Synergy Grid and Development Philippines Inc. (SGP) has sealed a historic agreement with the government’s Maharlika Investment Corporation (MIC) for the acquisition of a 20% stake in SGP, marking a significant step toward enhancing government oversight of the National Grid Corporation of the Philippines (NGCP).

The binding term sheet, signed at Malacañang Palace on Monday, was witnessed by President Ferdinand R. Marcos Jr., who congratulated the parties involved. "Congratulations, everyone. I know it wasn't easy. I think, in the end, we found a good solution to everyone's concern," the President remarked during the ceremony.

Under the deal, MIC will subscribe to SGP’s preferred shares, gaining a foothold in NGCP. SGP currently holds a 40.2% effective ownership interest in NGCP, the private operator of the country’s power grid.

Government representation strengthened

MIC President and CEO Rafael D. Consing Jr. announced that the agreement would grant the government representation on both SGP and NGCP boards. "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 explained.

The move aims to reinforce the government’s influence over critical power infrastructure, ensuring Filipinos' access to reliable and affordable electricity.

Since January 2009, NGCP has operated as the private concessionaire of the nation’s power transmission system under a 25-year franchise granted by Congress, with an option for renewal. While NGCP manages and operates the transmission system, the government retains ownership of the physical transmission assets through the National Transmission Corporation (TransCo).

MIC’s flagship investment comes at a crucial time when energy security and resilience are priorities. Consing emphasized that the acquisition would safeguard the nation’s power supply against external threats and disruptions, enabling the government to have a more active role in decision-making processes.

A milestone for sovereign wealth fund

As MIC’s maiden investment, this acquisition highlights the sovereign wealth fund’s potential to contribute to national development by ensuring strategic investments in critical sectors.

SGP Chairman Henry T. Sy Jr. lauded the partnership as a milestone in public-private collaboration, reinforcing the commitment to delivering stable and efficient energy transmission for the country.

The deal signals a renewed focus on energy security and government participation in ensuring sustainable and reliable power supply for all Filipinos.