Redondo Peninsula Energy Inc. is negotiating with contractor Doosan Heavy Industries & Construction Co. Ltd. to revise a contract to build the 300-megawatt Subic coal-fired power plant in Zambales.
RP Energy said in a statement it sent a letter of contract termination to contractor Doosan and Azul Toree Construction Inc. after the validity of the construction price expired at the end of December last year.
RP Energy failed to issue a notice-to-proceed to Doosan in the absence of an approval from the Energy Regulatory Commission over a power supply agreement with Manila Electric Co.
RP Energy and Meralco jointly sought an approval of the PSA in April 2016 involving the supply of 225 MW from the first phase of the Subic power plant.
Public hearings, technical working group review and assessment of the PSA and the tariff and other processes were completed in April 2017.
Meralco signed a separate PSA on another 75 MW with Aboitiz Energy Solutions Inc. on April 21, 2016. Both agreements are pending to date.