the output of the Malampaya gas field. Three out of First Gen’s four natural gas plants had to shift to liquid fuel during these restrictions to continue to generate the power needed by the grid. Despite this, the Avion plant more than doubled its generation from 127.8-gigawatt hours (GWh) in 2020 to 329.4GWh in the first full year of its ASPA with the NGCP.

• First Gen, through its subsidiary FGEN LNG Corporation (FGEN LNG), is constructing an Interim Offshore Liquefied Natural Gas (LNG) Terminal to be located within the First Gen Clean Energy Complex (FGCEC) in Batangas. Expected to be completed in the fourth quarter of 2022, the FGEN LNG Receiving Terminal will provide the gas-fired power plants with LNG storage and regasification services.

  The project construction is well underway, consisting of construction works necessary to modify the existing jetty that will enable it to become a multi-purpose jetty and build an adjunct onshore gas receiving facility.

  First Gen has partnered with Tokyo Gas of Japan, which has a 20% stake, in the initial phase of the project that has been declared by the Energy Investment Coordinating Council of the Department of Energy (DOE), as an “Energy Project of National Significance.”

  On April 5, 2021, FGEN LNG executed a five-year Time Charter Party with BW FSRU IV Pte Ltd, a wholly-owned subsidiary of BW Gas Limited, for the charter of BW Paris, a Floating Storage Regasification Unit (FSRU).

  The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates. An FSRU is a Liquefied Natural Gas Carrier (LNGC) capable of storing LNG. It also has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.

  In addition to providing storage and regasification services, the BW Paris can provide ancillary services, such as the reloading of LNG into trucks and small-scale LNG vessels, which can then distribute LNG to nearby industrial areas as well as the rest of the Philippine archipelago.

  FGEN LNG believes the project will play a critical role in ensuring the country’s energy security.

GEOTHERMAL

• EDC broke ground on the 29-MW Palayan Binary Project last January 2021. The 3.6-MW Mindanao 3 Binary Project started its site works on March 3, 2021. These binary projects use geothermal fluids from the main plant to heat a secondary fluid. It is a closedloop system with no associated emissions, such as carbon dioxide. The Palayan Binary Project is located within the concession of the BacMan geothermal project, and the Mindanao 3 Binary Project is located within the concession of the Mt. Apo geothermal project.
• EDC’s geothermal plants in Leyte experienced steam issues and outages, which the shortfall caused by Typhoon Odette in December further exacerbated. Meanwhile, the geothermal plants in Negros and Bicol also had lower generation due to planned and unplanned outages. The Mt. Apo geothermal plant underwent preventive maintenance activities and encountered reinjection capacity issues.
• EDC is further expanding its geothermal portfolio. The 20-MW Tanawon geothermal power plant, which will also be located within the BacMan concession, received the Sorsogon City’s endorsement for project approval last December 9, 2021.

HYDRO

• Higher water elevation at the Pantabangan reservoir in 2021 enabled the Pantabangan and Masiway hydroelectric power plants to generate more electricity and offer ancillary services. Meanwhile, FG Bukidnon experienced a higher inflow in 2021, resulting in higher output than the last two El Niño years in 2019 and 2020.
• FG Hydro is completing its pre-works in preparation for the construction of the 120-MW Aya pumped-storage project in Pantabangan, Nueva Ecija. Once completed, the project will enable FG Hydro to provide energy during peak periods and storing energy off-peak periods.

WIND AND SOLAR

• Burgos Wind posted higher generation output due to stronger winds, an effect of the La Niña event that started in 2021.

Looking Forward

• With the continued growth of the country’s power demand, the development of the Santa Maria power plant is underway. The plant will add approximately 1,200MW of capacity to First Gen’s portfolio, in conjunction with the efforts to complete the LNG terminal. Construction of the plant is expected to begin at the end of 2022.

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

Financial Performance

• FPI’s revenues increased by 36.8%, from PHP1.9 billion in 2020 to PHP2.6 billion in 2021. This increase was mainly driven by Meralco, due to higher demand in amorphous distribution transformers for the uprating and replacing of its overloaded transformers.
• FPI registered a net income of PHP495.2 million in 2021. The 50.4% increase from PHP329.2 million in 2020 was mainly due to the company’s recovery from the effects of the COVID-19 pandemic. A lower income tax rate from 30% to 25% due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act contributed to improved income.

