Bidders seen focusing on Semirara in coal bid out
Big players are seen taking part in the Philippine government’s auction for confirmed coal sites, although they may only focus on the Semirara contract, which the Consunji group currently holds but will expire in 2027.
“I think there will be many companies that will be interested,” Energy Secretary Sharon Garin told reporters late Tuesday.
The Department of Energy (DOE) will launch on Friday the bidding for the three areas determined to have coal reserves.
There are located in Cagayan, Isabela and Antique. Included are 10 blocks on Semirara Island, where Semirara Mining and Power Corp. (SMPC) currently operates.
Garin said she has not received any formal intent from potential bidders, as the DOE still needs to issue the terms for the auction.
But tycoon Manuel V. Pangilinan, who leads power giant Manila Electric Co., already expressed interest in the planned bidding for the Semirara contract.
SMPC, which recently saw a drop in its share prices due to the potential nonrenewal of its contract, is confident about its fighting chance in the auction given its expertise in the field.
The country’s largest coal producer said it has not received any notice from the DOE. Its contract will lapse in July 2027.
Meanwhile, Garin admitted that the other two coal areas might not get active participation from the market, given some biases against coal development.
“Other than being a dirty fuel, the second is the risk in the commercial side and also the technical side,” she said.
“So we can’t expect takers for all of them, but I’m sure the big ones that are more commercially interesting will be up for grabs,” Garin added.
Garin stressed that providing the lowest price will not ensure victory in the bidding, as “this has to be awarded to the company that is the most capable to continue or even improve the operation.”
She is also discouraging the Philippine National Oil Co. (PNOC)-Exploration Corp. from participating in the coal auction.
“We only come in when the private is not interested or is not capable,” Garin said.
PNOC may still opt to come in “as a partner or in any form,” but Garin wants the private sector to lead.
