Financial offer to decide Semirara coal bid?

The ongoing auction for the largest coal mine in the Philippines on Semirara Island, currently operated by the Consunji Group, is seeing a shift in focus due to proposed new rules. The Department of Energy (DOE) and Department of Environment and Natural Resources are considering adopting the national interest evaluation framework, which could make the financial bid the sole ranking factor for bidders.

This departure from Energy Secretary Sharon Garin's initial stance on the auction, which emphasized technical qualifications over financial bids, adds complexity to the bidding process. The proposed guidelines mandate that bidders submit firm and unconditional financial offers, detailing elements such as government shares in proceeds, royalties, and fixed payments.

Additionally, existing contract holders intending to rejoin the auction must provide a comprehensive inventory of their assets, potentially impacting SMPC, which has already faced legal challenges over disclosing proprietary information. If the government proceeds with these changes, the Semirara coal auction will follow a two-stage evaluation process, with bidders first passing an eligibility stage based on various criteria before moving on to financial ranking.

The current bidding process, launched in February, has been on hold since April, pending finalization of the auction terms and clarification on the number of bidders.