Key Highlights

• Despite the ongoing COVID-19 pandemic, FPI received an all-time high for the orders in 2021 due to the surge in demand for small- to medium-sized transformers of up to 75 kilovolt-amperes (kVa) for residential use. The high demand for poletype transformers is also expected to be consistent through 2022. As a result of the growth in orders, FPI’s overall market share increased in 2021.
• FPI contributes to FPH’s mission of a decarbonized and regenerative future and continues to innovate. In 2021, FPI launched the super green transformer, the first of its kind in the country. The super green transformer is made with 100% recyclable and biodegradable materials and runs on ester, a vegetable-based and non-polluting oil product from sustainably sourced and grown crop seeds. The super green transformer not only allows customers to reduce their carbon footprint but also offers the highest efficiency in its class with extended product life. An average 50-kVa amorphous transformer delivered to a customer is 100 watts lower on “noload loss” versus a traditional silicon design, saving 876 kilowatt hours (kWh) per year on power avoidance equivalent to 36.5 trees of CO2 emissions absorption.
• FPI expanded its property, commercial, and industrial customer base with 37 new additions in 2021, including Rockwell MFA Corporation, MSpectrum, Inc., Avida Land Corporation, Hyperdulia Consultancy Incorporated, and Ionics Properties, Inc.
• FPI successfully mitigated potential supply chain issues (e.g., raw material scarcity, limited shipping vessels, and several port lockdowns) in 2021 and had zero interruptions in the plant.
• To reduce its greenhouse gas emissions, FPI transitioned to renewable energy sources. In 2021, FPI made the to switch to geothermal power and commissioned a 300-kW solar roofing, which helped avoid the release of 808.6tCO2e. This is equivalent to planting 13,342 trees.

Looking Ahead

• FPI will continuously innovate to provide products and services of quality, efficiency, reliability, and relevance to customers. The increasing penetration of distributed energy resources, such as solar, the possible proliferation of electric vehicles requiring fast charging systems, and the increase of temperatures caused by climate change all put stress on the distribution grid. FPI will strive to design products considering these factors.
• The shift to the Internet of Things and Smart Cities poses opportunities for FPI to deliver its digital solutions to its customers and stakeholders. FPI continues to develop its business model that will support its plans by providing smart and green solutions for the grid of the future.
• Beyond just investing in product innovations, FPI will be expanding its manufacturing capability. FPI is expected to start the construction of its new facility in 2022.

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 Metro Manila.

Financial Performance

• In 2021, Rockwell Land recorded a net income of PHP2.2 billion, a 69.2% increase from the previous year’s PHP1.3 billion, mainly due to higher sales and construction accomplishments. The impact of the CREATE bill also contributed to this increase.
• Total revenues for the year reached PHP12.3 billion, up 15.0% from PHP10.7 billion in 2020. Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to PHP4.4 billion in 2021.
• Demand for Rockwell Land developments soared in 2021, with reservation sales amounting to PHP13.5 billion. This is an 84.9% increase from PHP7.3 billion in the previous year. Reservation sales from new launches contributed around 55% of Rockwell Land’s net reservation sales in 2021.

Key Highlights

• Rockwell Land completed Terreno South Phases 1 and 2, located in Lipa, Batangas, last December 2021.
• In 2021, Rockwell Land launched the most projects in a year. These include 1 Proscenium, The Balmori Suites, Aruga Mactan Villas Phase 2, Terreno South Phase 3, The Arton East, Rockwell South Cluster 3, and The Manansala at Rockwell Center Nepo in Angeles, Pampanga, Rockwell Land’s first project in the North.
• Occupancy in Rockwell Land’s office developments dipped slightly to 96% in 2021 from 97% in 2020 due to some preterminations, while rental rates improved due to secured escalations from renewed tenants. Meanwhile, retail occupancy improved in 2021 to 76% from 66% in 2020. This resulted from lockdowns in 2021 being less severe than those in 2020, allowing tenants to continue operations, while rental rates for retail spaces improved on the back of better sales year-over-year.
• Due to the ongoing COVID-19 pandemic and changing quarantine and alert levels in the country, Rockwell Land had to adapt to these changes quickly. The pandemic continued to limit onsite sales and property viewing. Rockwell Land managed sales through digital platforms and tapped the international market through the US roadshow. Al fresco dining was introduced for the retail sector with Rockwell Streetside. The retail business started to strengthen its digital presence through Rockwell on Demand and shop.therockwellist.com.
• Rockwell Land contributed to the government’s COVID-19 vaccination drive in 2021. Around 15,000 individuals were vaccinated through the vaccination program at The Fifth in partnership with FPH and the Makati LGU.
• In 2021, the company acquired a property near Rockwell Center Makati. Meanwhile, Rockwell Land entered into a joint venture to develop a property in Cebu. These developments add 3.3 hectares of new landbank.

