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First Gen independent directors reaffirm support for Prime Infra’s pumped-storage hydro projects
First Gen independent directors reaffirm support for Prime Infra’s pumped-storage hydro projects
Energy
The independent directors of First Gen Corp. have reiterated their backing for the company’s investment in two pumped-storage hydroelectric (PSH) projects developed by Prime Infrastructure Capital Inc. (Prime Infra).
In a statement, the directors said they fully complied with their fiduciary duties, applying independent and objective judgment when reviewing the 600-megawatt Wawa PSH in Rizal and the 1,400-MW Pakil PSH in Laguna. After a thorough assessment, they concluded both projects will bring clear benefits to First Gen and its shareholders.
Based on detailed financial reviews, the directors expressed confidence that the estimated P16 billion in annual earnings from First Gen’s 33 percent stake in the facilities is well-supported.
Beyond financial returns, the 2,000-MW combined capacity will strengthen the country’s power supply security and lower dependence on imported fossil fuels. As clean, renewable facilities with zero emissions, the projects will also help the Philippines cut carbon output. The directors noted the government has recognized both as Energy Projects of National Significance, with benefits extending to consumers and other stakeholders.
At the time of investment, Prime Infra had already advanced key milestones—including financial closing, securing permits, signing supply agreements, and starting construction—at its own cost. These steps reduced typical large-infrastructure risks, justifying the valuation and premium paid, which follows standard mergers and acquisitions practice.
They also explained that the requested Change of Management Control clause is common in major energy infrastructure deals, designed to ensure the projects are run by parties with proven technical and operational capability.
The agreed valuation of P61.87 billion for the 33 percent stake was deemed fair and reasonable, reflecting the years of work and resources Prime Infra invested to de-risk and develop the projects.
“We stand firmly behind our decision to support both projects, which received unanimous approval from the entire First Gen board,” the directors said.
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