Thursday, July 4, 2019

19 electric co-ops borrowed P395 million from NEA to stay afloat


By Lenie Lectura- July 4, 2019

NINETEEN electric cooperatives (ECs) availed of loan assistance worth P395 million from the National Electrification Administration (NEA) as of end-June this year, the state firm said on Wednesday.
Among those ECs that availed loans were those operating in Pangasinan, Ilocos Norte, Tarlac, Laguna, Occidental Mindoro, Camarines Sur, Sorsogon, Ticao Island, Capiz, Zamboanga del Norte, Bukidnon, Davao del Norte, Cotabato, Sulu, Siasi, Agusan del Sur, Dinagat Island and Surigao del Sur.
The NEA said the amount would be used to bankroll the EC’s capital expenditure projects and working capital requirement.
These include construction of sub-transmission and distribution lines, substations, office buildings, rehabilitation and upgrading of distribution system and mini hydro power plant, and acquisition of vehicles and other logistical support.
The loan assistance is part of the fast-track lane being implemented by the NEA, which has supervisory powers over 121 ECs in the country as mandated under Republic Act 10531.
The NEA said it also extended P10 million in calamity loan to support the rehabilitation works of the Abra Electric Cooperative.  The amount was meant to finance the rehabilitation of the distribution system and other facilities of Abreco that were damaged by Typhoon Ompong (Mangkhut) last year.
A calamity loan is payable in 10 years with a maximum grace period of one year at 3.25 percent interest rate per annum. The processing time is seven days
“For this year, the NEA has targeted P450 million for its financial assistance to ECs through various loan windows. The amount is lower compared with last year’s P1.7 billion target. Despite this, the NEA continues to find ways to assist our ECs in the implementation of their electrification projects,” NEA Administrator Edgardo Masongsong said.

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