State-run Maharlika Investment Corp. (MIC), the country’s first sovereign wealth fund (SWF) manager, may have to wait a few more months, possibly before year-end, to secure a foothold in the operator of the Philippine power grid as its planned investment in Synergy Grid & Development Philippines Inc. (SGP) remains unfinished a year after the deal was first pursued.

The proposed acquisition of a 20-percent stake in SGP would give MIC two board seats each in SGP and National Grid Corp. of the Philippines (NGCP), providing the government greater visibility into the operations of the privately controlled transmission grid.

Department of Energy (DOE) Secretary Sharon Garin told reporters last week that she has yet to receive an update from either party on the transaction, but expects the process to take a few more months.

“A few months more… So it can be done. We’re really supportive of that. Although it’s not a big percentage, but it will still give the government visibility on what’s happening inside the NGCP,” Garin said when asked if the transaction could be completed within the year.

MIC initially sought to complete its investment in SGP within 90 to 180 days. However, the transaction has now dragged on for about a year without reaching financial close.

Once completed, the deal would mark MIC’s entry into the country’s electricity transmission sector through SGP, the controlling shareholder of NGCP.

“I need to check on what is the progress. I know that there have been improvements since six months ago,” Garin said. “Six months ago, I remember I got interviewed and I mentioned there wasn’t any movement. But I think there has been conversations between the two companies and maybe some modifications.”

According to the DOE chief, the parties have likely made contact and exchanged initial documents, although completing the transaction would still require a signed agreement.

MIC President and Chief Executive Officer (CEO) Rafael Jose D. Consing Jr. told Manila Bulletin that there is no progress on the transaction that the SWF manager can disclose at the moment.

Apart from its proposed grid investment, MIC is being tapped for another strategic energy initiative as the government explores the establishment of a strategic petroleum reserve (SPR) amid the ongoing state of national energy emergency.

The net energy importer Philippines has been grappling with global oil supply and price shocks stemming from the prolonged war in the Middle East, prompting the government to pursue measures aimed at strengthening the country’s energy security.

The DOE is coordinating with MIC and state-run Philippine National Oil Co. (PNOC) to evaluate options for establishing the SPR, which was announced last June.

Under the proposed arrangement, MIC would evaluate potential financing structures and investment options for the SPR.