Aboitiz Equity Ventures Inc., the holding company of the Aboitiz Group, said it earmarked P73 billion in 2020 capital expenditures to help keep the economy moving amid uncertainties over coronavirus disease 2019.
“The COVID-19 crisis created a lot of uncertainty, but we believe the Philippine economy can be shielded from further disruptions if the government and private sector focus on areas of collaboration,” AEV president and chief executive Sabin Aboitiz.
The capex represents a 37-percent increase from the P53 billion it spent in 2019.
“The Aboitiz Group will deliver on our commitment to being the best-in-class in our industries. Learning from the challenges we have been experiencing in the past year, we will continue to adhere to global standards of operational excellence,” Aboitiz said.
“We see our businesses very resilient during these times. We provide stable and affordable power to support economic activity. We provide access to capital to entrepreneurs. We participate in government infrastructure projects to help generate jobs and spur economic activity. We provide feeds to farmers and fishermen which they need to grow their livestock,” Aboitiz said.
The company said of the total amount, P41 billion was allocated for Aboitiz Power Corp., up by 17 percent from P35 billion in 2019. About 80 percent of the capex will be used for the completion of GNPower Dinginin Power Plants and other new businesses.
The infrastructure arm Aboitiz InfraCapital Inc. set aside majority of its P16-billion capex allotment for the construction of its water businesses and its foray into airports and common tower businesses.
Apo Agua spent P3 billion. Once online, the Davao bulk water project will supply 300 million liters of water per day to the Davao City Water District for the benefit of over a million Davaoenos. Meanwhile, Republic Cement anticipates a 9-percent business growth this year with cement prices remaining stable.
Aboitiz Land is expected to utilize P11 billion mainly for land banking as it continues to grow its property developments in various parts of the country.
Aboitiz said the balance will be used for the provisions of the remaining strategic business units. Pilmico Food Group allocated nearly P3 billion for new businesses, expansion/upgrades and operating expenses, while Union Bank of the Philippines will sustain its investment efforts in its digital and branch transformation endeavors and allot around P2 billion for expansion/upgrades and operating expenses.
The Aboitiz Group has a business continuity plan in place to mitigate the impact of the COVID-19 crisis and adopted travel, quarantine and hygiene measures based on the guidelines set by the Department of Health and World Health Organization.