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MANILA—A state-run energy firm is prepared to handle the Philippines' operation of power transmission lines in case the franchise of the National Grid Corporation of the Philippines is scrapped.

During Wednesday’s Senate Energy Committee hearing, Donna Caloza-Aleria of the National Transmission Corporation's legal department (TransCo) said it has been preparing to handle the operations again.

“This topic with NGCP has been going on through the years right? If you remember, even during the time of the last Senate, in 2019 to 2020, this has always been an issue with NGCP. So during those times, TransCo has always been making sure that it has the capability to resume the transmission business just in case the franchise of NGCP would be revoked,” Aleria said in an interview after the public hearing.

“It’s also in the concession agreement the steps we have to take once the government has to take over.”

Senator Raffy Tulfo has underlined the possibility of having the NGCP's franchise scrapped due to its supposed strings of violations.

Tulfo, who chairs the Senate Energy Committee, told journalists earlier Wednesday that he discussed all these with President Ferdinand Marcos Jr. in full when he visited the latter in Malacañang last Monday.

“I told him (President) 'yung possible security risks at sinabi ko sa kanya yung mga recommendation ko at umayon naman sya na as long as ikabubuti ng bayan, so be it,” Tulfo said.

“I told him about the pagkansela ng franchise ng NGCP kapag nakitaan ng maraming violation. Sabi ng President, pwede naman pero baka matagalan. Sabi niya, it might take years. Sabi ko, yeah it might. So sabi niya ... mas maganda makahanap tayo ng paraan para mapaayos ang transmission lines natin,” he said.

The senator’s pronouncements were later confirmed by the Presidential Communications Office.

“Senator Tulfo expressed his desire to assess the performance of the NGCP... the President agreed with the Senator's proposal to conduct a comprehensive study or hold hearings to determine the actual situation. If necessary, the government will take back control of the entity,” the PCO said in a statement.

• Philippine gov't may 'take back control' of NGCP 'if necessary': Palace

Tulfo confirmed he will issue a subpoena to compel the submission of NGCP documents.

Before writing his chairman’s report, the Joint Congressional Energy Commission will be convened and they will scrutinize the national security impact of NGCP operations more, as well as the corporation’s financial status, he said.

According to Tulfo, he already has a set of recommendations.

“Hanapan natin sila ng violations, tulad into ... hindi sila tumutugon doon sa requirement na kailangan at a certain period of time, sila ay makagawa na sila ng systems development."

• Senators seek review of NGCP contract with Chinese company

SENATORS ON NGCP OPERATIONS

Members of the Senate panel, meanwhile, expressed their concerns about the 40 percent NGCP shares being controlled by the State Grid Corporation of China after Caloza-Aleria informed the committee of NGCP's continued refusal to be fully inspected by their agency.

“Magandang pakinggan ang TRANSCO ngayon kasi panibagong Pangulo ngayon eh. If they tried to inspect NGCP," Senator Nancy Binay said.

“We confirm that some of our (personnel) were not allowed by the NGCP to inspect. They allowed us to inspect the transmission assets. They don’t just allow us to inspect new projects," Caloza-Aleria said.

"They maintain that transmission assets are not yet open," she added.

In defense, NGCP's Assistant Corporate Secretary Ronald Dylan Concepcion said they have been allowing the government to inspect their transmission assets. He even mentioned former National Security Adviser Hermogenes Esperon as among those who inspected their facility.

But Tulfo rejected these claims.

"I would not believe what that you tell us. I will still believe na may access, na kaya ng State Grid of China, na kung gugustuhin nila na sabotahe ang national grid natin (kaya)... baka paggising natin hindi na tayo Republic of the Philippines," Tulfo said.

"The (National Security Council and National Intelligence Coordinating Agency) are working closely with us with regard to these issues," Concepcion answered.

“Sabi ni Esperon sa report niya, may vulnerablity. Sabi, possible. Pwede tayo ma-access, ang ating national grid ng State Grid of China ... vulnerable tayo sa ganung sitwasyon," Tulfo countered.

But Concepcion maintained the country's interest is still protected since the NGCP's 60 percent shares are equally divided among the Sy and Coyuito corporations.

The issue of national security should not be lumped together with NGCP operations, he maintained.

But Senator Grace Poe quickly pointed out that the tycoon families are still the minority shareholders since they only have 30 percent each.

"That's possible in theory, but not in practice," Concepcion said.

Tulfo and Sen. Risa Hontiveros debunked Concepcion's non-concern about the NGCP's national security issue.

"Kung may ibang bansa na pwede mangulekta ng impormasyon ay ibigay sa Beijing at isang bansa na hindi kaibigan ang pagtrato sa karagatan at West Philippine Sea. Isang bansa na andun din sa telcos industry at lalo sa ating national gri para sabihin na walang national security threat, maling mali po 'yun," Hontiveros pointed out.

"Sabi niya (Concepcion), that's not gonna happen. How would you know, samantalang ang tinatanong ko sayo na teritoryo mo tungkol sa documents, revenue, hindi mo alam? Ito pa kayang national security?
This poses national security threat. Itong 40% na pagmamay-ari ng State Grid of China na dapat gobyerno natin ang namamahala," Tulfo stressed.

“There’s no 100% invulnerable situation ... even other countries are not 100 percent invulnerable," rebutted Concepcion.

Sen. JV Ejercito, meanwhile, recommended to the committee to also look at NGCP's ability in recovering its ROI (return of investments) just four years after it bagged its franchise.

Tulfo said he will just wait for the NGCP's submission of documents before he will call for another hearing.

Aside from the national security issue, the committee will also touch on the financial aspects of the NGCP operations.

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