Hitting its full-year target three months ahead of schedule, state-run agency National Electrification Administration (NEA) has awarded P1.8 billion worth of loans to power coops for rehabilitation efforts of damaged electric facilities.
According to the latest data of the NEA Accounts Management and Guarantee Department (AMGD), at least 57 electric cooperatives received P 1.8 billion which include calamity loans as of September 30.
A total of P 1.049 billion was given to 45 ECs to fund capital expenditure projects, and P 99 million to six other ECs to repair and rehabilitate the damaged distribution facilities due to previous typhoons Lawin, Urduja, Vinta, and other calamities.
The ECs that received the calamity loan were Isabela II Electric Cooperative (Iselco II), Biliran Electric Cooperative inc. (Bileco), Lanao del Norte Electric Cooperative Inc. (Laneco), First Bukidnon Electric Cooperative Inc. (Fibeco), Lanao del Sur Electric Cooperative Inc. (Lasureco), and Surigao del Norte Electric Cooperative Inc. (Surneco).
“In times of calamities, the NEA provides on time calamity loan as financial assistance to the ECs in order to repair damaged distribution system and restore immediately power supply to their member-consumer-owners (MCOs),” NEA acting deputy administrator Vicar Loureen Lofranco said.
NEA also loaned P20 million to Quezon I Electric Cooperative Inc. (Quezelco I) in order to finance its monthly shortfall on the settlement of power accounts with generation companies and the National Grid Corp. of the Philippines (NGCP).
A P145-million stand-by credit loan facility to Zamboanga Electric Cooperative Inc. (Zamcelco) was also loaned for power accounts to strengthen its creditworthiness with generation companies and market operator.
NEA also awarded P134-million in loans for the procurement of modular generator sets to four ECs, namely: Misamis Oriental I Electric Cooperative Inc. (P38.762 million), Misamis Oriental II Electric Cooperative Inc. (P43.516 million), Sultan Kudarat Electric Cooperative Inc. (P32.901 million), and Agusan del Norte Electric Cooperative Inc. (P18.771 million).
Nine other ECs secured working capital loans totaling P374 million. These are the Abra Electric Cooperative (P18.456 million), Occidental Mindoro Electric Cooperative Inc. (P58.462 million), Marinduque Electric Cooperative Inc. (P66.795 million), Sorsogon I Electric Cooperative Inc. (P28.613 million), Aklan Electric Cooperative Inc. (P65 million), Camotes Electric Cooperative Inc. (P7.387 million), Negros Oriental I Electric Cooperative Inc. (P20 million), Misamis Oriental II Electric Cooperative Inc. (P79 million), and Nueva Ecija II Electric Cooperative Inc. – Area 2 (P30 million).
For regular loans, NEA’s processing time is 24 working days, 13 days for short-term loans, and seven days of calamity loans.
NEA offers a calamity loan with a 10-year repayment term with a maximum grace period of one year and interest rate of 3.25 percent per annum.
In order to help ECs, NEA has been offering numerous loan programs for continuous and better delivery of service.