AEV allots P170B for new generation projs

MANILA, Philippines - Aboitiz Equity Ventures (AEV) plans to invest P170 billion on new generation projects over the next five years, even as it expressed interest in joining the public private partnership (PPP) program, specifically in airports and water.

In a press briefing yesterday, AEV chairman Jon Ramon Aboitiz said they are considering to expand into other areas outside of its core businesses of power and banking.

“We are keeping our eyes open to PPP projects like airports and distribution or bulk water supplying,” Aboitiz said.

He explained that they see a lot of opportunities in the privatization efforts of the Aquino administration, along with the government’s aggressive move in promoting tourism.

Aboitiz said the group is prepared to bid in those sectors either on their own, or through a joint venture.

He said they are interested in any airport that is up for bidding, either new or for rehabilitation. “And we are also interested in water distribution or bulk anywhere in the country.”

Aboitiz added that AEV is also looking at the coal industry. “We are already heavy into coal (with its energy business), so that it may be of interest, but not the mining of coal or any other mining venture.”

Meanwhile, the AEV official chairman said the group would be investing P170 billion for new generation projects in the next five years through subsidiary Aboitiz Power Corp., one of the leading power generation and distribution companies in the country.

In Mindanao alone, the Aboitiz Group is prepared to infuse P35 billion in various energy-related activities.

“In Mindanao, we will be putting onstream 354 megawatts (MW) capacity or 300 MW of coal-powered plant, and a 54-MW hydropower plant,” Aboitiz said.

In the first three months of 2012, AEV reported a consolidated net income of P5.9 billion, a 27-percent increase year-on-year.

Aboitiz Power accounts for over 70 percent of profits, followed by a little over 20 percent from its banking arm (Union Bank of the Philippines) and the remaining four to five percent by Pilmico Foods Corp., its food business.