ADB backs Ayala EV plan with $100M financing

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The Asian Development Bank (ADB) has signed a $100 million financing deal with Ayala Corporation to support the company’s bid to develop an electric vehicle ecosystem in the country, both parties announced yesterday.  

The loan will be used to procure and install up to 1,700 electric vehicle charging stations (EVCS), as well as acquire EVs for commercial deployment, they said. 

ADB and Ayala sealed the loan deal during a signing ceremony held in Manila on January 24.

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The financing package consists of an $85 million loan from the ADB and a $15 million 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.

“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.

The Manila-based multilateral development bank said the creation of an EVCS network is crucial for electric vehicles to become more popular in the Philippines, as high initial costs, limited charging infrastructure and evolving technologies have posed significant barriers to adoption of EVs in the country.

Ayala’s EVCS will address gaps in EV charging infrastructure, thereby facilitating faster adoption of electric vehicles, ACMobility’s President and Chief Executive Officer Jaime Alfonso Zobel de Ayala said in the same statement.

“This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to ramp up its electric mobility investments,” 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 said.

ACMobility has 135 charging stations across the country.

It said in previous statements that the EV industry was targeting to sell 2.45 million EVs and operate 65,000 charging stations across the country by 2028.

As of 2023, data from the Land Transportation Office showed that there were 7,515 electric vehicles in the country.

The Department of Energy said there are currently 833 charging stations and 113 EVCs providers in the country.

Meanwhile, CANPA is a trust fund managed by ADB, supported by a commitment of 360 million Canadian dollars from the Candadian government. CANPA aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equality.

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