AEV capex up by 69% to P48 billion

MANILA, Philippines — Aboitiz Equity Ventures Inc. is raising its capital expenditures for this year to P48 billion, up 69 percent from P29 billion previously.

AEV president and CEO Sabin Aboitiz said this is aimed at supporting economic recovery and growth.

“Over the next 10 years, we commit to investing in capacities to advance business and communities in the nine Asia Pacific countries where we operate,” he said.

Bulk of the P48 billion or P23 billion will go to power strategic business unit (SBU) Aboitiz Power Corp. for the completion of GNPower Dinginin, as well as battery energy storage projects.

The 1,336 MW GNPower Dinginin baseload power plant is being constructed in Mariveles, Bataan.

AboitizPower is making its foray into portfolio battery energy storage to help ensure grid stability through sufficient ancillary services, starting with the installation of a 49-MW facility of business unit Therma Marine, Inc. in Maco, Davao de Oro.

Infrastructure gets a big chunk, as well with P13 billion.

Aboitiz InfraCapital, Inc. (AIC) will use the amount to fund its various projects, including its common towers project and for the construction of Apo Agua Infrastructura Inc.’s (Apo Agua) bulk water supply project with Davao City Water District (DCWD) and other water projects.

About P2 billion will be earmarked for Republic Cement and Building Materials Inc.

For the food group, Aboitiz has set aside P4 billion to expand its feed mills.

For 2021, two feed facilities in China, one fish feed line in Malaysia, and three meat distribution channels in the Philippines are expected to be completed to support the group’s growth initiatives.

Property arm Aboitiz Land Inc., which has projects in Batangas and other parts of the country, has earmarked P3.1 billion for its land banking activities and the completion of its residential projects.

AboitizLand is working on Seafront Residences and The Villages at Lipa in Batangas, Ajoya Capas in Tarlac, Ajoya Pampanga in Pampanga and Ajoya Cabanatuan in Nueva Ecija.

Union Bank of the Philippines will get P2 billion to sustain investment efforts in its digital and branch transformation endeavors.

AEV supplies close to 20 percent of the country’s population through its different businesses in power, banking and financial services, food, land and infrastructure, including cement manufacturing.