NEA lends over P2 B for power projects
The National Electrification Administration (NEA) has extended over P2 billion worth of loans for electrification projects to power cooperatives last year, which is way beyond its target.
Several electrification projects ranging from installation of new substations, construction of distribution lines, to rehabilitation of mini-hydro power plants were financed through loans offered last year.
Based on data from the NEA Accounts Management and Guarantee Department (AMGD), P2.08 billion worth of loans, including calamity loans, were extended to 62 electric cooperatives (ECs).
Bulk of the loans amounting to P1.279 billion was used to bankroll several capital expenditure projects of 50 ECs.
These projects include the installation and upgrading of power substations accounting for P372.597 million, construction of sub-transmission and distribution lines (P337.14 million), purchase of kwh meters, other materials and replacement of dilapidated poles (P178.83 million) and rehabilitation of mini-hydro power plants (P113.13 million).
“The year 2018 was remarkable in terms of loan availment as the agency reached its target of P1.7 billion within the 3rd quarter of last year,” NEA administrator Edgardo Masongsong said.
“We have been very stringent and subjected the applications of electric cooperatives to scrutiny. But as long as these loans are intended for the improvement of the EC’s operational efficiency, financial viability or increase their capacity to rehabilitate the utilities, the NEA did not think twice to give due course to
these loan applications,” he said.
Meanwhile, a total of P167 million was borrowed by four ECs for the procurement of modular generator sets.
Working capital loans worth P374 million went to nine other ECs, namely the Abra Electric Cooperative, Occidental Mindoro Electric Cooperative Inc., Marinduque Electric Cooperative Inc., Sorsogon I Electric Cooperative Inc., Aklan Electric Cooperative Inc., Camotes Electric Cooperative Inc., Negros Oriental I Electric Cooperative Inc., Misamis Oriental II Electric Cooperative Inc., and Nueva Ecija II – Area 2 Electric Cooperative Inc.
The NEA provided the Quezon I Electric Cooperative Inc. P20 million to finance its monthly shortfall on the settlement of power accounts with generation companies.
The Zamboanga City Electric Cooperative Inc. availed of the stand-by credit loan facility for power accounts amounting to P145 million.
NEA also extended P99 million in calamity loans to six other ECs to cover the cost of repair and rehabilitation of their respective distribution facilities that were damaged by previous typhoons Auring, Lawin, Urduja and Vinta, and other calamities.