NEA’S loans to electric co-ops hit P263.78M

LOANS extended by the National Electrification Administration (NEA) to electric cooperatives (ECS) reached P263.78 million at end-march this year.

The state firm said 12 ECS availed of the financing assistance. Of the total amount, P178.45 million was tapped for capital expenditure (capex) of nine ECS. These are the Bohol I Electric Cooperative Inc. (Boheco I), Bohol II Electric Cooperative Inc., Bukidnon Second Electric Cooperative Inc. , Iloilo II Electric Cooperative Inc., Leyte V Electric Cooperative Inc., Masbate Electric Cooperative Inc., Siasi Electric Cooperative Inc., South Cotabato I Electric Cooperative Inc., Tablas Island Electric Cooperative Inc. Three ECS availed P72 million for their working capital: Camarines Sur III Electric Cooperative Inc.; Camotes Electric Cooperative Inc.; and, Negros Oriental I Electric Cooperative Inc.

The NEA also said that Boheco I borrowed P13.33 million as a calamity loan for the rehabilitation of the Janopol mini-hydro power plant, which was previously damaged by Super Typhoon Odette in 2021.

The NEA has been offering financial assistance to ECS through its enhanced lending program. It is mandated to carry out the total electrification of the country.

In its loan policy paper, the NEA said it undertakes lending “to ensure the continued financial viability of the Rural Electrification Program through timely infusion of emergency and other loans to ECS and other borrowers when deemed appropriate, while simultaneously exercising rigorous supervision over delinquent and failing ECS.”

The NEA said all its “resources, both human and physical, shall be harnessed in the pursuit of these objectives.”

The NEA added the loans “granted to financially non-viable rural electrification projects come from government subsidy sources and are exempt from [defined] interest rate coverage.”