NGCP power lines (File photo from the Philippine Daily Inquirer)
MANILA, Philippines – Synergy Grid and Development Philippines Inc. (SGP) has accepted a binding offer from the state-run Maharlika Investment Corporation (MIC) to acquire a 20 percent stake, giving the government a foothold in the National Grid Corporation of the Philippines (NGCP).
The Presidential Communications Office (PCO) said it was formalized through the signing of a memorandum of agreement in Malacañang on Monday, which was witnessed by President Ferdinand Marcos Jr.
“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos said, as quoted in a press release.
The SGP currently holds a 40.2 percent effective ownership interest in NGCP—the country’s power grid operator.
The PCO said that the deal would grant MIC two board seats each at SGP and NGCP.
The flagship investment is seen to safeguard the country’s power supply from external threats and disruptions.
“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” MIC President and Chief Executive Officer Rafael Consing, Jr. said.
Since January 2009, NGCP has exercised full authority over the management and operations of the nationwide transmission system under a franchise granted by Congress.