NGCP ensures integrity despite Chinese stake
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The National Grid Corporation of the Philippines (NGCP) assured consumers that the integrity of the country’s transmission system is intact even if China’s state-owned State Grip Corp. holds a sizeable 40 percent stake in the NGCP.
In a briefing held on Wednesday, NGCP spokesperson Atty. Cynthia Alabanza acknowledged that the Chinese state-run company’s involvement has raised concerns about potential foreign control.
However, Alabanza clarified that the ownership structure complies with the Constitution, which limits foreign ownership in public utilities to 40 percent. Filipino shareholders, led by Henry Sy Jr. and Robert Coyiuto Jr., own the majority, or the remaining 60 percent, ensuring control remains with Filipinos as mandated by law.
“They are saying that if the Chairman of the Board is Chinese, therefore, he is an executive and officer — that is not necessarily true, even the SEC (Securities and Exchange Commission) says that is not illegal,” Alabanza said.
“The law permits having foreign nationals in the board as long as they remain as presiding officers,” she added.
Foreign participation necessary
According to the NGCP, the concession required expertise in managing a transmission system, which was previously unavailable locally, making foreign participation necessary under the Electric Power Industry Reform Act.
Currently, the only foreign nationals involved are Chinese directors representing State Grid’s stake, in line with constitutional provisions.
State Grid became part of the consortium that won the NGCP concession through a competitive bidding process.
The NGCP Board Members are composed of six Filipinos, namely Jose Pardo, Francis Chua, Paul Sagayo, Jr., and Anthony Almeda along with Coyiuto and Sy. The four others are Zhu Guangchao, Yao Yousheng, Wang Lijin, and Liu Xinhua.
The NGCP consortium, which holds a 25-year concession contract and a 50-year franchise to operate the power transmission network, is comprised of Monte Oro Grid Resources Corp., Calaca High Power Corp., and the State Grid Corp. of China as technical partner.
