Redondo Peninsula Energy Inc. (RP Energy) is in talks with three local banks for a P30-billion loan for the construction of its 2×300 megawatt (MW) coal-fired power plant.

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

However, Lantin did not give the name of the banks.

He added that the loan amount makes up for 70 percent of the total project cost of the power plant in Subic, Zambales.

“We can sign loan agreement 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 will proceed with the contruction of the first 300-MW unit of the plant when it completes financing deals.

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

The company has signed a power supply agreement with the Manila Electric Co. (Meralco), who will supply 225 MW.

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

Construction is expected to begin in early 2017 and will go online in mid-2020.

Meralco’s power generating unit MGen owns 47 percent of RP Energy, while Aboitiz unit Therma Power Inc. and Taiwan Cogeneration International Corp. each own 25 percent.