Philippines Unveils Bidding Rules for Its First Nuclear Power Project: Winning Bidder May Qualify for Sovereign Guarantee

A “white elephant.” The Bataan Nuclear Power Plant, powered by uranium, sits idly in a 389-hectare lot at Napot Point in Morong, Bataan.

The Philippine government has revealed another key detail about the bidding framework for its first commercial nuclear power project.

According to a draft set of rules jointly being prepared by the Department of Energy (DOE), the Philippine National Oil Company (PNOC), and the Maharlika Investment Corporation (MIC), the winning bidder may apply for government support measures, including a sovereign guarantee. In addition, government entities may choose to acquire up to a 10% equity stake in the project.

Even before the bidding process begins, the government is already laying out how project risks will be shared — a feature that has become one of the most closely watched aspects of the draft framework.

Philippine flag waving against a bright blue sky, symbolizing patriotism and freedom by Krisia V. via Pexels

Why Is a Sovereign Guarantee Being Considered?

The Philippines has been discussing nuclear power for decades. However, the biggest challenge in turning plans into reality has never been the technology itself — it has been financing.

Nuclear power projects require massive upfront investments and long development timelines. From initial planning and regulatory approvals to commercial operation, a project can easily take more than ten years to complete.

For investors and lenders, the long-term stability of the project is often more important than the construction process itself.

As the Philippines has yet to operate a commercial nuclear power plant, its regulatory framework, market mechanisms, and operational experience are still under development.

This naturally raises an important question for investors:

If construction is delayed, costs escalate, or market conditions change in the future, who will bear the risks?

The proposed sovereign guarantee is intended to address exactly that concern.

Why Is the Government Considering an Equity Stake?

Another notable provision in the draft rules allows government entities to acquire up to a 10% stake in the project.

Although the percentage is relatively small, government participation in a large infrastructure project sends a strong signal. Becoming a shareholder reflects a longer-term commitment to policy support and provides greater confidence in the government’s commitment to the project’s success.

Whether the government will ultimately exercise this option — and which agency would take the stake — has yet to be decided. Those details are expected to be clarified in the final bidding rules.

Cooling towers of Dukovany Nuclear Power Plant against a clear blue sky by Rob via Pexels

Where Does the Nuclear Project Stand Today?

Under the current timeline, the Department of Energy plans to release the official bidding documents within six months after the rules take effect. The bidding process is expected to begin in 2027, with the contract awarded later that same year.

The successful bidder will then be required to obtain the necessary licenses from the Philippine Atomic Energy Regulatory Authority (PhilATOM). Under the draft rules, construction of the nuclear power plant must be completed within four years after the required licenses are granted.

The Philippine government aims to gradually integrate nuclear power into the country’s energy mix beginning in 2038.

However, the project remains in its early preparation stage. Key issues — including reactor technology, project location, financing arrangements, and partnership models — have yet to be finalized.

What Should Businesses Watch?

For most companies, directly investing in or building a nuclear power plant may not be a realistic opportunity. However, the impact of such a project extends far beyond electricity generation.

Demand is expected to grow across engineering and construction, power equipment manufacturing, industrial services, operations and maintenance, and supporting infrastructure.

More importantly, the Philippines is preparing for future growth in electricity demand. Industries such as data centers, manufacturing, renewable energy, and AI-related infrastructure continue to expand, all of which require a stable and reliable power supply.

Whether nuclear power will ultimately be delivered as planned remains to be seen. What is increasingly clear, however, is that the Philippines is actively pursuing a more diversified energy mix.

Final Thoughts

In recent years, discussions surrounding nuclear power in the Philippines have largely focused on long-term goals and policy direction.

The conversation is now shifting toward more practical issues — risk-sharing mechanisms, government equity participation, and detailed bidding rules — suggesting that the project is entering a more concrete stage of preparation.

For investors, the choice of reactor technology is not the most pressing question at this stage.

Instead, the market is asking:

• How will the project be financed?
• How will the risks be allocated?
• How much responsibility is the government willing to assume?

The inclusion of a sovereign guarantee in the draft rules offers the Philippine government’s first meaningful answer — and perhaps, the reassurance investors have been waiting for.

About Us

Established in the Philippines in 2015, OCIC Consulting has served thousands of enterprises expanding overseas. Our professional China-Philippines team provides one-stop services including visa processing, company registration, license application, financial & tax planning, human resource solutions and employment guidance. Stay tuned for more updates!