Razon-Lopez P75 billion hydro deal targets 2026 closing

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February 20, 2026 | 12:00am

MANILA, Philippines —  Tycoons Enrique Razon Jr. and Federico Lopez expect to complete their P75-billion hydropower play this year, a deal set to fortify their growing energy pact.

“Closing of the transaction is expected to occur within the year,” Lopez-led First Gen Corp. said in a regulatory filing yesterday.

This follows the execution of a binding heads of terms agreement for First Gen’s planned acquisition of a 40-percent stake in Razon-owned Prime Infrastructure Capital Inc.’s pumped storage hydropower (PSH) portfolio.

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

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

The parties are now set to move forward with their due diligence before the execution of a definitive agreement. The multibillion-peso deal must also hurdle the Philippine Competition Commission.

From a broader sector perspective, analyst Peter Garnace of Unicapital Inc. viewed the deal as a “strategic rationalization,” which allows First Gen and Prime Infra to leverage their respective core competencies.

“First Gen has long positioned itself as a renewable energy champion while Prime Infra has shown a stronger appetite for gas and infrastructure-scale buildouts,” Garnace told The STAR.

“This structural alignment signals the rise of a new power bloc poised to reshape the energy sector’s competitive landscape,” Garnace added.