Several electrification projects in 2018 ranging from installation of new substations, construction of distribution lines, to rehabilitation of mini-hydro power plants were financed through loans offered by state-run National Electrification Administration (NEA).
Data from the NEA Accounts Management and Guarantee Department (AMGD) showed P2.084 billion worth of loans, including calamity loans, were extended to 62 electric cooperatives (ECs) in 2018. Bulk of the loans, amounting to P1.279 billion, were used to bankroll several capital expenditure (CapEx) projects of 50 ECs.
“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.”
These projects include the installation and upgrading of power substations accounting for P372.597 million; construction of sub-transmission and distribution lines at P337.143 million; purchase of kwh meters, other materials and replacement of dilapidated poles at P178.831 million; and rehabilitation of mini-hydro power plants at P113.131 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,” the NEA Chief added.
Meanwhile, a total of P167 million were borrowed by four ECs for the procurement of modular generator sets. These are the Misamis Oriental I Electric Cooperative, Inc., Misamis Oriental II Electric Cooperative, Inc., Sultan Kudarat Electric Cooperative, Inc., and Agusan del Norte Electric Cooperative, Inc.
“As long as these loans are intended for the improvement of the EC’s operational efficiency, NEA did not think twice to give due course to these loan applications.”
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.
Also, the NEA provided the Quezon I Electric Cooperative, Inc. P20 million to finance its monthly shortfall on the settlement of power accounts with generation company. The Zamboanga City Electric Cooperative, Inc. availed of the stand-by credit loan facility for power accounts amounting to P145 million to strengthen its creditworthiness with generation companies.
In addition, the 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.
These power co-ops were the Isabela II Electric Cooperative, Biliran Electric Cooperative, Inc., Lanao del Norte Electric Cooperative, Inc., First Bukidnon Electric Cooperative, Inc., Lanao del Sur Electric Cooperative, Inc., and Surigao del Norte Electric Cooperative, Inc.
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.