Philstar.com
January 16, 2025 | 2:27pm
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) has denied allegations that it is controlled by China, saying that it is a Filipino-owned and operated company.
In an explainer video, the NGCP said that its concession to operate the country’s power grid was awarded through a transparent bidding process in line with the Electric Power Industry Reform Act (EPIRA) of 2001.
In the 1990s, the government’s National Power Corp. (Napocor) managed much of the energy sector. However, Napocor faced inefficiencies and mounting debts, which ballooned to P830.7 billion (around $16.6 billion) by 2001, exacerbated by the 1997 Asian Financial Crisis.
To address these financial challenges, EPIRA restructured the energy industry, separating the generation and transmission functions of Napocor and privatizing most of its generation assets.
The law also allowed private sector management of the power grid, with a requirement for foreign technical expertise.
The NGCP said that during the bidding process, it partnered with the State Grid Corp. of China (SGCC), the world’s largest public utility company with investments in power grids in other countries, as part of the legal requirements under EPIRA.
According to NGCP, the role of SGCC is limited to “providing technical expertise and investment support only.”
The company remains under Filipino ownership and control, as Philippine laws, NGCP’s congressional franchise and the concession agreement ensure this, the power grid company said.
The NGCP added that its operations are governed by strict compliance with constitutional provisions and regulatory frameworks, assuring the public that it delivers reliable electricity services across the country while operating independently in compliance with Philippine laws.
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