Listed construction firm D.M. Consunji Inc. said Monday its order book rose 20 percent in the first quarter to P42.4 billion from P35.2 billion in the previous quarter, a strong sign of demand recovery.
The construction company attributed the increase to the award of the P28 billion contract for package 2 of the South Commuter Railway Project, a joint venture with Acciona Construction Philippines. Package 2 involves the construction of railway tracks and stations along España, Sta. Mesa and Paco, and will take roughly four and a half years to complete.
“DMCI’s participation in the joint venture is around 35 percent. In addition to construction revenues, we also expect to generate collateral business for our ready-mix concrete, equipment rental and steel fabrication units,” said DMCI president and chief executive officer Jorge Consunji.
Compared to the year-earlier quarter, the DMCI order book declined by 9 percent from P46.7 billion owing to the completion of several projects and descoping of North South Commuter Rail Contract Package 01, a joint venture with Taisei Corporation of Japan.
Current obstructions prevented access, possession, and handover of the NSCR construction site, which resulted in the exclusion of work valued at P7 billion from the project pipeline.
“We’re expecting equitable compensation for the descoping, which is a standard contract condition in construction projects. Negotiations are underway, and a resolution should be reached in the next few months,” added Consunji.
Aside from South Commuter Railway, other projects in the DMCI order book include Dinapigue Causeway expansion, Xavier Junior High School Building, YCO Manila site early works and dredging and hauling of lagoon in the La Mesa Water Treatment plant.
