By el Amigo
MANILA – Filipino billionaire Enrique K. Razon Jr. and boxing icon-turned-politician Manny Pacquiao are moving forward with plans to modernize the electricity distribution system in parts of Mindanao after securing the backing of thousands of cooperative members in South Cotabato.
The proposed partnership, operating under IGNITE Power, received strong support from more than 32,000 member-consumer-owners of the South Cotabato II Electric Cooperative (SOCOTECO II) during the cooperative’s recent annual membership assembly.
The joint venture seeks to address longstanding power issues, including frequent brownouts, aging infrastructure and operational inefficiencies affecting consumers in General Santos City, Sarangani Province and nearby communities.
Although the project still requires regulatory approval, supporters believe it could significantly improve electricity service and stimulate economic growth in southern Philippines.
Under the proposal, private sector investments will be used to rehabilitate, expand and modernize SOCOTECO II’s power distribution facilities. Cooperative officials said the infusion of capital is essential to improve service reliability and meet increasing electricity demand.
SOCOTECO II Board President Elenito Senit said the cooperative’s board has authorized the signing of a Conditional Joint Venture Agreement, which aims to strengthen the cooperative’s financial position while accelerating long-overdue infrastructure upgrades.
The Philippines has 121 electric cooperatives, many of which continue to grapple with unreliable electricity supply, high power rates and financial and governance challenges. Industry observers note that aging distribution systems have hindered economic development in several provinces, particularly in rural areas.
For Razon, whose business interests span infrastructure, ports, property and renewable energy, the venture marks another strategic investment in the country’s power sector. Pacquiao, meanwhile, has long advocated for improved public services in Mindanao, his home region.
The proposed agreement, however, is not yet final. Philippine regulations require member-consumer-owners to approve the partnership through a plebiscite. The National Electrification Administration must also issue implementing guidelines before the voting process can proceed.
To prepare for the referendum, SOCOTECO II officials said they will conduct an information campaign to explain the financial arrangements, planned investments and potential benefits of the joint venture.
If approved, the Razon-Pacquiao partnership could become a model for future collaborations between electric cooperatives and private investors, offering a new approach to modernizing power distribution systems while preserving cooperative ownership and member oversight.
Philippine law allows cooperatives to enter into joint ventures and commercial agreements with private entities, provided they remain autonomous and continue to operate under cooperative principles. Private investors are prohibited from acquiring ownership stakes in cooperatives in the same manner as corporate shareholders.
The proposed modernization project is being closely watched as a possible blueprint for addressing infrastructure and power reliability issues faced by electric cooperatives nationwide.
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