Philippines Invests in Power Grid Amid Sino-Tensions

The Philippines' sovereign wealth fund, Maharlika Investment Corp, plans to buy a 20% stake in the National Grid Corp of the Philippines (NGCP) to gain influence, not control. Interest also extends to shares held by China State Grid Corp. The fund aims to improve oversight due to security concerns.

The Maharlika Investment Corporation, representing the Philippines' sovereign wealth fund, is set to acquire a 20% stake in the National Grid Corporation of the Philippines (NGCP). This move, announced on Monday, aligns with the government's goal to enhance oversight over the national power grid, stated the fund's president, Rafael Consing Jr.

The Acquisition plan includes interest in shares held by China State Grid Corp, which currently owns a 40% stake in NGCP. However, Consing emphasized that the primary objective is not to take control but to gain some influence through board seats, amid security concerns voiced by legislators over Chinese involvement in key infrastructure.

Energy Secretary Raphael Lotilla highlighted that Maharlika's participation could lead to more efficient power transmission and lower costs. With a 19.7 billion peso investment, the wealth fund is projected to earn a 6.5% annual dividend over the first three years.

(With inputs from agencies.)