Lopez-led First Gen Corporation has scaled back its planned hydropower investment with Prime Infrastructure Capital Inc., reducing its stake from an initial 40% to 33%. The revised deal, valued at approximately P61.9 billion, covers interests in the Pakil and Wawa hydro projects in Laguna and Rizal, which have a combined capacity of 2,000 megawatts.
Payment will be staggered through 2029, combining upfront cash, escrow deposits, and standby letters of credit. The agreement includes a shareholders' pact that governs the management of the hydropower vehicle.
Controversial "change of management control" clauses remain in place, allowing Prime Infra to force a sale of First Gen's stake at a 25% discount under certain conditions. These provisions have become a flashpoint in the ongoing feud between Federico "Piki" Lopez and the Lopez majority bloc led by Eugenio "Gabby" Lopez III. The majority faction warns that the clauses could be triggered if Piki is removed as chair and CEO, potentially disadvantaging investors and pension funds like the Social Security System and Government Service Insurance System.