COTABATO CITY – The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) has taken a significant step towards energy independence with the awarding of its first coal operating contract (COC). In a historic milestone, the Department of Energy (DOE) and the Ministry of Environment, Natural Resources, and Energy (MENRE) of the BARMM jointly awarded the contract to Filipinas Systems Inc. (FSI) last Thursday.

The contract, a testament to the collaborative spirit enshrined in the Bangsamoro Organic Law (BOL), grants FSI the right to explore coal in a predetermined area within the Kapai and Tagoloan towns of Lanao del Sur. This marks the first energy contract awarded under the joint authority of the national and regional governments, as mandated by the BOL.

The landmark event, held at the Office of the Chief Minister at the Bangsamoro Government Center in Cotabato City, was witnessed by Chief Minister Ahod Ebrahim, Energy Secretary Raphael Lotilla, and MENRE Minister Akmad Brahim.

Under the contract, FSI will invest P19 million in a two-year exploration program. Upon reaching the development and production stages, FSI will further demonstrate its commitment to the host local communities by providing P150,000 annually in scholarships to qualified individuals from the contract area.

"This partnership will not only foster energy independence for the Bangsamoro region but also create pathways for sustainable economic growth and development," said Lotilla, highlighting the shared commitment of the national and regional governments to advance energy development and resource management in the BARMM.

The BOL grants the BARMM joint jurisdiction over the development of fossil fuels like petroleum, gas, and coal, while renewable energy sources (excluding hydropower from Lake Lanao) fall under the region's sole jurisdiction. The DOE has pledged to actively support the BARMM in tapping its solar, wind, geothermal, and other renewable energy potentials.