NEA lending to power co-ops up 23%
THE National Electrification Administration (NEA) said loans it extended to electric cooperatives (ECs) in the first half hit P1.29 billion, up nearly 23% from a year earlier.
“At least 46 of the 121 ECs supervised by the state-run agency have availed of P1.294 billion worth of loans, including calamity loans, during the first six months of the year,” said Leila B. Bonifacio, department manager of the NEA accounts management and guarantee department, in a statement.
Of the total, P755 million went to 36 electric cooperatives for their capital expenditure projects while P80 million was borrowed by four ECs for the rehabilitation of their power distribution systems that were damaged by typhoons Lawin, Urduja and Vinta.
NEA extends calamity loans with a 10-year repayment term. The loans have a maximum grace period of one year at an interest rate of 3.25% per annum.
NEA Administrator Edgardo R. Masongsong said the loan facility is part of the agency’s response to President Rodrigo R. Duterte’s directive of speeding up rural electrification and removing all barriers to the country’s total electrification.
“We hope to capacitate the electric cooperatives with the infusion of much needed funds to expedite their projects and initiatives,” he said.
Loan availments by the ECs are fast-tracked by the agency. Loans are released with 24 working days for regular loans, 13 days for shortterm loans and seven days for calamity loans.
This year, Quezon I Electric Cooperative, Inc. obtained P20 million to finance its monthly shortfall in the settlement of power accounts with generation companies and privately owned National Grid Corp. of the Philippines.
Zamboanga City Electric Cooperative, Inc. availed of a stand-by credit loan facility for power accounts amounting to P145-million to strengthen its creditworthiness with generation companies.
Three power cooperatives in Mindanao — Misamis Oriental II Electric Cooperative, Inc., Sultan Kudarat Electric Cooperative, Inc., and Agusan del Norte Electric Cooperative, Inc. — obtained P74 million worth of loans for the procurement of modular generator sets.
The NEA also provided working capital loans totaling P220 million to Abra Electric Cooperative, Marinduque Electric Cooperative, Inc., Sorsogon I Electric Cooperative, Inc., Camotes Electric Cooperative, Inc., Negros Oriental I Electric Cooperative, Inc., and Misamis Oriental II Electric Cooperative, Inc.
In the first half of 2017, NEA extended P1.05 billion worth of loans to 36 ECs to finance their electrification projects and rehabilitate typhoon-damaged distribution lines, among others. —