THE ASIAN Development Bank (ADB) and Ayala Corp. have signed a $100-million (around P5.8-billion) financing deal to support the company’s efforts to develop an electric mobility (e-mobility) ecosystem in the Philippines.
In a statement, ADB Country Director for the Philippines Pavit Ramachandran said the project is a “significant step towards a sustainable and low-carbon future for the Philippines.”
“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 Ayala Electric Mobility Ecosystem Project has secured an $85-million ordinary-capital-resources loan from the ADB and a $15-million concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).
CANPA is a trust fund managed by ADB that is supported by the government of Canada. It aims to support private sector projects in the region that focus on “climate and nature-based solutions.”
“This blended financing features an innovative pricing structure aimed at accelerating deployment of electric vehicle charging stations (EVCS) infrastructure. A portion of the ADB financing will be allocated to procure electric vehicles from leading manufacturers for distribution across the country,” it said.
Ayala Corp.’s subsidiary AC Mobility Holdings, Inc. (AMHI) will be implementing the project, which would involve the installation of up to 1,700 EVCS around the country.
ACMobility President and Chief Executive Officer Jaime Alfonso Zobel de Ayala said the financing deal comes at a time when ACMobility continues to ramp up investments in EVs.
“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,” Mr. Zobel said.
The ADB noted EV adoption is still in its early stages in the Philippines, citing “high initial costs, limited charging infrastructure, and evolving technologies” as barriers.
However, the Electric Vehicle Industry Development Act and various tax incentives are expected to help drive growth in the EV sector, it added.
President Ferdinand R. Marcos, Jr. had also issued an executive order removing tariffs on EVs until 2028. It was expanded by the National Economic and Development Authority Board in May 2024 to include electric motorcycles, tricycles, and hybrid EVs.
The Philippines is moving to decarbonize its transportation system, amid a target to reduce greenhouse gas emissions by 75% by 2030, in line with commitments made under the 2021 Paris Agreement.
The Department of Energy’s roadmap for the wider adoption of EVs sets “specific targets and activities” to guide the transition towards electrified transportation. — Aubrey Rose A. Inosante
