Maharlika focusing energy sector investments on island grid development

The Maharlika Investment Corp. (MIC), which manages the Philippines’ first sovereign wealth fund, is concentrating its planned energy sector investments on developing the transmission and distribution infrastructure of the country's off-grid islands.

“Maharlika will be focused on lines, just the transmission lines. We do not see ourselves investing in the generation side or the distribution side…,” MIC president and CEO Rafael Consing Jr. said at a press conference in Quezon City on Friday.

“Also, if you look at where investments in the energy sector are most required, it is in the lines… therefore, we want to be able to make a difference by focusing only on building island grids,” he added.

The MIC chief said the island grid development forms part of its proposed P35-billion investment activities for this year.

"This is basically our strategy in the energy sector… on island grids, off-grid,” Consing said.

As part of its initiatives to focus on island power grid infrastructure, the MIC signed a memorandum of understanding with the National Electrification Administration (NEA) and the Palawan Electric Cooperative (PALECO) to improve the electrical infrastructure in the island province of Palawan.

Under the accord, the MIC will conduct a financial feasibility study to assess Palawan's transmission system with the intent to finance its upgrade, subject to available funding and consistent with its 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 said.

"We firmly believe that investing in critical utility infrastructure is an investment in the future, yielding dividends far beyond financial gains," he said.

NEA Administrator Antonio Mariano Almeda, for his part, said, "Hopefully by the end of the third quarter, we have a clear vision and details on how to proceed the way forward, complete with the technical study, the financial model, and to support the viability and feasibility of the project."

Last month, the MIC signed a similar accord with the NEA, the local governments of Oriental Mindoro and Occidental Mindoro, and the electric cooperatives of the provinces to upgrade their power infrastructure. —VBL, GMA Integrated News