NGCP feels ‘vindicated’ after arbitration case win
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) felt a sense of “vindication” after it won the arbitration case it filed against the government regarding the years-long issue of a P57.88-billion debt prepayment.
NGCP spokesperson Cynthia Alabanza said the decision did not impact the group’s operation, but it would help “clear the clouds surrounding NGCP.”
“We were vindicated, meaning that what we have been doing, which we have always said is in accordance with the concession agreement, was proven by the arbitral court to be correct in large part,” the official told reporters on Wednesday.
“The NGCP has complied with contract, franchise, and rules and regulations,” she added.
READ: NGCP seals victory in P57.88-B legal issue vs Transco, Psalm
On Monday, Synergy Grid & Development Philippines, which holds 40.2 percent in the country’s electricity superhighway, disclosed that the Singapore International Arbitration Centre’s (SIAC) arbitral tribunal ruled on February 19 that the prepayment made by the grid operator to the government in July 2013 was valid.
The decision came seven years after the NGCP filed an arbitration case amid an issue on its concession agreement with state-run National Transmission Corp. (TransCo) and Power Sector Assets and Liabilities Management Corp. (Psalm).
The ruling likewise highlighted that the group “did not breach the nationality restrictions in the Philippine Constitution and the Anti-Dummy Law.”
The big win, according to Alabanza, was finding that the NGCP did not violate the Anti-Dummy Law.
“That’s one of the loudest, most persistent accusations—that the identity of NGCP is in question,” she said, reiterating that the NGCP is a Filipino corporation rub by Filipinos.
Peter Garnace, equity research analyst at Unicapital Securities Inc., said the recent development “significantly reduced NGCP’s financial obligation from what was claimed by TransCo.”
“The award confirms NGCP’s exclusive rights over transmission assets. Overall, the decision strengthens NGCP’s legal standing as the country’s grid operator,” Garnace told Inquirer in a message.
