House probe sought on economic, nat'l security impact of 40% Chinese stake at NGCP

A resolution has been filed at the House of Representatives seeking an investigation into the effects on the economy and national security of the 40% Chinese capital ownership and control of the National Grid Corporation of the Philippines (NGCP).

In House Resolution 533, Bayan Muna party-list Representatives Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat urged the House Committee on Energy and the House Committee on National Defense and Security to jointly conduct an inquiry in aid of legislation on this matter, citing a "clear threat to Philippine national security."

On Sunday, Senate Committee on Energy chair Sherwin Gatchalian said it is possible that China interferes with the power transmission in the country as the State Grid Corporation of China holds a 40% equity stake at the NGCP.

Energy Secretary Alfonso Cusi also said that China has the potential to remotely shut down the country’s power transmission grid because of its digital nature.

"Given that China is currently aggressive over its claims on the West Philippine Sea depicted through its intrusions to Philippine territory and disrespect to Philippine sovereignty, the surrender of the control over Philippine power system and other public utilities is a clear threat to Philippine national security," the lawmakers said in the resolution.

"Therefore... the House [should] conduct a joint investigation... on the economic and national security implications over the 40% Chinese capital ownership of the National Grid Corporation of the Philippines," they added.

Gatchalian himself has also filed a similar resolution in the Senate for their own investigation.

He also wants to scrutinize the creation and timely implementation of the Transmission Development Plan to ensure that enough power facilities are available to meet the country’s increasing electricity demand.

Chinese Foreign Ministry spokesman Geng Shuang, however, claimed that reports that China could shut down the Philippines’ power grid in the event of conflict have no basis and that the State Grid Corporation of China only took part in a National Transmission Commission (TransCo) project as a “cooperation partner.”

The NGCP, for its part, has downplayed concerns about China’s role in the company, saying the State Grid Corporation of China is merely a “technical adviser.” —LDF, GMA News