Cash-strapped power cooperative gets help
BANGUED, Abra, Philippines – The Abra Electric Cooperative (Abreco), which has been experiencing financial difficulties, is getting help from the National Electrification Administration (NEA).
NEA personnel recently visited Abreco to review its policies and guidelines, evaluate its financial and technical management and reorganize its staff.
The power cooperative has incurred P400 million in debts.
In 2004, the Power Sector Assets and Liabilities Management (PSALM)’s board condoned Abreco’s loans amounting to P24 million and P87 million, or a total of P112 million.
Abreco has yet to pay P88 million from the more than P200 million it borrowed from the NEA, which was spent for the mini-hydro and dendrothermal plant projects that were never finished.
Abreco general manager Loreto Seares Jr. said an operational improvement plan is currently being undertaken to resuscitate the cooperative.
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