Maharlika Investment Corp. (MIC) has teamed up with the National Electrification Administration (NEA), the provincial government of Palawan and the Palawan Electric Cooperative (PALECO) to modernize power distribution infrastructure and address perennial brownouts in the island province, a key tourist destination.
The four-way memorandum of agreement (MOA) was signed on Tuesday by NEA administrator Antonio Mariano Almeda, Palawan Governor Amy Roa Alvarez, MIC president and chief executive Rafael Jose Consing Jr. and PALECO general-manager Rez Contrivida.
The deal is a significant step toward stabilizing Palawan’s energy supply, which the national government hopes will improve public services and fuel sustainable economic growth.
Energy Secretary Sharon Garin, who witnessed the signing, directed the parties to complete the infrastructure assessment and implement necessary measures before June 2028.
“I’m hoping or expecting that we finish the implementation and it’s up and running by June 2028. I think you’re up to the challenge,” Garin said.
MIC’s role involves assessing PALECO’s current power infrastructure to determine cost-efficient improvement strategies. MIC may then invest in modernization projects based on the study’s results.
MIC chief legal officer Paul Salanga emphasized the fund’s interest.
“We cannot maintain a first-world reputation on third-world power infrastructure,” he said.
Salanga said the fund would “diagnose the grids’ ailments with precision so that Maharlika can finance the modernization required to cure them.”
The project also aims to bring down the universal charge for missionary electrification subsidy in Palawan, which is currently around P4 billion, according to Garin.
NEA will oversee program implementation and provide personnel or consultants to meet the technical requirements. Palawan’s provincial government will assist with implementation, including facilitating local legislation. PALECO will provide technical and operational expertise while ensuring member-consumer support.
Almeda said the project also aims to invite renewable energy sources to Palawan and build a reliable transmission backbone that can transport power between the north and south of the island. He expects the agreement to result in lower and more affordable electricity prices.
Last year, NEA also facilitated a similar agreement involving MIC, provincial governments and electric cooperatives for Oriental Mindoro and Occidental Mindoro to improve electrical infrastructure in those provinces.
