MANILA, Philippines—Aboitiz Equity Ventures has budgeted P88 billion in capital spending for 2014, with the bulk of it devoted to expansion of the flagship power business.
In a press statement, AEV said P78 billion of the capital expenditure budget for this year would support the power segment’s building of new power plants in response to the tightening local electricity supply.
Aboitiz Power, along with its partners, is implementing a five-year plan to increase capacity by up to 2,098 megawatts by 2017.
The power unit is now constructing three run-of-river hydro plants equivalent to 28 MW, including the 14-MW Tudaya I and II hydro plants in Mindanao which are expected to be completed by the first half of 2014. Another in the pipeline is 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 group also aims to begin the 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.
On the banking business, Union Bank will invest P680 million for technology-related expenditures and the expansion of its branch network. The group said this was in line with initiatives to ensure customer satisfaction and maximize growth in both deposit and loan accounts.
Food subsidiary Pilmico Foods Corp. 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 Aboitiz Land estimates that it will be spending about P4 billion for the year 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.
Lastly, AEV’s fuel unit, Aseagas, will break ground for 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 is expected to be another producer of Cleanergy for Aboitiz.