Development Bank of the Philippines is preparing a P15-billion long-term financing deal for proponents of the Tarlac-La Union tollway project, DBP president Reynaldo David told reporters.

The tollway project, which will cover 88.5 kilometers from La Paz, Tarlac to Rosario, La Union, started construction last September and is scheduled for completion in 2012. The Tarlac-La Union tollway project is a build-operate-transfer project.

It will cut travel time from Manila to Baguio to three hours from the present six hours at an average speed of 80 kilometers per hour.

DBP executive vice president Manny Samia said the bank was vying for the lead together with Land Bank of the Philippines and a few others to provide funding to the project.

Samia said DBP was looking at a 10- to 15-year loan for the tollway financing deal. DBP officials said they expected several other banks to join the transaction given the size of the deal.

Food and beverage company San Miguel Corp. signed a “non-binding agreement” last month to buy a significant stake in Private Infrastructure Development Corp., the proponents of the Tarlac-La Union tollway project.