Maharlika inks deal with SGP for 20% stake in NGCP

SIGNED DEAL. President Ferdinand R. Marcos Jr. witnesses the signing of the deal between the Maharlika Investment Corporation (MIC) and Synergy Grid and Development Philippines Inc. in Malacañang on Monday afternoon (Jan. 27, 2025). The deal will pave the way for MIC’s acquisition of 20 percent stake in the National Grid Corporation of the Philippines. (PCO photo)

By Darryl John Esguerra, Philippine News Agency

MANILA – Maharlika Investment Corporation (MIC) signed an agreement with Synergy Grid and Development Philippines Inc. (SGP) to acquire 20 percent stake in the National Grid Corporation of the Philippines (NGCP).

The deal is poised to give the government more influence over the country’s power grid operations.

The signing of the agreement was witnessed by President Ferdinand R. Marcos Jr. in Malacañang on Monday afternoon, according to a Presidential Communications Office (PCO) news release.

“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos said, addressing the deal’s stakeholders.

The agreement was signed by MIC President and Chief Executive Officer Rafael Consing Jr. and SGP chairman Henry Sy Jr.

The deal will be MIC’s first investment since its inception in July 2023.

Under the deal, MIC will purchase preferred shares in SGP, granting the government a 20 percent stake in the company, which holds a significant 40.2 percent effective ownership in NGCP, the operator of the country’s power grid.

Consing noted that the deal will also provide the government with board seats in both SGP and NGCP.

“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,” he explained.

The investment is seen as a crucial step for the government to regain control over the nation’s vital power infrastructure.

Since 2009, the NGCP has had full control over the management and operation of the country’s nationwide transmission system under a 25-year concession granted by Congress. The agreement allows for the possibility of a 25-year extension.

Consing emphasized that this investment is important for protecting the country’s power supply from external threats and ensuring that the government has a voice in key decisions made by the NGCP.

The National Transmission Corporation, a government agency created under the Electric Power Industry Reform Act of 2001, owns the country’s transmission assets, while the NGCP operates the grid itself.

DOE welcomes deal

Department of Energy (DOE) Secretary Raphael Lotilla welcomed the deal that is anchored on the Philippine Development Plan (PDP) 2023-2028 approved by President Marcos.

“This is a step towards attaining our goal of ensuring security of supply, reliability, affordability, and promoting competition in the power sector,” Lotilla said in a news release.

The PDP 2023-2028 states that the government “should revisit and reevaluate financing investment in transmission.”

“Investment in transmission expansion offers enormous potential benefits for efficiency by increasing access to low-cost generation, improving reliability, and counterbalancing market power,” it added.