DoE extends deadline for new coal deals

Business World Online
Posted on August 06, 2014 10:58:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

THE DEPARTMENT OF Energy (DoE) has extended the deadline for submission of applications for coal operating contracts under the fifth leg of the Philippine Energy Contracting Round (PECR).
A resolution signed by the PECR 5 Review and Evaluation Committee (REC) and published yesterday showed that the last day of acceptance for coal applications will now be on Sept. 26, from the original schedule on Sept. 19.

The REC, headed by Undersecretary Zenaida Y. Monsada, recommended the revision of the coal timeline for the PECR 5.

“There is a need to revise the PECR 5 timeline for coal due to... the overlapping schedule of REC Secretariat with Petroleum International Roadshow in Turkey scheduled on Sept. 14 to 17...,” the resolution read.

Raymund A. Acol, assistant secretary and REC vice-chairman, said: “The REC resolution was already approved by Secretary [Carlos Jericho L.] Petilla.”

“The new date is already final.” he said.

Despite the change in the application deadline, the REC noted that the endorsement of winning applicants will proceed as scheduled on Nov. 21.

Meanwhile, prospective contractors for petroleum contracts can still submit their applications until Feb. 27 next year.

Endorsement of winning contractors is slated on May 29, 2015.

The Energy department last May launched the PECR 5, where a total of 26 resource areas -- 11 for petroleum and 15 for coal -- had been offered to local and international investors.

Bids will be evaluated based on legal, technical and financial capability. Interested parties should submit a proposed work program for the resource areas as part of their applications.

The 15 coal areas that were offered are located in Mindanao (Surigao del Sur, Agusan del Norte, Agusan del Sur, Zamboanga del Norte, Zamboanga Sibugay and Sarangani).

On the other hand, for the petroleum service contract areas, nine are in Luzon and two are in Visayas.

Should all these areas be awarded, they will add to the existing 29 petroleum service contracts and 67 coal operating contracts.

Under the PECR 4, which took place in 2012, the Energy department offered 38 coal and 15 petroleum blocks.

The auction generated 69 bids for 28 coal contracts and 20 offers for 11 petroleum, but only 11 bids for coal and three for petroleum were declared as qualified. source