Home Business ADB is backing Ayala’s EV charging network with a $100 million loan

ADB is backing Ayala’s EV charging network with a $100 million loan

by trpliquidation
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ADB is backing Ayala's EV charging network with a $100 million loan

THE Asian Development Bank (ADB) has approved loans of up to $100 million, or about P5.9 billion, to Ayala Corp. subsidiary AC Mobility Holdings, Inc. (AMHI) to build an electric mobility (e-mobility) ecosystem in the country.

The loan application was “approved” on November 20, the multilateral development bank said on its website on Thursday.

The Ayala Electric Mobility Ecosystem Project sought a common equity loan of $85 million and a concessional loan of $15 million from the ADB.

“Subsidiary AC Mobility Holdings, Inc. (AMHI) will use the ADB loan proceeds to support the acquisition and installation of an electric vehicle charging network (EVCN) across the country of up to 1,700 EVCS (electric vehicle charging stations) to develop an e-mobility ecosystem in the country,” the uploaded loan document said.

AMHI aims to drive the country’s transition to EV over the next five to seven years by expanding its product offering.

The project began its pre-construction phase this year and is expected to be fully operational in 2032, the document said.

“The typical power rating of one EVCS is a minimum of seven kilowatts (kW) for AC output and a maximum of 120 kW for DC output,” it added.

AMHI said it has already installed 35 charging stations registered with the Ministry of Energy in the National Capital Region, Cordillera Administrative Region and Regions III, IV-A, VI, VII and XI.

“The project will include AMHI’s proposed new EVCS installations… The location of proposed new EVCS installations for January 2024 to July 2025 [is] AMHI’s EVCN coverage is being expanded to five additional regions,” the report said.

These locations include Ilocos Region, Central Luzon, Bicol Region, Eastern Visayas and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City), while other locations for installation are yet to be identified by AMHI.

AMHI also said it is considering installing EVCS in non-Ayala properties, provided the locations meet the criteria.

This initiative is in line with Republic Act 11697, also known as the Electric Vehicle Industry Development Act, which establishes quotas for EV adoption in organizations with fleets to support domestic manufacturers and encourage EV adoption.

A key part of the law is the comprehensive roadmap for the EV industry, which aims to make the Philippines a producer and exporter of electric vehicles by 2040.

In this context, the target of the base scenario is a 10% EV share in the vehicle fleet in 2040. In the clean energy scenario, the target is a share of at least 50% EV.

Ayala Corp. has integrated electric vehicles into its portfolio. It became the official distributor of Kia, Volkswagen and BYD EVs in the Philippines in 2023. – Aubrey Rose A. Inosante

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