First Gen Independent Directors Defend Prime Infra Investments After Lopez Family Criticism

Three independent directors of First Gen Corporation released a joint statement on June 16, 2026, defending the company’s investments in two pumped-storage hydroelectric projects developed by Prime Infra. Alicia Rita Morales, Edgar Chua, and Manuel Ayala said they fulfilled their fiduciary duties by exercising objective and independent judgment in evaluating the 600 MW Wawa Pumped Storage Hydroelectric project in Rizal province and the 1,400 MW Pakil PSH project in Laguna province.

The directors concluded that First Gen’s investment in both projects will benefit the company and its stockholders.

They reviewed projected earnings and stated that annual earnings from First Gen’s 33% stake in the projects are estimated at P16 billion upon completion. The projects are scheduled for completion by 2030. There will be no income from the investments until the projects are completed and operational.

The statement was issued in response to criticism from the Lopez family majority, which holds 71% of Lopez Inc. The family described the investments as a “horrible” deal involving a P50 billion transaction premium paid to Prime Infra. The Lopez majority questioned whether the independent directors had approved the deals or received proper disclosure and sufficient information.

The directors said that at the time of investment, the projects had achieved financial close, obtained development rights and authorizations, secured offtake agreements, and commenced construction. They described the P50 billion premium as a typical consideration in M&A transactions recognizing milestones already achieved by Prime Infra.

They also said the Change of Management Control provision requested by Prime Infra is a relatively standard clause in energy infrastructure contracts involving large investments.