NEA lends P847 million to 22 ECs in 8 months

NEA said it extended a total of P846.71-million worth of loans to 22 electric cooperatives (ECs) from January to August.
Miguel De Guzman, file

MANILA, Philippines — Loans released by state-run National Electrification Administration (NEA) to electric cooperatives reached nearly P900 million as  of end-August.

NEA said it extended a total of P846.71-million worth of loans to 22 electric cooperatives (ECs) from January to August.

The amount is lower than the P960.85-million worth of loans released by NEA in the same eight-month period last year, which include calamity loans for the rehabilitation of various power distribution systems devastated by previous Typhoons Kiko and Odette.

Data from the NEA accounts management and guarantee department showed that the biggest chunk of this year’s loans at P411.86 million was utilized by 16 ECs for their capital expenditures.

Some P372 million, meanwhile, was borrowed by seven ECs as working capital.

NEA said one EC borrowed P12.85 million for its modular generator set, while another EC availed a P50 million short-term credit facility loan.

NEA has been offering financial assistance to ECs through its enhanced lending program.

The program consists of regular, calamity and concessional loans, stand-by and short-term credit loans, single digit system loss, renewable energy and modular generator set loans.

NEA last year extended a total of P1.2-billion worth of loans to support the operations of 35 ECs.

NEA is mandated to carry out the total electrification of the country on an area coverage basis, with the 121 ECs as the implementing arm.

It has committed to achieving total electrification of the country by 2028, which President Marcos has vowed to push within his term.

“We in NEA, together with the 121 electric cooperatives, are prepared for the coming challenges and are ready to meet them,” NEA administrator Antonio Mariano Almeda earlier said.

“The road to 100 percent electrification will be no easy task. However, with much political will and determination, I am confident that what was started by former President Marcos Sr. will be fully realized in the person of his son, President Ferdinand Marcos Jr.,” he said.

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