(The Philippine Star) | Updated March 30, 2017 - 12:00am
MANILA, Philippines -
Ayala-owned AC Energy Holdings Inc. is eyeing to expand its presence in
Vietnam, its second regional investment after Indonesia, its top official said
yesterday.
In a briefing
yesterday, AC Energy president and CEO Eric Francia said the company was also
studying other market opportunities within the region.
“While it may take time
to strengthen our presence in Indonesia, we have started to look around the
Southeast Asia region and we hope to make our second regional investment in about
12 to 18 months,” he said.
Vietnam is the top
candidate for its overseas expansion, while the company will be opportunistic
in other markets like Myanmar.
“In terms of being
systematic, putting our limited resources to work outside the Philippines, it’s
really Indonesia first and number two is Vietnam. The rest, it will be
opportunistic,” Francia said.
He said investment
opportunities are rosy in Vietnam since it has a similar macroeconomic picture
with Indonesia and the Philippines.
“The population, the growth potential, the
market size, supply-demand outlook—frankly it’s similar to what we have here in
the Philippines. Indonesia - its much larger in magnitude because of
population. But you have those elements of growth and size, and the infrastructure,
supply gap,” Francia said.
The Ayala Group is
already present in Vietnam through Manila Water Co. Inc. under local units Thu
Duc Water and Kenh Dong Water as well as through infrastructure firm Ho Chi
Minh City Infrastructure Investment Joint Stock Co. (CII).
“Manila Water has a
strong platform there. I still sit in CII, an infrastructure company in
Vietnam, so we know the market,” Francia said.
Currently, AC Energy is
scouting for a local partner and possible technologies to invest in.
“The partner has to be
a good local partner with values that are aligned, local capabilities, a good
pipeline of projects. We’re flexible in terms of technology. It could be
renewable energy, gas, coal or it could be a combination,” Francia said.
“The size we’re looking
at, I would prefer to have small mid-size where we can be a more meaningful
partner as opposed to a very large platform where we are a financial minority
investor,” he added.
This overseas expansion
strategy is part of the company’s transformation from Philippine-focused energy
investment holding firm to become a regional energy platform with investment,
development, operations and retail capability.
“AC Energy is at a
critical inflection point. Our transformation is enabled by rapid organic
growth and key strategic acquisitions,” Francia said.
So far, AC Energy has
sealed a deal with UPC Renewables Indonesia Ltd. to develop a $150-million,
75-megawatt wind power project in Sulawesi, Indonesia which would be
developed through PT UPC Sidrap Bayu Energi.
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