NGCP, truly Filipino

After years of accusations, questions and legal battles, it took an arbitral court based in Singapore to dispel fears regarding the nationality ownership structure of the National Grid Corporation of the Philippines (NGCP).

The 19 February ruling by the Singapore International Arbitration Centre (SIAC) affirmed what the NGCP had been saying all along: it’s a Filipino-owned company being managed by Filipinos.

Claims had been made that Chinese interests own the company.

The SIAC upheld the validity of NGCP’s P57.88-billion prepayment to the government in 2013 and dismissed allegations that it had breached its obligations under the concession agreement. It also rejected the claim of Psalms and TransCo that NGCP’s prepayment was invalid or unenforceable.

The Singapore tribunal ruled in NGCP’s favor against state-run National Transmission Corp. (TransCo) and the Power Sector Assets and Liabilities Management Corp., rejecting claims the grid operator violated the Anti-Dummy Law.

NGCP spokesperson Cynthia Alabanza called the decision a “vindication” that reaffirmed the company’s compliance with its franchise, concession agreement, and the law.

“The decision means there was no violation of the Anti-Dummy Law that had been hurled at NGCP. We are a Filipino corporation, run by Filipinos, the management teams are Filipinos,” Alabanza said.

“We have been vindicated, which means that what we have been doing, what we have always said, aligns with the concession agreement and has been proven correct by the arbitral court,” she added.

Beyond the financial and legal implications, Alabanza said the ruling settles longstanding doubts about NGCP’s legitimacy.

With the legal battle settled, it’s business as usual for NGCP.

“Operationally, probably (it will not affect us) that much. But hopefully, the weight of what an impartial third party has said will clear the doubts surrounding NGCP and how we operate the transmission system,” she said.

NGCP has been operating the country’s power transmission network since 2009 under a 25-year concession agreement, with an option to renew for another 25 years. The government retains ownership of the transmission assets through TransCo.