Only companies with strong financial capacity can compete in the Department of Energy’s (DOE) coal round, which requires bidders to prove working capital equivalent to 100 percent of the first-year budget of their proposed work program.

Firms that fail to meet stringent financial, technical, and legal requirements will not qualify for the Pre-Determined Areas (PDAs) Bid Round.

The DOE officially opened the 2026 Philippine Conventional Energy Contracting Program PDAs Bid Round on Friday, offering 18 coal blocks across three locations. Semirara Island in Caluya, Antique has 10 blocks covering 10,000 hectares. 

Amulung and Iguig in Cagayan have three blocks covering 3,000 hectares, while Benito Soliven, Naguilian, and Cauayan in Isabela have five blocks covering 5,000 hectares. 

The areas were chosen from expiring or expired Coal Operating Contracts (COC), providing a competitive and transparent contracting process.

During the launch, DOE Assistant Secretary Myra Fiera R. Roa outlined the requirements for applicants seeking a COC. 

Companies must submit a comprehensive five-year work program, including development and production plans, health and safety programs, social development initiatives, environmental protection measures, emergency preparedness, and progressive rehabilitation and decommissioning plans. 

Applicants must also provide geological and geotechnical evaluations, coal reserves analysis, geohazard assessments with mitigation measures, and full project economics, including internal rate of return, net present value, cash flow projections, and projected coal markets.

For technical documentation, applicants must provide an overview of their upstream and coal mining projects, including company experience, achievements, and track record. 

Financial documentation must demonstrate sufficient capital for the first contract year, with clear guidelines for existing corporations, newly organized companies, and parent company guarantees.

Foreign equity participation is capped at 40 percent.

“The government’s role is to ensure that any activity involving our energy resources is undertaken transparently, competitively, and with full accountability,” Energy Undersecretary Alessandro Sales said. 

“By opening this PDA Bid Round, we are setting a clear bar: proponents must demonstrate sound technical capability, strong financial capacity, and a credible plan that puts safety, environmental protection, community development, and progressive rehabilitation at the center of operations,” he added. 

A Pre-Submission Conference is scheduled for 19 March to guide applicants on the legal, technical, and financial documents needed for COC applications. Submission of application documents and the opening of bids are set for 28 April.