Tuesday, February 23, 2016

NEA grants over P2-B loans to electric coops



By Danessa Rivera (The Philippine Star) | Updated February 22, 2016 - 12:00am

MANILA, Philippines - State-run National Electrification Administration (NEA) has provided over P2 billion in loans to electric cooperatives (ECs) to bankroll their capital expenditures and rehabilitation of their distribution systems.
In a statement, NEA said 51 cooperatives availed of a total P2.019 billion loan.
NEA administrator Edita S. Bueno said the agency has developed a credit guarantee program and facility for the ECs as part of its mandate.
“This is to establish a power supply guarantee to secure the power purchase of qualified ECs in the Wholesale Electricity Spot Market (WESM), Interim Mindanao Electricity Market (IMEM) or under a bilateral contract with the generation companies (gencos) or the National Grid Corp. of the Philippines (NGCP),” she said.
“NEA also continues to find ways to make funds readily available for the ECs particularly in times of natural and man-made calamities for them to serve better their member-consumers,” she added. 
Of the total amount, P308 million loan were borrowed by 14 ECs for the repair of assets affected by Typhoons Mario, Lando, Glenda, Nona, Ruby and Seniang.
The calamity loan has a term of 10 years of repayment period and one-year grace period with interest rates ranging from 3.25 to 4 percent.
A total P82 million was lent to six ECs to finance their monthly shortfall on the settlement of their power accounts with the generation companies (gencos) and the NGCP and to pay for arrears with the National Power Corp. and NGCP in order to avail of the prompt payment discount.
Meanwhile, Casureco I availed of the stand-by credit loan facility for power accounts amounting to P5 million to strengthen their creditworthiness with gencos.
Four coops in Mindanao namely: Zamcelco, Moresco I, Daneco and Surneco secured loans amounting to P404 million for the procurement of modular generator set in anticipation of the shortfall of power supply in the island especially during the summer months.
Surneco, in particular, was the top availer of NEA’s loan windows which borrowed P187 million for modular generator sets and short-term credit facility.
The state-run agency has, likewise, posted a 100 percent collection efficiency on the loan amortization payments of the ECs and has paid 100 percent of its foreign loans due last year amounting to P129 million.
Loan availment by the ECs is included in the fast-track lane being implemented by NEA, which is eight working days for regular loans and five days for calamity loans for 2015.
NEA has already extended P33.318 billion loans to the 119 electric cooperatives nationwide to finance their rural electrification projects.

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