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CAGAYAN DE ORO, Philippines – Opposition is mounting against a proposed joint venture that would hand control of a key electric utility in the Soccsksargen Region to a partnership led by tycoon Enrique Razon and former senator Manny Pacquiao, as questions were raised about how it advanced and why alternatives were set aside.
A document shows that the board of the South Cotabato Electric Cooperative II (Socoteco II) granted conditional acceptance in January to the proposal of IGNITE Power and Energy Holdings Incorporated, the Razon-Pacquiao venture, weeks after it formally submitted its bid in late 2025.
The development was confirmed in a March letter from National Electrification Administration (NEA) Administrator Antonio Mariano Almeda to the cooperative’s board, a copy of which was reviewed by Rappler.
The same letter shows a separate proposal from the Manila Electric Company (Meralco), led by businessman Manuel V. Pangilinan, had been rejected by the board through a resolution. The NEA document does not provide a detailed explanation for the decision.
Allana Mae Babayen-on, a lawyer for the Razon group, told a public forum on Tuesday, April 28, that under the proposal submitted by IGNITE Power, Socoteco II would enter into a joint venture agreement and form a new corporate entity, with the cooperative retaining a 30% stake.
The Razon-Pacquiao group reportedly offered an initial P4 billion and committed to invest P10 billion over five years.
By contrast, the proposal from the Pangilinan-led Meralco called for a fundamental restructuring of the cooperative itself — converting it from a non-stock, non-profit entity into a stock, for-profit corporation, with member-consumers-issued shares.
“Socoteco did good with rural electrification,” said Meralco lawyer Jacinto Sales Jr. But given the region’s growth, he said it now “needs urban electrification.”
The absence of a stated basis for rejecting Meralco’s bid – and the speed with which the IGNITE proposal moved forward – has fueled unease among some cooperative members and consumers.
The overlap of financial interest, political influence, and timing has added to calls for greater transparency in decisions affecting the local power supply.
As opposition mounted days before a public forum on Socoteco II’s plan, Pacquiao reportedly met over dinner with local chief executives from General Santos City, Sarangani and Polomolok, South Cotabato – areas covered by the cooperative’s franchise – drawing public scrutiny and triggering speculation.
Among those who came included General Santos City Mayor Lorelie Pacquiao and Sarangani Governor Rogelio “Ruel” Pacquiao, the Filipino boxing icon and former senator’s sister-in-law and brother, respectively, as well as Polomolok Mayor Bernie Palencia.
Ailing?
Socoteco II, once considered a model for rural electrification, serves about 300,000 member-consumers in General Santos City, Sarangani province, and parts of South Cotabato. By 2010, the cooperative had achieved full barangay electrification while maintaining relatively low power rates, earning a triple A classification as a non-stock, non-profit utility.
But it has seen a reversal in recent years, slipping from triple A to Category B status as it suffered losses and recurring outages, partly blamed on aging infrastructure and management issues.
Notre Dame of Dadiangas University president Brother Manuel de Leon, a vocal critic of the plan, told Rappler on Wednesday, April 29, that what remains unclear is whether those setbacks justify a shift in control to a private joint venture.
Another set of concerns has been raised by a technical working group formed by Hinabi GenSan, a network of local academic institutions, which conducted a review of Socoteco II’s condition.
Citing the group’s findings, De Leon said it was “premature to entertain a JVA (joint venture agreement proposal) or to convert” the cooperative into a corporate entity, given the absence of a clear determination that the utility was in critical condition.
The assessment by the academic-led group introduced further doubt over the basis for the board’s action, particularly as regulators have not publicly classified the cooperative as financially unviable.
De Leon said Socoteco II’s downgrade from triple A to Category B did not automatically mean it was ailing or “red,” and questioned why the board quickly moved to grant conditional acceptance to the IGNITE Power proposal without a formal declaration from the NEA or the Energy Regulatory Commission (ERC) that the cooperative was ailing.
“Parang minadali (The decision appeared to have been rushed),” De Leon said at the April 28 forum.
A third option – not considered by the Socoteco II board – has been put forward, one that would keep Socoteco II within the cooperative framework while altering its legal and management structure.
Leonilo Escalada, spokesman of the People’s Council of General Santos City, said during the public forum that the utility could be converted into a genuine cooperative by registering with the Cooperative Development Authority (CDA) instead of NEA, allowing it to access tax exemptions and other privileges accorded to cooperatives.
Escalada, who is also former chairman of the City Cooperative Development Council of General Santos, called instead for reforms in the cooperative’s management structure.
“What is at stake here is the future of our electric utility,” said Escalada as he questioned the planned 70/30 sharing arrangement between IGNITE Power and Socoteco II. “That is not a partnership. Neither is it a joint venture. This is a surrender of ownership. This is a takeover.” – Rappler.com
