The National Electrification Administration (NEA) has continued to support the electric cooperatives (ECs) in their various electrification projects focused on improving their services to the communities they serve.
Latest data from the NEA Accounts Management and Guarantee Department (AMGD) showed that from January to June 2019, the state-run agency released P395 million worth of loans to 19 ECs for their capital expenditure (CapEx) projects and working capital requirements.
“For this year, the NEA has targeted P450 million for its financial assistance to ECs through various loan windows.”
These projects range from construction of sub-transmission and distribution lines, substations, office buildings, rehabilitation and upgrading of distribution system and mini-hydro power plants, and acquisition of vehicles and other logistical support.
Among the ECs that have availed of loans were those operating in Pangasinan, Ilocos Norte, Tarlac, Laguna, Occidental Mindoro, Camarines Sur, Sorsogon, Ticao Island, Capiz, Zamboanga del Norte, Bukidnon, Davao del Norte, Cotabato, Sulu, Siasi, Agusan del Sur, Dinagat Island, and Surigao del Sur.
The extension of loans is part of the fast-track lane being implemented by the NEA.
“For this year, the NEA has targeted P450 million for its financial assistance to ECs through various loan windows. The amount is lower compared with last year’s P1.7 billion target. Despite this, the NEA continues to find ways to assist our ECs in the implementation of their electrification projects,” NEA Administrator Edgardo Masongsong said.
The extension of loans is part of the fast-track lane being implemented by the NEA, which has supervisory powers over 121 ECs in the country as mandated under Republic Act 10531.
In addition, the electrification agency also extended P10 million in calamity loan to support the rehabilitation works of the Abra Electric Cooperative (ABRECO). The amount was meant to finance the rehabilitation of the distribution system and other facilities of ABRECO that were damaged by Typhoon Ompong (Mangkhut) last year.
A calamity loan is payable in 10 years with maximum grace period of one year at 3.25 percent interest rate per annum. The processing time is seven days.