MANILA (UPDATE) — The Maharlika Investment Corporation (MIC) has signed an agreement to get a stake in the National Grid Corporation of the Philippines (NGCP).

In a statement, the Presidential Communications Office said Synergy Grid and Development Philippines Inc. (SGP) has accepted a binding offer from the Philippines' first sovereign wealth fund for a 20 percent stake for a slice of the the country's power grid operator.

The deal was formalized with President Ferdinand Marcos Jr. witnessing the signing of the agreement.

“Congratulations, everyone. I know it wasn't easy,” Marcos said.

“I think, in the end, we found a good solution to everyone's concern," the President added.

Synergy Grid holds a 40.2 percent effective ownership interest in NGCP. MIC president and chief executive officer Rafael Consing said the deal would grant MIC two board seats each at 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 elaborated.

House Speaker Martin Romualdez first floated the idea of the MIC investing in the country's power grid operator after a massive blackout hit Panay island early last year.

Romualdez proposes Maharlika fund investment in NGCP after massive Panay blackout

Consing then said it is willing to “help” the country’s main grid operator to upgrade its systems through investments, despite the NGCP saying that "funding was never really an issue" for it. 

Consing on Monday said that the flagship investment would safeguard the nation's power supply from external threats and disruptions, citing the need for the government to have a say in NGCP decisions.

Energy Secretary Raphael Lotilla previously blamed the NGCP for the power disruption on the island, with President Ferdinand Marcos Jr. saying that "accountability lies" with the grid operator.

Lotilla has welcomes the MIC's move to get a stake in the NGCP.

“Investment in transmission expansion offers enormous potential benefits for efficiency by increasing access to low-cost generation, improving reliability, and counterbalancing market power," he said in a statement.

The deal is also considered as MIC’s maiden investment which “represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure that every Filipino has access to reliable and affordable power,” the Palace said in a statement.

NGCP has been operating the country's power grid since 2007 through a 25-year franchise, while the Philippine government owns the transmission assets through the National Transmission Corporation (TransCo).

In recent years, Congress has moved to review NGCP’s franchise citing its allegedly questionable partnership with a Chinese energy firm.