RP Energy finalizing P30- B bank loans for Subic plant

Redondo Peninsula Energy Inc. (RP Energy) is looking to close a P30-billion loan from three local banks by December to put the construction of its 2x300 megawatt (MW) Subic coal-fired power plant in full swing, a company official said.

“We’re in the thick of due diligence and loan agreement discussions with the lenders and our advisers,” said Meralco senior vice president and Meralco PowerGen Corp. (MGen) general manager Angelito Lantin.

Lantin said the loan amount is equivalent to 70 percent of the total project cost of its 2x300-MW coal-fired power plant in Subic, Zambales.

“We can sign loan agreements by December, I think. But for the drawdown, we’ll have to wait for ERC (Energy Regulatory Commission) [to approve power supply agreements (PSAs)],” he said.

RP Energy signed a PSA with distribution giant Manila Electric Co. (Meralco) for a supply of 225 MW, among others.

MGen, the power generating unit of Meralco, owns 47 percent of RP Energy. Other partners in the consortium are Aboitiz Power Corp. unit Therma Power Inc. with 25 percent and Taiwan Cogeneration International Corp. with another 25 percent.

RP Energy will soon proceed construction of the first 300-MW unit of the coal project as soon as it seals the financing deals, Lantin said.

“We’re ready to start construction after we sign those agreements,” he said.

Last week, RP Energy announced it signed a construction contract with Azul Torre Construction Inc. and a supply contract with Korean firm Doosan Heavy Industries & Construction Co. Ltd. for the coal plant.