Why did the state-run Maharlika Investment Corporation (MIC) secure a 20 percent stake in the National Grid Corporation of the Philippines (NGCP)?

Speaking to TeleRadyo Serbisyo, Energy Undersecretary Sharon Garin said the Philippine government has no participation in the nation’s critical power infrastructure after Congress granted a 25-year franchise to NGCP to operate the transmission system.

“This is one of the reasons why we created Maharlika, to invest in the national grid. Part na ngayon ang gobyerno sa mangyayari sa ating național grid. 20 percent lang pero better than zero. May nagbabatnay na na-representante ng gobyerno," she said.

Solon wants gov't to take over control of NGCP

Under the agreement, 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 country's power grid operator.

Maharlika Investment Corp getting 20 pct stake in NGCP

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.

He added Maharlika’s flagship investment would safeguard the nation's power supply from external threats and disruptions.

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. 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.

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

Garin denied that Synergy Grid was forced to accept the Maharlika offer.

“Hindi naman nagkapilitan. Since last year they have been talking. Ngayon lang na finalize ang detalye,” she said. 

“Marami din tayo problema sa grid kaya kailangan din ng bantay.”

She earlier said NGCP has several violations of its franchise including delays in several projects that affect the country's energy plan.