THE National Electrification Administration (NEA) said Friday that it lent a total of P1.403 billion to 43 electric cooperatives (ECs) from January to August this year to finance their capital expenditure projects and the rehabilitation of their power distribution systems.
NEA said that of the total amount, P399 million was extended as calamity loans to nine ECs in the wake of Typhoons Lando and Nona.
A calamity loan has a repayment term of 10 years with a one-year grace period and an interest rate of 3.25 percent per annum, the agency said.
It said P344.5 million was borrowed by five ECs to finance their monthly shortfalls on the settlement of their power accounts with the generation companies (GenCos) and the National Grid Corporation of the Philippines (NGCP). The ECs must settle their arrearages with the generation companies in order to avail of the prompt payment discount.
NEA said Camarines Sur I Electric Cooperative, Inc. (Casureco I) and Zamboanga City Electric Cooperative, Inc. (Zamcelco) availed of the standby credit loan facility for power accounts totaling to P298.156M to strengthen their creditworthiness with GenCos.
Meanwhile, three co-ops in Mindanao–Misamis Oriental II Electric Cooperative, Inc. (Moresco II), Agusan Del Norte Electric Cooperative, Inc. (Aneco) and Surigao Del Norte Electric Cooperative, Inc. (Surneco)–secured loans amounting to P207 million for the procurement of modular generator sets [gensets]to address power lack in the island especially during the summer months.
Moresco II also availed of a P131.6 million loan from NEA for the acquisition of five units of 2- megawatt (MW) capacity modular gensets.
“As part of NEA’s mandate, the agency has developed a credit guarantee program and facility for the ECs. 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,” NEA officer-in-charge Sonia B. San Diego said in a statement.
“NEA also continues to find ways to make funds readily available for the ECs particularly in times of natural and man-made calamities for them to serve better their member-consumers,” she added.
This year, NEA introduced new credit facilities. These include Emergency, Unplanned and Contingency CAPEX Projects and Disaster Resiliency Program for ECs; and Renewable Energy Projects of ECs.
The average number of days to release a loan is eight working days for regular loans and five days for calamity loans for 2016.
To date, the 47-year old state-run agency has already extended P34.721 billion in loans to the 119 electric cooperatives nationwide to finance their rural electrification projects.