31 power co-ops tap P700-M loans from NEA
Credit to Author: Jordeene B. Lagare| Date: Fri, 24 Jan 2020 16:20:34 +0000
Thirty-one electric cooperatives (ECs) borrowed more than P700 million worth of loans from the National Electrification Administration (NEA) to improve power services in their respective coverage areas.
In a statement on Friday, the NEA said the financial aid to these co-ops in 2019 exceeded its full-year target of P450 million.
Data from the NEA Accounts Management and Guarantee Department (AMGD) showed that the agency released P705 million to these ECs. Of the amount, P658.090 million was utilized to finance capital expenditure projects.
“These projects include 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,” NEA said.
The chunk of the loans went to Zamboanga del Norte Electric Cooperative Inc. with P104.950 million, followed by Camarines Sur I Electric Cooperative Inc. (Casureco I) with P60.963 million, Central Pangasinan Electric Cooperative Inc. with P45.651 million, Dinagat Island Electric Cooperative Inc. with P45.298 million, and Sorsogon I Electric Cooperative Inc. with P42.463 million.
Also, stand-by credit loans were given to Casureco I and Camarines Sur III Electric Cooperative Inc. (Casureco III) for power accounts worth P25 million to to strengthen their creditworthiness with generation companies.
Sultan Kudarat Electric Cooperative Inc. secured P21.934 million for the procurement of modular generator sets.
Meanwhile, Abra Electric Cooperative obtained a P10-million calamity loan, which it used to rehabilitate its distribution utilities damaged by Typhoon “Ompong” (international name: “Mangkhut”).
The calamity loan being offered by the agency has a 10-year repayment term with a maximum grace period of one year and an interest rate of 3.25 percent per annum. The average processing time is seven days.