National Grid Corporation of the Philippines

The National Grid Corporation of the Philippines (NGCP) is a privately-owned corporation that was created on January 15, 2009 through RA 9511. It is a consortium of three corporations, namely Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and the State Grid Corporation of China. As the franchise holder, it is in charge of operating, maintaining, and developing the country's state-owned power grid,[1] controls the supply and demand of power by determining the power mix through the selection of power plants to put online (i.e., to signal power plants to produce power, as power plants will only produce power or feed their power to the transmission grid when directed by NGCP). As a common carrier, it must provide non-discriminatory access to its transmission system. It is subject to the standards set by the Philippine Grid Code and the Transmission Development Plan. It also updates the daily power situation outlook for Luzon, Visayas, and Mindanao power grids by determining the available generating capacity, system peak demand, and operating margin (with operating margin is determined by subtracting the available generating capacity and system peak demand, and all of which are in units of MW or megawatts).

Facade, entrance

National Grid Corporation of the Philippines
TypePrivate company
IndustryElectric utility
FoundedJanuary 15, 2009 (2009-01-15)
HeadquartersPower Center, Quezon Avenue corner BIR Road, Diliman, Quezon City 1100, Metro Manila, Philippines
Key people
Zhu Guangchao (Chairman)
Henry T. Sy, Jr. (Vice Chairman)
Anthony Almeda (President)
Websitewww.ngcp.ph

History

On June 8, 2001, legislators passed and former president Gloria Macapagal-Arroyo signed RA 9136 which is also known as the Electric Power Industry Act or EPIRA law to save the ailing energy industry. It introduced two major reforms: the restructuring of the electricity supply industry and the privatization of the National Power Corporation (NPC). It also led to the creation of another state-owned corporation named National Transmission Corporation (TransCo) which turned over the NPC's management, ownership, construction, expansion, and maintenance of the transmission facilities.

On December 12, 2007, two consortia bid for a 25-year license to run the Philippine power grid - privatization of the management of TransCo: the consortium of Monte Oro Grid Resources Corp., led by businessman Enrique Razon, comprising the State Grid Corporation of China, and Calaca High Power Corp., WON in an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG Aurora BV and Malaysia’s TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."[2][3][4]

On December 1, 2008, Gloria Macapagal-Arroyo signed the RA 9511 which gives it the franchise to operate and maintain the transmission facilities of TransCo.

On January 15, 2009, it officially started its operations and management over the national transmission system, with Walter A. Brown as the company's first president. It continued to do all transmission projects that were planned or unfinished by TransCo on its first few years and makes or plans any new projects through the Transmission Development Plan (TDP).

On March 2010, Roque Corpuz was appointed as the company's second president, replacing Walter A. Brown.[5] Three months later, Henry Sy, Jr. became the third NGCP president.[6]

On May 2017, TransCo accused the company with violating the terms of its contract by supposedly making too much money from its operations of the country’s electricity grid. Executive Secretary Salvador Medialdea pointed out that, if indeed NGCP had violated the terms of its contract by profiting unduly from the operations of the power grid such as allowing telecommunications firms to mount their fiber optic cables on the transmission towers.[7]

On March 7, 2018, Henry Sy, Jr. resigned as president and CEO, with Chief Administrative Officer Anthony Almeda named as the company's new president.[8]

Franchise law

Unlike outright sale, the concession agreement allowed the Philippine government to keep ownership of the transmission assets through TransCo, in accordance with Section 8 of Electric Power Industry Reform Act (EPIRA) or Republic Act 9136 which states that no person, company, or entity other than TransCo who shall own any transmission facilities.[9][10][11][12][13] Its franchise only covers the operations, maintenance, and expansion of the power grid. It officially started operations on January 15, 2009. Assuming it secures a renewal, it has a total of 50 years and will end on December 1, 2058. Under its franchise, it has the right to operate and maintain the transmission system and related facilities, and the right of eminent domain necessary to construct, expand, maintain, and operate the transmission system.

For more details about its franchise law and EPIRA law, visit these websites.

Organization

Below is a table listing the board of directors and officials of NGCP.[14]

