AEV beefs up footprint in Mindanao

MANILA, Philippines - Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) is beefing up its business footprint in Mindanao through a bulk water supply project.

In a disclosure, AEV said it entered into a joint venture with J.V. Angeles Construction Corp. (JVACC) for the supply of treated bulk water to the Davao City Water District (DCWD).

“The proposed venture includes the construction of both a hydroelectric-powered bulk water treatment facility and the conveyance system needed to deliver treated bulk water to numerous DCWD delivery points,” AEV said.

JVACC earlier submitted a proposal to DCWD for the supply of 300 million liters per day of potable bulk water. Utility firm DCWD supplies water to 150,000 consumers.

JVACC has tapped Hedcor Inc., an affiliate of AEV, to provide the necessary technical and operational expertise for the hydroelectric components of the project.

“Harnessing the well-established technical expertise of Hedcor and JVACC in hydroelectric power and water-related infrastructure, respectively, the project will be the country’s first and only bulk water system with a fully renewable energy powered water treatment facility,” said AEV president and CEO Erramon Aboitiz.

Hedcor, the largest developer of run-of-river plants in the country, has 19 hydropower facilities in the provinces of Benguet, Davao and Ilocos Sur with a total capacity of 155 megawatts (MW).

The final terms of the joint venture company is being studied by the parties involved, AEV said.

Aboitiz said the bulk water supply project will support the growth and development of Davao City, which has been a partner of AEV for more than 80 years.

“As one of the country’s leading water infrastructure contractors, we are confident of being able to deliver a potable bulk water system to Davao City,” said JVACC president Jose Virgilio Angeles Jr.

JVACC, for its part, is one of the leading contractors in the Philippines with more than 48 years of experience in the construction and development of water-related infrastructure.

It is the company behind Hedcor Sibulan’s 42-MW run-of-river hydropower project that services Davao City.

AEV posted strong double-digit earnings growth in the first quarter this year as a one-time gain from the sale of its thrift bank offset lower income from the power business.

AEV’ consolidated net income hit P6.8 billion in the first three months, up 17 percent from a year ago. Core income, which strips off non-recurring items, inched up 1.3 percent to P5.5 billion.

AEV is into power production (Aboitiz Power Corp.), banking (Union Bank of the Philippines), food (Pilmico Foods Corp.) and property development (Aboitiz Land Inc.).