NGCP official assures Filipino-led firm, no switch to shut grid off

NGCP official assures Filipino-led firm, no switch to shut grid off

/ 06:53 PM January 15, 2025

MANILA, Philippines — An official from the National Grid Corporation of the Philippines (NGCP) emphasized that the firm is Filipino-led and assured the public that there is no single switch capable of shutting down the entire grid.

In a statement, NGCP Assistant Vice President for System Operations Clark Agustin allayed concerns raised by lawmakers about the corporation using Chinese-made equipment, noting that China is a technical partner allowed by the government.

“There is no midnight deal that happened.  NGCP is transparent with all its moves and transactions,” he said.

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Concerns were raised during Tuesday’s hearing of the House of Representatives committee on legislative franchises, where lawmakers reviewed NGCP’s franchise.

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During the discussions, Batangas 2nd District Rep. Gerville Luistro asked NGCP’s lawyers if the corporation complied with constitutional provisions regarding foreign ownership and management structure for companies in the public utility sector.

Luistro then presented information showing that NGCP has officials who are Chinese nationals, including a certain Zhu Guangchao, who is reportedly designated as chairman.

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NGCP legal counsel Pia San Diego explained that Zhu is only the chairperson of NGCP’s board of directors, emphasizing that all executive and managerial positions are held by Filipinos. However, Deputy Speaker David Suarez questioned this, arguing that the chairmanship of the board should be held by a Filipino, considering that 60 percent of the corporation is Filipino-owned.

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READ: NGCP quizzed over Chinese ties; solon says firm complied with rules

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According to NGCP, it is a Filipino-led company as 60 percent of its shares are owned by Filipinos, noting that the consortium comprised of Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and State Grid Corporation of China won the bidding for the operation of the country’s transmission grid for a purchase price of $3.95 billion.

NGCP stressed that Monte Oro Grid Resources and Calaca own 60 percent of the company, while the State Grid Corporation of China holds only 40 percent, thereby meeting the constitutional requirements.

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Agustin also clarified that NGCP has no single switch to turn off the country’s power grid, stating that the corporation follows the internal procedures outlined in the Philippine Grid Code.

“Decisions are based on established procedures. Mayroon para sa maintenance at mayroon din para sa emergency,” Agustin said, adding that there are separate control centers located in Luzon, Visayas and Mindanao.

“If you decide to cut off power for [the] entire country, wala pong ganun. Wala rin pong central control point na single button,” he added.

NGCP has been under scrutiny in the House, with key members like Albay 2nd District Rep. Joey Salceda warning managers of the Maharlika Investment Fund against investing in the company.

According to Salceda, NGCP owed power consumers P200 billion in expenses that were disallowed in 2023.

READ: Beware of grid firm, PH wealth fund told

On Monday, House Speaker Ferdinand Martin Romualdez listed the investigation into NGCP issues as one that will continue when Congress resumes its session.

READ: Romualdez assures: House probes, oversight function to continue

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“Good governance demands transparency and accountability.  This chamber is the vanguard of that principle.  In the coming weeks, we will hold oversight hearings to ensure that the people’s money serves the people’s needs,” Romualdez said.

TAGS: NGCP

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