The state-run National Electrification Administration (NEA) lent a total of P2.019-billion loans to 51 electric cooperatives (ECs) for capital expenditures in 2015.
Some of the money was also used to rehabilitate power distribution systems.
According to NEA, 14 ECs borrowed some P308 million due to Typhoons Mario, Lando, Glenda, Nona, Ruby and Seniang. Calamity loan has a 10-year repayment term and a one year grace period at interest rates ranging from 3.25 percent to 4 percent.
A total of P82 million was borrowed by six ECs to fund their monthly shortfalls on the settlement of power accounts with generation companies (gencos) and the National Grid Corp. of the Philippines (NGCP). This was also done by ECs to finance their arrears with the NPC and NGCP to take advantage of prompt payment discounts.
Casureco I took out a stand-by credit loan for power accounts amounting to P5M to strengthen its creditworthiness with gencos.
Four coops in Mindanao—Zamcelco, Moresco I, Daneco and Surneco—secured loans totaling P404 million to procure modular generator set in anticipation of a power supply shortfall in the island, especially during the summer months.
The biggest loan take out was from Surneco, which borrowed P187 million for modular generator sets.
NEA said it posted a 100-percent collection efficiency on the loan amortization payments of the ECs and has paid 100 percent of its foreign loans amounting to P129 million that fell due last year.
“As part of NEA’s mandate, the agency has developed a credit guarantee program and facility for the ECs,” NEA Administrator Edita Bueno said.
“This is to establish a power supply guarantee to secure the power purchase of qualified ECs in the Wholesale Electricity Spot Market [WESM], Interim Mindanao Electricity Market [IMEM] or under a bilateral contract with the gencos or the NGCP,” Bueno noted.
“NEA also continues to find ways to make funds readily available to the ECs, particularly in times of natural and man-made calamities for them to serve better their member-consumers,” she added.
The 46-year-old NEA has extended P33.318 billion in loans to 119 electric cooperatives nationwide to finance rural electrification projects.