First Gen Corporation has provided detailed explanations regarding its hydroelectric power agreement with Enrique Razon's Prime Infrastructure Capital, aiming to address questions that have emerged amid a public corporate disagreement.
The company stated that the partnership involves the development of a 120-megawatt hydroelectric facility in Nueva Ecija, which is projected to begin operations by 2028. This project represents a significant step in the Philippines' transition toward renewable energy sources.
According to First Gen's statement, the agreement includes provisions for shared operational responsibilities and revenue distribution, with both parties contributing technical expertise and financial resources. The company emphasized that the arrangement follows standard industry practices for joint ventures in the energy sector.
"This hydroelectric project aligns with our commitment to expanding our renewable energy portfolio while supporting the country's growing power needs," a First Gen representative noted in the clarification.
The explanation comes as corporate observers have noted tensions between the Lopez family, which controls First Gen, and other major Philippine business groups. First Gen's statement did not directly address these broader corporate dynamics but focused specifically on the technical and financial aspects of the hydroelectric partnership.
Energy analysts suggest that such partnerships are becoming increasingly common as the Philippines seeks to diversify its energy mix and reduce dependence on imported fossil fuels. The country has set ambitious targets for renewable energy adoption in the coming decade.
First Gen's clarification appears aimed at ensuring transparency about the business arrangement while maintaining focus on the project's potential contributions to the national energy grid and environmental sustainability goals.