THE Department of Energy (DOE) on Friday opened the bidding for coal operating contracts in three pre-determined areas where previous agreements have expired or are set to expire.
The country is one of Southeast Asia’s most coal-dependent nations.
Coal accounts for approximately 62 percent of the power mix as of 2023-2024. While its use slightly decreased in early 2025 to around 57 percent, coal still dominates the power grid, while renewable energy comprises about 32-33 percent of the total energy supply.
“The government’s role is to ensure that any activity involving our energy resources is undertaken transparently, competitively, and with full accountability. By opening this bid round, we are setting a clear bar where 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,” Energy Undersecretary Alessandro Sales said.
The three pre-determined areas up for bidding comprise 18 coal blocks (land with coal deposits) covering 18,000 hectares.
These are Semirara Island in Caluya, Antique with 10 coal blocks measuring 10,000 hectares; Benito Soliven, Naguilian, and Cauayan in Isabela, five blocks, 5,000 hectares; and Amulung and Iguig in Cagayan, three blocks, 3,000 hectares.
The 50-year contract of Semirara Mining and Power Corp. (SMPC) for the 10 blocks will expire in July 2027.
On the other hand, a previous deal in the Benito Soliven, Naguilian, and Cauayan area in Isabela for five blocks had expired in December 2022.
The third contract, held by DM Wenceslao & Associates for the Amulung and Iguig area in Cagayan, had lapsed in June 2024.
A pre-submission conference on March 19 will provide legal, technical, and financial documentation requirements for bid applicants.
Deadline for submission of application documents is on April 28 at 11:00 a.m. Opening of the bidding application documents will be held on the same day at 1:00 p.m.