Aboitiz Equity Ventures Inc. (AEV) on Tuesday said it has allotted some P48 billion in capital expenditures (capex) this year, half of which will go to its power unit.
The company, which supplies close to a fifth of the country’s population through its critical businesses, said this year’s capex is 69 percent higher than the P29 billion in spending last year, but still lower by 40 percent compared with the P81-billion capex in 2019.
The company has previously allotted P73 billion in capex for 2020 but had to cut it drastically due to the pandemic.
“We continue to invest in our country to support economic recovery and growth, as millions of Filipinos are relying on us — families and communities. Our team members take this responsibility to heart. We simply cannot fail. 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,” AEV President and CEO Sabin M. Aboitiz said.
Some P23 billion of this year’s capex was earmarked for Aboitiz Power Corp. for the completion of GNPower Dinginin as well as the battery energy storage projects.
The 1,336-megawatt GNPower Dinginin baseload power plant is currently being constructed in Mariveles, Bataan. AboitizPower is also adding to its portfolio battery energy storage system projects that will 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.
Meanwhile, Aboitiz InfraCapital Inc. will spend P13 billion to fund its various projects including its common towers project and for the construction of Apo Agua Infrastructura Inc.’s bulk water supply project with Davao City Water District and other water projects.
About P2 billion will be earmarked for Republic Cement and Building Materials, Inc.
Its food group has allocated P4 billion mainly for feedmill expansion. For 2021, two feed facilities in China—one fish feed line in Malaysia and 3 meat distribution channels in the Philippines—are slated for completion to support the group’s growth initiatives.
Property developer Aboitiz Land Inc. has earmarked P3.1 billion for its land banking activities and the completion of its residential projects.
Currently, Aboitiz Land 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, meanwhile, allotted more than P2 billion in capex primarily intended for continued enhancements on digital touch points, as well as constructing an innovation hub, to support customer needs during Covid-19.
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