Cebu-based conglomerate sets P30-B five-year capex

CEBU, Philippines — Cebu-based energy and water conglomerate Vivant Corporation (VVT) has allocated a capital expenditure of P30 billion over the next five years to fund the expansion of its energy and water plants across the Philippines.

In an interview with Vivant chief executive officer (CEO) Arlo Garcia Sarmiento on the sideline of the company’s recent Annual Stockholders’ Meeting, he said the company will spend a larger chunk of its five-year capex or P22 billion to build up its power generation capacity, about P15 billion will be spent on developing Renewable Energy (RE) plants.

Sarmiento said the company would also spend P8 billion to expand its water investments, including a possible increase in the capacity of the first skid/train of its plant at Isla Mactan Cordova Corporation (IMCC).

The publicly-listed company posted a 43 percent year-on-year growth in its bottomline for 2023 mainly driven by the solid financial performance of the company's energy strategic business unit Vivant Energy Corporation (Vivant Energy).

The energy unit had a total income contribution of P3.1 billion, a 36 percent jump from the previous year.

According to Sarmiento, the year 2023 is another banner year for the company, “it was our second-best year ever.”

"Banking on our sustained revenue and operating income amounting to P2.3 billion for the full year 2023, we see continued growth for this year. We are extremely proud of how we’ve been able to move the country forward with our significant investments in energy and water,” Sarmiento said.

In 2023, Vivant expanded its investments ??in the small power utilities group (SPUG) resulting in a significant increase in attributable installed capacity from 35 megawatts (MW) to 63MW.

Last year, Vivant formalized its acquisition of San Ildefonso Alternative Energy Corp. (SIAEC), Vivant Energy's first utility-scale solar power generation facility, located in Bulacan with a total capacity of 22MW.

In the same year, Vivant introduced its first foray in the wind space via a partnership with Aboitiz Renewables and Vena Energy for the development of a 206MW wind farm in San Isidro, Northern Samar. The expected project completion is in the second quarter of 2025.

"As we look to the future, Vivant Energy remains committed to developing solutions for energy transformation and the improvement of energy services in the country," said Emil Andre Garcia, Vivant Energy President.

"To achieve our growth plans, our total equity investment requirement up to the year 2030 is projected to reach P22 billion. Out of this, we target to earmark P15 billion for various renewable energy projects,” Garcia added.

Water Business.

Vivant’s water strategic business unit Vivant Infracore Holdings, Inc. with the brand name Vivant Water recently had the first water out of the first skid/train of its plant in Isla Mactan Cordova Corp. (IMCC) - making history as the first company to construct a utility-scale seawater desalination facility in the Philippines.

The construction of the 20MLD seawater desalination plant in Cordova, Cebu is now estimated at 92 percent and will be fully operational before the end of the year.

According to Sarmiento, Vivant Water's investment in Puerto Princesa, Palawan brought in P8.4 million in equity earnings for 2023, up by 32 percent year-on-year.

The increase in revenue was due to higher earnings from septage operations on the back of increased desludging services.

To date, Vivant Water has invested P2 billion in water infrastructure.

"While we remain focused in the near team to our home market of Cebu and other identified locations, we ultimately aim to be a major player in the water sector with operations in the country," said Atty. Jess Anthony Garcia, Vivant Water president and chief operating officer (COO).

At present, Vivant Water is finalizing its contract with Metropolitan Water District (MCWD).

Sarmiento is confident about securing a formal distribution deal with MCWD, given that Metro Cebu is experiencing a water supply shortage."

"We have a shortage; we need 600 million liters of water per day for Cebu. Currently, MCWD supplies only 300 million liters per day," Sarmiento explained, adding that for a progressive metropolis like Metro Cebu, "we deserve better water service." — (FREEMAN)