Looking Ahead

• Rockwell Land is preparing to launch four projects in 2022, namely, The Cabrera at Rockwell Center Nepo, Terreno South Phase 4, Rockwell Center Bacolod Residential Lots, and a high-end condominium in the recently acquired property near Rockwell Center Makati.
• Interest in horizontal developments and developments within emerging cities will continue. Hence, Rockwell Land will continue to offer more horizontal projects with Terreno South Phase 4 and the residential lots in Rockwell Center Bacolod.
• In 2022, Rockwell Land aims to integrate sustainability and adapt to new market preferences to future-proof the business.

First Philippine Industrial Park (FPIP) is one of the fastest-growing contiguous industrial parks in the country and the preferred manufacturing location of the world’s largest and most respected companies. FPIP remains true to its vision of advancing national development and job creation by catalyzing industrial growth, working with 147 locators to generate almost 70,000 jobs.

Financial Performance

• In 2021, FPIP recorded a 17.3% increase in its recurring revenues to PHP792.3 million from PHP675.5 million. Revenues from the readybuilt factories (RBF) and water businesses accounted for about 74.7% of the company’s recurring revenues.
• On the strength of higher revenues and other earnings, FPIP closed 2021 with PHP123.8 million in net income, a 10.5% increase from the PHP113.5 million recorded in 2020. This increase is despite higher operating expenses and interest expenses incurred during the year. In what would have been another difficult year for FPIP in terms of financial performance, FPIP still ended 2021 with robust financial results, essentially meeting its 2021 net income target of PHP126.4 million.
• FPIP added new RBF locators in 2021, which contributed to the company’s financial performance, while the water business benefited from a 7.5% volume growth driven by an increase in consumption from existing locators. However, hotel revenues dropped by PHP1.8 million from 2020’s PHP15.7 million. This decrease was mainly due to the ongoing pandemic’s impact on the hotel industry, where FPIP saw a lower average occupancy rate of 18.6% in 2021 versus the previous year’s 34.3%.

Key Highlights

• As part of its ongoing plans to transform from an industrial park to a manufacturingcentered community, FPIP completed key infrastructure projects in 2021 aimed at elevating the overall experience of locator employees. FPIP officially opened Phase 1 of the new Consuelo Park, FPIP’s first green park that offers abundant foliage, an amphitheater, bike and jogging trails, and a koi pond aimed at providing recreational areas for locator employees’ use. Additionally, FPIP developed its first locator employee dormitory, the Consuelo Park Residences, which will start operations in the first quarter of 2022. The dormitory aims to enhance work-life quality in and around the park.
• FPIP welcomed five new locators in 2021, bringing the total number of locators to 147. These new locators include Energy Development Corporation, Sankyo Machine, Nippon Express, ZE Electronics, and Rubia Bike Shop. Through these new locators, FPIP increased the total number of jobs generated from about 65,000 in 2020 to close to 70,000 in 2021. Additionally, FPIP added 12,408sqm of RBF space in 2021, bringing the total RBF lease area to over 152,000sqm.
• FPIP also completed other key infrastructure projects in 2021, supporting its locators’ operations to aid their growth and expansion plans. These projects include: 1) the Industrial Water Line stub-out for Ibiden Philippines to build additional supply for FPIP’s biggest customer for its water business; 2) the completion of the 115-kilovolt (kV) underground interconnection line from Meralco substation to Murata to upgrade the locator’s power connection; and 3) support for various locators’ expansion plans including Factories 1 to 4 for Shing-Hung Plastics, factory expansion for NBC Philippines Car Technology Corporation, and Water Treatment Plant #6 expansion for Ibiden Philippines. As a result, FPIP was one of the top-ranking PEZA-accredited industrial parks based on investment values for locator expansion projects in 2021.
• Other infrastructure projects completed in 2021 prepared FPIP for future expansions. The drilling of FPIP Deep Well No. 1 at FPIP III lays the groundwork and support for the park’s future water demand. Meanwhile, the First Industrial Township (FIT) Solarization Project was also completed to provide an alternative clean and renewable energy source for various facilities at FIT, including the FIT administrative office, Centralized Wastewater Treatment Facility, and aboveground reservoirs. FPIP’s Iconic Bridge was also operationalized in 2021. The bridge serves as a link to future expansion areas.
• FPIP continued to extend support to locators during the ongoing pandemic to ensure operations were kept running, businesses were kept afloat, and workers protected. FPIP placed comprehensive FPIP-locator communications plans, business continuity plans, stringent health and safety protocols, and crisis management briefings. Ten thousand COVID-19 vaccine doses were also donated to FPIP’s host communities of Sto. Tomas and Tanauan, which was done in partnership with First Balfour, Inc. and FIRST College. The #KaVax communications campaign rollout increased the overall awareness on the benefits of vaccination. The pandemic response seminars and locator site inspections made sure workspaces comply with the requirements of the Department of Health (DOH), Department of Labor and Employment (DOLE), and Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF). These efforts allowed locator operations to generally stabilize and even surpass pre-pandemic numbers in terms of operational locators, employee attendance, and employee headcount.

