The Department of Energy (DOE) has opened the 2026 Philippine Conventional Energy Contracting Program (PCECP) Pre-Determined Areas (PDA) Bid Round for Coal. They will be auctioning 18 coal blocks across 18,000 hectares, which includes 10 blocks in Semirara island under Semirara Mining and Power Corporation (SMPC) ahead of its Coal Operating Contract (COC) expiration in July 2027 .

In the bid round, the department is offering three PDAs covering coal blocks in Semirara island in Antique, Amulung and Iguig in Cagayan, and Benito Soliven, Naguilian, as well as Cauayan in Isabela.

As previously reported, the DOE confirmed that no extension will be issued for SMPC’s COC5. Instead of renewal, the country’s largest coal-producing site is put up for competitive rebidding. 

The agency stressed that all areas up for bidding are aligned with expiring or expired contracts, thus allowing for a transparent and competitive contracting process for the next phases of development. 

Aside from Semirara, the five coal blocks from Isabela were covered by PNOC Exploration Corporation under COC No. 122, which expired last December 2022. The three blocks in Cagayan, on the other hand, were covered by DM Wenceslao & Associates, Inc. and the contract expired in June 2024.

DOE Assistant Secretary Myra Fiera R. Ro outlined the guidelines of the process to secure these COCs. She explained that acquiring any of these requires comprehensive legal, technical, and financial documentation.

All applicants must submit a five-year work program covering plans for development and production, environmental protection measures, social development initiatives, emergency preparedness, and progressive mine rehabilitation and decommissioning programs.

Financial requirements include demonstrating minimum working capital equivalent to 100% of the financial commitment for the first contract year, as well as separate capital allocations for each PCECP application. Foreign financial guarantees are subject to a maximum 40% equity participation limit.

DOE Undersecretary Alessandro Sales emphasized that the bid round showcases the department’s disciplined approach to resource governance.

“The government’s role is to ensure that any activity involving our energy resources is undertaken transparently, competitively, and with full accountability,” Sales said.

He also added that any aspiring proponent must demonstrate “sound technical capability, strong financial capacity, and a credible plan that puts safety, environmental protection, community development, and progressive rehabilitation at the center of operations.”

A pre-submission conference is scheduled for March 19, 2026, while the deadline for submission of application documents is April 28 at 11:00 AM, with the opening of the documents set for 1:00 PM on the same day.

Will the competitive rebidding of Semirara’s coal blocks reshape the structure of the country’s coal industry as the 2027 contract expiry approaches?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.