President Ferdinand R. Marcos Jr. witnessed a significant step in securing government oversight of the country’s power infrastructure, as Synergy Grid and Development Philippines Inc. (SGP) agreed to sell a 20% stake to the state-run Maharlika Investment Corporation (MIC).
The binding agreement, signed on Monday afternoon at Malacañang Palace, will allow MIC, responsible for managing the country’s sovereign wealth fund, to secure a foothold in the National Grid Corporation of the Philippines (NGCP).
“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos said following the signing by MIC president and CEO Rafael D. Consing Jr. and SGP chairman Henry T. Sy Jr.
As part of the deal, MIC will subscribe to preferred shares in SGP, which holds a 40.2% stake in NGCP, the country’s power grid operator. Once the transaction is completed, the government will secure two board seats each at both SGP and NGCP.
“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” Consing explained.
This move marks the government’s first investment in NGCP, a strategic step to regain influence over the country’s critical power infrastructure. The deal is seen as vital to ensuring more reliable and affordable electricity for Filipinos, with government officials highlighting the importance of safeguarding the nation’s power supply from external threats and disruptions.
Since 2009, NGCP has managed the country’s transmission system under a franchise granted by the Philippine Congress. The company was awarded a 25-year concession in 2007, with the possibility of a 25-year extension.
While NGCP operates the power grid, the Philippine government retains ownership of the transmission assets through the National Transmission Corporation (TransCo), a government agency established by the Electric Power Industry Reform Act (EPIRA) of 2001.