The National Electrification Administration (NEA) has developed a credit guarantee program and facility for electric cooperatives (ECs) and has lent a total of P1.403 billion by the end of August 2016.

“This is to establish a power supply guarantee to secure the power purchase of qualified ECs in the Wholesale Electricity Spot Market (WESM), Interim Mindanao Electricity Market (IMEM) or under a bilateral contract with the generation companies (gencos) or the National Grid Corp. of the Philippines (NGCP),”

New credit facilities like Emergency, Unplanned and Contingency CAPEX projects, and Disaster Resiliency Program for ECs and the Renewable Energy Projects of ECs were introduced by NEA.

“NEA also continues to find ways to make funds readily available for the ECs particularly in times of natural and man-made calamities for them to serve better their member-consumers,” San Diego said.

The P1.4 billion was lent to 43 ECs with Moreso II being the top availer with P131.6 million for their acquisition of five units of 2 MW modular gensets.

While P399 million was loaned to nine ECS as calamity loans due to typhoon Lando and Nona. Calamity loans are repayable by 10 years with an interest rate of 3.25 percent per annum.

P344.5 million was borrowed by five ECs to cover their monthly shortfalls in settling their power accounts with the gencos and the NGCP, and also to pay the debts with the National Power Corp. and/or the NGCP in order to avail prompt payment discount.

Meanwhile, Camarines Sur I Electric Cooperative and Zamboanga City Electric Cooperative availed the Stand – by Credit Loan Facility for power accounts amounting to P298.156 million to strengthen their credit worth with gencos.

Loans amounting to P207 million for procurement of modular generator set in anticipation of the shortfall of power supply in Mindanao was secured by Misamis Oriental II Electric Service Cooperative Inc.,Agusan del Norte Electric Cooperative Inc., and Surigao del Norte Electric Cooperative Inc.

To date, NEA has extended P34. 721 billion loans 119 electric cooperatives nationwide to finance rural electrification projects.