Davao Light allots P2.4 billion for 2023 capex

MANILA, Philippines — Davao Light and Power Co., a unit of Aboitiz Power Corp., is looking to sustain its high level of capital spending next year as it ramps up power capacity in its franchise area.

Davao Light president and COO Rodger Velasco said the company has earmarked P2.4 billion in capital expenditures for this year, which would be used for expansion and new substations.

He said the amount was higher than last year’s close to P2 billion capex spent and the company’s usual annual capital spending of between P1.5 billion and P1.6 billion.

“We have been ramping up (our capex) starting last year and this year we are on full blast,” Velasco said.

For 2024, Velasco said the company plans to spend the same level of capex as this year.

Around P200 million to P250 million is allocated by Davao Light this year for its underground cabling project, which aims to enhance the safety and reliability of power and telecommunication services in Davao City’s central business district.

Around 25 percent of the entire project has been completed to date, with full completion expected by 2029.

The first part of the underground cabling project in Ramon Magsaysay Avenue, which focuses on electrical works, is ongoing.

The bulk of this year’s capex, however, will be utilized on capacity expansion, according to Velasco.

“The challenge really is capacity so we are upgrading capacity,” he said.

Davao Light is continuously upgrading its existing substations with the use of new technology to provide the needed power capacity in its franchise area and deliver world-class service to customers.

The underground cabling project along with other digitalization projects in partnership with the local government of Davao are aimed at empowering the city through the tools and services Davao Light provides.