ABOITIZ Equity Ventures Inc. is allotting P60 billion for capital spending this year, with the bulk of the amount going to its main power business, the company said in a statement.
The amount was lower than the P88 billion that Aboitiz Equity, which is also involved in banking, food and property development, spent in 2014.
A spokesman said the dip was due to legal delays on its 600-megawatt Subic power venture.
The group noted that subsidiary Aboitiz Power Corp., which delivers most of the earnings of Aboitiz Equity, would spend P52 billion this year as it aimed to increase total capacity by more than 2,000 MW in the next five years.
“We foresee the private and public sectors pouring large investments into this sector over the next 10 to 15 years and we want to play a role in this trend,” Aboitiz Equity CEO and president Erramon Aboitiz said in the statement.
“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”, he added.
On the power side, spending will cover the 420-MW Pagbilao baseload plant in Quezon which began construction in late 2014 and the 340-MW Therma Visayas baseload plant in Cebu which will break ground within 2015.
Another 300 MW will come from Therma South, which will start operations in the first half of 2015, to provide much needed power to the Mindanao grid, while its unit three expansion of 170 MW will also begin construction within the year.
The 68-MW Manolo Fortich hydropower plant in Bukidnon will start construction this year.
AboitizPower is also keen on expanding its renewable energy portfolio, including new sources of energy such as solar and geothermal. AboitizPower recently forged a partnership with American firm SunEdison, to build solar power plants in the country.
It has also identified about 200 MW of potential run of river power projects located across the archipelago for the next five years.
Food unit Pilmico is allocating P2.7 billion for the year in support of efforts to build a new layer farm and expand the capacity of facilities under its flour, feeds, and swine divisions.
AboitizLand is spending P3.7 billion to acquire more industrial and residential land, as it continues to expand outside of Cebu.
The company’s banking unit UnionBank has earmarked P455 million for continued branch expansion, particularly of subsidiary, CitySavings Bank, as it pursues its objective of further building up its market share in Luzon.