Philippines DoE relaunches coal rights auction, targets January 2027 award

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DoE relaunches coal auction

Highlights

Philippines Department of Energy relaunched the coal auction covering 18 blocks with bids due December 11, 2024, and award targeted for January 11, 2027.
The ranking of bidders will be determined by government share (60%), domestic supply commitment (30%), and signature bonus (10%), with contract signing expected January 13, 2027.
Concerns over Semirara Island's coal contract expiry in July 2027 and new asset turnover rules may impact baseload power supply and stakeholder participation.

Auction timeline and contract scope

As reported by BusinessWorld, citing the Department of Energy, the relaunched auction covers coal operating contracts for development and production in three pre-determined areas, with a pre-bid conference set for Nov. 13 and bid submissions due on Dec. 11.

The bidding includes five blocks across Benito Soliven, Naguilian and Cauayan in Isabela, three blocks spanning Amulung and Iguig in Cagayan, and 10 blocks on Semirara Island in Antique. The DoE says bids are to be opened on Dec. 11, followed by substantive evaluation until Dec. 16, the release of qualified bidders on Dec. 18, and the opening of financial proposals on Dec. 21.

Under the indicative schedule, the Renewable Energy Committee-Joint Auction Organizers are to rank qualified bidders using government share, with a 60% weight, domestic supply commitment, with a 30% weight, and signature bonus, with a 10% weight. The highest-rated qualified bidder is expected to be identified on Dec. 28, with a notice of award scheduled for Jan. 11, 2027, and contract signing targeted for Jan. 13, 2027.

Semirara concerns and energy security implications

Semirara Island is the most closely watched asset in the auction because it has been operated by Consunji-led Semirara Mining and Power Corp. for nearly 50 years, but its coal operating contract is set to expire in July 2027 after failing to secure renewal.

The latest notice follows Joint Administrative Order No. 2026-01 issued by the DoE and the Department of Environment and Natural Resources, provisions of which have raised concerns among stakeholders. The auction had originally been scheduled for April but was terminated as the DoE revised awarding rules amid legal and operational hurdles.

SMPC has challenged parts of the rules, saying they could weaken its existing rights, particularly a requirement for operators to turn over assets to the DoE. Pangasinan Representative Mark O. Cojuangco has also urged the department to address concerns, warning in a privilege speech that uncertainty around the auction could threaten baseload power supply because the Semirara mine accounts for a significant share of domestic coal supply for industry and power generation.

We have also discussed the broader context around Philippines bond reforms aimed at modernizing peso government securities and attracting foreign investors.

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