Some senators on Tuesday, Jan. 28, have expressed support for Maharlika Investment Corporation's (MIC) bid for a 20-percent stake in the National Grid Corporation of the Philippines (NGCP).
President Marcos, who witnessed the signing of the binding term sheet between Synergy Grid and Development Philippines Inc. (SGP) and MIC in Malacañan on Monday afternoon, Jan. 27, lauded the agreement.
Senator Juan Miguel "Migz" Zubiri said that this is a good investment in terms of profitability as the national grid operator has no competition whatsoever and is a monopoly when it comes to electricity distribution nationwide.
"But more than just profitability, the investment to NGCP is strategic in terms of defense and security. The national government should be strategically involved in the control and management of such an important energy backbone of our country," he said.
Zubiri added that he's even in favor of crafting a bill where the country's strategic national security infrastructure should be 100 percent Filipino-owned and the Maharlika Fund should be more participative as investors.
"As an author of that measure, that’s how we perceived the fund should be. Profitable but strategically important as well," he stated.
Senator Joseph Victor "JV" Ejercito stated that it is a "sound investment" for the Maharlika Funds. He also mentioned that he was hoping that the 40 percent share owned by State Grid Corporation of China (SGCC) be the one that the government would also reacquire for national security reasons.
For Ejercito, the MIC should pursue the SGCC’s shares in NGCP, especially with the ongoing conflict with China in the West Philippine Sea (WPS).
Senator Joel Villanueva said that through the MIC's investment in NGCP, the Philippine government gains representation in NGCP's operations by securing two board seats. With this, the government is expected to get greater influence and participation, which could motivate NGCP to be more efficient. Greater efficiency and stricter compliance with government regulations will reduce transmission rates being charged by NGCP.
"While we believe that this is a step towards the right direction in terms of reducing power rates that are charged to our consumers, we emphasize the need for comprehensive reforms across the entire energy value chain, and the generation, transmission, and distribution sectors," he said.
"Kailangan din nating paigtingin ang kapasidad ng ating Energy Regulatory Commission, na siyang nagtatakda ng presyo na kinokolekta ng NGCP at ng ibang kumpanya tulad ng mga distribution utility (DU) at generation company (GenCo) (We also need to strengthen the capacity of our Energy Regulatory Commission, which sets the prices collected by the NGCP and other companies such as distribution utilities (DU) and generation companies (GenCo))," 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.
Meanwhile, Senator Alan Peter Cayetano expressed support for the investment but mentioned some concerns specifically the issues surrounding the NGCP.
"Pwedeng long-term kumita ka but short-term baka may problema, diba? So Maharlika Fund has to be sure of that before they actually go in it. But I support if they're going to go in it (You might earn in the long term, but there could be short-term problems, right? So the Maharlika Fund needs to be certain of that before they invest. However, I support them if they decide to go ahead with it)," he added.
In a press conference, Senate President Francis "Chiz" Escudero said that it's not for him to tell whether this is a good investment or not considering that he voted against the creation of the MIC.
"Kaya nga napakahaba ng interpellation ko sa MIC. Dahil gusto ko unawain at intindihin, ano ba talaga ang layunin nito? Dahil iba't iba ang naririnig ko (That's why my interpellation at the MIC was so lengthy. I wanted to understand and grasp what its real purpose is, because I've been hearing different things)," he said.
"Ito ang naririnig ko para magkaroon ng mas malaking kontrol sa transmission system natin. Di ko yata naalalang nakita yun sa MIC. Pangalawa, ito raw ay para tiyakin na secure yung ating transmission system. Di ko rin yata nakita yun doon sa MIC Law (Here's what I hear to have greater control over our transmission system. I don't recall seeing that in the MIC. Secondly, this is supposedly to ensure the security of our transmission system. I also don't remember seeing that in the MIC Law)," he added.
He also stated that under the MIC Law, they cannot govern or run a business. He asked how can the two points he mentioned be achieved if they will not run a business.