The Asian Development Bank (ADB) on Monday signed a $100-million financing package to support Ayala Corp.’s procurement of electric vehicles and installment of charging stations across the Philippines.
The package includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). ADB’s financing, along with the concessional loan, will be used to develop a network of EVCS in the Philippines.
The blended financing features an innovative pricing structure aimed at accelerating deployment of EVCS infrastructure. A portion of the ADB financing will be allocated to procure electric vehicles from leading manufacturers for distribution across the country.
“This project is a significant step towards a sustainable and low-carbon future for the Philippines,” said ADB country director for the Philippines Pavit Ramachandran.
“By fostering the development of a robust electric mobility ecosystem, we are not only addressing critical environmental challenges such as air pollution, but also driving economic growth through the creation of green jobs, enhancing energy security, and promoting inclusive and resilient urban development,” he said.
Electric vehicle (EV) development is still nascent in the Philippines. High initial costs, limited charging infrastructure and evolving technologies have posed significant barriers to adoption of EVs in the country.
Industry data showed that electric vehicle sales were expected to reach about 18,000 units in 2024, exceeding 2023’s 10,602 units. The government set a target of building 147,000 charging stations nationwide by 2040.
The Philippine government’s Electric Vehicle Industry Development Act and various tax incentives are helping create a more favorable environment for the growth of the EV sector, according to the ADB.
The creation of an EVCS network is crucial for electric vehicles to become more popular. The EVCS to be set up with the ADB financing package will address gaps in EV charging infrastructure, thereby facilitating faster adoption of electric vehicles.
“This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to ramp up its electric mobility investments,” said ACMobility’s president and chief executive Jaime Alfonso Zobel de Ayala.
“As we help build a comprehensive EV ecosystem for the Philippines, we wish to thank like-minded institutional partners like ADB for helping us expand our electric mobility initiatives, accelerate our contribution to the Philippines’ climate goals, and reaffirm our purpose of building businesses that enable people to thrive,” he said.