NEA releases P794 million in loans

Business Word Online
Posted on November 24, 2011 11:15:25 PM
BY EMILIA NARNI J. DAVID, Reporter


THE NATIONAL Electrification Administration (NEA) has released P794 million in loans to electric cooperatives with majority being used for rural electrification in the 10-month period ending October, the agency said in a statement yesterday.
NEA grants loans to electric cooperatives through its Enhanced Lending Program.
Four electric cooperatives, namely Kalinga-Apayao Electric Cooperative, Inc.; Cagayan Electric II Cooperative, Inc.; Isabela II Electric Cooperative, Inc.; and Aurora Electric Cooperative Inc. availed of calamity loans from NEA.
The loans were to fund recovery from Typhoons “Juan,” “Pedring” and “Quiel” earlier this year.
To reduce systems loss and improve systems reliability, 15 electric cooperatives borrowed from NEA.
“The electric cooperative activities for the reduction of system loss are purchase and replacement of power transformer, meter pole clustering, rehabilitation of defective lines and replacement of defective kilowatt hour meters, and installation of grounding transformers, gas circuit breakers, system power protectors and/or meters,” the agency said in its statement.
Eleven electric cooperatives also availed loans totaling P194.8 million as working capital for their operations including payment of power accounts to the National Grid Corporation of the Philippines, the Philippine Electricity Market Corp. and the National Power Corp. -- Small Power Utilities Group.
Another 21 cooperatives were granted P412.7 million worth of loans for rural electrification.
“[The] loans are to finance their rural electrification projects such as rehabilitation of distribution lines, upgrading of system, purchase and acquisition of logistics support and construction of office building and facilities,” the NEA said.
The agency could not be reached for comparative figures for loans given out last year.
NEA is the agency tasked to technically and financially help electric cooperatives and to push for rural and household electrification.
NEA’s loans to electric cooperatives are offered at a 9% per annum interest rate that will be repaid in more than two years.