Daily Tribune
President Ferdinand R. Marcos Jr. leads the inauguration of the Hermosa-San Jose 500 kilovolt (kV) transmission project on July 12, 2024, at the National Grid Corporation of the Philippines Hermosa Sub Station in Bataan with (from left to right) Technical Officer and concurrent VP of Planning and Engineering Rico Vega, Governor Jose Enrique Garcia III, NGCP President and CEO Anthony Almeda, NGCP Vice Chairman Mr. Henry Jr., SAP Antonio Lagdameo Jr. and DOE Usec. Rowena Cristina Guevarra. The Mariveles-Hermosa-San Jose Transmission Line, is expected to benefit around 59 million power users in Luzon by stabilizing power transmission services. This project ensures the reliability and sustainability of the power grid, capable of transmitting 8,000MW from power plants in Bataan and Zambales. This is part of NGCP's long-term vision for a resilient power grid, and is valued at PhP20.94 billion and includes numerous transmission towers, overhead lines, and substations. NGCP President Anthony Almeda has acknowledged President Ferdinand Marcos Jr.'s support in advancing major infrastructure projects, contributing to economic growth.
Yummie Dingding / PPA Pool
The House Committee on Legislative Franchises has given the National Grid Corporation of the Philippines (NGCP) one week to submit a copy of its shareholders’ agreement amid concerns about significant Chinese control over the corporation operating the country’s power grid.
During the first day of the panel’s probe into the NGCP’s delayed projects on Tuesday, Surigao del Sur Rep. Ace Barbers requested the NGCP to furnish the committee with the document, initially sought during a previous hearing on 23 December.
NGCP official Lally Mallari explained that they could not comply “for the protection of the NGCP,” citing an ongoing arbitration case in Singapore involving NGCP, the Power Sector Assets and Liabilities Management Corporation, and the National Transmission Corporation.
“As evidence in the arbitration proceedings, the shareholders’ agreement is protected by confidentiality under Section 23 of Republic Act 9285 or the Alternative Dispute Resolution Law,” Mallari told the panel.
Committee Chairperson Gus Tambunting countered that the NGCP could not withhold the document, referencing Section 1 of the House rules, which states that “the finding or pendency of a case before any court, tribunal, or quasi-judicial or administrative body shall not stop or abate any inquiry conducted to carry out a legislative purpose.”
Tambunting approved the motion of House Deputy Speaker David “Jay-Jay” Suarez to issue a subpoena duces tecum to compel the NGCP to produce the document within one week.
A shareholder agreement is a legal document outlining the rights and obligations of a company’s shareholders, including the issuance of shares, business operations, and decision-making processes.
Barbers emphasized the urgency of obtaining the document to ascertain the extent of Chinese influence over the NGCP.
“Is it run, controlled, managed, and operated by the Chinese? Or is it really by Filipinos? This is very crucial, Mr. Chair, because we’d like to determine to what extent foreign incorporators or counterparts influence the management, operation, and control of this corporation,” Barbers said.
The NGCP, a privately owned corporation operating the country’s power grid, is partially owned by the Chinese. The State Grid Corporation of China (SGCC) holds a 40 percent share, while the remaining 60 percent is owned by Synergy Grid of the Philippines (SGP). Mallari stated that the NGCP board comprises 14 officials, chaired by Chinese national Zhu Guangchao. Other members include vice chairpersons Henry Sy Jr. and Robert Coyiuto Jr., along with directors Jose Pardo, Paul Sagayo Jr., Francis Chua (Chinese), Shan Shewu (Chinese), Liu Ming (Chinese), and Liu Xinhua (Chinese).
Suarez questioned how Guangchao managed to hold the highest position despite not representing a majority of the shares.
“Oftentimes, the majority shareholders would be able to elect their chairman. How is it here in NGCP [that] a minority share was able to hold [the] chairmanship of the company?” Suarez asked. Mallari responded that the board of directors has the right to elect anyone they wish.
Lawmakers raised concerns that the NGCP’s board composition and subsidiary structure may dilute Filipino ownership. SGP acquired its stake through a share-swap deal granting it 67 percent stakes in OneTaipan Holdings Inc. and Pacifica2 Holdings. OneTaipan owns Monte Oro Grid Resources Corp., which holds a 30 percent stake in NGCP, while Pacifica2 owns Calaca High Power Corp., which also holds 30 percent.
Lawmakers flagged this structure as a potential loophole allowing foreign entities, particularly from China, to exert influence beyond the constitutional limit of 40 percent ownership for public utilities.
