Maharlika Fund makes first investment, buys 20% stake in NGCP
MANILA, Philippines — The Maharlika Investment Corp. (MIC), the governing body of the Maharlika Investment Fund, has made its maiden investment by acquiring a stake in the National Grid Corporation of the Philippines (NGCP).
The Presidential Communications Office (PCO) announced Monday that Synergy Grid and Development Philippines Inc. (SGP), led by Henry Sy Jr., accepted MIC's offer for a 20% stake in NGCP.
A year and a half since he signed the controversial measure creating Maharlika in 2023, President Ferdinand Marcos Jr. personally witnessed the signing of the binding term sheet between SGP and MIC at Malacañang Palace.
"Congratulations, everyone. I know it wasn't easy. I think, in the end, we found a good solution to everyone's concern," Marcos said at the ceremony.
MIC President and CEO Rafael Consing Jr. said that SGP holds a 40.2% effective ownership in NGCP. Under the agreement, MIC will gain two board seats each at SGP and NGCP.
"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 said.
Malacañang called the investment a chance to "regain" influence over critical national infrastructure. Notably, China's State Grid Corporation owns 40% of NGCP.
“The maiden investment represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure that every Filipino has access to reliable and affordable power,” the Palace said in a statement.
The NGCP has had full authority to manage the country’s transmission system after being granted by Congress a 25 year concession in 2007. However, ownership of transmission assets remains with the government through the National Transmission Corporation.
Controversial fund. The Maharlika Investment Fund, signed into law in 2023, was met with significant controversy during its passage through Congress. While Marcos certified it as urgent, opposition lawmakers argued that such urgency is reserved for emergencies. Despite objections, the bill passed swiftly through both legislative chambers.
One of its most contentious provisions involved using capital from state-run banks LandBank and Development Bank of the Philippines (DBP) to sink in the Maharlika Fund. Together, these banks contributed ?75 billion to MIC.
Recently, however, the International Monetary Fund urged the government to restore capital levels at both banks.
More than a year after its enactment in July 2023, critics continue to question whether the Maharlika Fund has delivered tangible results.
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