NEA releases P1.6B to electric co-ops

MANILA, Philippines - The National Electrification Administration (NEA) has released P1.6 billion worth of loans to 41 electric cooperatives around the country last year through its Enhanced Lending Program.

NEA administrator Edita Bueno said the program is part of the agency’s drive to help electric cooperatives become financially viable.

The state-owned NEA, which is tasked to provide total rural electrification around the country, has urged electric cooperatives to avail of the lending program.

The loans being offered have competitive interest rate at nine percent per annum for loans to be repaid in more than two years and eight percent per annum for loans to be paid within two years or less.

There will also be no additional charges for term loans; longer repayment period from three to five or five to 10 years as well as fast processing period, electronic fund transfer and assistance in the preparation of project feasibility studies.

NEA said many have availed of calamity loans to fund the rehabilitation of lines damaged by typhoons Pedring, Quiel and Sendong.

The Lanao del Sur Electric Cooperative Inc. (Lasureco) for instance, tapped a P29.93 million concessional loan with an interest rate per annum of six percent.

This was used for the replacement and installation of lines and distribution transformers in order to improve its operational performance.

NEA also granted the so-called single digit system loss loan to eight ECs to assist them in the reduction of their annual systems loss by at least one percent yearly and thereby improve system reliability.

The system loss reduction program includes activities such as purchase, replacement of power transformer, meter pole clustering, rehabilitation of defective lines and replacement of defective kilowatt-hour meters as well as installation of grounding transformers and gas circuit breakers.

It also granted rural electrification loans to 35 cooperatives for the rehabilitation and upgrading of their distribution systems.