AEV, partners earmark P73B in capital expenditure for various projects in 2020
CEBU CITY, Philippines—The Aboitiz Equity Ventures Inc. (AEV) and it partners will allocate P73 billion in capital expenditures (capex) for various projects involving power, infrastructure, and food in 2020.
“The COVID-19 crisis created a lot of uncertainty but we believe the Philippine economy can be shielded from further disruptions if the government and private sector focus on areas of collaboration,” said AEV president and chief executive officer Sabin Aboitiz.
This move aims to help keep the economy moving amid uncertainty brought about by the COVID-19 outbreak as part of the company’s goal of supporting the government.
“The Aboitiz Group will deliver on our commitment to being the best-in-class in our industries. Learning from the challenges we have been experiencing in the past year, we will continue to adhere to global standards of operational excellence,” Aboitiz said.
The 2020 capex is 37 percent higher than the P53 billion it spent in 2019.
“We see our businesses very resilient during these times. We provide stable and affordable power to support economic activity; We provide access to capital to entrepreneurs; We participate in government infrastructure projects to help generate jobs and spur economic activity; We provide feeds to farmers and fishermen, which they need to grow their livestock,” Aboitiz noted.
Part of the amount or P41 billion will be allocated to the Aboitiz Power Corporation.
This is 17 percent higher than the P35 billion Aboitiz Power used in 2019. The bulk of this amount or around 80 percent will fund the completion of GNPower Dinginin power plant, a 1,366-megawatt coal-fired power facility located in Mariveles, Bataan, and other new businesses.
Another P16 billion will be allocated to AEV’s infrastructure arm, Aboitiz InfraCapital Inc., for the construction of its water businesses, and its foray into airports and common tower businesses.
In 2019, Apo Agua spent P3 billion. Once online, the Davao bulk water project will supply 300 million liters of water per day to the Davao City Water District, which will benefit over a million Davaoenos.
Meanwhile, Republic Cement projects a nine percent business growth this year as cement prices remain stable.
On the other hand, Aboitiz Land is expected to use P11 billion mainly for its land banking efforts as it continues to grow its property developments in various parts of the country. The balance of the total capex will be used for the provisions of the remaining Strategic Business Units.
Pilmico Food Group will be using nearly P3 billion for new businesses, expansion/upgrades, and operating expenses.
The Union Bank of the Philippines will sustain its investment efforts in its digital and branch transformation endeavors and allocating around P2 billion for expansion/upgrades and operating expenses.
The Aboitiz Group has a business continuity plan in place to mitigate the impact of the COVID-19 crisis and has adopted travel, quarantine, and hygiene measures based on the guidelines set by the Department of Health and World Health Organization. /rcg
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