DOE relaunches coal contract auction

The Department of Energy (DOE) has relaunched its controversial coal mine bidding, with the award set for early next year, even as investors raised concerns about the asset-surrender rule.

The DOE is ready to welcome proposals from potential new coal operators, as it officially issued a notice of bidding “pursuant to DOE-Department of Environment and Natural Resources Joint Administrative Order No. 2026-01.”

Based on the document, the DOE plans to hold a prebid conference on Nov. 13.

The deadline for bid submission is Dec. 11, after which offers will be opened.

The DOE will disclose the list of qualified bidders on Dec. 18, while their financial proposals will be opened on Dec. 21.

The highest bidder is expected to be declared on Dec. 28. The notice of award would then be issued on Jan. 11, 2027.

Also, the coal operating contracts are expected to be signed two days after, or on Jan. 13, 2027.

The government is pushing for this timeline, as the existing contract with Consunji-led Semirara Mining and Power Corp. (SMPC) will lapse in July 2027.

Pursuing the auction came despite mounting issues expressed by several groups, including SMPC, particularly on the proposed provision requiring incumbent operators to transfer their assets to the government.

Challenge in court

Last October, Isidro Consunji, chair and president of DMCI Holdings, said he believes the provision would “probably be challenged in court.”

“If it affects us adversely, we’ll probably have to challenge it,” he told reporters.

See Also

Cebu’s tourism boom goes off the beaten path

SMPC, a DMCI Holdings subsidiary, has been reiterating that the delays and issues in the coal bidding have been affecting its operations and investment decisions.

The group also said the rule violates existing laws.

But Energy Secretary Sharon Garin said her agency was ready to defend the asset-surrender provision in court.

Garin said the planned bidding for the coal mine site has been delayed because the government has been “studying the legal and commercial and actually the energy security impact of this.”

She reiterated that the rules were meant to give everyone “a fair chance,” while maximizing the benefits for the country.