Maharlika may acquire China stake in NGCP, if available
(INQUIRER FILE PHOTO/LYN RILLON)
MANILA, Philippines — The Maharlika Investment Corporation (MIC) may acquire China’s stake in the National Grid Corporation of the Philippines (NGCP) if it becomes available, MIC President Rafael Consing Jr. said on Tuesday.
In a Palace briefing, the MIC chief was asked if the MIC is interested in acquiring shares of the State Grid Corporation of China (SGCC) in the Philippines’ power grid.
The SGCC currently holds a 40 percent share in the NGCP.
“If it becomes available, I think so, yes,” Consing responded.
He, however, noted that they are not in talks with representatives from the SGCC.
“We have not spoken basically to the Chinese; we only saw this opportunity at the SGP [Synergy Grid and Development Philippines Inc.] level—we’re not having any discussions with the stake grid of China at this point in time. So, not conversations are occurring with them,” he said.
The SGCC’s 40 percent stake in the NGCP has drawn scrutiny from lawmakers, who said they would review the latter’s 50-year franchise with the possibility of revocation.
But, according to the Constitution, foreign entities are allowed to own up to 40 percent of the capital stock of a corporation operating as a public utility.
On Monday, President Ferdinand “Bongbong” R. Marcos Jr. witnessed the signing of a memorandum of agreement between the MIC and SGP, which also holds a 40 percent interest in NGCP.
This will allow the MIC’s acquisition of a 20 percent stake in the NGCP.
In the Palace briefing, Energy Secretary Raphael Lotilla highlighted that the MIC and SGP partnership will enable “greater transparency” and provide the government with greater insight into the operations of the NGCP.
“As NGCP is stating that there is nothing to fear from the presence, then we will be in a better position to confirm or affirm that,” he said, referring to 40-percent Chinese ownership of the power grid.
“On the other hand, if there are other things that need to be strengthened, for example, the cybersecurity of the transmission lines of the country and the transmission facilities, then we would also be able to—government would also be better able to contribute to addressing those issues,” he added.
