Energy Secretary Sharon S. Garin confirmed that the Department of Energy (DOE) has not issued any contract extension to Semirara Mining and Power Corporation (SMPC), whose coal operating contract expires in 2027.

Speaking on the sidelines of the ASEAN Editors & Economic Opinion Leaders Forum in Makati on February 24, Garin said the contract remains valid but clarified that the DOE has not initiated any renewal, signaling that the government is proceeding under the standard process for expiring contracts.

Instead, she indicated that the next step may be competitive bidding.

“In a few days, we’ll be announcing the areas that are up for bidding. So likely it will be included in that already,” Garin said, referring to the Semirara areas.

She stressed that the award will not be based solely on price. “This is not about the least price. This has to be awarded to the company that is the most capable to continue or even improve the operation,” she said.

Garin acknowledged that Semirara has “proven itself already,” and noted that challengers would need to demonstrate that they could perform better than the current operator.

When asked about interested players, Garin said she has only seen expressions reported “in the news,” signaling that no formal submissions have been received yet. This follows earlier reports that Meralco signaled interest in the Semirara coal contract ahead of the government auction.

On the possibility of state participation, Garin said there is no prohibition against PNOC joining the bidding. However, she emphasized that DOE policy is to prioritize private sector participation.

“We do not compete with the private [sectors] for business. We only come in when the private is not interested or is not capable,” she said.

The confirmation and clarification comes as the DOE moves ahead with its broader competitive offering of coal areas. The Department had earlier announced a coal bid round offering 18 blocks, which included Semirara areas, implying an open auction over negotiated renewal.

With no extension issued and competitive bidding imminent, how will capability-based evaluation shape the future of coal operations in Semirara beyond 2027?

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