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Manila Bulletin devider Business devider Trade & Industry devider NEA, Maharlika target Palawan power upgrade

NEA, Maharlika target Palawan power upgrade

Published Dec 2, 2025 01:38 pm
The National Electrification Administration (NEA) and sovereign wealth fund (SWF) Maharlika Investment Corp. (MIC) have around three years to address the looming power strains in Palawan province, following a newly signed agreement to improve distribution infrastructure on the island.
On Tuesday, Dec. 2, NEA, MIC, and the Palawan provincial government signed a four-way memorandum of agreement (MOA) to identify critical concerns in the Palawan Electric Cooperative (PALECO) and stabilize the energy supply in the off-grid area.
This MOA follows the memorandum of understanding (MOU) that the parties signed in May 2024.
Energy Secretary Sharon Garin emphasized that this deal will require a strict timeframe of three years, or before the end of the current Marcos Jr. administration.
“I’m hoping or expecting that we finish the implementation, and that it’s up and running by June 2028,” Garin challenged the stakeholders involved in the agreement. “While you do that, we will find a way to find a connection.”
Garin added that ensuring a reliable energy supply in Palawan would bring the Philippines a step closer to helping realize the Association of Southeast Asian Nations (ASEAN) Power Grid, as the island is said to be a viable connection point to other countries.
“We [also] have unsolicited proposals to connect north Palawan to Mindoro. But that will be useless if the connection within distribution lines doesn’t work,” she added.
Under the signed agreement, MIC will assess PALECO’s power infrastructure and study viable investment strategies. NEA, on the other hand, will manage program implementation, while PALECO will provide technical and operational expertise.
The Palawan government will likewise support through facilitation of local legislation and the rollout of programs.
MIC Chief Legal Officer Paul Salanga believes that the MOA will further allow state-run financing to potentially modernize the island’s infrastructure.
“We want your resorts running on clean, consistent grid power. For the economy, reliable electricity is the silent partner in every business. By stabilizing the voltage, we are sending a signal to investors,” he said. “Palawan is open, stable, and ready. And for the people, most importantly, this is for the Palawan family. Development is meaningless if you don’t feel it inside your home.”
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