HOUSE Minority Leader Danilo Suarez has filed a bill limiting the ownership of the National Grid Corporation of the Philippines (NGCP) to eliminate security risk.
In filing House Bill 5209, Suarez noted that the operations of this transmission company should be given solely to Filipinos.
Suarez said it is the duty of the government to regulate and exercise authority over foreign investments within its jurisdiction.
Suarez noted that NGCP is owned by a consortium composed of State Grid Corporation of China, One Taipan Holidings Corp., and Calaca High Power Corporation.
The State Grid Corporation of China holds 40 percent while One Taipan Holdings and Calaca High Power Corp. each have 30 percent.
The NGCP has given legislative franchise to operate, maintain and develop the country’s transmission network.
It is in charge of transmission of high-voltage electricity through an interconnected system of transmission lines, towers, substations and related facilities.
According to Suarez, it is bit dangerous if the government allowed other foreign companies to take the operation of such transmission system.
“Given the past tensions between the Philippines and China, the NGCP, being a vital industry owned and controlled by Chinese entity, poses national security concerns,” Suarez said.
The opposition solon underscored the need for Congress to approve measure that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos.
The bill mandates the Department of Energy (DoE), Department of National Defense (DND) and other concerned agencies to formulate the rules and regulations in granting stock ownership to qualified Filipino individuals and corporations.