ADB, Ayala ink $100-M financing deal to boost PH electric mobility

The Asian Development Bank (ADB) and Ayala Corp. (AC), the country’s oldest conglomerate, have inked a $100-million financing deal to procure and install electric vehicle charging stations (EVCS) and to acquire electric vehicles (EVs) for commercial distribution.

Under the agreement, ADB’s financing will be used to develop an EVCS network in the Philippines, and to procure electric vehicles from leading manufacturers, which will then be distributed across the country.

This will also include a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).

“This project is a significant step towards a sustainable and low-carbon future for the Philippines,” ADB country director for the Philippines Pavit Ramachandran said in a statement released Monday.

“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 added.

The Ayala Group, through its mobility arm ACMobility, operates dealer networks of Honda and Isuzu. It is also the official distributor of Kia, Volkswagen, and BYD passenger cars in the Philippines.

“This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to ramp up its electric mobility investments,” AC Mobility president and chief executive officer Jaime Alfonso Zobel de Ayala said.

“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 added.

ACMobility acquired EV charging network Evro in December, seeking to consolidate the country’s operators to make them more accessible and convenient to local EV users.

President Ferdinand “Bongbong” Marcos Jr. last year directed the Department of Energy (DOE) and other agencies to focus on finding ways to lower the cost of production, financing, and charging infrastructure to ensure a seamless EV industry.

This comes as he wants 10% of government service vehicles to be electric powered. The government has also set a target of 2.45 million electric vehicles and around 65,000 charging stations by 2028. — RSJ, GMA Integrated News