State-run National Electrification Administration (NEA) has extended P830-million worth of loans to 34 electric cooperatives (ECs) over the period January to April this year to finance, among others, their rural electrification projects.
Of the total amount, P42 million was released as calamity loans to three ECs for the rehabilitation of damaged power distribution lines caused by Typhoons Urduja and Vinta.
Calamity loans have a 10-year repayment term with a maximum grace period of one year. The interest is at 3.25 percent per annum.
A total of P396 million were borrowed by 24 ECs to fund their capital expenditure projects aimed at further improving the quality and reliability of electric service to the communities they serve.
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 Corporation of the Philippines (NGCP).
The Zamboanga Electric Cooperative, Inc. (ZAMCELCO), on the other hand, availed of the stand-by credit loan facility for power accounts amounting to P145-million to strengthen its creditworthiness with generation companies.
Also, a total of P74-million worth of loans were granted to three power coops in Mindanao namely Misamis Oriental II Electric Cooperative, Inc. (MORESCO II), Sultan Kudarat Electric Cooperative, Inc. (SUKELCO), and Agusan del Norte Electric Cooperative, Inc. (ANECO) for the procurement of modular generator set.
Moreover, five ECs secured working capital loans amounting to P153 million. These co-ops are the MORESCO II, Abra Electric Cooperative (ABRECO), Sorsogon Electric Cooperative, Inc. (SORECO I), Camotes Electric Cooperative, Inc. (CELCO), and Negros Oriental I Electric Cooperative, Inc. (NORECO I).
NEA will continue to provide financial support to the ECs in the form of short, medium and long term loans for them to become competitive and competent in the EPIRA environment.
“NEA will continue to provide financial support to the ECs in the form of short, medium and long term loans for them to become competitive and competent in the EPIRA environment,” Administrator Edgardo Masongsong said.