The Department of Energy (DOE) on Friday opened the 2026 Philippine Conventional Energy Contracting Program (PCECP) Pre-Determined Areas (PDAs) bid round for coal, offering qualified companies opportunities to undertake coal resource development under new coal operating contracts (COCs) subject to stringent evaluations.
The government aims to ensure that any activity involving energy resources is undertaken transparently, competitively and with full accountability, Energy Undersecretary Alessandro Sales said.
“By opening this PDA Bid Round, we are setting a clear bar: proponents must demonstrate sound technical capability, strong financial capacity, and a credible plan that puts safety, environmental protection, community development, and progressive rehabilitation at the center of operations,” Sales said.
“This is how we uphold responsible resource development while we continue to strengthen energy security and accelerate the long-term transition of the power sector,” said Sales.
Under the bid round, the DOE is offering three PDAs comprising 18 coal blocks across three locations, covering a combined 18,000 hectares.
These include 10 coal blocks covering 10,000 hectares on Semirara Island, Caluya, Antique; three coal blocks covering 3,000 hectares in Amulung and Iguig, Cagayan; and five coal blocks covering 5,000 hectares in Benito Soliven, Naguilian, and Cauayan, Isabela.
The DOE said the areas align with expiring or expired COCs, enabling a transparent and competitive contracting process for the next phase of development, including the application of updated safeguards.
In Semirara Island, the 10 coal blocks are currently covered by COC No. 5, held by Semirara Mining and Power Corp., with a 50-year contract term set to expire in July 2027.
Meanwhile, the five coal blocks in Isabela previously covered by PNOC Exploration Corporation under COC No. 122 had a contract term that expired in December 2022, and the three coal blocks in Cagayan, previously covered by DM Wenceslao and Associates Inc. under COC Nos. 116 and 123, expired in June 2024.
DOE assistant secretary Myra Fiera Roa outlined key guidelines for applicants seeking a COC for development and production, requiring comprehensive submissions across legal, technical and financial documentation.
For the proposed work program, applicants should submit a five-year work program with corresponding annual expenditures and detailed plans covering development and production, geotechnical programs, health and safety, social development, environmental protection, emergency preparedness and resiliency and progressive rehabilitation and mine decommissioning.
Applicants should also provide detailed methodologies for geological and geotechnical evaluation, including coal reserves analysis and potential resources, geohazard assessments with mitigating measures and an economic and development concept.
For financial documentation, the guidelines set specific requirements based on corporate age and provide rules for parent companies providing guarantees. Financial guarantees of foreign companies to subsidiaries that are shareholders of the applicant are limited to their equity participation, subject to the allowable maximum 40 percent foreign capitalization.
Applicants should also meet the minimum working capital requirement equivalent to 100 percent of the financial commitment for the first contract year of the proposed work program and budget.
A pre-submission conference will be held on March 19, 2026, to provide prospective applicants with information regarding the legal, technical and financial documentation requirements.
Among those who joined the launch are Semirara Mining and Power Corp., Trans Pacific Energy Resources Inc., PNOC Exploration Corp., Philippine Coal Plant User Group, Meralco PowerGen Corp., Nickel Asia Corp., AVGVSTVS Enterprise, MThermal-GBP, Cebu Energy Development Corp. and Filsystems.
