Manila: The partnership between the Maharlika Investment Corporation (MIC) and Synergy Grid and Development Philippines Inc. (SGP) to acquire a 20 percent stake in the National Grid Corporation of the Philippines (NGCP) is a significant move toward strengthening government involvement in critical infrastructure, senators said on Tuesday.
According to Philippines News Agency, Senator Sherwin Gatchalian emphasized that the deal demonstrates a vital collaboration between the public and private sectors, offering an opportunity to bolster transparency, enhance oversight, and reinforce the country's energy security. "This development reflects a proactive step toward ensuring our energy infrastructure is both resilient and accountable," the senator said. "By fostering public-private partnerships, we create avenues to improve operational efficiency and prioritize the timely implementation of transmission projects," he added.
Gatchalian underscored the importance of efficient management and accountability to address the country's energy demands effectively. He also called for a focus on ensuring an affordable and reliable power supply for the Filipino people as the partnership progresses.
The signing of the MIC-SGP agreement was witnessed by President Ferdinand R. Marcos Jr. in Malaca±ang on Monday afternoon. The deal, which is MIC's first investment since its inception in July 2023, is seen as a crucial step for the government to regain control over the nation's vital power infrastructure.
Meanwhile, Senator Joel Villanueva emphasized the potential for improved government oversight and efficiency in NGCP operations through the acquisition. "Through MIC's investment in NGCP, the Philippine government gains representation in NGCP's operations by securing two board seats," Villanueva said in a message to reporters. "With this, we are expecting greater government influence and participation, which could motivate NGCP to be more efficient," he added, noting that greater efficiency and compliance with government regulations could lower transmission rates charged by NGCP, benefiting consumers.
Senator JV Ejercito described the investment as "sound" for the Maharlika Funds, but expressed hope that the government could also pursue the stake in NGCP owned by the State Grid Corporation of China. "For national security reasons, I was hoping that the 40 percent share owned by the State Grid Corporation of China be the one that will also be reacquired by the government," Ejercito said in an ambush interview. When asked if MIC should pursue SGCC's shares, he firmly responded, "For me, yes! Especially with the conflict with China in the West Philippine Sea, it should be prioritized."
