By means of Kyle Aristophere T. Atienza, Reporter
The Philippine Government According to the Presidential Palace, there is an interest of 20% in a Filipin company via the sovereign asset fund that has a 40% interest in the National Grid Corp. of the Philippines (NGCP).
The Presidential Communications Office (PCO) said in a statement that the Maharlika Investment Corp. (MIC), which manages the Maharlika Investment Fund, has signed a binding agreement with Synergy Grid & Development Phils., Inc. (SGP) for an unlimited amount.
MIC will subscribe to preferential shares offered by SGP, which owns 40.2% of NGCP. NGCP manages the electricity grid of the country.
This marks the first investment of MIC since President Ferdinand R. Marcos, Jr. The law signed on creating the first sovereign wealth fund of the country in July 2023.
“I think we finally found a good solution for everyone’s concern,” said Mr. Marcos during the signing of the deal between MIC -President and Chief Executive ofFIcer Rafael D. Consing, Jr. and SGP chairman Henry T. Sy, Jr. On Monday.
The Lord Consing said that the deal mic would each give two seats on the shelves of SGP and NGCP.
“Once the acquisition is completed, we are entitled to two of the nine seats in the SGP sign, after the total seats have been raised from seven to nine. At NGCP, the government wins representation by two of the 15 board seats, after an increase in the total seats of 10 to 15, “he said.
The PCO statement quoted Mr. Consing as saying that the first investment of MIC “would protect the power supply of the nation against external threats and disruptions.” He noted that the government must also have a say in NGCP decisions. ”
The deal comes in the midst of concern about 40% owned by the State Grid Corp. from China (SGCC), a government company of the Chinese Communist Party, in the Grid operator. Critics, including legislators from both houses of the congress, have claimed that engineers in Beijing could dump the entire country into the darkness with the film of a switch.
The tensions between the Philippines and China have deteriorated in the past year in the midst of confrontations in the South Chinese Sea, where both competing claims have.
NGCP received a 25-year concession in 2007 to exploit the transmission system of the Philippines, with the possibility of renewal for another 25 years. It started with operations in 2009.
Energie -Secretary Raphael PM Lotilla said that the investment of the MIC in NGCP is a “step to achieve our goal to guarantee the security of delivery, reliability, affordability and promoting competition in the energy sector.”
With two board seats each in NGCP and SGP, Mr. Lotilla said: “Maharlika can free the way for better coordination between the Doe (Department of Energy) and the NGCP to expand the transmission connections in time and to accelerate the connections of and accelerate and accelerate The interconnection of our power schedule about the archipelago. ‘
“Government investments in transmission would make extra capital available for NGCP to implement when pursuing time completing transmission projects.”
Looking for comments, NGCP assistant vice-president and head of Public Relations Cynthia P. Alabanza said in a verrber message: “NGCP has no explanation. Wait until the relevant disclosures are made by the parties involved. ”
Last week, NGCP fromFIcials said the legislators that it is a Filipin’s controlled company.
Mr Sy, who is a vice -chairman of NGCP, said for the Huiscommissie for legislative franchis outstanding capital stock of NGCP.
Mr Sy repeated during the hearing that “only NGCP, through his Filipino directors and staff, and not the Chinese, has control over the system activities.”
The NGCP has said that it is open to a national security assessment as authorized by a 2022 law that has liberalized foreign ownership in a selected domestic industry.
“The entry of the MIC to the NGCP should serve as a check on the activities of the National Rooster, in particular whether foreign interests are claimed in companies as public utilities,” said InfraWatch PH -Convenor Terry L. Ridon.
“On the other hand, the microphone and the government must benefit from the substantial margins generated by the grid and contribute to the profit of the sovereign wealth fund,” he added in a Facebook Messenger -Chat.
Mr. Ridon said that the power ruler of the country must determine whether the margins of the schedule are reasonable and reflect the prices that produce the least costs for the public.
Ateneo de Manila University Economics Professor Leonardo A. Lanzona, on the other handFIcient regulatory authority above NGCP. “
“The most important challenge lies in the effective enforcement of existing mechanisms instead of direct ownership,” he said via Messenger Chat.
“If the government can reinforce its supervision without financial investments, it can achieve comparable results and at the same time retain public funds for other critical infrastructure needs,” he added.
The MIC, created by a law of 2023, has an authorized capital stock of P500 billion. Of these, P125 billion came from the investable funds of the Landbank of the Philippines (Landbank) and the Development Bank of the Philippines, as well as contributions from the National Government, including dividends from the Bangko Sentral NG Pilipinas.
When asked if the investment agreement was a cautious decision, Landbank said President and Chief Executive Officer Lynette V. Ortiz in an interview: “Of course I have to say yes.”
“I think it is all tailored to the mandate about offering sustainable power that is affordable and a schedule that is reliable,” she said.
Mr Lotilla also compared the investment of the government in transfer to the decision of the United Kingdom to renationalize his transmission system operator last year.
“It will be reminded that the UK has renowned the British Power System operator in September 2024 to support energy security, keep accounts low and to facilitate access of more renewable energy projects,” he said.