Aboitiz infra arm gets lion’s share of group’s P69B total capex for 2022

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ABOITIZ Group, one of the country’s largest conglomerates, allotted roughly P69 billion in capital expenditure (capex) this year, 152 percent higher than the P27 billion utilized in 2021.

The substantial budget increase will be used to fund the growth plans for 2022 and beyond as it approaches the coming years with balanced optimism, the company said Friday, March 18, 2022.

“Over the next 10 years, we will be more committed than ever to investing in accelerated growth and diversification. We will advance business and communities in the nine Asia Pacific countries where we operate by providing products and services that are not just life-essential but life-changing,” said Aboitiz Group president and chief executive officer Sabin Aboitiz.

Of the total capex set aside for the year, the group’s infrastructure business units will get the biggest share at P29 billion — a 337 percent increase from last year’s actual spending.

Allocation for land acquisition and new site development for Aboitiz InfraCapital’s (AIC) Economic Estates amounts to P7 billion, while P5 billion is earmarked for the expansion of AIC’s-telco tower business and another P5 billion for AIC’s other digital infrastructure projects.

Meanwhile, P3 billion has been set aside for the completion of AIC’s bulk water project in Davao City this year. Once operational, this water project will supply over 300 million liters of safe and sustainable water to Davaoeños daily. The rest of the budget will be for AIC’s other projects and Republic Cement’s major maintenance and safety related capital expenditures.

The group’s power unit, AboitizPower, together with its partners, is appropriating a P28 billion budget for the development and construction of various solar power, hydro power, and battery energy-storage systems, and the continuous improvement of the reliability of baseload plants.

Its banking arm, on the other hand, UnionBank has allocated more than P3 billion to sustain its investments in enhancing the features of its digital channels and platforms, transforming its branches and building capacity for the parent bank and its subsidiaries.

The food business unit, Pilmico and Gold Coin Group, has set aside P6 billion for its various projects, including the expansion of feed mills in China and Vietnam.

Moreover, the Aboitiz’s real estate arm, AboitizLand, Inc. has allocated a capital expenditure of P2 billion for the launch of new phases of its projects – Foressa Mountain Town in Cebu and The Villages at Lipa in Batangas.