Aboitiz Equity Ventures (AEV) has earmarked P60 billion in capital expenditure (capex) for this year, with its power unit getting the lion’s share.
AEV subsidiary AboitizPower will get P52 billion for its expansion projects this year.
AboitizPower, along with its partners, is committed to increase total capacity by over 2,000 megawatts (MW) in the next five years.
These include the 420 MW Pagbilao baseload plant in Quezon Province which began construction late last year and the 340 MW Therma Visayas baseload plant in Cebu which will break ground within the year.
According to AboitizPower, another 300 MW coming from Therma South, which will start operations in the first half of 2015, will provide much-needed power to the Mindanao grid while its unit 3 expansion of 170 MW will also begin construction within the year.
In addition, the 68 MW Manolo Fortich hydropower plant in Bukidnon will also start construction within the year.
But the company’s 600 MW Subic baseload plant is still experiencing delay due to ongoing legal challenges.
AboitizPower is also bullish on expanding its renewable energy (RE) portfolio by exploring new sources such as solar and geothermal.
This is in line with its commitment to provide the nation with the right mix of energy sources that balances the interest of “people, planet, and profit.”
AboitizPower recently forged a partnership with American company SunEdison to build solar power plants in the country.
It has also identified roughly 200 MW of potential run-of-river power projects located across the archipelago for the next five years
Meanwhile, the Group’s food unit Pilmico believes that the Philippines’ continued economic growth will strongly support growth in the country’s food consumption.
Pilmico has allocated P2.7 billion in capital spending for the year in support of efforts to build a new layer farm and expand the capacity of various facilities under its flour, feeds, and swine divisions.
On the other hand, AboitizLand is spending P3.7 billion to acquire more industrial and residential land as it continues to expand its business outside of Cebu and onto the national arena.
AEV’s banking unit UnionBank, for its part, has apportioned P455 million for continued branch expansion, particularly for its subsidiary, CitySavings Bank, as the latter pursues its growth objective of further building up its market share in Luzon.
Recently, AEV has stated its strategic objective of entering the infrastructure space, which will form the fifth leg of its core businesses in addition to power, banking, land, and food.
AEV President and Chief Executive Officer Erramon Aboitiz said they foresee the private and public sectors pouring large investments into this sector over the next 10 to 15 years and that they want to play a role in this trend.
“We are very optimistic of the gains this new core business will bring to the group, amid the huge demand for infrastructure in both the local and emerging markets across Asia,” said Aboitiz.