Conglomerate Aboitiz Equity Ventures Inc. said Thursday it is hiking its 2023 capital spending by 10 percent to P78 billion to support the expansion of its infrastructure and power businesses.
AEV said in disclosure to the stock exchange its infrastructure unit earmarked P32 billion in capital expenditure for this year, or 42 percent of the group’s total spending budget.
This will go towards the continuous expansion of the group’s economic estates, telecommunication towers business as well as new investments in digital infrastructure.
It will use a portion of infrastructure group’s capital spending for the completion and maintenance of Apo Agua bulk water project in Davao City. Once operational, Apo Agua is expected to supply over 300 million liters of safe and sustainable water to Davaoeños daily.
AEV’s power generation unit is also allotting P32 billion in capital expenditures to invest in renewable energy and new businesses for its portfolio diversification and innovation-driven growth ambitions.
Aboitiz Power Corp. is making additional investments to improve the efficiency and reliability of existing baseload plants and for various land acquisitions, new substations and new meters for its distribution business. It is exploring new energy-adjacent opportunities, from energy storage systems to the Internet of Things.
Banking unit Union Bank of the Philippines is setting aside P5 billion in capital expenditures for this year as it pursues digital transformation and the migration of the acquired Citi consumer banking business.
The group’s food and agribusiness subsidiary, Pilmico and Gold Coin, will be allocating almost P5 billion for this year, mainly for its international feed mill expansions in Long An, Vietnam and Yunnan, China.
Aboitiz Land, AEV’s property subsidiary, budgeted P3 billion for its capital spending this year for the construction and completion of ongoing residential projects.
Aboitiz Land will launch new projects in Priveya Hills in Cebu and the Villages at Lipa in Batangas.