The Maharlika Fund Investment (MIF), the country’s sovereign wealth fund, holds a 20% stake in the National Grid Corporation of the Philippines (NGCP) following a deal with Synergy Grid & Development Phils., Inc. (SGP) on Jan. 27.
NGCP is a privately owned corporation in charge of operating, maintaining, and developing the country's state-owned power grid, an interconnected system that transmits gigawatts of power at thousands of volts anywhere in the country.
The former government asset is now co-owned by State Grid Corporation of China—a Chinese state-owned company with 40%—while Monte Oro Grid Resources Corp. and Calaca High Power Corp. own 30% each. Foreign involvement in the decision-making processes of the highly critical energy sector warrants careful consideration, as it may risk the country's sovereignty.
Marcos’ wealth fund invests in NGCP
The investment came after a year the Maharlika Investment Corporation (MIC) began its operations in November 2023—with figures amounting to ₱19.7 billion.
A copy of the shareholder agreement was also asked by the Senate Committee on Energy headed by Sen. Win Gatchalian but was not provided by NGCP, citing “protected by confidentiality” under Section 23 of Alternate Dispute Resolution Law as part of an ongoing arbitration case in Singapore.
In a press conference of Senate President Francis Escudero on Jan. 28, he probed into the government’s control in NGCP, seeing it was not in MIC’s law. “Ito ang naririnig ko para magkaroon ng mas malaking kontrol sa transmission system natin. Di ko yata naalalang nakita ‘yun sa MIC,” he said.
On the same day, MIC President and CEO Rafael Jose Consing clarified in a Malacañang press briefing that the government’s objective of entry in NGCP was not to take control, but rather just to be able to achieve some level of influence.
Chinese presence on board
An NGCP documentary identified Zhu Guangchao, of Chinese descent, as chairman of the board. Other Chinese holding leadership positions are Liu Zhaoquiang and Liu Xinhua. House Representative Gerville Luistro pointed out, “...it seems control over NGCP has been compromised in favor of foreign nationals.”
Quezon Representative David Suarez also ruled a similar concern, questioning how Guangchao landed a chairmanship despite holding a minority share. NGCP lawyer Lally Mallari responded that “the presiding role does not have many functions” and executive and managerial positions were held by Filipinos. Though few lawmakers remain unconvinced.
What’s next for PH energy in NGCP?
Since the country’s investment in NGCP, it has not laid formal plans for the energy sector. But Consing said the investment is expected to lower electricity costs and stabilize electricity supply. “The way NGCP can contribute to lower electricity is by ensuring that that rollout indeed happens. Because once you have that transmission grid infrastructure being rolled out successfully, then you would have more power players that can in fact get onto the grid and provide supply to the grid.”
“Just like any commodity–as you’ve got more supply coming in, the present power will at some point in time come down,” Consing stated in a Malacañang press briefing.
