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Country’s biggest conglomerate, the Ayala Group, gets to manage the financing package
The Asian Development Bank (ADB) has signed a financing package of up to PhP583 billion ($100 million) to support Ayala Corporation’s efforts in developing an electric mobility ecosystem in the Philippines.
This funding will be used to procure and install electric vehicle charging stations (EVCS) and to purchase electric vehicles (EVs) for commercial distribution. The initiative builds on ADB’s longstanding support for sustainable transport in the Philippines, including its earlier projects to promote electric jeepneys (e-jeepneys) and electric tricycles (e-trikes).
The financing package includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), managed by ADB. The blended financing features an innovative pricing structure designed to accelerate the deployment of EVCS infrastructure. A portion of the funding will also be allocated to procure EVs from leading manufacturers for distribution across the country.
“This project marks a significant step toward a sustainable and low-carbon future for the Philippines,” said ADB Country Director for the Philippines Pavit Ramachandran in a press conference. “By fostering the development of a robust electric mobility ecosystem, we are addressing critical environmental challenges such as air pollution, driving economic growth through green jobs, enhancing energy security, and promoting inclusive urban development.”
ADB has always electrified the Philippines
ADB has been a key player in advancing electric mobility in the Philippines, particularly through its support for e-jeepneys and e-trikes.
In 2012, ADB launched a flagship project to deploy 100,000 e-trikes nationwide, backed by a $300 million loan. While the project faced challenges, it demonstrated the potential of electric mobility to reduce emissions and improve livelihoods.
ADB also supported pilot programs for e-jeepneys, which have become a cleaner alternative to traditional diesel-powered jeepneys, aligning with the Philippine government’s Public Utility Vehicle Modernization Program (PUVMP).
These initiatives laid the groundwork for the current push to expand EV infrastructure and adoption. The new financing package builds on these efforts, addressing critical gaps in charging infrastructure and making EVs more accessible to the public.
PhP21.672 billion ($300 million) has now scaled down to a PhP1.73 billion ($29.6 million) investment from the ADB under the administration of former president Rodrigo Duterte. The Philippine Department of Energy (DoE) defended the reduction of the e-trike procurement because it was simply going to be for demonstration purposes and the “maintenance of the technology,” which was well accepted during the term of the late President Benigno Aquino III, also known as PNoy.
The DoE further said that there were many challenges faced during the implementation of the e-trike program in PNoy’s presidency. The DoE, however, recognizes the program as more than just an “environmental investment and experiment,” reiterating the position of the Electric Vehicle Association of the Philippines (EVAP) that developing a local EV industry that is manufacturing based is an important socio-economic step to secure more jobs, manage and develop renewable energy sources, and guarantee sustainable energy consumption.
Overcoming barriers to EV adoption
Electric vehicle development in the Philippines remains in its early stages, with high upfront costs, limited charging infrastructure, and evolving technologies posing significant barriers. However, the Philippine government’s Electric Vehicle Industry Development Act and various tax incentives are helping create a more favorable environment for the sector’s growth.
The establishment of an EVCS network is crucial for accelerating EV adoption. The charging stations funded by ADB’s financing package will address infrastructure gaps, making it easier for individuals and businesses to transition to electric vehicles.
Ayala leads in building an EV ecosystem
“This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to expand its electric mobility investments,” said Jaime Alfonso Zobel de Ayala, President and CEO of ACMobility. “As we help build a comprehensive EV ecosystem for the Philippines, we are grateful for the support of like-minded partners like ADB. Together, we can accelerate our contribution to the Philippines’ climate goals and reaffirm our commitment to building businesses that enable people to thrive.”
Ayala Corporation, one of the Philippines’ largest conglomerates, is well-positioned to lead the development of the country’s electric mobility ecosystem. With a diverse portfolio spanning real estate, banking, telecommunications, and renewable energy, Ayala has access to innovative financing options, such as blended finance, which combines public, private, and philanthropic funds.
Canada is in the circuit
Established in 2024, CANPA is a trust fund managed by ADB, supported by a CAD$360 million (USD$250 million) commitment from the Government of Canada. The fund builds on the success of its predecessors, the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and the original CFPS. CANPA aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions while promoting gender equality.
ADB’s financing package underscores its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. By supporting the development of an electric mobility ecosystem in the Philippines, ADB is helping the country reduce its reliance on fossil fuels, improve air quality, and create green jobs. This initiative also aligns with the Philippines’ commitments under the Paris Agreement and its Nationally Determined Contributions (NDCs).
As the Philippines continues to embrace electric mobility, ADB’s support for projects like this, alongside its earlier efforts with e-jeepneys and e-trikes, will play a critical role in shaping a cleaner, greener future for the country.
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