Japanese biz group questions DOE-DENR joint order

Japanese businessmen have raised concerns over provisions of a joint order issued by the Department of Energy (DOE) and the Department of Environment and Natural Resources (DENR) governing the bidding process for mining and other natural resource contracts in the Philippines.

The Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIPI) particularly questioned a provision requiring existing operators to surrender privately owned operational assets upon the expiration of their contracts.

"Requiring existing operators to surrender privately owned assets may affect their financial position. The resulting reduction in asset value could weaken a company's balance sheet, restrict its borrowing capacity, and affect its ability to finance future operations," the chamber said in its position paper.

"For publicly listed companies, it could also affect shareholder value," it added.

Joint Administrative Order (JAO) No. 2026-01, issued by the DOE and DENR, provides guidelines for the evaluation and awarding of contracts involving the country's natural resources.

Several firms and mining groups have reportedly opposed the policy, saying it poses risks to investments.

The JCCIPI also argued that the order introduces regulatory uncertainty and unfair bidding conditions that could discourage future foreign investments in the country's natural resource sector.

"Bidding rules should be clear, transparent, and applied equally to all qualified participants. While contract renewal should not be automatic, existing operators should not be placed at a disadvantage solely because of investments made under their current contracts," the chamber said.

"As the Philippines seeks to attract foreign investment into strategic industries and emerging supply chains, bidding requirements should be consistent with the Government's investment-attraction objectives and provide clarity to businesses that have already committed capital to the country," it added.

The JCCIPI urged the DOE and DENR to clarify its concerns.

"JCCIPI respectfully requests that the DOE and DENR provide written clarification and consult affected stakeholders before implementing disputed provisions in pending or future bidding processes, with due regard for applicable laws and contractual obligations," it said.

GMA News Online has reached out to the DOE and DENR for comment and will update this story once a response is received.— MCG, GMA News

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