First Gen buys 40 percent of Prime Infrastructure’s PSH assets for P75 billion

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February 14, 2026 | 12:00am

MANILA, Philippines — After sealing a P50-billion gas deal last year, tycoons Federico Lopez and Enrique Razon Jr. are expanding their pact with another P75-billion hydropower synergy.

The Lopez Group’s First Gen Corp. is acquiring a 40-percent equity interest in Razon-led Prime Infrastructure Capital Inc.’s pumped storage hydropower (PSH) portfolio for a transaction value of P75 billion.

The deal, which is subject to regulatory approval, covers Prime Infra’s 600-megawatt Wawa PSH project in Rizal and the 1,400-MW Ahunan PSH facility in Laguna.

“These are highly complex, multi–year infrastructure developments that require deep technical expertise, disciplined execution and strong alignment with national energy priorities,” Prime Infra president and CEO Guillaume Lucci said.

“We are pleased to be working hand in hand with First Gen, a trusted partner with a strong track record in power generation, to help execute these critical energy projects safely, efficiently and on schedule,” he added.

Of the total transaction value, around P62.5 billion will be allocated for the development and the equity requirements of both projects.

“The Wawa and Pakil plants will complement our portfolio, as pumped storage hydropower facilities provide grid stability and reliability, allowing for the seamless integration of renewable energy projects into the power system,” First Gen president and COO Francis Giles Puno said.

A PSH facility is a type of energy storage system that can inject power into the grid to boost supply and balance the intermittency of variable renewable energy (VRE) sources like solar and wind.

VREs only generate electricity when the natural resource is available, posing challenges to traditional grids that are not built to handle constant changes in power supply.

This latest transaction follows the completion of Prime Infra’s P50-billion takeover of First Gen’s gas business, strengthening its foothold in the country’s natural gas sector.

Prime Infra now owns 60 percent of four existing gas-fired facilities totaling over 2,000 MW and the proposed 1,200-MW Santa Maria gas plant in Batangas, while First Gen retains a 40-percent interest.