Manila: The Department of Energy (DOE) has canceled its planned coal bidding for three concession areas, citing the need to reassess the framework in awarding operating contracts. In a statement on Saturday, the agency expressed that this decision aims to ensure that any future award "reflects the value of these indigenous energy resources and delivers clear benefits to the state and Filipino consumers."

According to Philippines News Agency, the termination comes amid concerns raised by stakeholders during the pre-submission conferences and recent developments affecting Semirara Island in Antique. Issues such as ongoing water seepage, which may impact the volume of extractable coal reserves, and a legal dispute involving the current operator and the DOE over coal operation assets, have created uncertainties that could influence prospective bidders' operational plans and bidding strategies.

The agency highlighted that the offered areas have "confirmed mineable coal reserves of commercial quantity" and are immediately ready for direct development and production. "With substantially reduced geological uncertainty, these areas represent valuable state assets whose award should secure economic returns commensurate with their established resource potential for the benefit of the Filipino people," the DOE stated. Moreover, the department emphasized that the development and production of these resources must align with the national interest.

The DOE further articulated that any coal operating contract for development and production must deliver "clear and measurable economic returns" to the government. By halting the bid, the DOE referenced Article XII, Section 2 of the 1987 Constitution, which asserts that natural resources are owned by the State. "Consistent with this principle, the government may reassess or terminate a competitive bidding process when the existing parameters are no longer sufficient to protect State assets and advance the national interest," the DOE explained.

The termination of the current bid round allows the DOE to reinforce the evaluation framework before these resources are offered again. The agency plans to recalibrate the bidding parameters, taking into account appropriate government revenues, commitments for domestic utilization, and other benefits that correspond with the value and characteristics of the resources being awarded.