Power agency granted P1.6B in aid to 41 co-ops in 2012

Business Mirror

Published on Wednesday, 30 January 2013 18:35

Written by Lenie Lectura / Reporter

THE National Electrification Administration (NEA) on Wednesday reported that it disbursed P1.6 billion in financial assistance to 41 electric cooperatives (ECs) via its Enhanced Lending Program in 2012.

“This is part of the agency’s program in assisting electric cooperatives to be operationally strong and viable distribution utilities in…the competitive electricity industry,” NEA Administrator Edita S. Bueno said in a statement.

A P10-million calamity loan was each availed of by the Isabela Electric Cooperative I and the Agusan del Sur Electric Cooperative. The amount was used to restore power lines that were destroyed by recent typhoons.

Critically situated Lanao del Sur Electric Cooperative was given a concessional loan of P29.93 million at 6-percent interest rate per annum for the replacement and installation of meters and distribution transformers in order to improve its operational performance.

Likewise, the Single Digit System Loss Loan was granted to eight ECs to assist them in reducing their annual systems losses by at least 1 percent yearly and thereby improve system reliability.

The System Loss Reduction Program includes activities such as replacing power transformers; meter pole clustering; rehabilitating defective lines and replacing defective kilowatt-hour meters; and installing grounding transformers, gas circuit breakers, and system power protectors.

Those who availed themselves of the loan include Mopreco, P12 million; Batanelco, P6.7 million; Cagelco II, P20.37 million; Presco, P9.95 million; Casureco I, P11.5 million; Leyeco III, P12 million; Anec, P27.44 million; and Surseco I, P3.28 million.

Thirty-five ECs were granted Rural Electrification Loans, among them Cagelco I (P50 million), Cenpelco (P40 million), Iselco I (P50 million), Ormeco (P43.33 million) and Casureco II (P122 million). The loans will be used as working capital to pay for their power accounts.

Other ECs, such as Neeco II-Areas 1 & 2, Aurelco, Romelco, Canoreco, Ileco I, Boheco II, Buseco, Moresco I & II, Camelco, Fibeco, Laneco, Doreco, Socoteco I and Aselco also availed themselves of this loan, mostly for the rehabilitation and upgrading of their distribution systems.

NEA encourages ECs to avail of its Enhanced Lending Program because of the competitive interest rate at 9 percent per annum for loans to be repaid in more than two years and 8 percent per annum for loans to be paid within two years or less.

The program has no other charges for term loans; a longer repayment period; a fast processing period; an electronic fund transfer; minimum requirements; assistance in the preparation of project-feasibility studies; and personalized service.   source