The Tawi-Tawi Electric Cooperative, Inc. (TAWELCO) has advanced its first step under the Financial Debt Restructuring Agreement by making its first amortization payment.

In a press release dated February 18, the Department of Energy (DOE) said Kaltimex Rural Energy Corp. (KALTIMEX) reported that TAWELCO has been consistently meeting its payment obligations as well as its operational commitments, as outlined by the agreement.

KALTIMEX showcased that it received a PHP 10 million down payment and PHP 500,000 representing the cooperative’s first amortization on February 10, 2026. This was presented during a meeting led by DOE Undersecretary Rowena Cristina L. Guevara.

The debt restructuring agreement, signed on December 15, 2025, was designed to address about PHP 400 million in unpaid obligations and place TAWELCO on a structured repayment plan tied directly to operational performance targets. The arrangement was positioned as a way to not only strengthen the cooperative’s financial footing, but also improve electricity service in Tawi-Tawi as a whole.

The DOE described the latest payment as a significant step in TAWELCO’s financial recovery, pointing out that sustained compliance reflects improved organizational discipline and accountability under its current leadership.

Undersecretary Guevara commended the cooperative’s management for honoring its commitments, describing TAWELCO as “the EC that can,” and emphasizing the importance of accountable governance in sustaining reform initiatives.

TAWELCO’s service area is in an off-grid, geographically isolated area in the Sulu Archipelago. In these remote provinces, financial instability can directly affect the reliability of power supply. Continued adherence to the restructuring agreement is seen as crucial to maintaining operations and strengthening service delivery in the province.

With the initial amortization now made, will sustained compliance under the restructuring plan translate into more stable and reliable electricity service for consumers in Tawi-Tawi?

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