The Department of Energy (DOE) will launch a competitive bidding round on Friday for 18 coal blocks across the country, including the premier coal-producing site on Semirara Island currently held by Semirara Mining and Power Corp (SMPC).
Energy Secretary Sharon Garin said the department is expecting strong interest from the private sector for the three predetermined areas (PDAs).
The auction covers 10 blocks on Semirara Island in Antique, three blocks in Cagayan, and five blocks in Isabela.
The bidding follows a Department of Justice opinion that the DOE could not simply extend SMPC’s existing Coal Operating Contract No. 5, which expires on July 14, 2027. Instead, the government should subject the area to a transparent contracting process before the expiration date.
Garin noted that while the auction is open to all qualified bidders, the incumbent operator holds a significant edge due to its established infrastructure and history at the site.
“In terms of technical, Semirara has proven itself already, and any other challengers for that should prove that they could do better than Semirara,” Garin said.
She said the contract would not necessarily go to the lowest bidder, but rather the company “most capable to continue or even improve the operation.”
The DOE will issue the formal terms of reference during the launch on Friday. This marks the start of a 60-day window for interested applicants to submit their documentation.
Submissions are due by 11 a.m. on the 60th day, with the opening of applications scheduled for 1 p.m. the same day.
While state-run PNOC Exploration Corp. has the option to form joint ventures with winning bidders, Garin said the administration prefers private sector leadership in coal development.
“EC has its own operations on coal. So for what we are auctioning or bidding out, I don’t think there’s any prohibition on their part. But we have a policy… in DOE, I try to remind our agencies that we do not compete with the private sector for business,” Garin said.
The PDA bid round is designed as a transparent mechanism to identify and award resource areas for development and production to the most qualified entities.
