DOE to open bidding for coal sites by the third quarter
MANILA, Philippines – The Department of Energy (DOE) is targeting to welcome proposals from potential new coal operators by the third quarter, as it refines rules with a greater focus on bidders’ technical strength.
Speaking to reporters, Energy Secretary Sharon Garin said the agency was still fine-tuning the terms of reference for the bidding of sites with confirmed reserves. These include the highly sought-after coal site that is under a contract with Semirara Mining and Power Corp. (SMPC), which is expiring in July 2027.
READ: Semirara coal mine up for bidding–DOE
But Garin said the government is ready to conduct a prebid conference “within the month.”
“We’ll see who are interested. So that’s our final consultation with interested bidders or stakeholders on the terms of reference,” she said.
After 60 days, the formal submission of bids would then be opened.
Sought for more details on the selection criteria, Garin said there were some changes, with the DOE seeking to “simplify and make it more objective,” ensuring the best interest of the government is protected.
Garin earlier said that the DOE was looking at “compelling” potential players to allot a certain minimum percentage of their volume to the Philippines.
“I guess the technical [part] is the heavy part. Because that’s really what’s needed. They need to know what they’re doing. So, that’s what we’re still trying to determine, what are the components of the technical qualifications,” she said.
But Garin stressed that the financial muscle would also be a key consideration.
“You have to be able to finance your work plan. At least the first year of operation. So, if you cannot, then why would we give you the contract?” she said.
According to the energy chief, the winning bidder will secure a 25-year operating contract.
The planned bidding covers three areas determined to have coal reserves, which are located in Antique, Cagayan and Isabela. These include 10 blocks on Semirara Island.
The Semirara coal mine site has been with the Consunji-led group for about 50 years. Its contract, however, will end in July 2027.
SMPC earlier requested a 13-year extension, but the Department of Justice junked the company’s plea. INQ
