Why the NGCP Must Lose Its Franchise

Wazzup Pilipinas!?

The congressional investigation into the National Grid Corporation of the Philippines (NGCP) is a crucial discourse that every Filipino should pay attention to. The discussions delve into serious issues of national security, sovereignty, and economic control, underscoring the alarming hold that foreign entities—specifically the Chinese—have over the Philippines' energy grid.

A key testimony during the investigation came from Atty. Melvin Matibag, a former president of the government-owned National Transmission Corporation (TRANSCO). His revelations expose a deeply concerning reality:

Denied Access to Facilities

During his five-year tenure at TRANSCO, Matibag was never allowed by the Chinese to visit NGCP facilities. This raises a red flag. If NGCP is a concessionaire managing assets owned by TRANSCO and, by extension, the Filipino people, why would it block access to its facilities?

Replacement of Equipment with Chinese-Made Technology

As soon as NGCP took over the grid, Chinese management replaced General Electric (GE) equipment with devices manufactured by NARI, a company owned by the People's Liberation Army (PLA) of China. This act further embeds Chinese interests in the grid and leaves the Philippines vulnerable to potential remote control by foreign entities.

Chinese Remote Control Over the Grid

Matibag revealed that the Chinese have the capability to control the grid remotely. If this is true, it creates a chilling prospect: a foreign power could disrupt the country’s energy supply at will.

Unfortunately, Matibag's testimony was cut short due to personal biases and political baggage, undermining the investigation's purpose. Yet, the points he raised demand further scrutiny because the implications are far-reaching.

Ownership vs. Concession

The national grid is owned by TRANSCO, with NGCP merely acting as a concessionaire. Under Section 5.01 of the Concession Agreement, TRANSCO retains ownership of all transmission assets, intellectual property rights, and easements. NGCP should only be managing these assets on behalf of the Filipino people.

But NGCP, under Chinese control, operates as if it owns the grid. Why is the concessionaire barring representatives of the owner—TRANSCO—from accessing facilities? What are the Chinese hiding?

Lessons from Argentina

The Philippines must learn from Argentina’s unfortunate experience. China built the Espacio Lejano Station, a satellite monitoring site in Argentina, under the guise of a scientific facility. The Chinese quickly took control, fenced the area with barbed wire, deployed armed security, and restricted access even to Argentinian officials. Allegedly, the facility is being used to monitor missile tests and submarines, creating global security concerns.

The NGCP situation mirrors this alarming precedent. If left unchecked, the Philippines could face a similar loss of control over critical infrastructure.

NGCP’s Opaque Operations

Even during the ongoing congressional hearings, Chinese NGCP directors failed to attend, citing flimsy excuses such as the Chinese New Year or their annual meeting. Filipino representatives of NGCP were left to defend the Chinese, demonstrating their limited authority and subservience to their foreign counterparts.

It’s worth noting that NGCP allocates billions for "public relations and entertainment" expenses, a budget flagged by Senator Risa Hontiveros. Is this fund being used to silence critics and influence decision-makers?

Historical Roots of the Problem

This issue traces back to the administration of Gloria Macapagal Arroyo, who allowed the entry of Chinese stakeholders into NGCP. The arrangement has since evolved into a tangled web of Chinese dominance over one of the Philippines' most critical infrastructures.

Other Malpractices

Beyond national security concerns, NGCP’s operations are rife with complaints from Filipino contractors. Many subcontractors allege delayed payments and unfair treatment by Chinese NGCP contractors. These practices demand thorough congressional investigation.

The Only Acceptable Outcome

The ongoing congressional hearings must result in the revocation of NGCP’s franchise. Anything less is a disservice to the Filipino people.

The NGCP has failed to operate transparently, secure national interests, and honor its concession agreement. Allowing a foreign entity—especially one linked to a geopolitical rival like China—to control critical infrastructure is a betrayal of national sovereignty.

To ensure energy security and national independence, the government must reclaim full control of the grid. This can only be achieved by ending NGCP's concession and implementing reforms to prevent a similar situation from arising in the future.

The stakes are too high to let this issue fall through the cracks. Congress must prioritize national interest over partisan politics, scrutinize NGCP's operations, and hold it accountable for its transgressions. For the Filipino people, this is not just about power lines and transformers—it’s about reclaiming sovereignty over a lifeline of the nation.

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