Vivant Corporation (VVT), a Cebu-based conglomerate focused on energy and water, has set aside P30 billion for the next five years to expand its energy and water plants throughout the Philippines.
Expansion of Energy Portfolio
During an interview at Vivant’s recent Annual Stockholders’ Meeting, CEO Arlo Garcia Sarmiento mentioned that the company plans to allocate a significant portion of its five-year capital expenditure (capex) of P22 billion to expand its power generation capacity. P15 billion will be dedicated to developing Renewable Energy (RE) plants.
Sarmiento also mentioned that the company plans to invest P8 billion to expand its water portfolio, potentially increasing the capacity of its plant’s first skid/train at Isla Mactan Cordova Corporation (IMCC).
Investment in Renewable Energy Projects
In 2023, Vivant Corporation reported a 43 percent year-on-year growth in its bottom line, primarily attributed to the solid financial performance of its energy strategic business unit, Vivant Energy Corporation. This unit contributed a total income of P3.1 billion, marking a 36 percent increase from the previous year.
According to Sarmiento, 2023 was another exceptional year for the company, as evidenced by sustained revenue and operating income amounting to P2.3 billion for the entire year. The company expresses pride in its significant investments in energy and water, contributing to the country’s progress.
Furthermore, in 2023, Vivant expanded its investment in the small power utilities group (SPUG), significantly increasing attributable installed capacity from 35 megawatts (MW) to 63MW.
Last year, Vivant finalized its acquisition of San Ildefonso Alternative Energy Corp. (SIAEC), the company’s first utility-scale solar power generation facility in Bulacan, with a total capacity of 22 MW. Additionally, the company ventured into the wind sector through a partnership with Aboitiz Renewables and Vena Energy to develop a 206MW wind farm in San Isidro, Northern Samar, expected to be completed in the second quarter of 2025.
Emil Andre Garcia, president of Vivant Energy, stated that the company is dedicated to developing solutions for energy transformation and improving energy services in the country. The company’s total equity investment requirement up to 2030 is projected to reach P22 billion, with P15 billion earmarked for various renewable energy projects.
Expansion of Water Portfolio
In terms of its water business, Vivant’s strategic business unit, Vivant Infracore Holdings, Inc., operating under the brand name Vivant Water, achieved a significant milestone by bringing the first water out of the first skid/train of its plant in Isla Mactan Cordova Corp. The construction of the seawater desalination plant in Cordova, Cebu, is estimated to be at 92 per cent completion and will be fully operational before the end of the year.
Sarmiento also mentioned that Vivant Water’s investment in Puerto Princesa, Palawan, resulted in P8.4 million in equity earnings for 2023, a 32 percent increase from the previous year. This revenue growth was attributed to higher earnings from septage operations due to increased desludging services. Vivant Water has invested a total of P2 billion in water infrastructure and aims to expand its operations in the water sector across the country.
Initiatives to Address Water Supply Shortage
Sarmiento is optimistic about finalizing a distribution agreement with the Metropolitan Water District (MCWD) as Vivant Water concludes its contract with them. This is crucial as Metro Cebu is experiencing a water supply shortage.
Explaining the situation, Sarmiento emphasized, “We need 600 million liters of water per day for Cebu. Currently, MCWD supplies only 300 million liters per day.” He further stressed that a progressive metropolis like Metro Cebu needs improved water service.