DOE revives coal auction, eyes Semirara award by Jan

MANILA, Philippines — The Department of Energy (DOE) has relaunched the closely watched coal auction, with the new contract for the Semirara mine in Antique expected to be awarded by January.

In a notice of bidding (NOB) issued yesterday, Energy Secretary Sharon Garin invited qualified bidders to participate in the auction covering three predetermined areas, comprising 18 coal blocks across Antique, Cagayan and Isabela.

Based on its indicative schedule, the DOE is set to hold a pre-bid conference on Friday, ahead of the Dec. 11 deadline for bid submissions.

The bids will be opened on the same day as the submission deadline, followed by a substantive evaluation that will run until Dec. 16.

The list of qualified bidders is scheduled for release on Dec. 18, with their financial proposals to be opened on Dec. 21.

The highest-rated qualified bidder is expected to be declared on Dec. 28, while the notice of award will be issued on Jan. 11, 2027.

The DOE is targeting to sign the coal operating contract with winning bidders by Jan. 13, 2027, about six months before the existing contract for the Semirara mine expires.

“The DOE reserves the right to accept or reject any bid and to modify or amend this NOB, instruction to bidders or any related documents, and to suspend or annul the bid round at any time prior to the award, without incurring any liability to the affected bidders or any obligation to inform the bidder/s,” Garin said.

The relaunch of the coal auction follows the issuance of a joint administrative order (JAO) by the DOE and the Department of Environment and Natural Resources (DENR), which sets the framework for the evaluation and award of contracts involving confirmed resources.

The JAO, however, has drawn criticism from several stakeholders, including Japanese businesses and local mining groups.

Among its most vocal critics is the Consunji Group’s Semirara Mining and Power Corp. (SMPC), which operates the country’s largest coalmine on Semirara Island in Antique.

SMPC, whose current contract expires on July 14, 2027, has particularly opposed a provision requiring existing contract holders and operators to surrender covered assets to the government upon the expiration of their contracts.

The company has also questioned the framework’s provision making the financial offer the “sole ranking factor” among qualified bidders.

Under the JAO, the coal auction will follow a two-stage evaluation process to determine the winning bidder.

The first stage, which follows a pass-or-fail system, will assess whether bidders meet the eligibility requirements, including legal standing, technical capability and financial capacity.

Only bidders that pass the first stage will advance to the next stage, where their financial offers and commitments to sell or supply coal to the domestic market will determine the final ranking.

“The proposal obtaining the highest total weighted score shall be ranked first and recommended for the award of the corresponding contract, subject to compliance with the requirements of this framework,” the JAO stated.

The Semirara mine, which accounts for most of the domestic coal production, is the centerpiece of the government’s coal auction.

The original bidding round was launched early this year but was postponed in April before being terminated in September.

In a privilege speech before the 20th Congress, Pangasinan Rep. Mark Cojuangco urged the DOE to clarify the legal basis and policy rationale behind what he described as “restrictive frameworks” governing the Semirara coal auction.

“The process has been marred by sudden rule shifts and a very controversial requirement such as forced asset surrender rules that spark serious questions under our laws. It appears confiscatory,” Cojuangco said.

The country, he warned, could face a severe disruption in domestic coal supply due to the DOE’s “delayed convoluted and opaque framework.”

“How can we invite investments and preach ease of doing business when the rules governing our largest natural resource extraction projects are constantly thrown into question?” Cojuangco asked.