Philippines terminates 2026 Coal Bid Round to reassess contracts

The new rules will seek stronger returns for the government.

The Philippines’ Department of Energy (DOE) has terminated its 2026 Coal Bid Round to reassess the parameters for awarding Coal Operating Contracts covering three areas.

In a statement on 19 September, the DOE said that the offered areas contain confirmed mineable coal reserves in commercial quantities and are “immediately ripe for direct development and production.”

The resources represent valuable assets of the country that should generate economic returns reflecting their established potential, whilst supporting domestic energy requirements and energy security and delivering benefits to Filipino consumers, it said.

The revised bidding framework will give greater weight to measurable and enforceable economic benefits, including government revenues and commitments to domestic coal utilisation that could lower electricity costs for consumers.

“The termination of the current bid round gives the DOE the opportunity to strengthen the evaluation framework before these resources are offered again,” it said.

The reassessment also takes into account concerns raised during pre-submission conferences and recent developments affecting Semirara Island.

The DOE said ongoing water seepage may affect the volume of extractable coal reserves, whilst a legal dispute between the current operator and the department over coal operation assets could create uncertainties for prospective bidders’ operational plans and bidding strategies.

The department is also working with the Department of Environment and Natural Resources on a policy framework for awarding service and operating contracts involving natural resources.

The framework is intended to ensure that future contracts advance the national interest and secure appropriate economic returns and enforceable benefits for the country.

“The termination of the current bid round does not signal a retreat from the responsible development of indigenous energy resources,” DOE said.