AEV sees power distribution boost

http://www.bworldonline.com/content.php?section=Corporate&title=aev-sees-power-distribution-boost&id=128878

ABOITIZ EQUITY Ventures, Inc. (AEV) expects its power distribution business to post a 5.3% sales growth this year because of the “robust growth in the economy” and other factors including increased electricity consumption amid the extended warm weather.

Jaime Jose Y. Aboitiz, chief operating officer of AEV unit Aboitiz Power Corp., said its subsidiary Visayan Electric Co., Inc. (VECO), will continue to post growth for the rest of the year.

“Aside from robust growth in the economy, other factors such as IEC (International Eucharistic Celebration) which brought tourists in Cebu, the prolonged El Niño which necessitated the use of cooling systems, and this year’s presidential election -- all contributed significantly in the impressive growth in the first quarter,” he said in a statement, quoting an interview with reporters in Banilad, Cebu City on Friday.

“For 2016, we expect sales to grow by 5.3%,” Mr. Aboitiz said.

VECO, the country’s second-largest privately owned distribution utility, is undertaking various expansion projects this year, including underground cabling in Cebu City.

Anton Mari G. Perdices, VECO senior vice-president and chief operating officer, said: “The project is a continuation of the initial implementation compliant to the Cebu City Ordinance 1894 in building utility structures and distribution underground. The project concentrated on Osmeña Boulevard, from the Provincial Capitol to P. del Rosario Street.”

AEV property subsidiary AboitizLand, Inc. is also on schedule with its mixed used development project in Mandaue City, a joint-venture with Ayala Land, Inc.

AboitizLand is spending P4.7 billion this year to “expand its industrial and residential land bank as it continues to grow its footprint outside Cebu,” AEV said.

“We launched last Monday (June 6) our latest joint venture with Ayala Land. Gatewalk Central, dubbed as the dynamic center of Mandaue, is a 17.5-hectare mixed-use project that will consist of an Ayala mall, residential towers, and office spaces,” said Andoni F. Aboitiz, AboitizLand president and chief executive officer.

“One of the mall tenants will be Landmark, which will be the mall’s first expansion outside Metro Manila,” he added.

AboitizLand is also in the final planning phase for three new projects in Luzon. -- Victor V. Saulon