$100 M financing agreement between ADB and Ayala to promote electric vehicles in Philippines
A financing package worth up to $100 million has been signed by the Asian Development Bank (ADB) to assist Philippine conglomerate Ayala Corporation in its efforts to build an ecosystem for electric mobility in the country.
According to a statement released by ADB on Monday, this funding will be utilized to buy electric vehicles for commercial distribution as well as to acquire and install electric vehicle charging stations (EVCS).
A concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA) is part of the package.
The concessional loan and ADB’s funding will be utilized to build an EVCS network in the Philippines.
The creative pricing structure of this blended financing is intended to hasten the deployment of EVCS infrastructure.
The purchase of electric vehicles from top manufacturers for nationwide distribution will be funded in part by the ADB.
“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 ADB Country Director for the Philippines Pavit Ramachandran.
It should be mentioned that the Philippines is still in the early stages of developing electric vehicles (EVs).
The nation’s adoption of EVs has been severely hampered by high initial costs, a lack of adequate charging infrastructure, and developing technologies.
However, a more favorable environment for the expansion of the EV sector is being created by the Philippine government’s Electric Vehicle Industry Development Act and other tax incentives.
For electric vehicles to gain traction, an EVCS network must be established.
By filling in the gaps in the EV charging infrastructure, the EVCS that will be established as part of the ADB financing package will hasten the adoption of electric vehicles.
“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,” said ACMobility’s President and Chief Executive Officer Jaime Alfonso Zobel de Ayala.
Established in 2024, CANPA is a trust fund overseen by ADB and backed by a Can$360 million commitment from the Canadian government.
The fund builds on the achievements of its predecessor, CFPS, and its predecessor, the Canadian Climate Fund for the Private Sector in Asia II (CFPS II).
CANPA seeks to advance gender equality and climate and nature-based solutions through private-sector initiatives in Asia and the Pacific.
Ayala Corporation is among the biggest and most established conglomerates in the Philippines.