Looking Ahead

• In 2022, FPIP will continue to roll out its plans to transform from an industrial park to a thriving, inclusive, resilient, regenerative, and decarbonized job-centered community. To achieve this, in addition to the ongoing township master plan, FPIP commissioned in-depth studies, including a comprehensive water study, regeneration and decarbonization embedding study, and a comprehensive framework toward becoming a Decarbonized and Regenerative Park by 2030.
• FPIP has chosen the pathway of nurturing inclusive, innovative spaces that elevate industry, community, and environment. FPIP moves toward this chosen path through building high-growth industries and enabling high-value add-job creation and manufacturingcentered communities. Moreover, FPIP is expanding its menu of products or services and is on track in its viability studies for the rollout of the following: 1) Nano RBFs, 2) digital infrastructure, 3) unified FPH Group offerings, 4) recruitment partnerships and programs, and 5) consumer services.

• After completing the Conceptual Masterplan Report in January 2020 for the township community project with Singapore-based urban planning authority Surbana Jurong, FPIP started working with leading urban master planning experts toward localizing and further refining this conceptual masterplan, including the creation of micro-districts within the existing park.

  These micro-districts will host several industrial and commercial facilities catering to locators and their employees. These facilities include public, open, and retail spaces to foster community collaboration and dormitory housing designed to enhance livability for workers, in-transit trainees, and students.

First Balfour, Inc. (First Balfour) participates in nation-building by delivering world-class engineering and construction services to the energy, water, transport, and high-value building sectors. 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 (ThermaPrime), and its Plant and Equipment Division, T1 Rentals, respectively.

Financial Performance 

• First Balfour’s revenues reached an all-time high of PHP8.8 billion in 2021, surpassing its previous record in 2014. This increase is attributed to its joint venture projects, Cebu-Cordova Link Expressway (CCLEX) and Novaliches-Balara Aqueduct 4 (NBAQ4), which reported substantial completion at 87% and 93%, respectively. This is followed by a healthy pipeline of power and energy projects, contributing to 45% of total revenues. First Balfour’s net income significantly increased from PHP49.6 million in 2020 to PHP462.7 million in 2021. T1 Rentals also saw higher equipment utilization in 2021 at an average of 70%.
• First Balfour ended 2021 with an order generation of PHP5.0 billion, slightly lower than the PHP5.2 billion in 2020. As the award of some major projects targeted by First Balfour were pushed back to 2022, the order backlog for 2021 was at PHP7.9 billion by year-end, 17.7% lower than 2020’s PHP9.6 billion. However, the company remains optimistic for the long-term, especially since an aggressive recovery is expected from investments in big-ticket construction projects pursued by the public and private sectors.
• T1 Rentals finished strong in 2021, with year-end revenues of PHP1.3 billion, which is 13% above budget. Meanwhile, its total year-end margin of PHP513.4 million also exceeded the budget by 6%. This growth is mostly from major infrastructure projects outside Metro Manila, specifically in Central Luzon, Visayas, and Davao regions.

