Lopezes trim investment in Razon’s hydro business

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March 10, 2026 | 12:00am

MANILA, Philippines — The Lopez Group is scaling back its investment in tycoon Enrique Razon Jr.’s hydropower business to P61.88 billion from the originally planned P75 billion.

This follows the signing of a definitive agreement last Friday, with Lopez-led First Gen Corp. opting to reduce its planned stake in the pumped storage hydro (PSH) portfolio of Razon’s Prime Infrastructure Capital Inc.

In a regulatory filing yesterday, First Gen said its subsidiary FGEN Aqua Power Holdings Inc. will only acquire a 33-percent interest in Prime Infra unit Prime Hydropower Energy, Inc. (PHEI), down from the previously announced 40 percent.

Upon completion of its corporate restructuring, PHEI will own the companies developing the 1,400-megawatt Pakil PSH facility in Laguna and the 600-MW Wawa PSH project in Rizal.

First Gen and Prime Infra expect to complete the deal, announced last month, later this year.

After the deal’s closing, the 33-percent stake will effectively add around 660 MW of PSH capacity to First Gen’s portfolio, giving a significant boost toward the company’s 13,000-MW target by 2030.

A PSH facility can function as energy storage to complement power generation from variable renewable energy sources while also injecting electricity into the grid to reinforce supply.

The investment in the PSH projects, First Gen said, also strengthens its growing pact with Prime Infra following a P50-billion gas deal late last year.