Gov’t urged to buy shares in NGCP’s planned IPO

STATE- OWNED National Transmission Corp. (TransCo) wants the government to acquire shares in privately owned National Grid Corporation of the Philippines (NGCP) once the power grid operator offers these through an initial public offering (IPO) planned within the next two years.

“We can encourage GFIs ( government financial institutions) to participate in buying [ the shares],” said Melvin A. Matibag, TransCo president and chief executive officer, told reporters. “If we have [the] money why not.”

He said he was looking forward to the mandatory IPO of NGCP. The investment should allow the government to acquire a board seat in the company, he added.

NGCP, which started operating in January 2009, is mandated under its concession agreement to sell to the public a minimum of 10% and a maximum of 30% of its shares by 2019.

Mr. Matibag said he is also considering asking Congress to give TransCo a board seat in NGCP.

Ahead of the IPO, he said he was looking at ways for TransCo to have a say in crafting the country’s transmission development plan, which NGCP has been doing since it took over grid operation.

Mr. Matibag said he was given authority by the Department of Energy (DoE) to have the final say on the plan before it is forwarded to the Energy Regulatory Commission (ERC). The transmission plan requires investments that may be recouped from consumers, thus need for the commission’s approval.

Asked to comment on Mr. Matibag’s proposals, NGCP spokesperson Cynthia P. Alabanza said the IPO is a requirement of the franchise.

“In government corporations there are positions in the board that are ex-officio, or by virtue of your position in government you get a seat in the board,” she said. “But NGCP is not a government-owned or -controlled corporation. It’s a completely private corporation and the laws on corporations apply.”