Published April 9, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/04/09/nea-to-remit-%e2%82%b11-3-b-unused-subsidies/
The government-run National Electrification Administration (NEA) will remit to the national government ₱1.38 billion worth of unused subsidies as well as dividend, so it could shore up funds that the State could funnel toward response to the novel coronavirus (COVID-19) pandemic.
The board of administrators of the agency had green-lighted the turnover of ₱1,346,765,113.00 to the Bureau of Treasury, as requested by the Department of Finance.
According to NEA, of the total amount to be remitted, about ₱1.26 billion accounted for unused subsidy funds in 2016; and ₱85.71 million would represent its dividend to the national government for its 2019 operations.
As noted by NEA Administrator Edgardo Masongsong, the fund remittance is “now underway” – and this keeps pace with the government’s drive to beef up cash that it could utilize pursuant to the stimulus package set forth under Republic Act 11469 or the “Bayanihan to Heal as One Act” for the COVID-19 health crisis.
Masongsong said “the amount will help our national government facilitate the delivery of much-needed assistance for many industries and livelihoods that were severely disrupted by the ongoing public health emergency.”
The remittance to the national government is an added measure that NEA had initiated to underpin the country’s overall efforts in helping stem the spread of the death-dealing virus.
The electrification agency said it is likewise stretching for 30 days “the payment deadline for loan amortization of electric cooperatives,” primarily those that were due on March 31.
“The payment extension is in consideration of the declaration of a state of calamity throughout the country for six months,” NEA said, in reference to the issuance of President Rodrigo Duterte last month under Proclamation No. 929.
Masongsong stressed that while NEA recognizes the critical mandate of the ECs on power service delivery during the enhanced community quarantine (ECQ), “the financial condition of the ECs might be adversely affected due to the COVID-19.”
As emphasized by the electrification agency, it has been extending financial assistance to the ECs “through various loan windows, to bankroll their various capital expenditure (capex) projects; and rehabilitation of damaged distribution systems due to calamities.”
Its suite of lending programs spans across regular, calamity and concessional loans; as well as stand-by and short-term credit loans, single-digit system loss loan; renewable energy loan; and modular generator sets loan.
NEA is the supervising agency that has been aiding the country’s ECs – not just in their technical operations but also in keeping their financial performance afloat.
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