The bidding for a new coal development is set to commence on Friday, Feb. 27, as the Department of Energy (DOE) emphasizes opening these areas to private companies.

On the sidelines of the Association of Southeast Asian Nations (ASEAN) editors and economic opinion leaders forum (AEEOLF) on Tuesday, Feb. 24, Energy Secretary Sharon Garin said that public entities, such as Philippine National Oil Co.-Exploration Corp. (PNOC-EC), may not be able to participate in the upcoming bidding.

“EC has its own operations on coal. So, for what we are auctioning or bidding out, I don’t think there’s any prohibition on their part,” she told reporters, noting that the public corporation is discouraged from applying for any of the open mineable areas to allow private businesses exclusive competition.

“We only come in when the private [sector] is not interested or is not capable... So I would discourage [them] for now; let the private [firms compete first] rather than bring in PNOC. Later, PNOC can come in as a partner or in any form, but I do prefer that it is private.”

PNOC-EC is a state-run upstream oil, gas, and coal subsidiary and has coal operations in Malangas, Zamboanga Sibugay province, among others.

Despite the setback to PNOC’s participation in the upcoming auction, Garin said the coal blocks may not be fully awarded, given the fuel’s environmental drawbacks.

“You have to understand the interest in coal... Other than being a dirty fuel, second also the risk on the commercial side and also the technical side. So there might not be a lot of takers, but I’m sure the big ones that are more commercially interesting will be up for grabs.”

The DOE chief also said that it is formally announcing that the Semirara coal block will be open for bidding after it revealed earlier this month that long-standing coal operator, Consunji-led Semirara Mining and Power Corp. (SMPC), had been denied a coal operating contract (COC).

Last week, the DOE announced the launch of a competitive bidding round for new coal development areas slated for this week, moving to diversify the country’s fuel sources following the recent denial of a contract extension for the country’s largest producer.

The DOE said it will open the pre-determined area (PDA) bid round on Feb. 27, offering 18 blocks across three provinces.

The DOE auction is headlined by 10 blocks on Semirara Island in Antique province—the same region where the government recently declined to extend SMPC’s existing COC.

The bidding also includes three blocks spanning Amulung and Iguig in Cagayan province, and five blocks across Benito Soliven, Naguilian, and Cauayan in Isabela province.

The push for new exploration comes as the government seeks to ensure energy security through the “orderly and responsible” development of indigenous resources. By opening these identified mineable reserves to a transparent, competitive selection process, the DOE said it aims to attract fresh investment and qualified operators to fill the production gap.

Garin said any winning bidder must strictly adhere to the COC framework and comply with rigorous regulatory safeguards.

These include coal mine safety and health rules, as well as mandatory guidelines for progressive rehabilitation and decommissioning.

Garin noted that the government’s priority is to uphold the rule of law while protecting national interests and host communities.

The DOE will accept application documents until April 28, with a pre-bid conference scheduled for March 19.

Officials said the process is designed to give all qualified bidders equal standing while maintaining strict post-award monitoring for environmental compliance.