THE National Electrification Administration (NEA) nnounced on Friday that it has opened a loan window for Renewable Energy (RE) projects of electric cooperatives (ECs) in a bid to encourage ECs to deploy clean technology innovations in their franchise areas.
The new loan window will finance the equity requirements for the development and construction of RE projects, and also the costs of repairing or rehabilitating existing RE facilities of the power coops.
For new projects, ECs can secure loans up to 30 percent of the total project cost, with a loan ceiling of P100 million. The maximum loanable amount for repair or rehabilitation of existing RE facilities is set at P60 million.
The RE loan window has a 6 percent interest rate per annum or the NEA prevailing interest rate at the time of drawdown, and a 4.5 percent interest rate during a grace period. It also applies a 12 percent default charge per annum, and has a maximum 15 year repayment period and maximum three year grace period. The validity period for approved loans is three to five years, the NEA said.