Key Highlights

• First Balfour won several contracts in 2021, mostly in the power and energy sector. First Balfour’s Major Projects Division secured two new natural gas power plant projects in Batangas, the PHP403.9-million civil onshore works subcontract from engineering, procurement, and construction (EPC) contractor McConnell Dowell for First Gen’s Interim Liquefied Natural Gas Terminal and the PHP2.2-billion civil and structural works subcontract from EPC contractor Black and Veatch International for the Batangas Combined Cycle Power Plant (BCCPP). With more natural gas plants planned as the transition energy platform over the next few years, these contracts reestablish First Balfour’s track record as the leading construction services company for gas and combined cycle power plants.
• Rehabilitation, upgrade, and maintenance activities also continued to grow. The company’s capability to deliver services that meet customer expectations earned repeat orders from EDC with the award of two more Palayan Binary Power Plant-related work packages worth PHP1.0-billion and the EPC contract for the PHP1.0-billion Mindanao 3 Binary Power Plant Project in Kidapawan City, North Cotabato.
• By end-2021, the overall project completion of CCLEX was at 87.3%. The installation of all 56 stay cables joining the main decks of the two towers has been completed. Most of the bridge structures, particularly the main bridge superstructure and substructures, such as ramps, causeways, and viaducts, have been completed. With only the toll plaza construction and road surfacing works remaining, the Cebu Link Joint Venture (CLJV) anticipates the project completion by the second quarter of 2022. Once completed, the 8.5-km toll expressway connecting mainland Cebu from Cebu City to Cordova town in Mactan Island will be the longest bridgeway structure in the country. It is expected to help ease traffic congestion in the area. The CCLEX project was awarded KEY HIGHLIGHTS by Metro Pacific Tollways Development Corporation to CLJV, composed of First Balfour, D.M. Consunji Inc., and Spanish company Acciona Construccion S.A.
• The overall project completion for NBAQ4 stood at 93.4% by the end of 2021. The tunnel boring machine Dalisay broke through in August 2021, allowing for its retrieval and complete disassembly by December 2021. Electromechanical installation works have commenced, and downstream distribution works are also showing good progress. 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. The project was awarded by Manila Water to NovaBala Joint Venture, composed of First Balfour, CMC di Ravenna of Italy, and Chun Wo Construction and Engineering of Hong Kong.
• Construction has also commenced for the East Bay Phase 1 water treatment plant project in Pakil, Laguna. Set to be completed in December 2022, the EPC contract was awarded to First Balfour with its joint venture partner Tedagua in December 2020. Once operational in 2025, the 50-MLD water treatment plant can sustain water necessities and prevent shortages in response to the increasing water demand in Metro Manila.
• ThermaPrime continues to sustain its dominant position in the Philippine Geothermal Drilling Market with its projects for the two largest geothermal producers in the Philippines, EDC and Philippine Geothermal Production Company (PGPC). Its consultancy engagements in Indonesia and Japan are also ongoing. Together with Shinco Co. Ltd. from Japan, it registered and incorporated its joint venture company (JVC) Mirai Nettsu Corporation in Japan last August 18, 2021. The JVC will serve as a special purpose vehicle to send crew members to perform geothermal drilling services.

Looking Ahead

• First Balfour contributed to green initiatives and the conglomerate’s mission of a decarbonized and regenerative future. First Balfour, through its heavy equipment hauling business Therma One Transport Corp., commissioned two fully-electric buses, among others, catering to First Philec, Inc.’s employee shuttle service requirements. Dubbed as Community Optimized Managed Electric Transport (COMET), each unit reduces approximately 40,000kg of CO2 emissions per year. NBAQ4 also transitioned to a renewable energy source through the 140-MW Bacman Geothermal Power Plant in early 2021. This shift significantly reduced the project’s carbon emissions.
• First Balfour achieved the prestigious Investors in People (IiP) Gold accreditation in February 2021, making the company the country’s first and only IiP Gold-accredited engineering and construction company. This is a global benchmark for companies that aim for business improvement through people management, which affirms First Balfour’s continued commitment to becoming one of the best employers in the country. It also made the final shortlist for Overseas Employer of the Year in The Investors in People Awards 2021. In a record-breaking year for entries, with nearly three hundred organizations involved, First Balfour made it to the top 10 in the said category, along with companies from various parts of the globe.
• From the contraction of -25.6% in the industry brought by the COVID-19 pandemic in 2020, the Philippine construction industry bounced back and expanded by 9.8% in 2021. The company sees more renewed opportunities, especially in markets that have proven to be resilient amid the pandemic.
  1. Water infrastructure. Major water concessions have allocated a large portion of their capital expenditure to build sewer treatment plants, lay new pipelines, and upgrade existing facilities.
  2. Transport infrastructure. Expansion of the country’s transport infrastructure (e.g., roads, bridges, airports, rail systems) will further help the economy recover.
  3. Power and energy. The growing concern over climate change with the continuous pursuit for energy security prompted many sectors to shift to renewable energy. Related to this, industry giants such as the National Grid Corporation of the Philippines (NGCP) and Meralco have also committed to expanding and strengthening the country’s transmission and distribution line network, given the many power plants being proposed for construction.
  4. Specialized buildings. In anticipation of increased demand for e-commerce, rising internet use, and recent improvements in information and communication technology capabilities, the country is expected to attract expansive data center interests in the next three to five years.
• First Balfour will continue to move up the construction value chain by positioning for larger and more complex projects through high value-added offerings. Moreover, the company aims to add concessions and publicprivate partnerships to its existing portfolio. First Balfour will continue investing in businesses where it will be able to leverage its engineering and construction competencies.