DoE: Pre-bid conference for coal auction set for this month

THE Department of Energy (DoE) said it plans to conduct another pre-bid conference for its planned auction of coal resources this month.

“Right now, we are scheduled to have a pre-bid conference, we hope within the month,” Energy Secretary Sharon S. Garin told reporters last week.

Ms. Garin said the department is hoping to set the deadline to submit bid documents for the coal auction for July or August.

The DoE has postponed the coal auction to ensure that all issues raised during the pre-submission conferences are “fully considered and addressed” before announcing the revised deadline.

Launched in February, the bid round is offering three coal areas, which are estimated to hold around 207 million metric tons of coal reserves.

The auction includes the Semirara blocks in Antique, which carries about 160 million metric tons of reserves. The site is currently operated by Semirara Mining and Power Corp. (SMPC), which failed to renew its 50-year coal operating contract.

SMPC is the country’s largest coal producer, accounting for 97% of domestic output.

Ms. Garin said the DoE aims to grant a 25-year term for the contract to manage the mine site on Semirara Island.

She said there will be a final consultation on the terms of reference, which the DoE is trying to “simplify and make more objective.”

“We’re trying to adjust to that fact and also review all the contracts to make sure that the interests of the government (are protected),” she said.

While financial stability is one of the factors in selecting a successful bidder, she said the evaluation places greater emphasis on technical capability.

“They must demonstrate that they know what they are doing. That is what we are still trying to determine,” she said. — Sheldeen Joy Talavera