Asian Development Bank backs EV charging network in the Philippines with $100-million loan

The Asian Development Bank (ADB) will contribute up to 100 million dollars to the oldest Phillipeno conglomerate, Ayala Corporation, to help set up an EV ecosystem in the country.

According to the press release, the money will be used to install EV chargers and “to purchase electric vehicles for commercial distribution.” The press release does not mention the number of stations or vehicles that Ayala plans to procure. Nor does it mention a timeline for the implementation.

However, the “Initial Environmental and Social Examination” published by the ADB in October 2024 says the loan would “support the procurement and installation of electric vehicles charging network (EVCN) nationwide of up to 1,700 EVCS.” Moreover, AC Mobility Holdings, the Ayala subsidiary in charge of implementing the plan, “aims to drive the country’s transition to EV over the next 5 to 7 years, by expanding its product offerings, including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) to support the transition of the automotive industry in the Philippines towards e-mobility.”

Back to the loan agreement now signed by both parties: The 100-million-USD loan comprises an $85 million ADB OCR loan and a concessional loan of up to $15 million. Moreover, the financing package includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). The trust fund is managed by ADB and is supported by the Canadian government, with 360 million Canadian dollars.

A preliminary “Poverty and Social Analysis” from the ADB emphasises that setting up EV chargers in the Philippines will help reduce CO2 emissions in the country. “The improved air quality would result in reducing health concerns related to pollution, such as asthma and other respiratory conditions, which disproportionately affect low-income communities. Improved health outcomes can reduce medical expenses and improve quality of life.”

“This project is a significant step towards a sustainable and low-carbon future for the Philippines,” said ADB Country Director for the Philippines Pavit Ramachandran. “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.”

“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 CEO Jaime Alfonso Zobel de Ayala.

adb.org

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