First Gen to acquire 40% stake in Prime Infra’s pump storage hydro assets for ₱75B

Lopez-led First Gen Corporation on Friday announced its planned acquisition of a 40% equity stake in the pumped storage hydropower (PSH) assets of tycoon Enrique Razon’s Prime Infrastructure Capital Inc.

In a statement, First Gen said the transaction would cost P75 billion, of which P62.5 billion will directly bankroll the construction and the equity requirements of the projects which include Prime Infra’s 600-megawatt (MW) Wawa PSH project in Rizal province and 1,400MW Ahunan PSH project in Laguna.

The projects were aimed at providing large?scale grid balancing, system reliability, and renewable energy integration for the Luzon power system, according to First Gen.

The company added that both PSH projects were certified by the national government as “Energy Projects of National Significance” and were issued notices of award for their respective capacities by the Department of Energy (DOE) in its green energy auction.

"Our investment in the 2000MW Wawa and Pakil Pumped Storage Hydropower Projects expands our partnership with Prime Infra and embodies First Gen’s mission to forge collaborative pathways for a decarbonized and regenerative future, crystallizing our portfolio's shift to renewable energy,” said First Gen president and CEO Giles Puno.

“Together with our existing 132MW Pantabangan-Masiway and 165MW Casecnan hydroelectric power 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,” said Puno.

“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,” said Lucci.

First Gen said construction across Prime Infra’s PSH portfolio is progressing steadily, with major civil and underground works for the Wawa PHS project well underway and early-stage construction of the Pakil PHS project having commenced. — BAP, GMA Integrated News