DoE seeks investor-challengers for two PNOC-EC coal contracts

By Myrna M. Velasco – September 14, 2020, 6:00 AM
from Manila Bulletin

The Department of Energy (DOE) is seeking for investors that will challenge the two coal operating contract (COC) applications of state-run Philippine National Oil Company-Exploration Corporation (PNOC-EC) through a 60-day competitive tender process.

The COCs are for coal blocks (42-I-1 and 42-I-2) in Malangas, Zamboanga Sibugay in Mindanao, sites known to be endowed with indigenous coal resources.

“Interested applicants may challenge the application of PNOC-EC by submitting their application over the same area in accordance with and subject to prescribed timeline and resources,” the DOE stated in a bid notice.

For interested parties, they have been apprised that the pre-submission conference will be slated 20 calendar days from the issuance of the tender notice, reckoned from September 9 this year.

The scheduled submission of documents by the applicants as well as the opening of bids will be after 60 days, which is also the deadline date of the challenge period.
“Applicant shall submit three complete sets of legal, technical and financial documents for evaluation by the Review and Evaluation Committee,” the DOE said.

The applicant-challenger company shall pay a non-refundable application fee of P200,000 per area upon submission of its application and the required supporting documents.

“Payment may be made in cash, manager/company cheque payable to DOE or wire/bank transfer,” the department noted.

The DOE likewise specified “each application shall cover only one predefined area of interest with corresponding number of coal blocks as nominated and published.”
It added that “only exploration work program in the application for COC that conforms to the work program documentation shall be accepted.”

Further, the challenger-firm is being required to submit application both in paper and digital form – the second one shall be in USB drive and the file must be in Microsoft word or PDF format.

PNOC-EC President Rozzano D. Briguez previously indicated that indigenous coal exploration and development will be the other key focus of their investments – primarily for prospects in Isabela in north Luzon; as well as Zamboanga Sibugay in Mindanao.

The target, according to the state-run company, will be to reach production phase in two underground coal mines by 2025; and such operation could emerge as “the largest of its kind in the country.”