FGEN acquires 40% Prime hydro stake for P75B

From one powerhouse to another.

Lopez-led First Gen Corp. (FGEN) will acquire a 40 percent stake in the pumped storage hydropower (PSH) portfolio of Prime Infrastructure Capital Inc., owned by the group of Enrique K. Razon, Jr., in a deal valued at P75 billion.

In a statement on Friday, FGEN said the transaction, which is subject to regulatory approvals, covers Prime Infra’s 600-megawatt (MW) Wawa PSH project in Rizal and the 1,400-MW Ahunan (Pakil) PSH project in Laguna.

Of the total investment, around P62.5 billion will be allocated for direct construction funding and equity requirements.

According to FGEN President and Chief Operating Officer Giles Puno, the acquisition will strengthen the company’s existing hydro portfolio, which includes the 132MW Pantabangan-Masiway and 165MW Casecnan hydroelectric plants.

“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,” Puno said.Construction is ongoing, with major civil and underground works progressing at Wawa PSH and early-stage development underway at Pakil PSH.

Power China is the engineering, procurement, and construction (EPC) contractor for the projects. Toshiba and Andritz Hydro are supplying the electromechanical components for Wawa and Pakil, respectively.

Once operational, the facilities are expected to deliver flexible and dispatchable power to support the country’s expanding renewable energy capacity.

Once completed, the two projects will add 2,000 MW of long-duration energy storage capacity to the Luzon grid, supporting system reliability, large-scale renewable energy integration, and grid balancing.

Both projects have been certified as Energy Projects of National Significance and have secured capacities under the Department of Energy’s green energy auction program.

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

“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.”

The partnership follows Prime Infra’s acquisition of a controlling stake in First Gas and aligns with national efforts to strengthen energy security, reduce dependence on imported fuels, and build a more resilient power system.