NEA extends P152-M loans to power co-ops

The National Electrification Administration (NEA) extended a total of P152.1-million loans to 55 electric cooperatives in 1999. There are a total of 119 rural electric cooperatives in the country.

Interest for the loans range from a low of two percent to a high of 12 percent per annum. Others were accorded interest free loans with long repayment periods.

Under its charter, NEA is mandated to extend loans to duly registered rural electric cooperatives. Likewise, terms of payment will also be liberally determined by the government line agency of the Department of Energy (DOE).

The First Catanduanes Electric Cooperative (Ficelco) accounted for the biggest share of the loan pie with P30 million.

The government agency slapped a similar two percent yearly interest rates with a 10-year repayment period, including a two-year grace period.

A P15-million loan with a 12-percent interest rate was undertaken by the Central Pangasinan Electric Cooperative (Cenpelco). It was signed in May last year which was payable one-year from effectivity.

NEA had earmarked a total of P25 billion for debt services as well as its expansion program for year 2000. P10-billion will be used for debt servicing while the larger P15 billion will be used for the upgrading and expansion program.

Meanwhile, NEA was able to reduce its average systems loss from 17.3 percent in June 1998 to 16.3 percent in October last year, generating savings equivalent to P54 million.

"In fact, 14 rural cooperatives have achieved single-digit systems loss in 1999. Batangas I Cooperatives has the lowest systems loss rate at 4.4 percent. Such improvement in systems losses will directionally decrease rates to consumers," the NEA said.