First Gen buys 40% of Prime Infra hydro assets for P75B
First Gen Corp. is acquiring a 40-percent stake in the hydropower portfolio of Razon-led Prime Infrastructure Capital Inc. for P75 billion, marking a major expansion of their strategic partnership in large-scale energy infrastructure.
In a disclosure on Friday, the Lopez-led firm said P62.5 billion of the transaction value would be used to directly fund construction and meet the equity requirements of the projects. The deal remains subject to regulatory approval.
The transaction covers the 600-megawatt (MW) Wawa pumped storage hydropower (PSH) project in Rizal and the 1,400-MW Ahunan PSH project in Laguna.
Together, the facilities will deliver 2,000 MW of energy storage capacity aimed at strengthening grid balancing, system reliability and renewable energy integration in the Luzon power system.
Both projects have been certified by the national government as “Energy Projects of National Significance” and were issued notices of award under the Department of Energy’s green energy auction.
Prime Infra president and CEO Guillaume Lucci described the projects as highly complex, multiyear infrastructure developments requiring deep technical expertise and disciplined execution.
“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 said.
“Our investment in the 2000-MW 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,” First Gen president and COO Giles Puno said.
Complementary
He noted that the Wawa and Pakil projects would complement First Gen’s existing 132-MW Pantabangan-Masiway and 165-MW Casecnan hydroelectric power plants, providing grid stability and reliability as more renewable capacity comes online.
The collaboration builds on Prime Infra’s recent acquisition of a controlling stake in First Gas. It is seen to support national objectives to strengthen energy security, lessen reliance on imported fuels and advance a more resilient and sustainable power system.
Major civil and underground works are ongoing for Wawa, while early-stage construction has started for Pakil.
Power China serves as the engineering, procurement and construction contractor for both projects, while Toshiba and Andritz Hydro will supply electromechanical components for Wawa and Pakil, respectively.
Once completed, the facilities are expected to provide flexible and dispatchable power.
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