Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No5209

Introduced by HON. DANILO E. SUAREZ

EXPLANATORY NOTE

The Constitution is replete with provisions protecting vital industries from being
effectively controlled by foreign participants. Article XII Section | paragraph 2 explicitly states
that, “the State shall protect Filipino enterprises against unfair foreign competition and trade
practices”. Section 2 of the same Article mandates that: (1) Congress enact measures that will
encourage the formation and operation of enterprises whose capital is wholly owned by
Filipinos; (2) in the grant of rights, privileges, and concessions covering national economy and
patrimony, the State shall give preference to qualified Filipinos; and (3) the State shall regulate
and exercise authority over foreign investments within its national jurisdiction and in accordance
with its national goals and priorities.

The National Grid Corporation of the Philippines (NGCP), a privately-owned company
with a legislative franchise to operate, maintain, and develop the country’s transmission network,
is owned by a consortium composed of the State Grid Corporation of China, One Taipan
Holdings Corp., and Calaca High Power Corporation.

The State Grid Corporation of China holds 40 percent stake in the NGCP while One
Taipan Holdings and Calaca High Power Corp. cach have 30 percent.

The NGCP is in charge of the transmission of high-voltage electricity through an
interconnected system of transmission lines, towers, substations and related facilities. Given the
past tensions between the Philippines and China, the NGCP, being a vital industry owned and
controlled by Chinese entity, poses national security concerns.

This bill seeks to make NGCP exclusively owned, controlled, and operated by Filipinos

to eliminate security risks.

DANILO E. SUAREZ
Representative
3rd District, Quezon Province



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Republic of the Philippi
HOUSE OF REPRESENT.
Quezon City

IVES.

SEVENTEENTH CONGRESS
First Regular Session

5209

House Bill No

Introduced by HON. DANILO E. SUAREZ

AN ACT LIMITING THE OWNERSHIP AND OPERATION OF THE NATIONAL GRID.
CORPORATION OF THE PHILIPPINES (NGCP) EXCLUSIVELY TO FILIPINOS

Be it enacted by the Senate and House of Representatives in Congress assembled:

SECTION 1. Declaration of Policy - The National Grid Corporation of the
Philippines, a privately-owned company with national security issues, shall be exclusively
owned and operated by Filipinos.

SEC. 2. Jmplementing Rules and Regulations ~ The Department of Energy (DOF).
Department of National Defense (DND) and other concemed agencies shall formulate the
rules and regulations in granting stock ownership to qualified Filipino individuals and
corporations.

SEC. 3. Repealing Clause — All laws, decrees, rules and regulations and other
issuances or part thereof which are inconsistent with the provisions of this Act are hereby
amended, repealed, or modified accordingly.

SEC. 4. Effectivity ~ This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or in any two newspapers of general circulation in the Philippines,

whichever comes earlier.

Approved.