MANILA, Philippines – The Marcos administration finally has some control over the country’s power grid.
Maharlika Investment Corporation (MIC) sealed a deal with listed energy firm Synergy Grid & Development Phils., Inc. (SGP) on Monday, January 27, securing a 20% stake in the National Grid Corporation of the Philippines (NGCP).
Under MIC’s offer, the fund will also subscribe to the preferred shares of SGP, the company which has a 40.2% ownership over the NGCP.
“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total assets are increased from seven to nine,” Maharlika president and chief executive officer Rafael Consing Jr. said in a statement.
“At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15.”
Specific details of the transaction — such as the price — were not disclosed.
This comes over a year after the MIC officially started operations in November 2023.
“It wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos said during the signing ceremony.
In May 2023, President Ferdinand Marcos Jr. expressed interest in taking back control of the NGCP following a series of power shortages in different areas of the country.
Consing noted that the investment would also protect the country’s power supply from external threats and disruptions. Having two seats at the board of directors also grants the government power over decisions made for and within the NGCP.
SGP on January 22 denied that it knew of reports that the Maharlika investment fund was seeking 4 seats at its board of directors.
There had been concerns regarding national security, as 40% of the company is owned by the State Grid Corporation of China.
NGCP spokesman Cynthia Alabanza in an interview with the ABS-CBN News Channel’s Headstart on Monday said that there are currently 4 members of the board of directors from the China-based, state-owned company. Alabanza denied any security issues linked to the firm, particularly using a Chinese IT infrastructure provider.
“Our operating network is by default disconnected from the internet, we have our own internal network. We don’t rely on third party-providers,” she said.
The MIC received its seed capital from the LandBank of the Philippines and the Development Bank of the Philippines, infusing a total of P75 million into the fund. (READ: IMF to gov’t: Restore capital of state-owned banks used for Maharlika fund)
Critics have slammed the passage of the law establishing the MIC, saying that it was rushed and did not have enough safeguards. – Rappler.com