Maharlika open to acquiring China grid firm shares in NGCP

The Maharlika Investment Corporation (MIC) is not closing its doors to acquiring shares of the State Grid Corporation of China in the Philippines' power grid.

"If it becomes available, I think so, yes," MIC president Rafael Consing said Tuesday at a Palace press briefing when asked if the MIC is interested in acquiring the Chinese firm's shares in the National Grid Corporation of the Philippines (NGCP).

"We have not spoken basically to the Chinese, we only saw this opportunity (at the) SGP level, we're not having discussions with the Chinese... with the State Grid of China at this point in time," Consing added.

He also said that if NGCP was stating that there is nothing to fear from China's part on the power grip operator, then the MIC will be in a better position to confirm or affirm that once it gets hold of its shares.

''On the other hand, if there are other things that need to be strengthened, for example the cyber security of the transmission lines of the country and the transmission facilities, then we would also be able to—government would also be better able to contribute to addressing those issues,'' he explained. 

At present, Consing clarified that there has been no threat in the power grid operator. 

''And we just want to basically say that our presence there, at least we would be able to monitor if such threats indeed arise. But at the moment, no such threat exists and nothing has been proven  and in fact, there are no allegations of such a threat existing,'' he said.

According to the World Economic Forum (WEF), the State Grid Corporation of China, or State Grid, carries out government-authorized investments as a pilot state holding company. It ranks second on the Fortune Global 500, the WEF said.

Consing's statement comes after the MIC secured a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), giving the former two board seats in the SGP and another two in the NGCP.

The NGCP is 60% owned by SGP, while SGCC has 40%.

The MIC's first investment represented an opportunity for the government to regain greater influence over the country's critical power infrastructure, which aims to ensure that Filipinos will have access to reliable and affordable power supply.

President Ferdinand "Bongbong" Marcos Jr. witnessed the signing of the binding term sheet between SGP and MIC at the Malacañang Palace on Monday afternoon.

Shares in SGP closed Monday, January 27, at P10.98 apiece, down by P1.02 or 8.50% from last Friday’s finish of P12.00 per share.

The MIC also said the investment in the NGCP could help in the government's aim of lowering power prices.

However, Energy Secretary Raphael Lotilla could not provide an exact date and amount as regards the reduction.

''It depends on where you are, what are the supply agreements that your distribution utility has entered into and so on,'' Lotilla said. — VDV/AOL, GMA Integrated News