‘Singapore arbitration victory a vindication for NGCP’

February 27, 2025 | 12:00am

MANILA, Philippines — The decisive victory of National Grid Corp. of the Philippines (NGCP) in its Singapore arbitration case serves as a clear “vindication” of its compliance with its concession agreement, according to an executive.

“(It is a) vindication that we are just following the laws passed and the contracts presented by the government when it privatized the transmission sector and NGCP was granted the concession,” NGCP spokesperson Cynthia Alabanza said.

This followed the Singapore International Arbitration Center’s Arbitral Tribunal ruling in favor of NGCP for its 2018 case filed against Power Sector Assets and Liabilities Management Corp. and National Transmission Corp.

In its final award dated Feb. 19, the tribunal declared the validity of the prepayment made by the NGCP to the government in 2013.

It also rejected the state-run firms’ allegations that the grid operator had violated the nationality restrictions applicable to public utilities under Philippine laws, including the Anti-Dummy Law.

“So, it’s clear that there was no violation of the prohibition, among other things… That is the biggest win for NGCP,” said Alabanza, who concurrently serves as the company’s assistant vice president for public relations.

Under Philippine laws, foreign ownership of a public utility is limited to 40 percent.

In the case of NGCP, Filipino business titans Henry Sy Jr. and Robert Coyiuto Jr. own 60 percent of the company, while the State Grid Corp. of China holds 40 percent.

“For me, it’s really the finding that there’s no violation of the Anti-Dummy Law,” Alabanza said, reiterating that NGCP is a Filipino corporation owned and managed by Filipinos.

Asked about the impact of the arbitration ruling, the executive said it would not affect the NGCP’s operations.

“But hopefully, the weight of what the (Arbitral Tribunal) said will clear the clouds surrounding NGCP and how we run the transmission system,” Alabanza said.

For other non-monetary claims included in the arbitration case, the tribunal ruled that NGCP has the exclusive right to the transmission assets during the concession period.

A privately owned corporation, the NGCP holds a 25-year concession contract and a 50-year franchise to operate the country’s power transmission network.

Since 2009, the NGCP has invested over P300 billion to beef up the country’s electrical superhighway, ensuring the reliability, stability and efficiency of the power grid.