Joselito Malig

Article (news)

Andrea Taguines

ABS-CBN News

<p>Construction giant EEI Corp. said Thursday it has suspended some new projects and is renegotiating existing contracts as soaring fuel costs push up building expenses.</p><p>The company said prices of key materials have already risen by an average of 12 percent since tensions in the Middle East escalated in March.</p><p>In an interview with ABS-CBN News, EEI President and CEO Henry Antonio said the increase reflects how deeply oil prices affect the entire supply chain. </p><div><a href="https://www.abs-cbn.com/news/nation/2026/4/16/dpwh-targets-at-least-9-000-new-classrooms-in-2026-1820"><strong>DPWH targets at least 9,000 new classrooms in 2026</strong></a></div><p>“We’ve already seen, on average, a 12-percent increase in the basic raw materials that we use—steel, aggregates… It is very very difficult for us. The construction industry’s margins are relatively small, so a significant spike in raw materials and supply is very very challenging for companies like EEI,” he said on the sidelines of the Infrastructure and Construction Conference organized by the French Chamber of Commerce and Industry in Taguig.</p><p>He explained that fuel costs affect nearly every stage of a project.</p><p>“When we move materials back and forth from suppliers to the site, that increases the cost of logistics. In addition to that, obviously, everything that we buy is touched by oil,” he said.</p><p>“Steel requires manufacturing, and when you have manufacturing you either use electricity or oil, both of which are impacted by oil prices… Most of our power comes from coal, and coal has to be delivered to the Philippines by barge. The barges use oil, and transport is a significant cost,” he added.</p><div> </div><div><strong>SUSPENSION OF NEW PROJECTS</strong></div><p>Antonio said the company has been forced to renegotiate existing contracts with clients to account for rising costs, a move that he acknowledged is not easy.</p><p>“For us, it’s really talking to our clients and saying we have existing contracts—we need to renegotiate and figure out how we can escalate price, at least for this particular item, which is a difficult proposition,” he said.</p><p>“For our new projects, we essentially suspended and asked for renegotiation to actually occur now so that we could have some provision for what will hopefully be a temporary increase,” he added.</p><div> </div><div><strong>BIG-TICKET INFRASTRUCTURE TO PROCEED</strong></div><p>Despite the challenges, Antonio said there have been no directives so far to suspend government infrastructure projects, noting the importance of continuing major developments. </p><div><a href="https://www.abs-cbn.com/news/business/2026/4/16/transmission-project-for-boracay-power-to-be-completed-in-august-1432"><strong>P5.2-B transmission project addressing Boracay power woes set for completion in August </strong></a></div><p>“In my personal point of view, we need to balance the need to absorb the cost of the impact of the oil crisis versus the long-term needs of the country. Subway, rail, roads—these are critical infrastructure that allow us to grow our economy,” he said.</p><p>“If we delay that, the impact to the GDP on a longer-term basis would be far more significant,” he added.</p><p>He said EEI is closely coordinating with the Department of Public Works and Highways and the Department of Transportation to manage rising costs while keeping projects on track.</p><p>“I think we have very good Secretaries that are very hands on and helping us to manage and ensure that the agenda of the President is delivered… The main message now is essentially that let’s continue with the projects where we can, and then we will negotiate any changes in the index or the pricing as part of the escalation process,” he said.</p><p>At the same time, Antonio underscored the need to accelerate investments in renewable energy to reduce the country’s reliance on oil imports and fossil fuel-based power generation.</p><p>Citing EEI’s experience in building wind projects, he emphasized the need for stronger public-private collaboration.</p><p>“We really need to look at how government, together with the private sector, co-invest, because the significant capital outlay impacts our ability in the private sector to invest on these things—if there are incentives from government,” he said.</p><div> </div><div><strong>MAHARLIKA HIGHWAY</strong></div><p>Meanwhile, Antonio also confirmed that EEI has held several meetings with DPWH officials regarding its possible participation in the major rehabilitation of the Maharlika Highway.</p><div><a href="https://www.abs-cbn.com/news/regions/2026/2/27/dizon-major-contractors-interested-in-maharlika-highway-rehab-classroom-projects-0141"><strong>Dizon: Major contractors interested in Maharlika Highway rehab, classroom projects</strong></a></div><p>“We’re looking at it, to be very direct about it,” he said. </p><p>Antonio said he welcomes the DPWH’s more open engagement with the private sector, which he hopes will lead to improvements in procurement and implementation policies.</p><p>His statement comes in the wake of the massive flood control corruption scandal that led to a change in leadership and internal reforms at the DPWH.</p><p>“One thing I like about the process now is there’s a lot more transparency. There’s a lot more discussions about why sometimes large contractors don’t regularly join these projects, and then they listened,” he said.</p><p>“Hopefully that will translate into changes in implementation guidelines, in terms of the bidding process, etc.,” Antonio added.</p>

<p>Construction giant EEI Corp. said Thursday it has suspended some new projects and is renegotiating existing contracts as soaring fuel costs push up building expenses.</p>

Construction giant EEI Corp. said Thursday it has suspended some new projects and is renegotiating existing contracts as soaring fuel costs push up building expenses.

EEI suspends some projects pending contract renegotiations amid fuel crisis

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EEI suspends some projects pending contract renegotiations amid fuel crisis

Andrea Taguines,

ABS-CBN News

Published April 16, 2026 11:29 PM PHT

Read More:

Oil crisis

EEI

Price escalation

Infrastructure and Construction Conference

French Chamber of Commerce and Industry in the Philippines

Renewable energy

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