As the sole provider of power transmission, NGCP ensures that electricity is delivered where needed while balancing supply and demand to keep the grid stable. However, concerns have arisen about the company’s ownership structure, foreign influence, rising energy costs, and delays in infrastructure development.
These issues were recently debated during House of Representatives hearings, raising questions about the reliability of the energy system. NGCP officials consistently denied claims of Chinese control over the grid, asserting that State Grid Corporation of China (SGCC) holds a minority share in accordance with the Philippine Constitution.
The NGCP consortium, holding the 25-year concession to operate the country’s transmission network, consists of three main players: Monte Oro Grid Resources Corporation (led by Henry Sy Jr.), Calaca High Power Corporation (headed by Robert Coyiuto Jr.), and SGCC, which serves as the technical partner. Domestic corporations Monte Oro and Calaca High each hold 30%, or a total of 60% of NGCP’s outstanding capital stock, while SGCC holds the remaining 40%.
In December 2019, Synergy Grid and Development Philippines Inc. (SGP) entered into a share swap with OneTaipan Holdings Inc. (OTHI) and Pacifica2 Holdings Inc. (P21), acquiring a 67% stake in both companies. OTHI controls Monte Oro, while P21 controls Calaca High, both of which are major shareholders in NGCP. As a result, SGP’s effective ownership in NGCP is 40.2%, with control of 60% of voting rights through its subsidiaries.
Despite domestic stakeholders holding a majority, SGCC’s involvement raises concerns about foreign influence, particularly regarding national security and economic control.
In a significant move, the Philippine government recently acquired a 20% stake in SGP, a key player in NGCP’s corporate structure. This marks the first time the government has taken a substantial stake in managing the country’s power transmission system since NGCP’s inception in 2009. As part of the deal, the government will gain two seats on both the SGP and NGCP boards of directors.
While this 20% stake doesn’t provide full control, it does introduce an important counterbalance to the existing private consortium. The government’s share will be managed by the Maharlika Investment Corporation (MIC), which is responsible for overseeing the country’s sovereign wealth fund.
This development could be a turning point for the Philippines’ energy sector, potentially leading to a more reliable, affordable, and secure power grid that aligns with national priorities. Moreover, it helps alleviate concerns about foreign influence, providing reassurance that the country’s energy future is being shaped by domestic interests.
For a nation that’s seen its share of energy-related setbacks, this could very well be a welcome development. Here’s hoping it’s the first of many good things to come.