NEA extends P700 million loans to ECs in 2019

MANILA, Philippines — State-run National Electrification Administration (NEA) has extended P705 million worth of loans to 31 electric cooperatives (ECs) last year.

NEA said it surpassed its full-year target of P450 million.

Of the total amount, P658.09 million was used by ECs to bankroll their capital expenditure projects (capex).

These include the 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.

Zamboanga del Norte Electric Cooperative Inc. (ZANECO) cornered the bulk of the total loans with P104.95 million, followed by Camarines Sur I Electric Cooperative Inc. (CASURECO I) with P60.96 million, Central Pangasinan Electric Cooperative (CENPELCO) with P45.651 million, Dinagat Island Electric Cooperative (DIELCO) with P45.3 million, and Sorsogon I Electric Cooperative Inc. (SORECO I) with P42.46 million.

NEA also granted stand-by credit loan to CASURECO I and CASURECO III for power accounts which total P25 million to strengthen their creditworthiness with generation companies.

Meanwhile, Sultan Kudarat Electric Cooperative (SUKELCO) secured P21.93 million for the procurement of modular generator sets.

Abra Electric Cooperative (ABRECO), on the other hand,  availed of a P10-million calamity loan which was used to rehabilitate the EC’s distribution facilities damaged by Typhoon Ompong.

The calamity loan being offered by 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.