AEV sets aside P88B for capex-A A +A
Monday, February 3, 2014
ABOITIZ Equity Ventures (AEV) is allocating P88 billion in 2014 for its capital expenditures. The bulk of expenditures, amounting to P78 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.
“With this year’s capex budget, we reiterate our commitment to provide reliable and ample power supply at a reasonable cost and support the Philippines’ energy needs,” said Aboitiz Equity Ventures president and chief executive officer Erramon Aboitiz.
AboitizPower, along with its partners, is implementing a five-year plan to increase
capacity by up to 2,098 megawatts (MW) by 2017. 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.
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 P680 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 P2.7 billion for the expansion of its feeds and farms operations through the construction of two 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 and operation of a 15-hectare city center in Subangdaku, Mandaue City in Metropolitan Cebu. (PR)
Published in the Sun.Star Cebu newspaper on February 04, 2014.