The Department of Energy (DOE) and the Ministry of Environment, Natural Resources and Energy (MENRE) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) have awarded the region’s inaugural coal operating contract (COC) to local firm Filipinas Systems Inc. (FSI). This milestone took place during ceremonies attended by Energy secretary Raphael Lotilla, BARMM chief minister Ahod Ebrahim, and MENRE minister Akmad Brahim.
According to the DOE, FSI has rights to explore coal resources in the Kapai and Tagoloan II areas of Lanao del Sur. The firm is set to invest approximately P19 million in a two-year exploration program.
As part of the agreement, FSI will contribute P150,000 annually in scholarships for residents of the contract area once the project transitions to the development and production phase. The company has also committed to a P250,000 signature bonus, an additional P250,000 for development assistance, and P75,000 per year for training during exploration, increasing to P200,000 annually post-development.
“The awarding of the first COC in BARMM marks a pivotal moment for both governments,” Lotilla said. “It underscores our commitment to advancing energy development in the region and empowering BARMM to play a vital role in the country’s energy future. This partnership not only aims to enhance energy independence for the Bangsamoro region but also to stimulate sustainable economic growth.”
Lotilla said the collaboration falls under BARMM’s jurisdiction. He also said the national government and DOE are dedicated to supporting the region in harnessing solar, wind, geothermal, and other renewable energy sources.
He emphasized the importance of the contract in light of the Philippines’ heavy reliance on coal imports, with over 80 percent of its coal requirements sourced from abroad. The Philippines imports 98 percent of its coal from Indonesia.
FSI, a subsidiary of construction firm FF Cruz & Co. Inc., brings extensive experience in coal exploration, development, and utilization, positioning it as a key player in the region’s energy landscape.
