President Bongbong Marcos is reportedly leaning towards using the proposed Maharlika Wealth Fund to buy out the 40 percent stake of State Grid Corp. of China in National Grid Corp. of the Philippines.
A Babbler said taking out NGCP’s foreign partner would address the public’s lingering security concern that China could shut down or inject malware into the Philippines’ power grid.
Babbler said government retaking minority interest in NGCP would give it a more direct hand, albeit in a minority, position, in bringing down electric rates, one of the promises made by Marcos during the 2022 campaign.
During initial discussions on where to invest the proposed Maharlika Fund late last year, some lawmakers proposed that the sovereign fund be used to “nationalize” NGCP. But current discussions have now focused on just buying out the foreign partner while retaining the private owners to make it a public-private partnership.
But Babbler said it remains to be seen if State Grid would agree to sell back its 40 percent stake in NGCP which it won in a public bidding (for the right to operate the transmission line for 25 years) for $3.95 billion in December 2007.
State Grid’s original Filipino partners in the bidding were Monte Oro Grid Resources of ultra bilyonaryo Ricky Razon and Calaca High Power of Robert Coyiuto with 30 percent each.
OneTaipan Holdings of ultra bilyonaryo Henry “Big Boy” Sy Jr. bought out Monte Oro’s 30 percent stake in NGCP in 2010 for $350 million.
State Grid, which is NGCP’s technical partner, has four directors in NGCP’s 10-member board, including its chairman Zhu Guangchao.
| RELATED STORIES:
Power move vs Big Boy Sy, Coyiuto? Gov’t eyeing NGCP buyback via Maharlika Fund- Salceda
Synergy Grid tanks as Aboitiz-backed DOE, ERC tighten the screws on NGCP