The Asian Development Bank (ADB) has signed a $100-million (P5.8 billion) financing deal with Ayala Corp. for the procurement and installation of electric vehicle (EV) charging stations in the country and commercial distribution of more environmentally friendly cars.aubet
In a statement on Monday, the ADB said the financing package was a blend of concessional loans from the Manila-based institution and the Canadian Climate and Nature Fund for the Private Sector in Asia (Canpa).
Gorman will become chairman on Jan. 2, 2025. He will succeed Mark Parker, who is leaving after serving on Disney’s board for nine years.
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Established in 2024, Canpa is a trust fund managed by ADB, supported by a commitment of $360 million (Canadian dollars) from the government of Canada.
Article continues after this advertisementREAD: There’s a big demand for EVs globally, but is our country keeping pace?
FEATURED STORIES BUSINESS BOC intercepts undeclared foreign currency worth Php 24.20M BUSINESS Fuel price watch: Gasoline, diesel down 80¢/L, 20¢/L starting Jan 28 BUSINESS BIZ BUZZ: Robina celebrates ‘twin’ADB did not disclose the interest rate and payment term for the loans, citing client confidentiality. But the Bank said the blended financing features an “innovative pricing structure” aimed at accelerating deployment of EV charging stations, which is crucial for EVs to become more popular in the Philippines.
At the same time, a portion of the loan will be allocated to procure EVs from leading manufacturers for distribution across the country.
Article continues after this advertisement“This project is a significant step toward a sustainable and low-carbon future for the Philippines,” ADB country director for the Philippines Pavit Ramachandran said.
Article continues after this advertisement Growing sectorThe loan deal with Ayala was sealed while the country’s oldest conglomerate works on attaining net zero greenhouse gas emissions by 2050. The group, through its mobility arm ACMobility, has been investing in EVs.
Article continues after this advertisementBut despite such investments from companies like Ayala, ADB said EV development was still “nascent” in the Philippines. For one, high initial costs, limited charging infrastructure and evolving technologies have posed significant barriers to adoption of more environmentally friendly cars in the country.
But ADB said the government’s Electric Vehicle Industry Development Act and various tax incentives were helping create a more favorable environment for the growth of the sector.
Article continues after this advertisement“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,” Ramachandran said. —Ian Nicolas P. Cigaral INQ
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