MANILA ELECTRIC CO. (Meralco) has signed a memorandum of understanding (MoU) with Korea Hydro & Nuclear Power (KHNP) and the Export-Import Bank of Korea (KEXIM) to collaborate on the event of nuclear energy projects within the Philippines.
The partnership goals to leverage South Korean expertise to judge the feasibility of nuclear power through a multi-faceted approach.
Under the agreement, the three organizations will conduct joint discussions on reactor design and engineering, exchange technical and regulatory information, and work to “strengthen the Philippines’ nuclear legal and institutional frameworks.”
The scope of the MoU also covers early-stage project development, including “public acceptance initiatives, project planning, and site selection studies.”
The businesses will deal with business and financial modeling, with KEXIM specifically exploring “potential financing structures and credit facilities” for Meralco’s prospective projects.
Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan highlighted the strategic importance of the collaboration, saying “Partnering with KHNP and KEXIM gives us access to proven global expertise and enables us to check technology, business models, and financing options with greater depth. This MoU marks an early but consequential step on this essential process.”
He also said that nuclear energy is a critical component of the corporate’s long-term technique to ensure energy security.
“Nuclear energy is a strategy to diversify our portfolio and reinforce energy security, while offering a level of insulation from fuel market fluctuations,” he said.
He added that Meralco’s initiative is “complementary to the Philippine government’s efforts to put the groundwork for its nuclear power program” because the utility provider assesses how the technology can best contribute to its future operations.
KHNP, a subsidiary of Korea Electric Power Corp., is currently the biggest power generation company in South Korea, while KEXIM serves because the nation’s state-owned official export credit agency.
Meralco is the country’s biggest private electric distribution utility, serving 39 cities and 72 municipalities. It also has interests in power generation through wholly owned units and equity stakes.
Its controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera