Aboitiz Equity Ventures earmarks Php 88 billion capex in 2014
January 29, 2014
Aboitiz Equity Ventures (AEV) is allocating Php 88 billion in 2014 for its capital expenditures. The bulk of expenditures, amounting to Php 78 billion, will be implemented by the Power business as it continues to explore and build new power plants in response to the country’s need for additional power generating capacity amidst the tightening supply-demand situation for energy.
AboitizPower, along with its partners, is implementing a five year plan to increase capacity by up to 2,098 megawatts (MW) by 2017. To date, the power unit is already constructing three run-of-river hydro plants equivalent to 28 MW. This consists of the 14 MW Tudaya I and II hydro plants in Mindanao which are expected to be completed by the first half of 2014 and the 13 MW Sabangan hydro plant in Luzon which will be finished by early 2015. The 300 MW Davao baseload plant which broke ground in 2012, is also expected to be completed in 2015 to help address the power supply shortfall in Mindanao.
Additionally, the company aims to begin expansion of its Pagbilao baseload plant and construction of its Cebu baseload plant within 2014. These two projects will increase capacity in the Luzon and Visayas grids by an additional 400 and 300 MW respectively by 2017.
Meanwhile, the Group’s banking unit, UnionBank, will invest Php680 million for technology-related expenditures and the expansion of its branch network in line with initiatives to ensure customer satisfaction and maximize growth in both deposit and loan accounts.
Food subsidiary Pilmico is spending Php 2.7 billion for the expansion of its feeds and farms operations through the construction of 2 feedmill plants and the third expansion of its breeder and growing-finishing farms.
Property unit AboitizLand estimates that it will be spending roughly Php 4.0 billion as it opens new phases for its Priveya Hills, Pristina North, and Almiya projects. The developer is looking at launching at least three new residential projects within the year. It has also recently entered into a joint venture agreement with Ayala Land for the development andoperation of a 15-hectare city center in Subangdaku, Mandaue City in Metropolitan Cebu.
Lastly, AEV’s fuel unit, Aseagas, will break ground on its $50 million liquid biomethane plant, which will produce transport fuel from organic waste. Once completed, the plant will have a capacity of around 9,000 metric tons of bio-methane per year. Construction is expected to be completed within 18 months. Aseagas will be another producer of Cleanergy for Aboitiz.
