Monday, January 27, 2020

NEA extends P700M loans to power co-ops in 2019


Published: 24 January 2020

The National Electrification Administration (NEA) through its Enhanced Lending Program has extended over P700-million worth of loans to electric cooperatives (ECs) in 2019, surpassing the full-year target of P450 million. 
Data from the NEA Accounts Management and Guarantee Department (AMGD) showed the agency released a total of P705 million to 31 ECs, bulk of the amount or P658.090 million went to bankroll their capital expenditure projects (CapEx).
These projects include construction of sub-transmission and distribution lines, substations, office buildings, rehabilitation and upgrading of distribution system and mini-hydro power plant, replacement of dilapidated poles and defective meters, and acquisition of vehicles and other tools and equipment.
Topping the list of the ECs that availed loans was Zamboanga del Norte Electric Cooperative, Inc. (ZANECO) with P104.950 million, followed by Camarines Sur I Electric Cooperative, Inc. (CASURECO I) with P60.963 million, Central Pangasinan Electric Cooperative, Inc. (CENPELCO) with P45.651 million, Dinagat Island Electric Cooperative, Inc. (DIELCO) with P45.298 million, and Sorsogon I Electric Cooperative, Inc. (SORECO I) with P42.463 million. 
The NEA also granted stand-by credit loan to CASURECO I and Camarines Sur III Electric Cooperative, Inc. (CASURECO III) for power accounts totaling P25-million to strengthen their creditworthiness with generation companies.
Meanwhile, the Sultan Kudarat Electric Cooperative, Inc. (SUKELCO) secured P21.934 million for the procurement of modular generator sets. 
A P10-million calamity loan was also availed by the Abra Electric Cooperative (ABRECO). The amount was used to rehabilitate the EC's distribution facilities damaged by Typhoon Ompong (Mangkhut).
The calamity loan being offered by the NEA has a 10-year repayment term with maximum grace period of one year and an interest rate of 3.25 percent per annum. The average processing time is seven days. ###

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