Home / News / “NGCP: China’s 40% stake not a national security threat \n\n”

“NGCP: China’s 40% stake not a national security threat \n\n”

Metro Manila (CNN Philippines, May 17) — The minority share of China’s State Grid Corporation in the country’s power grid operator will not pose any national security threat, a National Grid Power Corporation official said Wednesday.

However, some senators are not convinced that it’s impossible for Beijing to penetrate the country’s energy system.

\”We’d like to confirm that even the National Security Council has already visited our premises and they have made an inspection in 2020. It was then National Security Administration (Hermogenes) Esperon who went to our head offices and regional offices with regard to the report at that time that there is a remote control that can be accessed by China,\” said NGCP corporate secretary Ronald Concepcion in a hearing.

While 40% of NGCP is owned by the Chinese state-owned corporation, 60% is held by investment group Synergy Grid and Development Philippines of Henry Sy Jr. and Roberto Coyiuto Jr.

Lawmakers in 2019 also expressed concern about the possibility that China could remotely shut off the country’s power grid anytime.

Senator Raffy Tulfo said China could also be aggressive with the country’s energy system as it is in the West Philippine Sea.

\”Binu-bully na nga po ang ating mga kababayan, ating mga fishermen, binubully na po ang ating coast guard,\”he said. \”Kung nagagawa po nila yun sa labas ng bansa yun, sa karagatan, much more na mayroon silang access in land through our national grid. I fear for my country.\”

[Translation: Our people, fishermen, and Coast Guard are being bullied. If they are able to do that outside the country, in the waters, how much more if they could access our land through our national grid. I fear for my country.]

Senator Risa Hontiveros shared the sentiment.

\”Hindi po madaling sabihin na hindi national security threat na may ibang bansa, state-owned enterprise, na may obligasyon na mangolekta ng impormasyon o intelligence at ibigay sa kanilang gobyerno sa Beijing tungkol sa ating bansa, at maging tungkol sa ating gobyerno,\” she said.

[Translation: It’s not easy to say that there’s no national security threat knowing that another country, a state-owned enterprise, has an obligation to collect information or intelligence about our country and government and give that to their government in Beijing.]

Chinese characters

Tulfo also criticized the Chinese characters in the instructions for equipment in NGCP substations.

Concepcion explained that the hardware for the system operation in the substations came from a Chinese provider.

\”The instructions to the system were in Chinese originally, but also they have English translation because of course, our Filipino engineers have to go through training for that. So, meron pa rin pong English na translation,\” the NGCP official said, while insisting their operators are Filipinos.

But Tulfo asked the NGCP to get rid of the Chinese texts.

\”Kung Pilipino, bakit nandoon pa yung Chinese characters na ‘yun? Then get rid of those Chinese characters. Burahin niyo na yun. Nakakainsulto naman,\” the senator said.

[Translation: If they are Filipino, then why are there Chinese characters? Then get rid of those Chinese characters. Remove them. It’s insulting.]

The NGCP said it would heed Tulfo’s request.

Further, Concepcion affirmed that the only Chinese nationals in the country connected to the NGCP are three board members.

\”They sit in the board, and they represent the shareholdings of the State Grid Corporation of China,\” he said.

President Ferdinand Marcos Jr. on Tuesday agreed with Tulfo’s proposal to scrutinize the performance of the NGCP following the power supply woes in the parts of the country.

The Palace also said that the national government will take back full control over NGCP if necessary.

The franchise of NGCP to run the government-owned transmission assets will end in 2058

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