Synergy Grid and Development Philippines Inc. (SGP) has accepted a binding offer from the Marcos administration’s Maharlika Investment Corporation (MIC) to acquire a 20% stake and gain a foothold in the National Grid Corporation of the Philippines (NGCP).

President Ferdinand Marcos Jr. witnessed the signing of the binding term sheet between SGP and MIC in Malacañang on Monday, Jan. 27.

“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos Jr. said during the signing of the agreement between MIC President and Chief Executive Officer Rafael D. Consing, Jr. and SGP Chairman Henry T. Sy, Jr.

MIC, tasked with managing the Philippines’ sovereign wealth fund, will subscribe to preferred shares offered by SGP.

SGP currently holds a 40.2% effective ownership in NGCP, the country’s power grid operator. 

Consing stated that the deal would give MIC 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, 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.

This investment marks a significant step in giving the government greater influence over critical power infrastructure to ensure reliable and affordable electricity for Filipinos.

Since January 2009, NGCP has been fully responsible for managing and operating the country’s transmission system, a critical public utility, under a 25-year franchise granted by Congress.

Consing emphasized that this flagship investment would safeguard the nation’s power grid from external threats and disruptions, ensuring government participation in NGCP decisions.

In 2007, NGCP secured a 25-year concession to operate the transmission system through public bidding, with an option for a 25-year renewal. 

The Philippine government retains ownership of transmission assets through the National Transmission Corporation (TransCo), a government agency established under Republic Act No. 9136, the Electric Power Industry Reform Act of 2001.IMT