DOE launches bid round for coal development in three provinces

The Department of Energy (DOE) will launch a Pre-Determined Area (PDA) Bid Round for coal development and production on Feb. 27, offering coal areas with identified mineable reserves under a transparent and competitive contracting process.

The bid round covers three coal areas with a total of 18 coal blocks: 10 blocks in Semirara Island, Caluya, Antique; three blocks in Amulung and Iguig, Cagayan; and five blocks in Benito Soliven, Naguilian, and Cauayan, Isabela.

The Feb. 27 launch marks Day 1 of the bidding program. Interested applicants will have 60 calendar days to submit their application documents, with the deadline set at 11 a.m. on the 60th day. The opening of applications will follow at 1 p.m. on the same day. A Pre-Submission Conference will be held 20 days after launch to address bidder inquiries and clarify requirements.

A PDA Bid Round is a competitive process in which the government offers identified resource areas for development and production, with qualified parties participating under a transparent evaluation and award mechanism. The DOE said the process aims to ensure orderly and responsible development and production of indigenous coal resources while maintaining strict safeguards for public safety, environmental protection, and host-community welfare.

“The government’s priority is to uphold the rule of law while safeguarding our indigenous energy resources,” said Energy Secretary Sharon S. Garin. “Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities.”

To support the orderly development of these reserves while maintaining the state’s full control and supervision, the DOE has strengthened its contracting and regulatory framework for awarding Coal Operating Contracts (COCs). The department recently issued Department Circular No. 2026-02-004, which sets out guidelines for awarding COCs for development and production.

The circular reinforces the open, transparent, and competitive process under DC2017-09-0010, which adopts the Philippine Conventional Energy Contracting Program for awarding COCs and establishes the Review and Evaluation Committee.

The DOE emphasized that coal operations remain subject to strengthened governance, safety, and environmental standards as part of the country’s energy transition pathway. The department continues to review and enhance regulatory frameworks to align with evolving energy security, environmental, and economic priorities.

Strengthened safeguards include reinforcing mine safety and environmental standards, institutionalizing progressive rehabilitation and coal mine decommissioning requirements, and strengthening compliance obligations on geotechnical monitoring, slope stability assessments, occupational health and safety protocols, environmental protection, and reporting.

These regulatory safeguards are grounded in existing rules, including the Coal Mine Safety and Health Rules and Regulations pursuant to DC2018-12-0028 and the Guidelines on Progressive Rehabilitation and Coal Mine Decommissioning under DC2025-10-0021.

The Philippines continues to rely on coal as a significant component of its energy mix even as it pursues a broader transition toward renewable energy sources. The country’s coal-fired power plants accounted for a substantial share of total electricity generation in recent years, making indigenous coal development a key factor in the government’s energy security strategy.

The DOE reiterated that the PDA Bid Round ensures equal opportunity among qualified proponents and strict adherence to established eligibility and evaluation standards. Regulatory oversight continues beyond contract award, with sustained compliance monitoring and enforcement of safety and environmental requirements throughout the life of coal operating contracts.