The Asian Development Bank (ADB) has agreed to lend up to $100 million to Ayala Corporation, the Philippines’ oldest conglomerate, to help establish an electric vehicle (EV) ecosystem in the country. The funding aims to support the installation of EV charging stations and the purchase of electric vehicles for commercial distribution. Specific details about the number of chargers or vehicles to be procured, as well as the timeline for implementation, were not disclosed in the press release.
The ADB’s “Initial Environmental and Social Examination,” published in October 2024, provides further insight into the project, revealing plans to support the nationwide procurement and installation of up to 1,700 EV charging stations. AC Mobility Holdings, Ayala’s subsidiary responsible for the project, is working to drive the Philippines’ transition to EVs over the next five to seven years. The plan includes expanding product offerings such as battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) to help the country’s automotive sector move towards e-mobility.
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The loan agreement consists of an $85 million ADB Ordinary Capital Resources (OCR) loan, along with a concessional loan of up to $15 million. Additionally, a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), managed by ADB, will also support the project. The CANPA trust fund is backed by the Canadian government with 360 million Canadian dollars.
ADB’s “Preliminary Poverty and Social Analysis” highlights the potential environmental and social benefits of the EV infrastructure project. The analysis notes that the installation of EV chargers will reduce carbon emissions, leading to better air quality and fewer health issues related to pollution, particularly for low-income communities who are disproportionately affected. Improved health outcomes could lead to lower medical expenses and enhanced quality of life.
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“This project is a significant step towards a sustainable and low-carbon future for the Philippines,” said Pavit Ramachandran, ADB Country Director 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.”
Jaime Alfonso Zobel de Ayala, President and CEO of ACMobility, expressed gratitude for ADB’s support, stating, “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.”