The Maharlika Investment Corporation (MIC) has expressed interest in acquiring China's stake in the National Grid Corporation of the Philippines (NGCP), following its recent share acquisition in Synergy Grid and Development Philippines Inc. (SGP).
In a briefing on Tuesday, Jan. 28, MIC President Rafael Consing Jr. indicated his willingness to further invest in the power grid operator, stating, "If [the State Grid Corporation of China's (SGCC)] stake becomes available, I think yes."
However, he clarified that no discussions have yet taken place with SGCC, which currently holds a 40 percent stake in NGCP.
"We have not spoken to the Chinese," Consing said. "We only saw this opportunity at the SGP level, we don’t have discussions with the stakeholders of China. No conversations have occurred."
On Monday, MIC announced its subscription to SGP's preferred shares, securing two board seats in both Synergy and NGCP, thus establishing government representation on the boards.
Consing, meanwhile, addressed concerns about the acquisition, particularly regarding corruption, emphasizing that the investment involves primary shares.
"All the capital invested will go directly to the company to roll out the capital expenditure (CAPEX) projects of the NGCP," he explained.
These CAPEX projects encompass various transmission projects—pipeline, pre-construction, ongoing, and completed.
Energy Secretary Raphael P.M. Lotilla, meanwhile, noted the importance of these projects for the country's power security, citing project delays as a major concern.
He explained that MIC's financial support is crucial for these projects.
"Once you have got that transmission grid infrastructure rolled out, then you would have more power players that can get onto the grid and provide supply to the grid," Lotilla said. He added that generation plants typically align with the transmission development plan (TDP) to ensure connectivity to NGCP's lines.
"If these [generation plants and transmission] are not in line with each other, we will have stranded power and the plant won’t be utilized. Our economy cannot afford such wasted power,” he concluded.