The Department of Energy (DOE) expects the Maharlika Investment Corp. (MIC) to finalize its acquisition of a 20-percent stake in the National Grid Corporation of the Philippines (NGCP) by next year, Energy Secretary Sharon Garin said Friday.
MIC, which manages the country’s sovereign wealth fund, is still negotiating with NGCP on the proposed investment in the state-owned power grid, Garin told reporters.
“So far, they haven’t signed because they’re still asking for documents from NGCP. So, that’s the latest information that was given to us by MIC. Basically, that means that the discussion is not over yet,” she said.
Garin indicated the process has been slow. “Maybe next year. I don’t want to get into who has been doing what and who has not been doing what. But it’s taking a while. Perhaps, it’s the negotiations that are taking a while. I’m not sure but it’s between NGCP and MIC,” she said.
MIC signed an agreement with Synergy Grid and Development Philippines Inc. (SGP) in January to acquire the 20 percent stake in NGCP.
Under the deal, MIC will purchase preferred shares in SGP, which holds a significant 40.2-percent effective ownership in NGCP, the operator of the country’s power grid.
The investment is viewed as a critical step for the government to regain control over the nation’s vital power infrastructure.
NGCP has had full control over the management and operation of the nationwide transmission system since 2009 under a 25-year concession granted by Congress, which allows for a 25-year extension.
The National Transmission Corp., a government agency created under the Electric Power Industry Reform Act of 2001, owns the country’s transmission assets, while NGCP operates the grid itself.
