In a significant move to accelerate the development of the Philippines’ electric mobility system, the Asian Development Bank (ADB) has signed a groundbreaking USD 100 million financing package with Ayala Corporation.
This investment aims to revolutionize the country’s transportation sector by funding the procurement and installation of electric vehicle charging stations (EVCS) and the purchase of electric vehicles (EV) for commercial distribution.
The financing includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a trust fund managed by ADB, aimed at supporting private-sector projects that promote climate and nature-based solutions in Asia and the Pacific.
This unified financing arrangement features a unique pricing structure designed to accelerate the deployment of EVCS infrastructure.
ADB Country Director for the Philippines, Pavit Ramachandran, highlighted, “This project is a significant step towards a sustainable, low-carbon future for the Philippines. By developing a strong 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.”
Addressing EV Adoption Challenges
The EV sector in the Philippines is still in its early stages, facing challenges such as high initial costs, limited charging infrastructure, and evolving technologies.
Government initiatives, however, including the Electric Vehicle Industry Development Act and various tax incentives, drive the country’s growth in the sector.
The establishment of an extensive EVCS network, facilitated by the funding package, is critical to addressing gaps in EV infrastructure and barriers to EV adoption across the country.
ACMobility’s President and CEO, Jaime Alfonso Zobel de Ayala, emphasized the importance of innovative blended financing to upgrade electric mobility investments.
Zobel de Ayala stated, “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.”
This strategic partnership marks a significant milestone in advancing the Philippines’ sustainable transportation sector.