MANILA, Philippines — The Philippine government, through the state-run Maharlika Investment Corporation (MIC), has secured a 20 percent stake in the National Grid Corporation of the Philippines (NGCP). 

The deal, finalized through MIC’s subscription to preferred shares offered by Synergy Grid and Development Philippines Inc. (SGP), was formalized on Monday afternoon at Malacañang Palace. 

President Ferdinand  Marcos Jr. attended the signing of the binding term sheet between MIC President and CEO Rafael D. Consing Jr. and SGP Chairman Henry T. Sy Jr.

“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” President Marcos said during the ceremony.

SGP holds a 40.2 percent effective ownership in NGCP, the private concessionaire operating the country’s power transmission system. Through the acquisition, MIC will gain two board seats each in 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,” Consing said.

The investment represents MIC’s inaugural venture as it fulfills its mandate to manage the Philippines’ sovereign wealth fund. 

Consing likewise noted the importance of the acquisition in safeguarding the nation’s power supply from external threats and disruptions, while ensuring every Filipino’s access to reliable and affordable electricity.

NGCP, which has managed and operated the nationwide transmission system since January 2009 under a congressional franchise, remains a critical public utility. 

Its transmission assets, however, are still owned by the government through the National Transmission Corporation (TransCo), a government agency established under the Electric Power Industry Reform Act of 2001 (Republic Act No. 9136).

NGCP’s 25-year concession to operate the transmission system, granted in 2007 after public bidding, includes the possibility of a 25-year extension.