Consing: Gov’t better positioned to address grid issues

The Maharlika Investment Corporation said it is open to acquiring shares of the State Grid Corporation of China in the country’s power grid.

“If it becomes available, I think so, yes,” MIC President and CEO Rafael Consing said in a briefing at the Palace on Tuesday.

SGCC currently owns a 40 percent stake in the National Grid Corporation of the Philippines (NGCP) while Synergy Grid and Development Philippines Inc. (SGP) owns 60 percent.

The MIC earlier secured 20 percent in SGP, giving the investment corporation two board seats in Synergy Grid and another two in the NGCP.

Consing said there have been no preliminary talks yet with the Chinese firm on the MIC’s plan.

“We’re not having discussions with the Chinese… with the State Grid of China at this point in time,” Consing said.

He said MIC will be in a better position to confirm NGCP’s statement that there was nothing to fear from China’s stake in the power grid operator.

”On the other hand, if there are other things that need to be strengthened, for example the cyber security of the transmission lines of the country and the transmission facilities, then the government would also be better able to contribute to addressing those issues,” he said.

“We just want to basically say that with our presence there, at least we would be able to monitor if such threats indeed arise. But at the moment, no such threat exists and nothing has been proven and in fact, there are no allegations of such a threat existing,” Consing added.

Lawmakers have raised concerns over the involvement of Chinese nationals in NGCP’s leadership, pointing out the risks this poses to national security as well as its constitutional implications. According to the 1987 Constitution, public utilities must be at least 60 percent Filipino-owned, with executive and managerial roles reserved for Filipino citizens.

NGCP president Anthony Almeda earlier told a House hearing that Chinese national Wen Bo previously served as chief technical officer before quitting in 2017.

Marikina Rep. Stella Quimbo directed NGCP to submit all documents related to Wen Bo’s appointment, including permits from the Department of Justice and other agencies.

As this developed, the trading of shares of SGP was temporarily halted on Tuesday following the signing of a binding term sheet with MIC.

“MIC will subscribe to convertible preferred shares to be created and issued out of the increase in the authorized capital stock of SGP,” the company said in a disclosure to the Philippine Stock Exchange.