Malacañang announced yesterday that Synergy Grid and Development Philippines Inc. (SGP) has accepted the administration’s binding offer through the Maharlika Investment Corp. (MIC) for a 20 percent stake to secure a foothold in the National Grid Corp. of the Philippines (NGCP).
MIC, mandated to manage the Philippines’ sovereign wealth fund, will subscribe to preferred shares offered by SGP, majority shareholder of transmission and grid operator NGCP.
The President witnessed the signing of the binding term sheet between SGP and MIC at the Malacañang Palace.
“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” President Marcos said during the signing of the agreement between MIC president and chief executive officer Rafael Consing, Jr. and SGP chairman Henry Sy, Jr.
SGP holds a 40.2 percent effective ownership interest in NGCP.
Consing said the deal would grant MIC two board seats each at SGP and NGCP.
“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” he said.
MIC’s maiden investment represents a vital opportunity for the government to regain greater influence over the nation’s critical power infrastructure to ensure that Filipinos have access to reliable and affordable power.
NGCP has exercised full authority over the management and operations of the nationwide transmission system since January 2009, a critical public utility, under a franchise granted by Congress.
Consing said the flagship investment would safeguard the nation’s power supply from external threats and disruptions, citing the need for the government to have a say in NGCP decisions.
Meanwhile, Energy Secretary Raphael P.M. Lotilla welcomed MIC’s investment in NGCP.
“This is a step towards attaining our goal of ensuring security of supply, reliability, affordability, and promoting competition in the power sector,” he said.
The DOE said that with two board seats each in NGCP and SGP, MIC can pave the way for better coordination between the DOE and the NGCP to help expand transmission connections in a timely manner and speed up the interconnection of our power grid across the archipelago.
The DOE also said the government’s investment in transmission is anchored on the Philippine Development Plan (PDP) 2023-2028 approved by President Marcos which states that the government “should revisit and reevaluate financing investment in transmission.”
The DOE cited the PDP that “Investment in transmission expansion offers enormous potential benefits for efficiency by increasing access to low-cost generation, improving reliability, and counterbalancing market power.”
The DOE said given that 98 percent of NGCP projects completed between 2016 and 2024 were delayed, with some delays exceeding 9 years, MIC’s investment can help avoid such delays.
It said government investment in transmission would make additional capital available for NGCP to deploy in the pursuit of completing transmission projects on time as delays can inconvenience the public and cause significant damage to the economy.
The DOE said delays in completion of transmission projects not only increase the risk of power outages but also drive up electricity prices.
The government’s investment in transmission is short of the United Kingdom’s (UK) decision to renationalize its transmission system operator last year.
The DOE said the UK renationalized the British power system operator in September 2024 to support energy security, help keep bills down, and facilitate the entry of more renewable energy projects.
NGCP was granted a 25-year concession to operate the transmission system In 2007, after public bidding, with the possibility of renewal for an additional 25 years.
NGCP operates the country’s power grid, while the Philippine government owns the transmission assets through the National Transmission Corporation (TransCo).
TransCo is a government agency created under Republic Act. No. 9136, the Electric Power Industry Reform Act of 2001.