Synergy Grid and Development Philippines Inc. (SGP) has accepted a binding offer from the state-run Maharlika Investment Corporation (MIC) for a 20-percent stake to secure a foothold in the National Grid Corporation of the Philippines (NGCP), Malacañang said.

President Marcos, who witnessed the signing of the binding term sheet between SGP and MIC in Malacañan on Monday afternoon, Jan. 27, lauded the agreement.

"Congratulations, everyone. I know it wasn't easy. I think, in the end, we found a good solution to everyone's concern," Marcos said during the agreement signing between MIC President and Chief Executive Officer Rafael Consing Jr. and SGP Chairman Henry Sy Jr.

"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 added.

MIC, mandated to manage the Philippines' sovereign wealth fund, will subscribe to preferred shares offered by SGP.

SGP holds a 40.2 percent effective ownership interest in NGCP, the country's power grid operator. Consing said the deal would grant MIC two board seats at SGP and NGCP.

According to the Presidential Communications Office (PCO), the maiden investment represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure Filipinos have access to reliable and affordable power.

Since January 2009, NGCP has exercised full authority over the management and operations of the nationwide transmission system, a critical public utility, under a franchise granted by the Philippine Congress.

Following the signing, 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.

In 2007, after public bidding, NGCP was granted a 25-year concession to operate the transmission system, 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 Corp. (TransCo), a government agency created under the Republic Act. No. 9136 or the Electric Power Industry Reform Act of 2001.