Semirara Mining and Power Corporation (SMPC) has criticized the Department of Energy (DOE) over auction rules governing the Semirara coal mine, claiming that procedural flaws and onerous conditions effectively prevent the long-time operator from participating in the bidding process.
According to SMPC, the current bidding framework lacks standard protocols, such as issuing bid bulletins, holding pre-qualification screenings, releasing a model contract, or providing official responses to inquiries and letters submitted by the company. SMPC noted that the evaluation criteria were unexpectedly shifted from technical capability to awarding the project solely to the highest bidder, without clear penalties if the winning entity fails to produce coal.
SMPC warned that awarding the contract to an inexperienced bidder could result in zero coal production, which would directly undermine the government’s goal of generating revenues from the mine’s operations. The company emphasized that operating the mine requires specialized expertise, including managing sea water intrusion at extreme depths, as well as massive capital equipment and thousands of trained workers.
The policy controversy deepened after the DOE canceled a previous bidding round in September and introduced a joint administrative order for a second bid round. Under the new rules, SMPC is required to surrender its equipment and proprietary operational knowledge to the government as a prerequisite for joining the auction. SMPC maintains that these terms leave it with no realistic path to bid, arguing that Presidential Decree 972 protects its ownership rights over the investments and equipment it has built up over decades.
The dispute carries significant corporate and economic implications. Having invested over ₱55 billion into the facility, SMPC faces severe business disruption if it is excluded from continuing operations. At the same time, the broader policy framework faces scrutiny over whether prioritizing bid amounts over technical expertise could compromise energy security and result in lost government revenues.
