State-run National Electrification Administration (NEA) has achieved its full-year loan availment target of P1.7 billion by the electric cooperatives (ECs) three months ahead of schedule.
Latest data from the NEA Accounts Management and Guarantee Department (AMGD) show P1.8 billion worth of loans, including calamity loans, has been extended to 57 ECs as of end-September.
The agency released a total of P1.049 billion to 45 ECs to finance capital expenditure projects and P99 million to six other ECs for the repair and rehabilitation of damaged distribution facilities due to previous typhoons “Lawin,” “Urduja” and “Vinta,” and other calamities.
The ECs that availed of the calamity loans include the Isabela II Electric Cooperative (ISELCO II), Biliran Electric Cooperative, Inc. (BILECO), Lanao del Norte Electric Cooperative, Inc. (LANECO), First Bukidnon Electric Cooperative, Inc. (FIBECO), Lanao del Sur Electric Cooperative, Inc. (LASURECO), and the Surigao del Norte Electric Cooperative, Inc. (SURNECO).
The agency released a total of P1.049 billion to 45 ECs to finance capital expenditure projects and P99 million to six other ECs for the repair and rehabilitation of damaged distribution facilities.
“In times of calamities, the NEA provides on timecalamity loan as financial assistance to the ECs in order to repair damaged distribution system and restore immediately power supply to their member-consumer-owners (MCOs),” said Atty. Vicar Loureen G. Lofranco, Acting Deputy Administrator of the NEA Corporate Resources and Financial Services (CRFS).
Meanwhile, the Quezon I Electric Cooperative, Inc. (Quezelco I) borrowed P20 million to finance its monthly shortfall on the settlement of power accounts with generation companies and the National Grid Corp. of the Philippines (NGCP).
Loan availment by the ECs is included in the fast-track lane being implemented by the NEA.
The Zamboanga Electric Cooperative, Inc. (ZAMCELCO), on the other hand, availed of the standby credit loan facility for power accounts to strengthen its creditworthiness with generation companies and market operator amounting to P145 million.
In addition, the NEA awarded P134 million in loans to four ECs for the procurement of modular generator sets. These are the Misamis Oriental I Electric Cooperative, Inc. (P38.762 million), Misamis Oriental II Electric Cooperative, Inc. (P43.516 million), Sultan Kudarat Electric Cooperative, Inc. (P32.901 million), and Agusan del Norte Electric Cooperative, Inc. (P18.771 million).
Nine other ECs secured working capital loans totaling P374 million. These are the Abra Electric Cooperative (P18.456 million), Occidental Mindoro Electric Cooperative, Inc. (P58.462 million), Marinduque Electric Cooperative, Inc. (P66.795 million), Sorsogon I Electric Cooperative, Inc. (P28.613 million), Aklan Electric Cooperative, Inc. (P65 million), Camotes Electric Cooperative, Inc. (P7.387 million), Negros Oriental I Electric Cooperative, Inc. (P20 million), Misamis Oriental II Electric Cooperative, Inc. (P79 million), and Nueva Ecija II Electric Cooperative, Inc. – Area 2 (P30 million).
Loan availment by the ECs is included in the fast-track lane being implemented by the NEA. The processing time is 24 working days for regular loans, 13 days for short-term loans and seven days for calamity loans.
A calamity loan offered by the NEA has a 10-year repayment term with a maximum grace period of one year and interest rate of 3.25 percent per annum.
The NEA has been offering a number of loan programs to the ECS to help them provide continuous and better delivery of service to their MCOs.
