By: Ronnel W. Domingo - 05:30 AM
November 29, 2019
The Department of Energy (DOE) on
Thursday said it supported moves in the Senate for a security audit
and a legislative inquiry into the operations of the National Grid Corp.
of the Philippines (NGCP) amid concerns that China could remotely shut down the
national power grid.
In Beijing, the Chinese government
dismissed such fears with a spokesperson saying there was no need “to imagine
trouble where there is none.”
“The allegation of China’s control over the
Philippines’ power grid or threat to the country’s national security is
completely groundless,” Geng Shuang, the Chinese foreign ministry spokesperson,
said on Wednesday.
Opposition Sen. Risa Hontiveros on
Tuesday filed a resolution seeking the audit and the inquiry, citing worrisome
statements made last week by Melvin Matibag, president of the state-run
National Transmission Corp., that the national grid managed by NGCP could be
remotely shut down.
Sen. Sherwin Gatchalian, who
supported Hontiveros’ call, on Wednesday said the government could take control
of NGCP if national security were threatened by foreign control of the power
grid.
Earlier
raised by Cusi
“We would like to emphasize that the
matter at hand is not something new, and is, in fact, the very same points
raised by Secretary Alfonso G. Cusi upon his assumption as head of the
department [in 2016],” the DOE said in a statement.
“Given that there are aspects in the
existing franchise agreement with the NGCP that seem inimical to the best
interests of the national government, and more importantly, the Filipino
people, both the DOE and Transco continue to call for, and are fully supportive
of the Senate’s interest to take a closer look at the administrative,
operational and procedural structures existing within the NGCP,” it said.
The DOE did not specify the
“inimical” features in the franchise agreement between Transco and NGCP. It
also declined to comment on the security problems of the power grid, referring
inquiries to the National Security Council.
“We consider the Senate hearings as
a positive development toward the long overdue and much needed audit of NGCP,
as well as the comprehensive reexamination of the franchise agreement, which is
part of the presidential directive to review all government contracts that
appear to be onerous,” the DOE said.
“These steps would facilitate the
introduction of all necessary amendments to uphold our national security and
the welfare of our citizens and consumers.”
Presidential spokesperson Salvador
Panelo declined to comment on the security concerns, saying that President
Duterte had not consulted defense and military officials.
“Since that is a national security matter, I
will defer to the position of the Department of National Defense as well as the
National Intelligence Coordinating Agency,” he said.
Chinese
40-percent stake
The Chinese government is involved
in power transmission in the Philippines through a 40-percent stake in NGCP by
the State Grid Corp. of China (SGCC).
NGCP took over the operation and
management of the country’s power transmission grid from Transco in January
2009 in what was considered one of the biggest privatization moves in the
country.
The $3.95-billion 25-year concession
agreement it won in December 2007 could be extended for another 25 years. The
franchise is good for 50 years.
Speaking to reporters on Wednesday,
Gatchalian said he was “shocked that there was such a technology” that could
remotely shut down the entire grid, “and more shocked that we did not do
anything” to deal with that.
Energy Undersecretary Felix William
Fuentebella said the security concern was among the issues brought up by the
government with NGCP that remained unresolved.
No
need to worry
Geng, the Chinese foreign ministry
spokesperson, said SGCC took part in the power transmission project “as a
cooperation partner, providing safe, efficient and high-quality electricity
service.”
“The project is now operated,
managed and maintained by the Philippine side, with the Chinese partner
offering necessary technical support upon request,” he said.
“We hope certain individuals in the
Philippines will look at cooperation with China in an open, objective and impartial
manner,” Geng said. “There is no need to worry about the sky falling or imagine
trouble where there is none.”
A similar statement was made on
Wednesday by NGCC president and CEO Anthony Almeda who welcomed senators,
congressmen and an independent third party to visit the company’s facilities
“in order to dispel any security concerns.”
“There is nothing to be alarmed
about the stake by (SGCC) in NGCP as its investment is limited only to being a
technical adviser,” Almeda said.
Almeda stressed that the software
and hardware system that controls the Philippine grid was operated only by
authorized Filipino technical experts and that even he, as CEO, had no access
to NGCP’s internal network except during an emergency and “only after
undergoing a secure and confidential approval process.”
‘Win-win
cooperation’
Geng said the Philippines was
“China’s close and friendly neighbor as well as an important partner.”
“We support Chinese businesses’
pursuit of practical, win-win cooperation in the Philippines in accordance with
laws and regulations,” he said.
Foreign Secretary Teodoro Locsin Jr.
also scoffed at claims that Beijing wanted or would be able to access the
Philippines’ power grid, alluding to the country’s poor telecommunications.
“With our internet, we are
impervious to cyberattack. In fuck with our phone service China cannot get
through to its ‘humint’ [human intelligence] assets to blow up the grid,”
he said in a tweet. In a tweet.
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