Speaker Ferdinand Martin G. Romualdez on Friday said the newly-convened Maharlika Investment Corporation (MIC) should consider investing in the National Grid Corporation of the Philippines (NGCP) after a massive power outage hit Western Visayas.
“This strategic investment could provide essential capital for infrastructure upgrades and help in lowering the cost of electricity for consumers,” Romualdez said in a statement.
Iloilo City and several provinces in Western Visayas have been experiencing massive power outages since Jan. 2.
Romualdez noted the strong concerns of Iloilo City Mayor Jerry Treñas over the NGCP’s alleged inaction on repeated blackouts.
He said the potential involvement of MIC “could lead to improved efficiency, economic growth, enhanced energy security, support for renewable energy integration, and increased accountability in NGCP’s operations”.
The MIC acts as the steward of the Maharlika Investment Fund (MIF), the Philippines’ first sovereign wealth fund, chaired by Department of Finance Secretary Benjamin Diokno.
The MIC Board met for the first time on Jan. 3 to discuss matters such as the Fund’s capitalization and potential projects to tap.
“I believe that investing in the power sector will set up major benefits for the country,” Romualdez said.
He said improving the country’s power infrastructure would result in cheaper electricity for the consumers, which in turn would make the country more attractive to foreign investors in terms of operational costs.
Partner to tackle complex challenges
MIC President and Chief Executive Officer (PCEO) Rafael Consing Jr. expressed support for Romualdez’s proposal for the MIC to invest in the NGCP.
“I fully endorse Speaker Martin Romualdez’s proposal for the Maharlika Investment Corporation to strategically invest in NGCP. This move holds immense potential to strengthen our energy sector and pave the way for a brighter future,” Consing said in a Viber message.
Consing said the NGCP is the backbone of the country’s power system, and its stability is linked to the Philippines’ economic and social well-being.
“Through such an investment, Maharlika would become a dedicated partner in tackling the Philippines’ complex energy challenges. By working hand-in-hand with NGCP’s existing shareholders, Maharlika can leverage its unique financial resources and development expertise to accelerate critical infrastructure upgrades, promote renewable energy integration, and improve overall grid efficiency,” he said.
Consing said the possible collaboration would benefit Filipinos as lower energy costs would help invigorate businesses and would therefore create more jobs and boost economic growth.
“A more reliable and resilient grid can empower communities, improve living standards, and attract further investment. Moreover, fostering public-private partnerships in the energy sector can set a valuable precedent for sustainable development across other critical infrastructure areas,” he said.
Consing noted, however, that such investment would require careful consideration and thorough due diligence.
“Transparency and accountability must be paramount throughout the process to ensure efficient use of public funds and maximum benefit for the nation. However, the potential rewards are well-worth the exploration,” he said.
“Investing in NGCP through Maharlika is about investing in the Philippines’ future. It will be a bold step towards securing our energy independence, fueling economic prosperity, and ensuring a brighter tomorrow for every Filipino,” Consing added. (PNA)
Photo credit: Facebook/NGCPph