Philippines

Infrastructure Report
Executive Summary
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Philippines Infrastructure Report Published Date: 01 Apr 2016

Table of contents
BMI Industry View 7

Forecast And Latest Updates 7

Table: Philippines 5-Year Construction Industry Forecast 7
Table: Philippines Infrastructure Risk/Reward 8
SWOT 9

Infrastructure SWOT 9

Industry Forecast 11

Philippines - Private Sector Driving 2015 Construction Surge 11

Latest Updates 11
Table: Construction And Infrastructure Industry Data (Philippines 2014-2024) 11
Transport Infrastructure - Outlook And Overview 17

Latest Updates 17
Table: Competitiveness Of Philippines's Infrastructure 17
Table: Transport Projects 30
Energy And Utilities Infrastructure - Outlook And Overview 31

Latest Updates 31
Table: Cross-Island Interconnections 43
Table: Energy & Utilities Projects 48
Residential/Non-Residential Building - Outlook And Overview 49

Latest Updates 49
Table: Residential and Non-Residential Building Industry Data (Philippines 2013-2018) 49
Table: Social Infrastructure And Construction Projects 54
Industry Risk Reward Ratings 57

Philippines - Infrastructure Risk/Reward Index 57

Rewards 57

Risks 58

Asia Pacific Infrastructure RRI: Developed Markets Increasingly At Risk 59

Table: Asia Risk/Reward Index 65
Market Overview 66

Competitive Landscape 66
Table: EQS Data 66
Company Profile 71

EEI Corporation 71

First Balfour 75

San Miguel Corporation (SMC) 79

Methodology 86

Industry Forecast Methodology 86

Sector-Specific Methodology 87

Risk/Reward Index Methodology 91

Sector-Specific Methodology 92
Table: Infrastructure Risk/Reward Index Indicators 92
Table: Weighting Of Indicators 93

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 Philippines Infrastructure Report Published Date: 01 Apr 2016

BMI View: The positive outlook for Philippines' construction sector is supported by growth in public
construction activity as the government's Public-Private Partnership programme gains traction, as well
as sustained momentum in private construction activity. The upcoming elections in 2016 will weigh on
construction activity.

Latest Updates And Structural Trends

Our outlook for the Philippines construction industry remains positive and we forecast real growth of 8.5%
and 8.7% in 2016 and 2017 respectively.
We expect a relatively stable monetary policy to provide a favourable environment for potential
homeowners and developers. This is reflected in our forecast, which expects the residential and
non-residential building industry to expand at an average annual pace of 8.3% between 2016 and 2025
(compared to 6.4% for the transport sector and 7.9% for the energy & utilities sector).
We believe positive momentum in the approval of projects under the Philippines's PPP programme will
continue over the months leading up to the presidential elections in mid-2016. Our longer-term outlook
remains tempered by upcoming elections and project implementation deficiencies, but plans to introduce a
new public-private partnership bill bode well for further private investments.

Philippines - Construction Industry Forecast (2015-2020)

2015e 2016f 2017f 2018f 2019f 2020f
1,031.91 1,162.52 1,307.67 1,467.70 1,645.48
Construction industry value, PHPbn 932.04

Construction Industry Value, Real Growth, % y-o-y 10.94 8.47 8.66 8.49 8.24 8.11
Construction Industry Value, % of GDP 6.9 7.0 7.2 7.3 7.5 7.6
e/f = BMI estimate/forecast. Source: Central Bank, National Statistical Coordination Board, BMI

Risk/Reward Index

The Philippines fell by one place to the 14 th position out of 17 regional markets assessed in our latest Asia
RRI (RRI). The country's overall score fell to 53.1 out of 100 due to growing external risk in the region.
With the upcoming elections in 2016, the Philippines is likely to see a slight weakening of its Country Risks
score over the coming quarters.
Continued progress on the government's PPP programme and persistent growth rates in the
worsening external environment indicates further upside potential to the country's rewards profile.

Philippines Infrastructure Risk/Reward Index

Risk/Reward Index Rewards Industry Rewards Country Rewards Risks Industry Risks Country Risks
51.7 51.8 50.0 55.1 51.5 35.0 62.5
Source: BMI Risk/Reward Index

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Philippines Infrastructure Report Published Date: 01 Apr 2016

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