The government may “rescind” National Grid Corp. of the Philippines’ concession contract after the latter set up its own communication facilities, state-run National Transmission Corp. said Thursday.
TransCo president Melvin Matibag said NGCP engaged in the act of “concealment” when the company did not inform the government of the communication facilities it set up.
“As far as I am concerned, there is enough to rescind [the concession agreement]. Right now we are preparing complaints,” Matibag said.
NGCP said in response it was allowed to engage in related businesses such as the fiber optic business which maximizes the use of its existing assets as fiber optic assets are used by the grid primarily for its grid operations, substation to plant communication and substation to distribution center communications.
NGCP said based on its franchise, it was authorized in ancillary business and any related business which maximizes utilization of its assets such as, but not limited to, telecommunications system, pursuant to Section 20 of Republic Act No. 9136.