AEV sets ’14 capex budget at P88B

MANILA, Philippines—Conglomerate Aboitiz Equity Ventures has budgeted P88 billion for its 2014 capital spending, the bulk of which was earmarked for the expansion of the flagship power business.

“With this year’s capex (capital expenditure) budget, we reiterate our commitment to provide reliable and ample power supply at a reasonable cost and support the Philippines’ energy needs,” AEV president Erramon Aboitiz said in a statement on Wednesday.

Of the total budget, the power business will get the biggest share of P78 billion to support the construction of new power plants in response to the tightening of the local energy supply.

Aboitiz Power is implementing a five-year plan to increase its power generating capacity by up to 2,098 megawatts (MW) by 2017.

The power unit is now constructing three run-of-river hydro plants with capacity of 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 project 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 the construction of its Cebu baseload plant this year. These two projects will increase the capacity in the Luzon and Visayas grids by 400 MW and 300 MW, respectively, by 2017.

On the banking business, Union Bank earmarked 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 this year. It has also 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.

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 about 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.