The Marcos administration, through the Maharlika Investment Corporation (MIC), has made a deal to buy 20% of Synergy Grid and Development Philippines Inc. (SGP), allowing the government to have more influence over the National Grid Corporation of the Philippines (NGCP).
“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” President Ferdinand Marcos Jr. said during the signing of the agreement between MIC’s President Rafael Consing Jr. and SGP’s Chairman Henry Sy Jr. on January 27, 2025 at Malacañang Palace.
SGP holds a 40.2% effective ownership interest in NGCP, the country’s power grid operator.
Consing said that the flagship investment would safeguard the nation’s power supply from external threats and disruptions, citing the need for the government to have a say in NGCP decisions.
“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,” he said. “At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15.”
The Maharlika Investment Corporation (MIC) is a government-run company that manages the country’s sovereign wealth fund, aiming to invest in important projects that grow the economy, improve infrastructure, and benefit the Filipino people. This investment in the power grid is one of its first big moves.
NGCP is responsible for running the country’s power grid, but it is privately owned by a group of investors. The majority owners are the Monte Oro Grid Resources Corporation and Calaca High Power Corporation, both Filipino-owned companies. A Chinese company, the State Grid Corporation of China, also owns 40% of NGCP. This has raised concerns about foreign influence over the country’s power system, which is why the government wants a bigger role in decision-making.
NGCP was granted a 25-year contract in 2009 to operate and maintain the power grid. However, the grid itself remains owned by the Philippine government through the National Transmission Corporation (TransCo).
This MIC investment helps the government ensure that electricity remains reliable and affordable for Filipinos by giving it more control over protecting the power system from possible threats and problems.
