By Aubrey Rose A. Inosante, <\/b>Journalist<\/i><\/p>\n
THE MAHARLIKA Investment <\/span>Corp. (MIC) is anticipated to execute its initial investment this quarter, most likely in the energy sector, its senior official indicated.<\/p>\n \u201cCertainly 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,\u201d MIC President and Chief Executive Off<\/span>icer Rafael D. Consing, Jr. stated in an interview with BusinessWorld<\/i> on Jan. 2.<\/p>\n The MIC has not yet made any investments since President Ferdinand R. Marcos, Jr. enacted the legislation establishing the nation\u2019s inaugural wealth fund in July 2023.<\/span><\/p>\n The Maharlika Investment Fund (MIF) initially pledged to commence its first investments prior to the end of 2024.<\/p>\n Mr. Consing expressed that the sovereign wealth fund is \u201cprepared\u201d and equipped with funding and the necessary personnel, but will refrain from investing \u201cwithout the advantage of due diligence.\u201d<\/p>\n MIC generated P2.3 billion in interest income in 2024, according to Mr. Consing.<\/p>\n 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.<\/span><\/p>\n Mr. Consing indicated that the MIC\u2019s 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.<\/span><\/p>\n The MIC is exploring investments in energy, food security, healthcare, and resource development, with a particular focus on mining.<\/p>\n \u201cIn 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,\u201d Mr. Consing remarked.<\/p>\n Mr. Consing expressed his belief that investments in the energy sector, especially transmission lines, would be \u201cmost influential.\u201d<\/p>\n \u201cThat\u2019s why ideally, we\u2019d 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,\u201d he stated.<\/span><\/p>\n In 2024, the MIC formalized an arrangement with Occidental and Oriental Mindoro to facilitate investments in vital energy infrastructure.<\/p>\n \u201cThere 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,\u201d he noted.<\/span><\/p>\n Nevertheless, Mr. Consing refrained from commenting on the MIC\u2019s intentions to invest in the National Grid Corp. of the Philippines (NGCP).<\/p>\n He mentioned that the National Power Corp. is currently cataloging all its assets in Mindoro, and the MIC \u201cwill have to convene and assess which of those assets are necessary for the expansion of these lines.\u201d<\/p>\n \u201cPresently, we\u2019re 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,\u201d he added.<\/p>\n In addition to transmission lines, Mr. Consing mentioned they also plan to construct additional substations.<\/p>\n \u201cHowever, 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,\u201d he stated.<\/p>\n 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\u2019s board.<\/p>\n 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%.<\/p>\n