The Philippine Department of Energy (DoE) said the United States could make available a financing package of up to $5 billion to support the development of nuclear power in the country, which currently has no operating nuclear power plant.

Energy Undersecretary Giovanni Carlo J. Bacordo said a delegation to the United States, led by Energy Secretary Sharon S. Garin, sought to gauge American interest in providing loans to support the Philippine nuclear industry.

"On the financing front, which is crucial for implementation, we explored potential funding instruments," Mr. Bacordo said at a briefing on Monday.

He said the US International Development Finance Corp. (DFC), the US government's development finance institution, indicated potential debt support of as much as $5 billion, payable over 25 years — a repayment window that mirrors the long development timelines typical of nuclear projects.

"This offer is for the private power corporations desiring to invest in nuclear energy for power generation," he said, positioning private developers as the direct beneficiaries of the US-backed debt.

Mr. Bacordo added that the government is also working with the Asian Development Bank to ensure the bankability of nuclear projects, with the funding discussions running alongside efforts to make the projects investment-ready.

Under the Philippine Energy Plan, the country aims to integrate nuclear energy into the national power mix with at least 1,200 megawatts (MW) of capacity by 2032, doubling that to 2,400 MW by 2045 and to 4,800 MW by 2050 — targets that would give the Philippines its first operating nuclear capacity.

Patrick T. Aquino, director of the DoE's Energy Utilization Management Bureau, said the department held high-level meetings with Korea Hydro and Nuclear Power Co. Ltd., Russian state nuclear power company Rosatom, and the Japan Atomic Power Co., showing the government is engaging several international technology providers in parallel with the US financing track.

The talks covered nuclear technology, financing, project development, and training for the country's future nuclear-energy workforce.

"We want to clarify that this is not just about building a nuclear power plant. We want to bring investment, create quality jobs for Filipino engineers and skilled workers, and open opportunities for local businesses to participate in the global nuclear industry," Mr. Aquino said.

With the plan's first target year set for 2032, key points to watch include whether the DFC's indicated support advances into formal lending terms, how the ADB bankability work progresses, and where the engagements with the Korean, Russian, and Japanese vendors lead.

— Sheldeen Joy Talavera, BusinessWorld

Source: BusinessWorld