Lending to power cooperatives rises to P1.8 billion in nine months

MANILA, Philippines — The National Electrification Administration (NEA) has granted P1.8 billion in loans to power coops as of the end of September, hitting its full-year target three months ahead of schedule.

NEA extended P1.8-billion worth of loans, including calamity loans, to 57 electric cooperatives (ECs) as of Sept. 30, according to latest data from the NEA Accounts Management and Guarantee Department (AMGD).

The agency released a total of P1.049 billion to 45 ECs to finance capital expenditure projects and P99 million to six other ECs for the repair and rehabilitation of damaged distribution facilities due to previous Typhoons Lawin, Urduja and Vinta, and other calamities.

Among the ECs that availed calamity loans are Isabela II Electric Cooperative (Iselco II), Biliran Electric Cooperative Inc. (Bileco), Lanao del Norte Electric Cooperative Inc. (Laneco), First Bukidnon Electric Cooperative Inc. (Fibeco), Lanao del Sur Electric Cooperative Inc. (Lasureco), and Surigao del Norte Electric Cooperative Inc. (Surneco).

“In times of calamities, the NEA provides on time calamity loan as financial assistance to the ECs in order to repair damaged distribution system and immediately restore power supply to their member-consumer-owners (MCOs),” NEA acting deputy administrator Vicar Loureen Lofranco said.

The state-run firm also loaned P20 million to Quezon I Electric Cooperative Inc. (Quezelco I) to finance its monthly shortfall on the settlement of power accounts with generation companies and the National Grid Corp. of the Philippines (NGCP).

It also provided a P145-million stand-by credit loan facility to Zamboanga Electric Cooperative Inc. (Zamcelco) for power accounts to strengthen its creditworthiness with generation companies and market operator.

In addition, the NEA awarded P134 million in loans to four ECs for the procurement of modular generator sets. These are Misamis Oriental I Electric Cooperative Inc. (P38.762 million), Misamis Oriental II Electric Cooperative Inc. (P43.516 million), Sultan Kudarat Electric Cooperative Inc. (P32.901 million), and Agusan del Norte Electric Cooperative Inc. (P18.771 million).

Nine other ECs secured working capital loans totaling P374 million. These are the Abra Electric Cooperative (P18.456 million), Occidental Mindoro Electric Cooperative Inc. (P58.462 million), Marinduque Electric Cooperative Inc. (P66.795 million), Sorsogon I Electric Cooperative Inc. (P28.613 million), Aklan Electric Cooperative Inc. (P65 million), Camotes Electric Cooperative Inc. (P7.387 million), Negros Oriental I Electric Cooperative Inc. (P20 million), Misamis Oriental II Electric Cooperative Inc. (P79 million), and Nueva Ecija II Electric Cooperative Inc. - Area 2 (P30 million).

Loan availments by the ECs are included in the fast-track lane being implemented by NEA. The processing time is 24 working days for regular loans, 13 days for short-term loans and seven days for calamity loans.

A calamity loan offered by the NEA has a 10-year repayment term with a maximum grace period of one year and interest rate of 3.25 percent per annum.

 NEA has been offering a number of loan programs to the ECS to help them provide continuous and better delivery of service to their MCOs.