logo
Philippines wealth fund buys into China-backed national grid operator

Philippines wealth fund buys into China-backed national grid operator

Reuters27-01-2025

MANILA, Jan 27 (Reuters) - The Philippines' sovereign wealth fund Maharlika Investment Corp is buying a 20% stake in the operator of the country's power grid, the government said on Monday, a first major investment that tightens its grip on critical infrastructure.
National Grid Corp of the Philippines holds a 25-year concession to run the country's sole power transmission operator since winning the contract in 2007.
Amid escalating tensions between Manila and Beijing over disputes in the South China Sea, NGCP is currently the subject of a congressional probe into its compliance with franchise obligations and its ownership, with China's State Grid Corp holding a 40% stake.
"The maiden investment represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure that every Filipino has access to reliable and affordable power," Philippine President Ferdinand Marcos Jr.'s office said in a statement without giving financial details.
The deal allows Maharlika to subscribe to preferred shares offered by Synergy Grid & Development Philippines (SGP), which would give the wealth fund two seats each at NGCP and SGP.
SGP effectively controls 60% of NGCP through a common corporate structure of the latter's two largest Filipino shareholders, tycoons Henry Sy Jr. and Roberto Coyiuto Jr.
"Government investment in transmission would make additional capital available for NGCP to deploy in the pursuit of completing transmission projects on time," the Department of Energy (DOE) said in a separate statement.
"Maharlika can pave the way for better coordination between the DOE and the NGCP to help...speed up the interconnection of our power grid across the archipelago," the DOE added.
The DOE said 98% of NGCP projects between 2016 and 2024 were delayed, some by more than nine years.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nasdaq-bound Hotel101 eyes expansion into Latin America, Oceania, CEO says
Nasdaq-bound Hotel101 eyes expansion into Latin America, Oceania, CEO says

Reuters

time3 days ago

  • Reuters

Nasdaq-bound Hotel101 eyes expansion into Latin America, Oceania, CEO says

SINGAPORE, June 6 (Reuters) - Hotel101 Global, a unit of Philippine-listed real estate company DoubleDragon ( opens new tab, is looking to expand into Latin America and Oceania in addition to growing its presence in existing regions including Asia, its CEO Hannah Yulo-Luccini told Reuters on Friday. Last month, Hotel101 entered into a partnership with Saudi Arabia-based Horizon Group to build 10,000 rooms or 20 hotels across the Kingdom, marking its fourth destination outside of the Philippines and after Japan, Spain and the U.S. CONTEXT Hotel101 is due to list on Nasdaq following a merger with a Nasdaq-listed special purpose acquisition company JVSPAC Acquisition Corp (JVSA.O), opens new tab that puts Hotel101 equity value at $2.3 billion. Both companies on Monday had obtained regulatory nod to proceed. JVSPAC is a publicly listed shell that raises funds to merge with a private entity. WHY IS IT IMPORTANT Upon listing, the combined company will operate as Hotel101 and will become the first Philippine-owned company to be listed and traded on Nasdaq, which the CEO says will help it with its international expansion. DETAILS Singapore-headquartered Hotel101 builds and operates hotels with standardized, 21 square metre rooms that it sells individually to investors. Its asset-light business model generates revenue first from room sales and then from the recurring income from day-to-day hotel operations. KEY QUOTES: "This whole process of becoming a Nasdaq-listed company has really allowed us to really have that global credibility as we expand the brand to 25 countries in the near term," Yulo-Luccini said. "Other than the Saudi JV, we're actually working on five more hotel JVs."

Holtec targets US-wide nuclear reactor fleet using learnings at Palisades
Holtec targets US-wide nuclear reactor fleet using learnings at Palisades

