NEA extends P343.445-million loans to ECs from January to July
By Lenie Lectura – August 13, 2020
from Business Mirror
THE National Electrification Administration (NEA) has extended P343.445 million worth of loans to all electric cooperatives (ECs) from January to July this year.
The state firm said that of the amount, P240.365 million was disbursed to fund the electrification projects and working capital requirements of nine ECs. NEA said the amount covered the capital expenditures (capex) of eight ECs worth P167.962 million.
The remaining P33.641 million and P38.762 million were utilized by Occidental Mindoro Electric Cooperative Inc. as working capital loan and by Misamis Oriental I Rural Electric Service Cooperative Inc. (MORESCO I) for the procurement of modular generator sets, respectively.
NEA also provided calamity loans amounting to P103.080 million to 12 ECs in Mimaropa, Bicol, Western and Northern Visayas regions for the reconstruction and rehabilitation of their power distribution facilities damaged by typhoons Ursula and Tisoy.
The calamity loan has a maximum 10-year repayment term, with a grace period of one year and an interest rate of 3.25 percent per annum.
Earlier, NEA Administrator Edgardo Masongsong issued a memorandum extending for 30 days the payment deadline for loan amortization of the ECs due for the second quarter of this year even though the extension will affect the agency’s cash inflow.
“Assuming that there will be no collections on loan amortization from the electric cooperatives until December of this year, this will result to no loan releases from the NEA to the ECs as well,” Masongsong said.
NEA, a government-owned and -controlled corporation attached to the Department of Energy (DOE), offers a wide range of loans to qualified ECs, such as regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy, and modular generator sets loan.
