NEA Lends P102 Million To Electric Co-Ops

BY LENIE LECTURA – APRIL 20, 2021
from Business Mirror

The National Electrification Administration (NEA) has extended P102 million in loans to electric cooperatives in the first quarter.

Latest data from the NEA Accounts Management and Guarantee Department (AMGD) showed that from January to March this year, P102.4 million was released to 5 ECs.

Of the amount, P59.5 million went to Davao del Norte Electric Cooperative, Inc. (DANECO) and the Camarines Sur III Electric Cooperative Inc. (CASURECO III) for their capital expenditure (capex) projects and working capital requirements.

For 2021, the NEA has set a target of P500 million to support the funding requirements of ECs in implementing their various rural electrification projects. The amount does not include calamity loans.

“Under the NEA Lending and Guarantee Program, our ECs may avail of the needed financial assistance for their electrification projects to improve the operational efficiencies and delivery of electric services to their consumers,” NEA Administrator Edgardo Masongsong said.

Meanwhile, NEA extended P42.9-million worth of calamity loans to 4 ECs, namely, CASURECO III, Marinduque Electric Cooperative, Inc. (MARELCO), Oriental Mindoro Electric Cooperative Inc. (ORMECO), and Quezon I Electric Cooperative Inc. (QUEZELCO I).

These ECs availed of the calamity loans for the repair and rehabilitation of their respective power distribution systems and other facilities that were damaged by typhoons Quinta, Rolly, and Ulysses last year.

The calamity loan offered by the NEA has a maximum 10-year repayment term, with a grace period of one year and an interest rate of 3.25 percent per annum.