Reuters

time4 days ago

  • Reuters

Holtec targets US-wide nuclear reactor fleet using learnings at Palisades

June 5 - Holtec International's plan to deploy two small modular reactors (SMRs) at the Palisades nuclear plant site in Michigan by 2030 shows how developers are looking to capitalize on soaring U.S. power demand and build on existing nuclear expertise to deploy the first wave of next-generation reactors. In a partnership with Hyundai Engineering & Construction, Holtec plans to build 10 GW of SMRs in North America through the 2030s, starting at Palisades. Holtec is restarting the decommissioned 800 MW Palisades nuclear power plant and plans to install two of its SMR-300 reactor units, based on existing light water reactor (LWR) technology, at the same facility. The cost of deploying SMRs at Palisades will be lower than on sites with no atomic presence, Patrick O'Brien, Holtec International's director of Government Affairs and Communications, told Reuters Events. Existing nuclear sites offer developers a range of power and logistics infrastructure and a skilled local workforce. A proven history of safe operations can help minimise local opposition. "In having environmental data, a trained and talented workforce, and the ability to interconnect to an established switchyard, the costs will be lowered," O'Brien said. Holtec could also site up to four SMR units at the Oyster Creek nuclear power site in New Jersey, where the company plans to decommission a shuttered 625 MW boiling water reactor by 2029, he added. MAP: US operational nuclear power plant sites Holtec sees major growth potential for SMRs in the Mountain West region. A 4 GW fleet of SMR-300s could be deployed, mainly in Utah and Wyoming in the 2030s, supported by ongoing testing at the Idaho National Laboratory (INL) and recently passed legislation supporting nuclear power development in Utah, the company said on May 1. 'The new legislation supports our vision to start the incubation of our SMR-300 program in Utah and expand it into the Mountain West,' Holtec Chief Strategy Officer Admiral Roegge said in a statement. Nuclear pioneers The U.S. Department of Energy (DOE) estimates 60 to 95 GW of new nuclear capacity could be built at operating or recently retired nuclear power plant sites across the country, according to a study published by the DOE in September 2024. Malwina Qvist, director of the Nuclear Energy Program at the Clean Air Task Force (CATF), sees the potential for at least 80 to 100 GW at these sites. A project led by Canadian utility Ontario Power Generation (OPG) to deploy four GE Vernova Hitachi BWRX-300 SMRs at Ontario's Darlington nuclear power plant will also benefit from existing nuclear infrastructure and workforce. The first SMR at Darlington will be the "first of its kind" in the G7 group of wealthy nations, OPG said. CHART: Small modular reactor projects by country U.S. utility Tennessee Valley Authority (TVA) recently submitted a construction permit application to the Nuclear Regulation Commission (NRC) for the BWRX-300 SMR model, eyeing deployment of a first unit at its Clinch River site by 2032. TVA could have a "second-mover advantage" following the planned deployment of the technology in Canada, according to Stephen Comello, senior vice president of Strategic Initiatives at the EFI Foundation. TVA has a collaboration agreement with OPG which it said facilitates sharing of experiences that could reduce the financial risks of innovating new technology while taking advantage of both companies' extensive nuclear energy experience. Strategies to overcome cost hurdles for new nuclear - download our webinar. TVA's Clinch River site could host up to four SMRs and the company also plans to evaluate other nuclear locations for locating small reactors, a TVA spokesperson told Reuters Events. DOE funds Holtec is one of a small group of developers seeking to win funds from the DOE in a funding round for LWR SMR technology (Gen III+). Other LWR-based SMR reactors include Westinghouse's AP300 and NuScale's SMR 3. In March, the Trump administration reissued a DOE tender for $900 million in federal funding to help de-risk deployment and removed a previous requirement for community engagement, underlining their support for new nuclear. In Tier 1 funding, the DOE will provide $800 million for up to two consortia towards the deployment of Gen III+ reactors. In Tier 2, $100 million will support additional Gen III+ SMR deployments by addressing design, licensing, supply chain, and site preparation issues. If selected, Holtec would use Tier 1 funding to help complete licensing work and some initial groundwork, O'Brien said. Tier 2 funding would go towards manufacturing upgrades to prepare for SMR construction and environmental analysis for the Oyster Creek facility, where the company could install up to four SMR-300s following the Palisades project. For exclusive nuclear insights, sign up to our newsletter. Uncertainty over the cost of the first SMR reactors is a key challenge for developers looking to deploy commercial-scale units and drive down investment risks. An official cost estimate announced this month for OPG's Darlington SMR project in Canada provides insight into the potential investments required to deploy LWR SMRs in the United States, according to Comello. Construction of the four BWRX-300 SMRs at Darlington is estimated at C$20.9 billion ($15.2 billion), according to a statement released by the Province of Ontario. The cost of the first SMR is estimated at C$6.1 billion and costs for systems and services standard to all four SMRs are estimated at C$1.6 billion. Costs are expected to decline with each subsequent unit as efficiencies are gained. "That is a good estimate for a first-of-a-kind light water reactor GEN-III SMR that has a sufficient design maturity, which I think is what Holtec should be on its way to," Comello said.

South Korea's KAI signs $700 mln aircraft deal with Philippines
South Korea's KAI signs $700 mln aircraft deal with Philippines

Reuters

time5 days ago

  • Reuters

South Korea's KAI signs $700 mln aircraft deal with Philippines

SEOUL, June 4 (Reuters) - South Korean defence company Korea Aerospace Industries (KAI) ( opens new tab said on Wednesday it has signed a deal worth 975.3 billion won ($712.83 million) with the Philippine defence ministry to supply 12 aircraft. KAI will export 12 of its FA-50 fighter jets by 2030, which would modernise the Southeast Asian country's military, it said in a statement. The company previously signed a deal with Manila in 2014 and supplied another batch of 12 FA-50 jets by 2017. South Korea, which has sold FA-50 fighter jets, corvettes, and frigates to the Philippines, aims to become the world's fourth-largest arms exporter by 2027. ($1 = 1,368.2100 won)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store