NEA to extend P450 M loan for electrification projects

Danessa Rivera (The Philippine Star) - July 5, 2019 - 12:00am

https://www.philstar.com/business/2019/07/05/1932018/nea-extend-p450-m-loan-electrification-projects

 MANILA, Philippines — State-run National Electrification Administration (NEA) is targeting to extend P450 million in financial assistance to power coops this year.

In a statement, NEA said it continues to support the electric cooperatives (ECs) in their various electrification projects which are focused on improving their services to the communities they serve.

The availment of loan is part of the fast-track lane being implemented by NEA, which has supervisory powers over 121 ECs in the country as mandated under Republic Act 10531.

NEA administrator Edgardo Masongsong said this year’s target is lower than the P1.7 billion set last year.

“The amount is lower than last year’s P1.7 billion target. Despite this, NEA continues to find ways to assist our ECs in the implementation of their electrification projects,” Masongsong said.

Last year, the agency extended over P2 billion worth of loans to power coops, which is way beyond its target.

As of the end of June, latest data from the NEA Accounts Management and Guarantee Department (AMGD) showed that the state-run agency released P395 million worth of loans to 19 ECs for their capital expenditure projects and working capital requirements. 

These projects were ranging from 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.

Among the 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.

NEA also extended P10 million in calamity loan to support the rehabilitation works of the Abra Electric Cooperative (ABRECO). 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 maximum grace period of one year at 3.25 percent interest rate per annum. The processing time is seven days.