Maharlika Investment Corp. Focuses on Island Grid Development for Energy Sector

Strategic Investment in Transmission Infrastructure

The Maharlika Investment Corp. (MIC), managing the Philippines’ first sovereign wealth fund, is channeling its energy sector investments into developing transmission and distribution infrastructure for the country’s off-grid islands.

Focus on Transmission Lines

MIC President and CEO Rafael Consing Jr. stated that the corporation is concentrating solely on transmission lines, not the generation or distribution sides. “Maharlika will be focused on lines, just the transmission lines. We do not see ourselves investing in the generation side or the distribution side…,” Consing explained during a press conference in Quezon City. He emphasized that the most critical investments in the energy sector are needed in transmission lines, particularly for island grids.

Planned Investments

As part of its strategy, MIC has allocated a proposed P35-billion for investment activities this year, with a significant focus on island power grid infrastructure. This initiative aims to address the energy needs of off-grid islands, thereby fostering socioeconomic development.

Partnership with NEA and PALECO

MIC has signed a memorandum of understanding (MOU) with the National Electrification Administration (NEA) and the Palawan Electric Cooperative (PALECO) to enhance the electrical infrastructure in Palawan. The agreement includes conducting a financial feasibility study to assess and potentially finance the upgrade of Palawan’s transmission system, aligning with MIC’s investment strategy and risk management frameworks.

“Investing in Palawan’s grid development plan, MIC reaffirms its mandate to achieve an optimal rate of return on its investments while catalyzing socioeconomic advancement,” Consing remarked. He added that investing in critical utility infrastructure is an investment in the future, yielding benefits beyond financial returns.

Upcoming Feasibility and Financial Studies

NEA Administrator Antonio Mariano Almeda expressed optimism about the project, indicating that a comprehensive plan, including technical and financial studies, should be ready by the end of the third quarter. This plan will support the project’s viability and feasibility, ensuring a clear path forward.

Previous Initiatives

Last month, MIC signed a similar agreement with NEA and the local governments and electric cooperatives of Oriental Mindoro and Occidental Mindoro to upgrade their power infrastructure, reinforcing its commitment to improving island grid systems.