First Gen Corporation on Thursday stressed that it was Prime Infrastructure Capital, Inc. (Prime Infra)—not its chairman and CEO Federico “Piki” Lopez—that insisted on including “Key Man” or Change of Management Control (CMC) provisions in their hydro power agreements.
The company, in a statement, underscored that such provisions are standard in capital-intensive energy and infrastructure projects, where investors depend heavily on specific leaders to ensure successful execution. Prime Infra identified Lopez and his team as critical to delivering two major pumped storage hydro projects with a combined capacity of 2,000 megawatts in Rizal and Laguna.
Under the provision, a CMC event may be triggered if Lopez loses key leadership roles or influence within First Gen, including his position as CEO or his authority over board and project company representation. Should such changes occur during construction or within one year after operations begin, Prime Infra can compel First Gen to sell its stake in the project company at a discount.
First Gen pointed out that the provision was initiated by Prime Infra, highlighting what it described as strong trust and confidence in Lopez’s leadership. The company added that its track record—including more than ₱100 billion in earnings over the past five years—reinforces its role as a reliable partner in delivering large-scale energy projects.
