NEA grants loans for electric cooperatives’ upgrade

Manila Times.net
Published : Saturday, November 26, 2011 00:00 Written by : Euan Paulo C. Añonuevo


THE National Electrification Administration (NEA) has released a set of loans to electric cooperatives for repairs and maintenance, network improvement and debt payments.
In a statement, NEA said the loans totaling P794 million would benefit 38 utilities. “NEA encourages the ECs to avail of its Enhanced Lending Program since the loans being offered have competitive interest rate,” the agency said.


Its lending program provides an interest rate of 9 percent per annum for loans to be repaid in more than two years, and 8 percent per annum for loans to be paid two years or less. The other features of the program include no other charges for term loans; longer repayment period, i.e. from three to five or five to 10 years; fast processing; electronic fund transfer; minimum requirements; assistance in the preparation of project feasibility studies; and personalized service.


Among those who have availed of the loans are Kalinga Apayao Electric Cooperative Inc. (P5 million), Cagayan II Electric Cooperative Inc. (3 million), Isabela II Electric Cooperative Inc. (P12 million), and Aurora Electric Cooperative Inc (P5 million), for the rehabilitation of their damaged distribution system wrought by typhoons Juan, Pedring and Quiel.


Also, loans were granted to 15 ECs to assist them in the reduction of their annual systems loss by at least 1 percent and thereby improve system reliability. Another 11 ECs availed loans totaling P195 million as working capital for their operations, while 21 others received P413 million for electrification projects.