China 'in charge of nuts and bolts' of Philippine power grid, Hontiveros claims

MANILA, Philippines — Sen. Risa Hontiveros accused the National Grid Corp. of the Philippines (NGCP) of lying about the State Grid Corp. of China's advisory role in the country's power infrastructure.

The NGCP earlier claimed that the Chinese firm, which has a 40-percent stake in it, only provides technical support and cannot shut down the Philippine power grid.

Hontiveros, however, showed documents that she said showed that Chinese nationals hold key and sensitive positions in the NGCP, a privately-owned consortium that runs the country's power grid.

NGCP: “We are Filipino-run.”

Also NGCP: pic.twitter.com/5yhcIR6llW

— risa hontiveros (@risahontiveros) December 9, 2019

"China is in charge of the nuts and bolts of our country's power grid, with full control of operations and maintenance," Hontiveros said in a privilege speech Monday.

In late November, NGCP said in a statement to CNN Philippines that "the role of this foreign technical partner is limited to that of an investor, with board seats corresponding to its 40% investment share."

The senator came out with documents showing that a certain Chinese national named Wen Bo was named "Chief Technical Officer" of the NGCP while a Liu Zhaoquiang was "Assistant Chief Technical Officer for Operations and Maintenance."

"The chairman is Chinese, almost all of the contractors are Chinese, the systems software is made in China and the training is done in China. Which part here is Filipino-run?" the senator said.

NGCP chairman Zhu Guangchao of China's State Grid is a Chinese national. 

According to NGCP's website, Zhu is "the Vice Chief Engineer and Director General of International Cooperation Department of the State Grid Corporation of China, Vice Chairman of Redes Energeticas Nacionais SA, Lisboa, Protugal, and Board Director of Hongkong Electric Company."

China firms get 43 projects

Hontiveros also claimed that the contractors at least 43 projects under construction and new projects in the country for the power grid are in China.

Chinese firms have been supplying materials for the infrastructure of the transmission lines, which are also using Chinese-designed technology.

The opposition senator also noted that there have been issues raised in the involvement of the Chinese with the NGCP in the past.

"In 2015, none other than our much beloved and much missed Senator Miriam Defensor Santiago said that a 'national security virus' has infected the country's power sector. Even then-National Security Adviser Cesar Garcia expressed concern, saying that the country's power transmission grid should be kept solely in the hands of the Philippine government," Hontiveros said.

While NGCP spokesperson Cynthia Alabanza earlier claimed that there is no single button that could shut off the Philippine power grid, Hontiveros noted how National Transmission Commission (Transco) president Melvin Matibag laughed at this "Jurassic" system.

Hontiveros also noted that the NGCP did not deny that it sources its technology from Huawei despite a 2012 report by US intelligence that the company carries out research for Chinese intelligence.

"We are talking about our national security here. We are talking about the critical exposure of our power grid to a foreign power," she said.

The senator called for an immediate inspection and audit of the facilities of the NGCP, which Transco had also been calling for.

Citing financial data, Hontiveros said the government loses money while the NGCP is raking profits as a monopoly.

As of 2018, the NGCP has earned an estimated P180 billion in profits from the electricity transmission business. It still has 15 our of 25 years in its concession agreement.

"One cannot help but wonder if the high prices of electricity in this country are the result of this unconscionable contract. One cannot help but wonder how much of what the ordinary Juana de la Cruz pays for electricity every month goes to a Chinese corporation in far-off mainland China," Hontiveros said.

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