NGCP pushes back vs BOT proposal

The National Grid Corporation of the Philippines (NGCP) rebuffed the Makati Business Club (MBC) proposal that the government adopt a build-operate-transfer (BOT) scheme for the country’s power grid, saying the current setup already fits that model.

“Parang kami na ‘yun, ‘di ba? (That sounds like us, isn’t it?)” NGCP spokesperson Cynthia Alabanza said.

“Well, NGCP, as you well know, is already the private concessionaire of government. So we are supposed to be building and operating and then later on, at the end of the concession, either renew the agreement or transfer it back to the government.”

Alabanza stressed that the transmission operator is already fulfilling the role envisioned by the MBC, under a 25-year concession agreement awarded in 2009.

MBC, a prominent trade group, recently proposed that the government adopt a build-operate-transfer model for the power grid to enhance its readiness for renewable energy integration and accelerate infrastructure development.

Other investors in power grid

The MBC urged President Ferdinand Marcos Jr. to issue an executive order enabling third-party investors, including private firms or government-owned corporations, to build transmission infrastructure.

They argued that this would improve grid reliability and affordability and support the country’s transition to renewable energy sources.

NGCP, a privately led consortium of Filipino and Chinese firms, has been under increased public and regulatory scrutiny over delays in transmission projects and grid reliability.

The MBC’s push for BOT arrangements apparently stems from concerns about NGCP’s performance, including delays in critical transmission projects, grid reliability issues and insufficient capacity to integrate renewable energy.

For instance, NGCP has faced challenges with right-of-way (ROW) acquisition and permitting, which have slowed projects like the Cebu-Bohol Interconnection and others.

Additionally, in November 2024, the Energy Regulatory Commission fined NGCP P12.3 million for failing to meet deadlines on 27 capital expenditure projects.

These issues have fueled public and regulatory scrutiny, prompting calls for alternative approaches like the BOT model.