The Maharlika Investment Corp. (MIC), the governing body of the Maharlika Investment Fund, has made its inaugural investment by acquiring a 20% stake in the National Grid Corporation of the Philippines (NGCP).
Synergy Grid and Development Philippines Inc. (SGP), led by Henry Sy Jr., accepted MIC’s offer in a ceremony at Malacañang Palace, personally witnessed by President Ferdinand Marcos Jr.
The President lauded the deal, saying, “Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern.”
MIC President and CEO Rafael Consing Jr. explained that SGP holds a 40.2% effective ownership in NGCP. Under the agreement, MIC will gain two board seats each at SGP and NGCP.
“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board and two out of 15 board seats at NGCP,” Consing noted.
Malacañang described the investment as a strategic step to “regain greater influence over the nation’s critical power infrastructure” and ensure Filipinos have reliable and affordable electricity.
NGCP, which has managed the country’s transmission grid since 2007 under a 25-year concession, remains under government ownership through the National Transmission Corporation.
The Maharlika Investment Fund, signed into law in 2023, has faced significant controversy since its inception.
Critics questioned the urgency of its passage and its reliance on ₱75 billion in funding from state-run banks LandBank and the Development Bank of the Philippines, which the International Monetary Fund recently urged to restore their capital levels.
The fund has also been under scrutiny for the lack of tangible results more than a year after its creation. This maiden investment in NGCP is being positioned by the government as a step toward addressing those concerns.
The deal comes amid longstanding issues over NGCP’s ownership structure. While 60% of NGCP is owned by Filipino-led firms, the State Grid Corporation of China (SGCC) holds a 40% stake, raising questions about foreign influence, particularly in light of ongoing territorial tensions in the West Philippine Sea.
NGCP executives, including Henry Sy Jr., have repeatedly assured the public that NGCP is a Filipino-run corporation. Sy emphasized that SGCC does not have operational control and that the grid’s systems are secure and isolated from external interference.
Nonetheless, lawmakers have expressed concerns over past instances, including a Chinese national briefly holding a key technical role, which some argued could violate constitutional provisions requiring public utilities to be run by Filipinos.
Energy Secretary Raphael Lotilla welcomed MIC’s involvement in NGCP, noting that it could lead to improved coordination and better reliability in the power sector. He highlighted the importance of addressing systemic challenges to ensure affordable and stable power supply for all Filipinos.
As the Maharlika Investment Fund begins its operations with this investment, the government aims to demonstrate its capacity to support national development while addressing lingering questions about its direction and priorities.
