The Department of Energy has canceled its planned bidding for three coal concession areas, saying it will reassess the framework used in awarding operating contracts to ensure better returns for the government and consumers.
The DOE said the decision followed concerns raised during pre-submission conferences and recent developments affecting Semirara Island in Antique.
Among the issues cited were ongoing water seepage that could affect the volume of extractable coal reserves and a legal dispute involving the current operator and the DOE over coal operation assets.
The agency said these uncertainties could affect the operational plans and bidding strategies of prospective investors.
Despite the cancellation, the DOE noted that the areas contain confirmed mineable coal reserves of commercial quantity and are ready for direct development and production.
It said future awards should generate economic returns that reflect the value of the resources and provide measurable benefits to the state.
The DOE also cited Article XII, Section 2 of the 1987 Constitution, which provides that natural resources are owned by the state, as basis for reassessing or terminating the bidding process when existing parameters are no longer sufficient to protect state assets.
The department said it will recalibrate the bidding framework before offering the areas again, taking into account government revenues, commitments for domestic utilization, and other benefits tied to the value and characteristics of the coal resources.
