The transaction, which is subject to regulatory approval, covers Prime Infra’s 600 MW Wawa project in Rizal province and the 1400 MW Ahunan (Pakil) project in Laguna, near Manila, both located on the largest and most populated island of Luzon, the companies announced on 13 February. Closing is subject to Philippine Competition Commission approval and is expected within 2026.
Of the total consideration, PHP 62.5 billion ($1.12 billion) will be allocated directly to construction and equity requirements for the projects. The two projects are to be developed through the special purpose vehicle Prime Hydropower Energy Incorporated (PHEI). Together, these projects represent 2 GW of long‑duration energy storage capacity, designed to provide large‑scale grid balancing, system reliability, and renewable energy integration for the Luzon power system. Both have been certified by the national government as Energy Projects of National Significance and were issued notices of award for their respective capacities by the Philippine Department of Energy in a green energy auction held in February 2025 (see H&D Issue 2, 2025).
“First Gen’s investment in these projects strengthens its partnership with Prime Infra and crystallizes the shift of the company’s portfolio to renewable energy,” the company said in a statement. “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. Together with our existing 132 MW Pantabangan-Masiway and 165 MW 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,” First Gen President and Chief Operating Officer Giles Puno said in the statement.
Prime Infra President and Chief Executive Officer Guillaume Lucci hailed the partnership with First Gen, who he described as “a trusted partner with a strong track record in power generation”, which he said would “help execute these critical energy projects safely, efficiently and on schedule.”
Construction is under way on both projects. Prime Infra said major civil and underground works are progressing at the Wawa site, while early-stage construction has commenced at the Pakil development.
PowerChina is serving as EPC contractor for both schemes, with SMEC acting as Owner’s Engineer for Wawa. Toshiba will supply electromechanical equipment for the Wawa facility, while Andritz Hydro will provide electromechanical components for the Pakil project. Prime Infra’s pumped-storage portfolio is targeted for completion by December 2030. Once operational, the projects are expected to provide dispatchable capacity to support growing renewable energy penetration in the Luzon grid, while contributing to national energy security objectives and reduced dependence on imported fuels.
The transaction further deepens a strategic relationship in the Philippine power sector between ports-to-casino magnate Enrique Razon Jr.’s Prime Infrastructure Capital and First Gen, controlled by tycoon Federico Lopez and his family. In 2025, Prime Infra bought a 60 per cent stake in First Gas, First Gen’s gas-fired power portfolio, for PHP 50 billion, acquiring a controlling stake in four existing gas-fired power plants and a planned fifth plant, with a combined capacity of 3247 MW, along with an offshore liquefied natural gas terminal. “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,” said Peter Louise D. Garnace, an equity research analyst at Unicapital Securities. “This structural alignment signals the rise of a new power bloc poised to reshape the energy sector’s competitive landscape,” he added.
First Gen is an independent power producer with a total installed capacity of over 3700 MW of natural gas, geothermal, hydropower, wind, and solar capacity across the islands of Luzon, Visayas, and Mindanao. It is the country’s largest producer of renewable energy and accounts for about 18 per cent of the country’s power supply. Prime Infra is the controlling shareholder of Manila Water Company, a publicly-listed water utility that supplies water to over 7.7 million Filipinos, and Prime Energy, the operator of the Malampaya deep water, gas-to-power project.
