THE Department of Energy (DOE) and the Ministry of Environment, Natural Resources and Energy (MENRE) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) has awarded the first coal operating contract (COC) in the region for a pre-determined area to local firm Filipinas Systems Inc. (FSI).
DOE said in a statement yesterday FSI was given the rights for a coal resource exploration in Kapai and Tagoloan II in Lanao del Sur in a ceremony yesterday led by Energy Secretary Raphael Lotilla, BARMM chief minister Ahod Ebrahim and MENRE minister Akmad Brahim.
Under the terms of the coal service contract, FSI has committed to investing around P19 million in its two-year exploration work program.
Once the contract is converted to development and production stage, FSI will provide P150,000 annually in scholarships to qualified individuals from the contract area, supporting local communities.
FSI also pledged to pay a P250,000 signature bonus; another P250,000 development assistance; and P75,000 annually for training during the exploration period increasing to P200,000 annually when converted to development and production stage, to be shared equally between the DOE and the MENRE.
“The awarding of the first COC in BARMM is a landmark moment for both governments. It reflects our collective commitment to advancing energy development and resource management in the region, empowering the BARMM to play a key role in the country’s energy future. This partnership will not only foster energy independence for the Bangsamoro region but also create pathways for sustainable economic growth and development,” Lotilla said.
