Vivant Corp. is lining up as many as 15 new projects across renewable energy and water infrastructure as the Cebu-based conglomerate prepares to roll out a P67-billion expansion program through 2030, betting that the country’s growing power and water supply gaps will continue to fuel demand in the years ahead.
The listed company said the planned investments will be funded through a mix of debt and equity, with management confirming it is studying a possible follow-on offering alongside debt capital raising initiatives at subsidiary Vivant Energy Corp.
“The P67-billion capex mentioned is until 2030. We are going to do debt capital raising at Vivant Energy Corp.
We are studying the possibility of doing a follow-on offering depending on the market, but we are doing a combination of debt and equity,” Vivant Chief Finance and Risk Officer Minuel Carmela Franco said during a media briefing on Thursday.
Of the total planned capital spending, around P60 billion will be allocated for the energy business, while approximately P7 billion will go toward expanding Vivant’s water portfolio.
Despite elevated inflation, high interest rates, and slowing economic growth, Vivant said it remains bullish in pursuing expansion opportunities.
“(Economic growth) is down, inflation and interest rates are up, but we are quite bullish on renewable energy,” Vivant CEO Arlo Sarmiento said. “Our dependence on conventional fuel sources has made us one of the most expensive.”
As part of this push, the company is currently evaluating between 10 and 15 projects covering renewable energy, desalination, waste-to-energy, and water distribution expansion.
For renewable energy developments, Vivant said it is looking at projects ranging from 30 megawatts (MW) to 300 MW, depending on the size and location of the asset.
Vivant also sees opportunities in the water sector, particularly in Cebu, where supply constraints and infrastructure gaps remain.
“Water is a sector that has largely been neglected, so there’s a lot of room there in terms of expansion,” Sarmiento said.
Earlier this year, Vivant Water signed a joint venture agreement with Metropolitan Cebu Water District to supply Metro Cebu with potable water from its 20-million-liter-per-day (MLD) desalination facility in Cordova, Cebu.
The company is also planning incremental expansions of the facility by 5 MLD, depending on customer demand, with total capacity potentially reaching as much as 50 MLD over time.