SPC Power Corp. of Cebu-based businessman Dennis Villareal and partner Atom Henares said it is still restricted to the 40 percent foreign ownership cap as its Articles of Incorporation allow it to own land.
“The laws on land ownership and acquisition in the Philippines limit the same to Filipino citizens or Filipino corporations only,” SPC said.
The implementing rules and regulations of the Renewable Energy Act were recently amended to state that the exploration, development, and utilization of solar, wind, hydro, ocean, and tidal energy are not subject to any limitation on foreign equity.
But SPC said the foreign ownership limitation still applies.
Among SPC’s shareholders are local firms Intrepid Holdings (21.5 percent), JAD Holdings (19.59 percent) and KV Holdings (4.99 percent). They own a combined 46.08 percent interest.
Kepco Philippines Holdings owns 37.96 percent of SPC while the public holds the remaining shares.
It is unclear whether Kepco Philippines wants to increase its stake in SPC.
SPC is engaged in power generation, and under RA no. 9136 or the EPIRA Law, power generation is not a public utility operation.
As such, no foreign ownership limitation was required, SPC said.
The Department of Justice, in an opinion dated September 29, said that exploration, development, and utilization of solar, wind, hydro-ocean, and tidal energy should not be subject to the 40 percent foreign equity limitation under the Constitution.
