(Taguig City)  In keeping with its thrust to explore, develop and utilize indigenous energy resources, the Department of Energy (DOE) received 69 bids for 38 coal areas in its fourth Philippine Energy Contracting Round (PECR4) for coal last 30 March 2012. 

Headed by the Chairman of the DOE Review and Evaluation Committee (REC), Undersecretary Jay Layug, the DOE opened 69 bids from various companies who have expressed interest in investing in coal exploration in the Philippines. The REC is tasked to examine, evaluate, and review the legal, technical, and financial qualifications of the PECR 4 applicants.  In determining the winning bidder, the REC will be guided by the criteria set in DOE Circular No. DC 2011-012-0010 (Reiterating a Transparent and Competitive System of Awarding Service and Operating Contracts for Petroleum and Coal Prospective Areas…): legal qualification (10%), technical capability (30%), financial credentials (30%), and work program (30%).

The opening of new bids has clearly shown increased private companies’ interest to invest in exploration and development of indigenous coal resources in the Philippines from the previous years. This development will, once commercial production occurs, further reduce the country’s dependence on imported coal and will consequently result in dollar savings arising from decreased coal importation.

There were multiple bids in certain coal areas, particularly Areas 18-A and 18-B in Bislig and Lingig, Surigao del Sur, which the DOE considers as the most prospective in coal resources. Areas that did not receive any bids in PECR 4 will be offered in the next contracting round.  Some old and new players have submitted applications including PNOC Exploration Corporation, Semirara Mining Corporation, Benguet Corporation, Blackstone Mineral Resources, Inc., Altura Mining Phils. Inc., South Peak Coal Resources, Inc., Superfine Mines and Minerals, Inc., Empire Asia Mining Corp.  The DOE expects to award the winning bidders their coal operating contracts within 150 days from the opening of the applications.

Undersecretary Layug said, “The number of applicants is overwhelming and is obviously a testament to the confidence of investors in the Aquino administration.  We look forward to harnessing our indigenous coal resources to reduce our reliance on imports.” Currently, the country imports 70% of its coal requirements and only 30% comes from local sources.  Coal accounts for 25% of the country’s energy mix.  It is perceived that the continuous conduct PECR will optimize the exploration and development of local coal that will contribute to the attainment of the country’s pursuit of 60% energy self-sufficiency.

The Philippine government has been encouraging the private sector to participate in its energy independence program that aims to increase the country’s self-sufficiency level to 60%.  Through intensive coal exploration, the DOE hopes to find additional reserves to meet growing energy demand.