The National Electrification Administration (NEA) has continued to support the electric
cooperatives (ECs) in their various electrification projects focused on improving their
services to the communities they serve.
Latest data from the NEA Accounts Management and Guarantee Department (AMGD)
showed that from January to June 2019, the state-run agency released P395 million
worth of loans to 19 ECs for their capital expenditure (CapEx) projects and working
capital requirement.
These projects were ranging from construction of sub-transmission and distribution
lines, substations, office buildings, rehabilitation and upgrading of distribution system
and mini-hydro power plant, and acquisition of vehicles and other logistical support.
Among those ECs that availed loans were those operating in Pangasinan, Ilocos Norte,
Tarlac, Laguna, Occidental Mindoro, Camarines Sur, Sorsogon, Ticao Island, Capiz,
Zamboanga del Norte, Bukidnon, Davao del Norte, Cotabato, Sulu, Siasi, Agusan del
Sur, Dinagat Island, and Surigao del Sur.
“For this year, the NEA has targeted P450 million for its financial assistance to ECs
through various loan windows. The amount is lower compared with last year’s P1.7
billion target. Despite this, the NEA continues to find ways to assist our ECs in the
implementation of their electrification projects,” NEA Administrator Edgardo
Masongsong said.
The availment of loan is part of the fast-track lane being implemented by the NEA,
which has supervisory powers over 121 ECs in the country as mandated under
Republic Act 10531.
In addition, the electrification agency also extended P10 million in calamity loan to
support the rehabilitation works of the Abra Electric Cooperative
(ABRECO). The amount was meant to finance the rehabilitation of the distribution
system and other facilities of ABRECO that were damaged by Typhoon Ompong
(Mangkhut) last year.
A calamity loan is payable in 10 years with maximum grace period of one year at 3.25
percent interest rate per annum. The processing time is seven days. ##