Manila: Maharlika Investment Corporation (MIC) signed an agreement with Synergy Grid and Development Philippines Inc. (SGP) to acquire a 20 percent stake in the National Grid Corporation of the Philippines (NGCP). The deal is poised to give the government more influence over the country's power grid operations.

According to Philippines News Agency, the signing of the agreement was witnessed by President Ferdinand R. Marcos Jr. in Malaca±ang on Monday afternoon. "Congratulations, everyone. I know it wasn't easy. I think, in the end, we found a good solution to everyone's concern," Marcos said, addressing the deal's stakeholders.

The agreement was signed by MIC President and Chief Executive Officer Rafael Consing Jr. and SGP chairman Henry Sy Jr. The deal will be MIC's first investment since its inception in July 2023. Under the deal, MIC will purchase preferred shares in SGP, granting the government a 20 percent stake in the company, which holds a significant 40.2 percent effective ownership in NGCP, the operator of the country's power grid.

Consing noted that the deal will also provide the government with board seats in 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," he explained.

The investment is seen as a crucial step for the government to regain control over the nation's vital power infrastructure. Since 2009, the NGCP has had full control over the management and operation of the country's nationwide transmission system under a 25-year concession granted by Congress. The agreement allows for the possibility of a 25-year extension.

Consing emphasized that this investment is important for protecting the country's power supply from external threats and ensuring that the government has a voice in key decisions made by the NGCP. The National Transmission Corporation, a government agency created under the Electric Power Industry Reform Act of 2001, owns the country's transmission assets, while the NGCP operates the grid itself.