Securities and Exchange Commission Sec Form 11-C Current Report Under Section 11 of the Revised Securities Act (RSA) And Rsa Rule 11(a)-1(b)(3) Thereunder

August 9, 1999 PSE CIRCULAR FOR BROKERS NO. 1969-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. Date of Report (date of earliest event reported) 06 August 1999 2. SEC Identification Number The SEC Registration No. of the Registrant is 937 3. BIR Tax Identification Number The BIR Tax Identification No. of the Registrant is TIN 000-391-438 4. Exact Name of Registrant as specified in its charter EEI CORPORATION 5. Province, Country or other Jurisdiction of Incorporation Manila, Philippines 6. Industry Classification Code _____ (SEC Use Only) 7. Address of Principal Office No. 3 Economic Street, Bagumbayan, Quezon 8. Registrant's Telephone Number, including Area Code 635-0851 up to 56 9. Former Name or Former Address, if changed since last report The Registrant has not changed its address since its last report to this Honorable Commission 10. Securities registered pursuant to Sections 4 and 8 of the RSA No. of Shares Title of No. of Shares Amount of Registered Each Class Outstanding Debt Outstanding 2 Billion Common 11. Indicate the Item Numbers reported herein. Item No . 9 EEI Corporation incurred a net loss of P214.7 million for the second quarter of the year, resulting to an accumulated net loss of P211.5 million for the six months ended June 30, 1999. However, the Company expects the loss to be offset by anticipated recoveries during the rest of 1999. Additional costs had been incurred due to prolonged equipment usage and additional manpower due to project delays for various reasons not attributable to the contractor such as changes in working and site conditions, unavailable workable areas and drawings. To minimize the effects of delay, acceleration costs were incurred. In major long term projects, all these costs are subject to claims which are normally negotiated at the end of the project. dctai The Company is confident that it would be able to recover these additional costs from the owners or main contractors but pending resolution of its claims and change orders, the Company has decided to record and recognize the additional incurred costs. This is in line with the Company's policy of conservatism in recording income and costs. In addition to recoveries, the Company is also pleased to report encouraging developments in its overseas operations (especially Saudi Arabia) where it acquired new contracts which will increase total manpower from 1,100 as of end 1998 to 2,500 by end of 1999. The Company is also finalizing the sale of its 20% equity in Subic Power Corporation at a substantial gain over cost. Pursuant to the requirements of the Revised Securities Act, the Registrant duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EEI CORPORATION By: (SGD.) FERDINAND G. VILLAFUERTE Sr . Vice President & Corporate Secretary