By Aubrey Rose A. Inosante, Journalist
THE MAHARLIKA Investment Corp. (MIC) is anticipated to execute its initial investment this quarter, most likely in the energy sector, its senior official indicated.
“Certainly in the first quarter. I believe we had a year to establish ourselves. We had a year to effectively implement our governance framework. We received our formal authorization to start recruitment at the end of July,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. stated in an interview with BusinessWorld on Jan. 2.
The MIC has not yet made any investments since President Ferdinand R. Marcos, Jr. enacted the legislation establishing the nation’s inaugural wealth fund in July 2023.
The Maharlika Investment Fund (MIF) initially pledged to commence its first investments prior to the end of 2024.
Mr. Consing expressed that the sovereign wealth fund is “prepared” and equipped with funding and the necessary personnel, but will refrain from investing “without the advantage of due diligence.”
MIC generated P2.3 billion in interest income in 2024, according to Mr. Consing.
As mandated by law, the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines were required to contribute P25 billion and P50 billion, respectively, as the initial seed funding for the MIF. Both state banks have transferred the funds to the Bureau of the Treasury in September 2023.
Mr. Consing indicated that the MIC’s strategic plan will be presented for board approval on Jan. 9. This follows modifications made after discussions with the Governance Commission for Government-Owned and -Controlled Corporations (GCG) before the holiday season, he added.
The MIC is exploring investments in energy, food security, healthcare, and resource development, with a particular focus on mining.
“In the first quarter, that would be the energy sector. Healthcare, if it proves favorable, should follow in the first half. I would suggest early second quarter for the last two,” Mr. Consing remarked.
Mr. Consing expressed his belief that investments in the energy sector, especially transmission lines, would be “most influential.”
“That’s why ideally, we’d prefer to invest in the national grid if possible. Alternatively, we have also separately executed MOUs (memoranda of understanding) with entities in Mindoro and Palawan, which fall within the SPUGS [small power utilities group] category,” he stated.
In 2024, the MIC formalized an arrangement with Occidental and Oriental Mindoro to facilitate investments in vital energy infrastructure.
“There are roughly 34 SPUGS nationwide. The two largest are Mindoro and Palawan. We believe that taking into account Palawan’s contribution to tourism, as well as its resident population, and Mindoro’s potential influence on the electricity sector in the Philippines, these are key areas where we can assist in constructing transmission lines,” he noted.
Nevertheless, Mr. Consing refrained from commenting on the MIC’s intentions to invest in the National Grid Corp. of the Philippines (NGCP).
He mentioned that the National Power Corp. is currently cataloging all its assets in Mindoro, and the MIC “will have to convene and assess which of those assets are necessary for the expansion of these lines.”
“Presently, we’re engaging the services of a technical consultant and a team to develop the comprehensive feasibility study. Because all of this will necessitate regulatory approval from the Energy Regulatory Commission,” he added.
In addition to transmission lines, Mr. Consing mentioned they also plan to construct additional substations.
“However, the issue is that Mindoro is not linked to the grid. So, even if we build substantial capacity, it will be ineffective because it ultimately cannot be exported to the grid. Hence, eventually, NGCP will need to establish that connection,” he stated.
Finance Secretary Ralph G. Recto, who chairs the MIC board, has advocated for the sovereign wealth fund to invest and secure a position on the NGCP’s board.
The NGCP, which operates the nation’s power grid, is 60% owned by entrepreneurs Henry T. Sy, Jr. and Robert G. Coyiuto, Jr., while the State Grid Corp. of China retains 40%.
