Maharlika Corp. finds no issue in working with Chinese stakeholders in NGCP
MANILA, Philippines — The Maharlika Investment Corp. (MIC) has expressed no issues in working with Chinese stakeholders after acquiring a 20% stake in the National Grid Corp. of the Philippines (NGCP) through Synergy Grid and Development Philippines Inc. (SGP).
Several lawmakers have raised concerns about the State Grid Corp. of China’s (SGCC) 40% stake in the NGCP, questioning the extent of China’s influence over the Philippines’ energy assets, especially amid heightened tensions with Beijing over the West Philippine Sea.
MIC President and Chief Executive Officer Rafael Consing Jr. said that securing two seats in the NGCP granted the government a better opportunity to look into its operations.
“We’re looking over the shoulder of the shareholders but the reality is that we had absolutely no access to such information and now we will have access to that information,” Consing said.
The MIC chief also admitted that they have not engaged in discussions with the SGCC as their focus has been on the SGP.
“We’re not having any discussions with the Stake Grid of China at this point in time,” Consing said in a mix of Filipino and English.
When asked if the MIC is interested in acquiring shares from the SGCC, Consing said that they would be interested if such shares became available.
Despite this, Consing said that there is no issue with working with the SGCC.
“In fact, I really don’t see any problem with them being there at the moment because I guess that’s beyond basically what we look at from the perspective of a financial investor,” the MIC chief said.
Consing also said tthe MIC has already done its “preliminary due diligence” before the signing of the offer and further research will be done.
“We are aware of all these issues and we have considered that in our investment decision,” the MIC chief said.
Consing likewise said that they do not see any external threats.
“We just want to basically say that our presence there, at least we would be able to monitor if such threats indeed arise. But at the moment, no such threat exists and nothing has been proven and in fact, there are no allegations of such a threat existing,” he said.
Asked about security concerns raised about the NGCP’s Chinese stakeholders, Department of Energy Secretary Raphael Lotilla echoed Consing’s sentiments, saying that the buy-in will grant the government a better chance to see the grid operator’s performance.
“On the whole you will achieve more transparency so that we ourselves as members of the public who are proving the financing through Maharlika will have a better view of the operations of the public utility,” Lotilla said.
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