BARMM government and DOE sign inaugural coal contract to enhance energy security

DAVAO CITY—The Bangsamoro Government, in collaboration with the Department of Energy (DOE), finalized the region’s first coal operating contract on October 24.

This landmark agreement marks a significant advancement in energy security and economic growth for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

The contract was signed at the Bangsamoro Government Center by DOE Secretary and Intergovernmental Energy Commission Co-Chairperson Raphael P.M. Lotilla and MENRE Minister Akmad Brahim.

BARMM Chief Minister Ahod Ebrahim, who attended the signing ceremony said “We are embarking on a new journey towards sustainable development and economic empowerment by leveraging the untapped potential of our region.”

The Chief Minister emphasized that the project will create job opportunities, foster economic growth, and move the Bangsamoro closer to its goal of becoming an empowered and progressive community.

The agreement is seen as a crucial step in securing the nation’s energy future while maintaining a commitment to environmental stewardship. “This initiative allows us to responsibly harness our coal assets, elevating BARMM’s role in energy security and economic prosperity,” Ebrahim added.

MENRE Minister Brahim stressed the importance of careful project execution, ensuring compliance with high environmental standards. “Every step will be taken with utmost care to ensure that all operations adhere to rigorous environmental protection and social responsibility guidelines,” he assured.

The contract is anticipated to generate numerous jobs, stimulate local investment, and significantly contribute to the region’s overall economic development. It also serves to operationalize provisions of the Bangsamoro Organic Law (BOL), which empowers both the National and Bangsamoro Governments to jointly explore and utilize fossil fuels—including petroleum, natural gas, and coal—within BARMM.

DOE Secretary Lotilla underscored the broader implications of the agreement, describing it as “more than just a milestone.” He noted, “This contract is a crucial part of securing the nation’s energy future and represents our shared vision to responsibly utilize the region’s abundant energy resources.”

“This coal contract is just the beginning—a signal of the promising opportunities that lie ahead as we continue our collaborative efforts to develop BARMM’s energy sector,” Lotilla added.

This coal operation is a vital step in addressing the region’s immediate energy needs while also pursuing a sustainable energy future.