The Aboitiz conglomerate is jacking up capital spending this year by 69 percent to P48 billion to boost its power, infrastructure, property development, food and banking businesses amid a challenging period caused by the coronavirus pandemic.
In 2020, the year when the economy fell into an unprecedented recession due to the pandemic and consequent lockdown protocols, capital spending of Aboitiz Equity Ventures Inc. (AEV) amounted to only P29 billion.
AEV—which serves close to 20 percent of the country’s population through its critical businesses—vowed to rise above the challenge and deliver on its commitments.
“We continue to invest in our country to support economic recovery and growth … Our team members take this responsibility to heart … Over the next 10 years, we commit to investing in capacities to advance business and communities in the nine Asia Pacific countries where we operate,” said Aboitiz Group president and chief executive officer Sabin Aboitiz.
Some P23 billion of the group’s capital spending budget this year was earmarked for its power business under Aboitiz Power Corp., specifically for the completion of 1,336-megawatt GNPower Dinginin power plant in Bataan and the battery energy storage projects.
Aboitiz InfraCapital Inc. has set aside P13 billion for various projects.
Some P2 billion was earmarked for Republic Cement and Building Materials Inc.
Its food group has allotted P4 billion mainly for feed mill capacity expansion.
Aboitiz Land Inc. has set aside P3.1 billion for landbanking activities and completion of residential projects.
Banking arm Union Bank of the Philippines earmarked P2 billion for the continued enhancements on its digital touch points and the construction of an innovation hub. —DORIS DUMLAO-ABADILLA