Maharlika to invest in Palawan energy sector

MANILA, Philippines — State-run Maharlika Investment Corp. (MIC) is investing in the energy sector in Palawan to help boost tourism and further unlock the province’s economic potential.

The MIC and the National Electrification Administration (NEA) inked a memorandum of understanding (MOU) yesterday to improve the power infrastructure of Palawan Electric Cooperative (Paleco).

MIC president and CEO Rafael Consing Jr. said the agreement seeks to stabilize power supply in Palawan to attract more businesses needed for economic growth.

“This MOU would trigger a feasibility study and also technical studies to be undertaken. Then we will be able to determine how much exactly we would need to invest,” Consing said.

Under the MOU, MIC will assess the present electrical system of Palawan and determine ways to improve it.

It will have the discretion to finance its upgrades, subject to the availability of funding and consistent with its investment strategy and risk management frameworks.

NEA administrator Antonio Almeda said MIC’s planned investment would improve electricity in Palawan, both in quantity and in service.

“By the end of the third quarter, we will have a clear vision and details on how to proceed, complete with the technical study and financial model of the project,” Almeda said.

Paleco, on the other hand, will provide technical and operational expertise, including access to relevant data and information, to MIC and NEA.

The partnership is also part of NEA’s thrust to expedite the 100 percent total electrification in the country.

Consing said strengthening Palawan’s electric grid would help uplift communities, boost tourism and unlock the full economic potential of the province.

The MIC chief added that the sovereign wealth fund’s strategy centers on owning and operating critical infrastructure assets essential for growth and development.

“We view this project as a prime example of our commitment to this strategy, confident that it will deliver both strong financial returns and significant social impact,” he said.

In particular, Consing said that Palawan’s tourism industry would benefit from the initiative as reliable electricity is essential for hotels, restaurants and other tourism-related establishments.