Ayala Corporation has secured a $100-million (around P5.8 billion) loan from the Asian Development Bank (ADB) to develop an electric mobility ecosystem in the Philippines. The funding will be used to procure and install electric vehicle charging stations (EVCS) and to purchase electric vehicles for commercial distribution.
The funding package includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).
ADB’s financing, along with the concessional loan, will be used to develop a network of EVCS in the Philippines. The blended financing features an innovative pricing structure aimed at accelerating the deployment of EVCS infrastructure. A portion of the ADB financing will be allocated to procure electric vehicles from leading manufacturers for distribution across the country.
ADB noted that electric vehicle (EV) development is still nascent in the Philippines. High initial costs, limited charging infrastructure, and evolving technologies have posed significant barriers to the adoption of EVs in the country.
However, the Philippine government’s Electric Vehicle Industry Development Act and various tax incentives are helping create a more favorable environment for the growth of the EV sector.
ADB said that the creation of an EVCS network is crucial for electric vehicles to become more popular.
ACMobility president and CEO Jaime Alfonso Zobel de Ayala said: “This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to ramp up its electric mobility investments.”
“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.”
ADB country director for the Philippines Pavit Ramachandran said this project is a significant step towards a sustainable and low-carbon future for the Philippines.
“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,” said Ramachandran.