Edgar Saavedra started young in business. He used to be a “bodegero” or “bookeeper” in his father’s business in Margosatubig in Zamboanga del Sur, a melting pot in the 1800s for mostly Visayan-speaking migrants as Zamboanga had a bustling logging and copper industries.

Even his choice of a college degree – civil engineering – stemmed from his intention to go into construction and engineering business later on.

Now, as he runs his own business empire, Saavedra realizes that money is not all there is, if it does not make any positive impact to the people and country.

“We are engineering a first-world Philippines” goes a tagline of his conglomerate. Today, Saavedra’s Citicore Holdings has two main business groups — Megawide and Citicore. 

Watch: What goes into the mind of a wealthy person, like Mr. Saavedra video

The Megawide group is a diversified engineering conglomerate focused on construction and infrastructure development. It is primarily engaged in EPC/pre-cast and construction solutions, infrastructure innovation, and property development.

Publicly-listed since 2011, it is one of the largest contractors for private sector construction projects in the country and the private partner of the Philippine government for flagship infrastructure projects such as the Mactan-Cebu International Airport and the Paranaque Integrated Terminal Exchange. Megawide also constructed the Clark International Airport New Passenger Terminal Building.

It is currently undertaking the construction of the Malolos-Clark Railway Project Package 1, Metro Manila Subway Contract Package 104, and the modernization of Cebu’s historic Carbon Market District. 

In 2012, the company established Megawide Corporate Foundation Inc., a non-profit organization focusing on social development projects. Recently, it folded in PH1 World Developers, its affordable housing unit.

Outside Megawide is its power company Citicore Power Inc., with subsidiaries Citicore Renewable Energy Corp. and the listed Citicore Energy Reit (CREIT).

FASTEST GROWING

Among Megawide’s subsidiaries, Saavedra is more excited with his new baby in PH1, its affordable housing unit. “This is the latest and the fastest growing subsidiary under Megawide,” he said.

PH1 weaves Megawide’s DNA in construction and construction solutions provider. It integrates all three businesses — real estate, construction, and precast production – making it very efficient. “We practically move forward integration in the value chain,” said Saavedra, who projected that PH1 is going to be far bigger than its construction business in the next two to three years.

According to Saavedra, for every ₱1 spent in construction, one can make ₱6 to ₱8 in terms of margin in real estate.

Besides, demand in the residential housing sector remains strong even during the pandemic period. Buyers also prefer the horizontal housing projects. Growth areas are outside of Metro Manila like Bulacan, Pampanga and Cavite.

“Just don’t go into high-end housing, just deliver good product at the right price and location,” the civil engineer added.

His businesses outside of Megawide should be bigger as these deals with the capital-intensive power projects. Citicore has a commitment to produce 800 to 1,000 MW every year. Already, they did three solar plants as demand for renewable energy is expanding very aggressively. Last year, CREIT, a Citicore subsidiary, went public.

DEVELOPMENTAL

Compared to other companies, which growth strategy is via buyout and acquisition, Megawide is into developmental approach. 

Saavedra’s engineering and construction business enabled Megawide to branch out into other related businesses.

“We build from zero and modernize because our DNA is engineering and construction,” he said.  He expects is power business under Citicore to grow further given its commitment to add 800 to 1,000 MW every year.

For Megawide, the big chunk of its growth is expected to come in 2025 to 2026, driven by infrastructure development projects and real estate. 
With the revenue streams from the Carbon market project and real estate unit, Saavedra expects significant increase of easily 50 percent in its bottom line over the next two years.

In terms of expansion for its infrastructure business, Saavedra said they are a bit dependent on the current administration in terms of direction. For now, Saavedra is eyeing public market projects of other local government units.

“There are a couple of public markets in our pipeline,” he said. But Saavedra said they are trying to perfect the Carbon, Cebu public market model, which seeks to modernize the famous dried fish market of Cebu. He expects the public market model as another growth story.

“We don’t displace the vendors,” he vowed. In fact, the Carbon market has become like a community work for them as they ensure the livelihood for the ambulant vendors.

INNOVATION

According to Saavedra, innovation is a major factor in their success as a company. Of course, they work hard, observe prudence and learn from their mistakes over the past 26 years, but being innovative has made all the difference for Megawide. Innovation has always been Megawide’s special edge over competition.

“Innovation is a big factor because our edge is in construction and engineering design capability. With innovation, we are able to modernize construction, our precast enabled us to build faster than any other firm. We can build two times faster than traditional,” he said.

For instance, they completed Clark airport in 27 months, in design and built, in what could have been four to five years by traditional construction method.

ADVOCACIES

Saavedra is not one for advocacies, the problem solver in him, instead, continually puts into his mind and his people a positive attitude and the will to venture into businesses that create greater impact to nation and community.

Saavedra, who considers himself old, said that young entrepreneurs should “keep on exploring” with caution and not to be afraid of challenges. 

“If you stumble, don’t dwell too much on the pain and the shame” because the universal law that “practice makes perfect” cannot be achieved without practice, and practice entails failures. 

“Keep on doing, don’t be too shy and sensitive to pain because those are part of growth,” he urged.

He warned the younger generation against complacency and contentment before reaching their maximum potential. 

“If all of us will think that way, then there is no Steve Jobs and Elon Musk, the country and the society will not grow,” he added.

He wished the youth to be “bold, to invest, or to try new things” so they can also contribute to the society and country.

“That’s why, we try to find business with greater impact, not just monetary, but to society, nation,” he said.

At Megawide, they adopted the vision: First World PH. This is to put emphasis on their mission to do something impactful to communities, employees, and country. He observed that the problem with most companies is their hunger for profit so they sacrifice quality. But conglomerates with lower profit offer products and services that are good and impactful.

He shared that when he was just starting in business, he was preoccupied with profit. But as he accumulates wealth and wisdom with age, he realized that “one cannot have too much money,” adding that “perhaps when we were younger, but as we grow older and we see our relatives gone, we realize we are all mortals, we should not focus too much on money.”

But what goes into the mind of a wealthy person or what keeps him awake at night? 

The billionaire said he would always ask himself before going to bed at night of what he could do to maximize his efforts, and to hone his experience and know-how to have a greater impact to his country and his employees, because this mission is what makes him get up in the morning.