Bidding for Semirara coal opens Feb. 27
The Department of Energy (DOE) seeks to welcome new coal operators as it would open bidding for three areas with confirmed reserves, including those covered by the contract of Consunji-led Semirara Mining and Power Corp. (SMPC).
The DOE announced this just days after its chief Sharon Garin disclosed that the government would bid out the Semirara coal contract after the Department of Justice turned down SMPC’s request for a 13-year extension.
The bid round for coal development and production will be launched on February 27. It would cover three pre-determined areas (PDA) comprising 18 coal blocks.
These include 10 blocks at Semirara Island—part of Antique province—which are under SMPC’s existing coal operating contract (COC) No. 5.
This government contract with SMPC, the largest coal producer in the country, is set to lapse in July 2027.
“The government’s priority is to uphold the rule of law while safeguarding our indigenous energy resources,” Garin said in a statement.
“Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities,” the Energy Secretary added.
The other two mine sites that are up for bidding include three blocks in Amulung and Iguig in Cagayan; and five blocks in Benito Soliven, Naguilian, and Cauayan in Isabela.
Following the launch later this month, potential bidders will have 60 calendar days to submit their bid documents.
The opening of bids will be held on the same day as the submission deadline.
Lawful, transparent
The DOE assured the public that the bid round is “firmly grounded in law and conducted through a transparent and competitive process that safeguards public interest.”
The agency earlier said that the sites identified with coal reserves will not just accelerate development and production, but will also help lessen investors’ exploration risks.
Despite the aggressiveness of renewable energy producers, coal remains the dominant contributor to the local market’s power generation mix. It is the cheapest and provides the reliable baseload capacity, especially needed amid the rising electricity demand.
SMPC is optimistic about dominating the bidding, banking on its decades of experience on the island.
Manuel V. Pangilinan likewise expressed interest in getting the Semirara contract for his power generation business.
