Mindoro island province faces persistent power supply challenges due to limited grid connectivity.
Maharlika Investment Corp signed a cooperation agreement with state power agencies to rehabilitate and modernize transmission towers and lines, acting as a strategic investor.
The transmission system on Mindoro is currently off‑grid, operated by Transco, and not fully integrated with the Luzon grid, leaving 1.5 million residents vulnerable to outages.
The modernization project aims to connect Mindoro to Luzon via a submarine cable, enhancing reliability for the island’s electricity consumers.
Maharlika, as manager of the sovereign wealth fund, uses public capital and its investments are expected to deliver both financial and strategic returns.
The fund’s involvement raises questions about whether the project will strengthen energy security or deepen reliance on the existing private concessionaire NGNG.
In early 2025 Maharlika signed a binding agreement to acquire a 20 % stake in Synergy Grid and Development Philippines, the holding company that controls NGNG, which would grant board representation pending completion.
The transaction remains pending beyond its original deadline, leaving Maharlika without direct influence over national transmission decisions while it proceeds with the Mindoro investment.
The planned Batangas‑Mindoro submarine cable is being developed by NGNG, and once completed the upgraded Mindoro network could be handed over to NGNG for operation.
NGNG holds the sole transmission concession in the country, making it a critical chokepoint for electricity delivery to generators, distributors, industry, and households.
NGNG’s ownership structure includes a 60 % voting stake held by a Filipino‑owned entity and a 40 % stake held by the State Grid Corporation of China, a Chinese state‑owned enterprise, prompting heightened scrutiny.
Maharlika’s simultaneous investment in Mindoro’s grid and pursuit of a stake in NGNG creates a situation where public funds may support assets operated by a company with foreign state ownership.
Questions arise about the expected return on the Mindoro investment, the ultimate ownership and operation of the upgraded assets, and how the public will recoup its capital.
If the modernization expands NGNG’s regulated asset base, the private operator could benefit from public capital without a proportional strategic gain for the state.
Extending NGNG’s concession beyond 2034 has been voiced by Maharlika, yet concerns over corporate governance and foreign influence remain unresolved and may require legislative and regulatory review.
The broader strategic issue concerns the role of public capital in a grid operated by a private concessionaire that includes a foreign state shareholder.
While Maharlika can finance infrastructure gaps, the state could also use that capacity to reduce foreign‑state exposure in the national grid.
Nearly half of NGNG’s profits flow to the Chinese state‑owned partner, highlighting the strategic vulnerability of a critical asset.
A gradual, lawful reduction of the foreign stake, financed by public funds, would align the grid’s ownership with national security interests.
The national grid should be regarded as a sovereignty asset, and any dilution of Filipino control warrants close monitoring.
Using Maharlika’s resources to both modernize the grid and restore full Filipino ownership could address infrastructure needs while safeguarding strategic independence.
