Construction & Building Technologies Philippines Market Study AUGUST 2019 © Copyright EU Gateway | Business Avenues The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu. Photo by Benson Kua, distributed under CC licence BY-SA 2.0. EU Business Avenues in South East Asia Central Management Unit Philippines Market Study August 2019 Submitted to the European Commission on 26 August 2019 Construction & Building Technologies – Philippines Market Study - Page 3 of 125 Table of Contents LIST OF FIGURES ..................................................................................................................................................... 6 LIST OF TABLES ........................................................................................................................................................ 6 LIST OF ABBREVIATIONS ........................................................................................................................................ 8 1. EXECUTIVE SUMMARY ....................................................................................................................................... 10 OPPORTUNITIES………………. ..................................................................................................................... 12 2. WHAT ARE THE CHARACTERISTICS OF THE PHILIPPINES? ........................................................................ 14 2.1. POLITICAL OVERVIEW ............................................................................................................................ 15 2.2. ECONOMIC OVERVIEW ........................................................................................................................... 15 2.3. TRADE OVERVIEW……….. .................................................................................................................... 16 2.4. MARKET ACCESS………........................................................................................................................ 18 2.5. BUSINESS AND COMPETITIVE ENVIRONMENT ........................................................................................... 19 3. MARKET OVERVIEW & EU ENTRY OPPORTUNITIES IN THE PHILIPPINES ................................................. 21 3.1 THE PHILIPPINE CONSTRUCTION AND BUILDING TECHNOLOGY SECTOR .................................................... 21 3.1.1 The Philippine Construction Industry .............................................................................................. 21 3.1.2 The Philippine Mining Industry........................................................................................................ 38 3.1.3 Key Associations ............................................................................................................................ 42 3.1.4 Entry Strategies .............................................................................................................................. 43 3.1.5 Challenges & Entry Barriers ........................................................................................................... 45 3.2 CONSTRUCTION MACHINERY ................................................................................................................... 47 3.2.1 Market Overview ............................................................................................................................. 47 3.2.2 EU Entry Opportunities ................................................................................................................... 59 3.3 BUILDING MATERIAL AND BUILDING INSTALLATION .................................................................................. 63 3.3.1 Market Overview ............................................................................................................................. 63 3.3.2 EU Entry Opportunities ................................................................................................................... 73 3.4 SMART AND GREEN BUILDING ................................................................................................................. 76 3.4.1 Market Overview ............................................................................................................................. 76 3.4.2 EU Entry Opportunities ................................................................................................................... 88 3.5 SMART GRIDS……… .............................................................................................................................. 93 3.5.1 Market Overview ............................................................................................................................. 93 3.5.2 EU Entry Opportunities ................................................................................................................... 98 4. REGULATIONS ................................................................................................................................................... 101 4.1 GENERAL IMPORT PROCEDURES ........................................................................................................... 101 Construction & Building Technologies - Philippines Market Study - Page 4 of 125 4.2 MARKING AND LABELLING REQUIREMENTS ............................................................................................ 103 4.3 RULES AND REGULATIONS FOR CONSTRUCTION ACTIVITIES AND MACHINERY ......................................... 104 4.4 PHILIPPINE GREEN BUILDING (GB) CODE .............................................................................................. 105 4.5 GOVERNMENT TENDERS ....................................................................................................................... 108 5. ANNEX ................................................................................................................................................................ 109 5.1 LIST OF USEFUL CONTACTS .................................................................................................................. 109 5.2 STARTING A BUSINESS IN THE PHILIPPINES ............................................................................................ 111 5.3 USEFUL STATISTICS …………………………………………………………………………………………...115 5.4 BIBLIOGRAPHY…………… ................................................................................................................... 121 Construction & Building Technologies - Philippines Market Study - Page 5 of 125 List of Figures Figure 1: Map of the Philippines ................................................................................................. 14 Figure 2: Asian Cities in the Global Index Cost of Construction ................................................. 23 Figure 3:"Build, Build, Build" ...................................................................................................... 24 Figure 4: Construction Site in Metro Manila ............................................................................... 26 Figure 5: Philippine Housing Project .......................................................................................... 29 Figure 6: Prospective plans for the Metro Manila Subway ......................................................... 36 Figure 7: Digital rendition of Panaguil Bay Bridge ...................................................................... 37 Figure 8: Open pit mine in the Philippines.................................................................................. 39 Figure 9: Operating Metallic Mines in the Philippines, 2018....................................................... 41 Figure 10: Excavators Account for 50% of Total Sales of Building Equipment .......................... 54 Figure 11: Mobile Laboratory of Holcim Philippines ................................................................... 65 Figure 12: Smart Building Technologies .................................................................................... 77 Figure 13:Twin Oaks Place ........................................................................................................ 77 Figure 14: One Filinvest ............................................................................................................. 79 Figure 15: Clark Green City ....................................................................................................... 81 Figure 16: Figure 16:Evo City .................................................................................................... 82 Figure 18: PhilGBC Promotes Green Building Practices............................................................ 86 Figure 19: Minimum Building/ Occupancy TGFA ..................................................................... 106 List of Tables Table