Name Position Credentials
Zhu Guangchao Chairman Vice Chief Engineer and Director General of International Cooperation Department of the State Grid Corporation of China (SGCC), Vice Chairman of Redes Energeticas Nacionais SA in Lisboa, Portugal, and Board Director of Hongkong Electric Company
Robert Coyiuto, Jr. Vice Chairman CEO of Prudential Guarantee and Assurance, Inc., Chairman of the Board of PGA Cars, Inc. and PGA Sompo Insurance, Inc., Vice Chairman of First Life Financial Co., Inc., President, Oriental Petroleum and Minerals Corporation, Director, Canon Philippines, Inc., and Director, Universal Robina Corporation
Henry Sy, Jr. Vice Chairman Vice-Chairman, SM Investments Corporation, Vice-Chairman and CEO of SM Development Corporation and Vice-Chairman and President of Highlands Prime, Inc. and SM Land, Inc. He also sits as Director of SM Prime Holdings, Inc. and Banco de Oro Unibank, Inc
Jose Pardo Director Chairman, Philippine Stock Exchange, Electronic Commerce Payment Network, Inc., OOCC General Construction Corp., and Philippine Savings Bank and Director, ZNN Radio Veritas, Bank of Commerce, JG Summit Holdings, Inc., and Bank of Commerce Investment Corporation
Francis Chua Director Chairman Emeritus, Philippine Chamber of Commerce and Industry, Inc., President, DongFeng Automotive, Inc., and Member of Board Directors, Philippine Stock Exchange and the Bank of Commerce
Shan shewu Director Chief Representative, State Grid Corporation of China (SGCC) Philippine Office
Liu Ming Director Deputy Chief Representative, State Grid Corporation of China (SGCC) Philippine Office, former Chief Representative of SGCC Africa Office, and Technical Director of Market Exploration of SGCC Australia Office.
Liu Xinhua Director Engineer with a master's degree and one of the topnotchers in the CPA Board Exam of China
Anthony Almeda Director Chairman and CEO, ALALMEDA Land, Inc., and Director, Blue Ocean Acquisitions, Inc., CUTAD, Inc., BS Square Commercial, Inc., PACIFICA 21 Holdings, Inc., Leisure & Resort World, Inc., BIGBOX 21, Inc., and MIGUELUNDA Educational Corporation.
Paul Sagayo, Jr. Director Partner - Sagayo Law Offices, and Professor, San Beda College of Law

Presidents
  • Walter A. Brown (2009–2010)
  • Roque Corpuz (2010)
  • Henry Sy, Jr. (2010–2018)
  • Anthony Almeda (2018–present)

Business scope

Below is a table listing the district numbers and what areas or provinces that each district covers.[15]

North Luzon
District Area Service Area
1 Ilocos Ilocos Norte, Ilocos Sur, Abra, and La Union
2 Mountain Province Mt. Province and Benguet
3 Central Plain East and West Pangasinan
4 Cagayan Valley Nueva Vizcaya, Quirino, Ifugao, Isabela, Cagayan, Kalinga, and Apayao
5 Western Central Plain Bataan and Zambales
6 South Central Plain Pampanga and Tarlac
7 NCR Bulacan, Rizal, and Metro Manila

South Luzon
District Area Service Area
1 South Western Tagalog Batangas, Cavite, and South of Metro Manila
2 South Eastern Tagalog Laguna and Quezon
3 Bicol Camarines Norte, Camarines Sur, Albay, and Sorsogon

Visayas
District Area Service Area
1 Western Samar and Leyte
2 Central Cebu and Bohol
3 Eastern Negros Island
4 Negros Panay Island

Mindanao
District Area Service Area
1 North Western Zamboanga del Norte, Zamboanga del Sur, and Misamis Occidental
2 Lanao Lanao del Norte and Lanao del Sur
3 North Central Bukidnon and Misamis Oriental
4 North Eastern Agusan del Norte, Agusan del Sur, Surigao del Norte, and Surigao del Sur
5 South Eastern Davao, Davao del Norte, Davao del Sur, Compostela Valley, and Davao Oriental
6 South Western North Cotabato, South Cotabato, Sultan Kudarat, Maguindanao, and Sarangani

See also

References
  1. "Corporate Profile - National Grid Corporation of the Philippines: The Company". ngcp.ph. Retrieved December 28, 2020.
  2. "Manila Times, RP-China group wins $3.95-B TransCo bid". Archived from the original on December 13, 2007. Retrieved June 23, 2019.
  3. "Two groups vie for multi-billion dlr Manila power deal". December 12, 2007. Retrieved June 23, 2019 – via uk.reuters.com.
  4. "Abs-Cbn Interactive, Monte Oro consortium wins TransCo bidding". Archived from the original on July 9, 2007. Retrieved June 23, 2019.
  5. "Former TransCo COO is new NGCP president". www.philstar.com. Retrieved September 23, 2020.
  6. "NGCP elects Henry Sy Jr. as president and CEO". GMA News Online. Retrieved June 23, 2019.
  7. Inquirer, Philippine Daily. "Biz Buzz: Round One to NGCP". business.inquirer.net. Retrieved June 23, 2019.
  8. News, ABS-CBN. "Henry Sy Jr steps down as NGCP president, CEO". ABS-CBN News. Retrieved June 23, 2019.
  9. "TransCo". transco.ph. Retrieved June 23, 2019.
  10. "Corporate Profile - National Grid Corporation of the Philippines: History". ngcp.ph. Retrieved December 28, 2020.
  11. "NGCP - National Grid Corporation of the Philippines". web.archive.org. February 18, 2016. Retrieved June 23, 2019.
  12. Electric Power Industry Reform Act (EPIRA) law or Republic Act 9136
  13. "TransCo withdraws bid to interconnect power grids - DOE - Department of Energy Portal". www.doe.gov.ph. Retrieved June 23, 2019.
  14. "Corporate Profile - National Grid Corporation of the Philippines: The Board of Directors". ngcp.ph. Retrieved December 28, 2020.
  15. "Operations - National Grid Corporation of the Philippines: Business Scope". ngcp.ph. Retrieved December 28, 2020.
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