In a significant move to enhance governmental oversight of the nation’s power infrastructure, the Maharlika Investment Corporation (MIC) has finalized an agreement with Synergy Grid and Development Philippines Inc. (SGP). The deal, signed in the presence of President Ferdinand R. Marcos Jr. at Malacañang, allows MIC to acquire a 20% stake in the National Grid Corporation of the Philippines (NGCP), the operator of the country’s power grid.
President Marcos, who witnessed the signing, commended the stakeholders for their efforts in reaching a solution that addresses everyone’s concerns. The agreement was signed by MIC’s President and CEO Rafael Consing Jr. and SGP’s chairman Henry Sy Jr., marking MIC’s inaugural investment since its establishment in July 2023.
Under the terms of the deal, MIC will purchase preferred shares in SGP, which effectively owns 40.2% of NGCP. This acquisition will not only grant the government a significant stake in NGCP but also secure board representation in both SGP and NGCP. Consing detailed that upon completion, MIC will hold two of the nine seats on the SGP board, and the government will have two of the 15 seats on the NGCP board.
This strategic investment is viewed as a pivotal move for the government to reclaim influence over the country’s critical power infrastructure. Since 2009, NGCP has managed the national transmission system under a 25-year concession from Congress, with the possibility of a 25-year extension. Consing highlighted the importance of this investment in safeguarding the nation’s power supply and ensuring governmental input in NGCP’s decision-making processes.
The National Transmission Corporation, established under the Electric Power Industry Reform Act of 2001, retains ownership of the transmission assets, while NGCP operates the grid. The Department of Energy (DOE), led by Secretary Raphael Lotilla, has endorsed the deal, aligning it with the Philippine Development Plan (PDP) 2023-2028. Lotilla emphasized that this step is crucial for achieving goals related to supply security, reliability, affordability, and competition in the power sector. The PDP also underscores the need to reassess investment in transmission to enhance efficiency, access to low-cost generation, and market balance.