The financial assistance extended by the National Electrification Administration (NEA) to different electric cooperatives (ECs) has reached P1.294 billion from January to June this year, 23 percent higher compared to the P1.050 billion registered in the same period a year earlier.
“At least 46 of the 121 ECs supervised by the state-run agency have availed of the P1.294 billion worth of loans, including calamity loans, during the first six months of the year,” said Leila B. Bonifacio, Department Manager of the NEA Accounts Management and Guarantee Department (AMGD).
Of the total amount, P755 million went to 36 ECs for their capital expenditure projects while P80 million were borrowed by four ECs for the rehabilitation of their power distribution systems damaged by typhoons Lawin, Urduja and Vinta.
A calamity loan extended by the NEA has a 10-year repayment term with a maximum grace period of one year at an interest rate of 3.25 percent per annum.
The Quezon I Electric Cooperative, Inc. (Quezelco I) secured 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).
The Zamboanga Electric Cooperative, Inc. (Zamcelco) availed of the stand-by credit loan facility for power accounts amounting to P145-million to strengthen its creditworthiness with generation companies.
Three power coops in Mindanao – Misamis Oriental II Electric Cooperative, Inc. (Moresco II), Sultan Kudarat Electric Cooperative, Inc. (Sukelco), and Agusan del Norte Electric Cooperative, Inc. (Aneco) – secured P74-million worth of loans for the procurement of modular generator sets.
The NEA also provided working capital loans totalling P220 million to six other ECs, namely Abra Electric Cooperative (Abreco), Marinduque Electric Cooperative, Inc. (Marelco), Sorsogon I Electric Cooperative, Inc. (Soreco I), Camotes Electric Cooperative, Inc. (Celco), Negros Oriental I Electric Cooperative, Inc. (Noreco I), and Misamis Oriental II Electric Cooperative, Inc. (Moresco II).
NEA Administrator Edgardo Masongsong said the agency will continue to assist the 121 ECs under its charge in implementing their various electrification projects.
“This loan facility is part of the agency’s response to President Rodrigo Duterte’s directive of fast-tracking rural electrification and removing all barriers to the total electrification of the the country. With this, we hope to capacitate the electric cooperatives with the infusion of much needed funds to expedite their projects and initiatives,” Masongsong said.
“This loan facility is part of the agency’s response to President Rodrigo Duterte’s directive of fast-tracking rural electrification and removing all barriers to the total electrification of the the country.”
In the same period in 2017, the NEA had extended P1.050-billion worth of loans to 36 ECs to finance, among others, their electrification projects and rehabilitation of damaged distribution lines due to typhoons.
“We hope to capacitate the electric cooperatives with the infusion of much needed funds to expedite their projects and initiatives.”
Meanwhile, Atty. Vicar Loureen G. Lofranco, Acting Deputy Administrator of the Corporate Resources and Financial Services (CRFS), expressed confidence that the NEA would be able to meet its target of P1.7 billion worth of loans to be extended to electric cooperatives this year.
“With the approval of the multi-year capital expenditure projects of the electric cooperatives by the ERC, the NEA stands ready to partly finance their investment needs subject to complete submission of documentary requirements,” Lofranco said.
Loan availment by the ECs is included in the fast-track lane being implemented by the electrification agency. The number of days to release a loan is 24 working days for regular loans, 13 days for short-term loans and seven days for calamity loans.
