World Bank Policy Change Sparks New Partnerships in Asia’s Nuclear Sector

The investment landscape for nuclear energy in Asia is undergoing significant change, shaped by two developments in mid-2025: a reversal in World Bank policy toward nuclear power and a strategic utility-vendor agreement in the Philippines. Together, these events are reshaping the prospects for nuclear power plant construction across the region.

In June 2025, the World Bank ended its decades-long exclusion of nuclear projects from its portfolio, signing a cooperation agreement with the International Atomic Energy Agency (IAEA). Under the leadership of President Ajay Banga, the bank will now engage in three priority areas: extending the life of existing nuclear plants, enhancing technical expertise, and supporting small modular reactor (SMR) deployment in developing countries.

This marks a notable recognition of nuclear energy as a viable, low-carbon baseload option for countries facing rising demand and decarbonization targets. The move is expected to influence other multilateral development banks such as the Asian Development Bank (ADB) and export credit agencies such as the Japan Bank for International Cooperation (JBIC), both of which are reportedly reviewing their nuclear policies.

The World Bank’s decision adds institutional credibility to nuclear investments, potentially lowering perceived risk for private and government capital. This financial shift is among the topics set for discussion at the upcoming Nuclear Power Forum Asia 2025 in Manila.

In the Philippines, a second milestone emerged when the Manila Electric Company (Meralco) signed a memorandum of understanding with South Korea’s Doosan Enerbility. The agreement includes the potential deployment of advanced nuclear technologies and the possible rehabilitation of Philippine Nuclear Power Plant–1 in Bataan.

The deal reflects the Philippines’ goal of improving energy security while reducing dependence on fossil fuels. It also illustrates a practical model for advancing nuclear projects: direct alliances between utilities and equipment manufacturers, supported by emerging financing options.

Industry observers note that the combination of expanded funding channels and targeted partnerships could accelerate nuclear development timelines in Asia over the coming decade.

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Rex Sayson

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