OPINION
Advocates Philippines
Revoking National Grid Corporation Of The Philippines (NGCP) Franchise: A Matter Of National Interest
The National Grid Corporation of the Philippines (NGCP), a private corporation responsible for operating and maintaining the country's transmission network, has been the subject of growing concerns regarding its ownership structure and performance. As allegations of foreign control and inadequate service provision persist, it is imperative to critically evaluate the franchise and consider the best course of action for the benefit of Filipino consumers and national security.
Foreign Influence and Security Concerns:
One of the key arguments put forward in favor of revoking the NGCP franchise is the alleged foreign control and influence within the corporation. Critics argue that the presence of Chinese nationals on the Board of Directors raises concerns about the security of the Philippine power grid. It is essential to ensure that critical infrastructure, such as the transmission network, remains under the control of entities with no conflicting interests that could compromise national security.
Here are the list of some of the NGCP’s Chinese board members on its official website:
1. Mr. Zhu Guangchao - Vice Chief Engineer and Director General of the International Cooperation Department of the State Grid Corporation of China (SGCC)
2. Mr. Yao Yousheng - Chief Representative of the SGCC Philippine Office. Since 2007, he is mainly involved in the international operations of SGCC’s power companies overseas.
3. Mr. Wang Lijin from Xi'an University of Technology in 1995 with a Bachelor's degree in Engineering, majoring in Power System and Automation, and is a professorate senior engineer.
4. Mr. Liu Xinhua - has a Master’s Degree in Engineering and an Executive Master’s Degree in Business Administration. He is also one of the top-notchers in China’s Certified Public Accountant (CPA) board examination.
Reviewing the Franchise:
Revoking the NGCP franchise may not be the immediate solution; however, a comprehensive review is necessary to address the concerns raised by the public. This review should encompass the ownership structure, operational performance, and adherence to relevant regulations and guidelines. It would allow for an in-depth assessment of NGCP's ability to provide reliable and affordable electricity while safeguarding national interests.
Operational Performance and Consumer Impact:
The NGCP's core responsibility is to deliver safe and reliable electricity across the Philippine archipelago. Unfortunately, reports of frequent power outages, threats of power shortages, and expensive electricity rates have become all too common. These issues not only inconvenience consumers but also hamper the country's economic growth. A thorough review should address these concerns, scrutinizing the NGCP's performance in meeting the demands of a rapidly developing nation.
Promoting Competition and Efficiency:
The discussion surrounding the NGCP franchise revocation should also open avenues for exploring alternative options. Promoting healthy competition in the transmission sector may lead to improved services and lower costs for consumers. The government could consider inviting other qualified companies to participate in the sector, ensuring a transparent and competitive bidding process. This step would encourage innovation, efficiency, and ultimately benefit Filipino consumers.
Temporary Nationalization and Accountability:
While revoking the franchise entirely may not be the immediate solution, temporary nationalization could be considered to safeguard national interests and ensure accountability. This would involve placing the NGCP under the control of the government while a comprehensive evaluation and restructuring take place. It would provide an opportunity to address issues related to ownership, governance, and operational transparency, without disrupting the flow of electricity across the nation.
Complex But Necessary
Revoking the NGCP franchise is a complex decision that requires careful consideration of national interests, security concerns, and consumer welfare. While the allegations of foreign control and inadequate performance raise valid concerns, a balanced approach is necessary. A thorough review of the NGCP franchise, coupled with measures to promote competition and efficiency, could pave the way for a more reliable, affordable, and secure power transmission system. Ultimately, the welfare of Filipino consumers and the long-term interests of the nation should guide the decision-making process.
Foreign Influence and Security Concerns:
One of the key arguments put forward in favor of revoking the NGCP franchise is the alleged foreign control and influence within the corporation. Critics argue that the presence of Chinese nationals on the Board of Directors raises concerns about the security of the Philippine power grid. It is essential to ensure that critical infrastructure, such as the transmission network, remains under the control of entities with no conflicting interests that could compromise national security.
Here are the list of some of the NGCP’s Chinese board members on its official website:
1. Mr. Zhu Guangchao - Vice Chief Engineer and Director General of the International Cooperation Department of the State Grid Corporation of China (SGCC)
2. Mr. Yao Yousheng - Chief Representative of the SGCC Philippine Office. Since 2007, he is mainly involved in the international operations of SGCC’s power companies overseas.
3. Mr. Wang Lijin from Xi'an University of Technology in 1995 with a Bachelor's degree in Engineering, majoring in Power System and Automation, and is a professorate senior engineer.
4. Mr. Liu Xinhua - has a Master’s Degree in Engineering and an Executive Master’s Degree in Business Administration. He is also one of the top-notchers in China’s Certified Public Accountant (CPA) board examination.
Reviewing the Franchise:
Revoking the NGCP franchise may not be the immediate solution; however, a comprehensive review is necessary to address the concerns raised by the public. This review should encompass the ownership structure, operational performance, and adherence to relevant regulations and guidelines. It would allow for an in-depth assessment of NGCP's ability to provide reliable and affordable electricity while safeguarding national interests.
Operational Performance and Consumer Impact:
The NGCP's core responsibility is to deliver safe and reliable electricity across the Philippine archipelago. Unfortunately, reports of frequent power outages, threats of power shortages, and expensive electricity rates have become all too common. These issues not only inconvenience consumers but also hamper the country's economic growth. A thorough review should address these concerns, scrutinizing the NGCP's performance in meeting the demands of a rapidly developing nation.
Promoting Competition and Efficiency:
The discussion surrounding the NGCP franchise revocation should also open avenues for exploring alternative options. Promoting healthy competition in the transmission sector may lead to improved services and lower costs for consumers. The government could consider inviting other qualified companies to participate in the sector, ensuring a transparent and competitive bidding process. This step would encourage innovation, efficiency, and ultimately benefit Filipino consumers.
Temporary Nationalization and Accountability:
While revoking the franchise entirely may not be the immediate solution, temporary nationalization could be considered to safeguard national interests and ensure accountability. This would involve placing the NGCP under the control of the government while a comprehensive evaluation and restructuring take place. It would provide an opportunity to address issues related to ownership, governance, and operational transparency, without disrupting the flow of electricity across the nation.
Complex But Necessary
Revoking the NGCP franchise is a complex decision that requires careful consideration of national interests, security concerns, and consumer welfare. While the allegations of foreign control and inadequate performance raise valid concerns, a balanced approach is necessary. A thorough review of the NGCP franchise, coupled with measures to promote competition and efficiency, could pave the way for a more reliable, affordable, and secure power transmission system. Ultimately, the welfare of Filipino consumers and the long-term interests of the nation should guide the decision-making process.
May 18, 2023
