Electric cooperatives (ECs) are embarking on construction and improvement of infrastructures that will help ensure better operational efficiencies and continuous delivery of electric services to their consumers.
In the first quarter of this year, at least 13 power co-ops availed of loans amounting to P250 million from the National Electrification Administration (NEA) to bankroll their several capital expenditure (capEx) projects.
Data from the NEA Accounts Management and Guarantee Department (AMGD) show that these projects include the construction of sub-transmission and distribution lines, installation of substations, rehabilitation and upgrading of secondary lines, replacement of dilapidated poles, and purchase of other equipment and materials.
“We hope that these loans will help our ECs further boost their bid to become operationally viable and sustainable.”
Among the 13 ECs, the Zamboanga del Norte Electric Cooperative, Inc. (ZANECO) was the top grantee with P59.595 million, followed by the Central Pangasinan Electric Cooperative, Inc. (CENPELCO) with P45.651 million.
The Camarines Sur I Electric Cooperative, Inc. (CASURECO I) borrowed P41.393 million to finance the construction of subtransmission lines and a substation at Panaytayan in the municipality of Ragay, Camarines Sur.
Meanwhile, the Dinagat Island Electric Cooperative, Inc. (DIELCO) and the Davao del Norte Electric Cooperative, Inc. (DANECO) secured loans amounting to P22.896 million and P20.087 million, respectively.
“For years, the NEA has been providing loan windows to support our electric cooperatives’ funding requirements in the implementation of their various electrification projects. We hope that these loans will help our ECs further boost their bid to become operationally viable and sustainable,” NEA Administrator Edgardo Masongsong said.
Aside from the NEA, Masongsong said the ECs also avail of loans from other financial institutions to fund their capEx projects towards realizing state-of-the-art, smart grid distribution system to ensure power reliability and efficiency.
Loans for ECs are included in the Fast-Track Lane being implemented by the NEA. The processing time is 24 working days for regular loans, and 13 days for short-term loans.
