State-run National Electrification Administration (NEA) has released P2.096-billion worth of loans, including calamity loans, to 52 electric cooperatives (ECs) through various loan windows in 2017, surpassing its target of P1.7-billion for the year.
The bulk of the loans, amounting to P1.298-billion, helped bankroll the capital expenditure projects of different ECs, while P304-million were borrowed by 14 ECs for the rehabilitation of their distribution systems wrought by typhoons Ferdie, Karen, Lawin, and Nina.
Topping the list of the ECs that availed of the calamity loans was Camarines Sur IV Electric Cooperative, Inc. (CASURECO IV) with P62-million, followed by First Catanduanes Electric Cooperative, Inc. (FICELCO) with P50-million, and Oriental Mindoro Electric Cooperative, Inc. (ORMECO) with P41-million.
The Don Orestes Romualdez Electric Cooperative, Inc. (DORELCO), which was among the power utilities devastated by super typhoon ‘Yolanda’ in 2013, borrowed P9-million for the construction of its headquarters.
Meanwhile, the Lanao del Sur Electric Cooperatives, Inc. (LASURECO) secured a loan amounting to P12-million to cover the cost of its operational expenditures due to the armed conflict in Marawi City last year.
NEA is fully committed to assisting our partner ECs in bringing electricity to rural areas and helping uplift the lives of Filipinos in the countryside.
Calamity loans have a 10-year repayment term with a maximum grace period of one year. It carries an interest rate of 3.25 percent per annum. The loan’s average processing time is five days.
NEA also granted a total of P55-million worth of loans to three other ECs, which were used to finance their monthly shortfalls in settling their power accounts with generation companies and the National Grid Corporation of the Philippines (NGCP).
Meanwhile, two ECs namely Casureco I and Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) availed of the stand-by credit loan facility for power accounts totaling P137-million to strengthen their creditworthiness with generation companies.
The Misamis Oriental I Electric Cooperative, Inc. (MORESCO I), on the other hand, borrowed P39-million for the procurement of three units of 2-megawatt capacity modular generator sets.
“We hope that through these we are able to show that NEA is fully committed to assisting our partner ECs in bringing electricity to rural areas and helping uplift the lives of Filipinos in the countryside,” Administrator Edgardo Masongsong said.
“Moving forward, we will continue our unrelenting efforts to implement the national government’s rural electrification program until the last remaining household is energized,” he added.
In 2016, the NEA had extended P2.434-billion in loans to 56 ECs to finance, among others, their electrification projects and rehabilitation of distribution lines damaged by typhoons.