ADB, Ayala Corporation ink $100-M deal to boost electric mobility in the Philippines

1 month ago 21

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ADB, Ayala Corporation ink $100-M deal to boost electric mobility in the Philippines

ELECTRIC VEHICLES. The Asian Development Bank and Ayala Corporation signed a $100-million financing package to develop an electric mobility system in the Philippines

Ayala Corporation

ADB says high costs and limited charging infrastructure remain significant barriers for Filipinos to make the switch to electric vehicles

MANILA, Philippines – The Asian Development Bank (ADB) and Ayala Corporation signed a $100-million financing package to develop an electric mobility system in the Philippines.

Ayala, through its mobility solutions unit ACMobility, will use the funding from ADB to procure and install electric vehicle (EV) charging stations and purchase electric vehicles for commercial distribution.

This aligns with directions of government — it wants EVs to grab 50% of the market share by 2040.

The financing package also includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a trust fund of the ADB that aims to support climate and nature-based projects of the private sector in Asia and the Pacific.

In a statement, ADB’s country director for the Philippines Pavit Ramachandran described the project as a significant step towards a low-carbon future.

“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, enhancing energy security, and promoting inclusive and resilient urban development,” he said.

ACMobility president and chief executive officer Jaime Alfonso Zobel de Ayala said ADB’s funding came at an opportune time as the company prepares to ramp up its investments in electric mobility.

The Ayalas’ mobility arm is the official distributor of Kia, Volkswagen, and BYD in the Philippines. It also acquired EV charging network Evro from Globe Telecom’s 917Ventures in December 2024 as part of its plans to expand the network from its current 33 charging stations.

ADB said the adoption of EVs in the Philippines remains at its early stages, as high costs and limited charging infrastructure remain significant barriers for Filipinos to make the switch.

The Philippine government is trying to remove barriers to entry through the Electric Vehicle Industry Development Act and the slashing of tariffs for the importation of EVs and hybrid electric vehicles.

President Ferdinand Marcos Jr. earlier expressed hope that Tesla CEO Elon Musk would consider setting up a manufacturing site in the Philippines.

Despite government wanting EVs to have a substantial market share, automotive manufacturers are not expecting EV sales to comprise 10% of total vehicle sales in the country by 2040. – Rappler.com