NEA loans to ECs reach P960 M
By Myrna M. Velasco – September 12, 2022, 8:09 AM
from Manila Bulletin
The scale of loans extended by government-run National Electrification Administration (NEA) to the electric cooperatives (ECs) went beyond P960 million as of end-August this year.
According to the Accounts Management and Guarantee Department of NEA, the bulk of the credit facilities availed of by at least 10 ECs had been those on calamity loans — for aggregate amount of P505.76 million.
The electrification agency explained that these loans had been utilized for “the repair and rehabilitation of their damaged facilities;” primarily their assets pummeled by last year’s wallop of super typhoons Kiko and Odette.
The power utilities which accessed calamity loans include: Batanes Electric Cooperative; Palawan Electric Cooperative; Bohol I Electric Cooperative; Bohol II Electric Cooperative; Cebu I Electric Cooperative; Negros Oriental I Electric Cooperative; Leyte IV Electric Cooperative; Southern Leyte Electric Cooperative; Misamis Oriental II Electric Cooperative; and Surigao del Norte Electric Cooperative.
NEA emphasized that it has been offering financial assistance to ECs through its ‘enhanced lending program’ – and such comprise of regular, calamity and concessional loans; as well as stand-by and short-term credit loans, single-digit system loss, renewable energy and modular generator set loan facilities.
The agency has been encouraging the shift of ECs to hybrid technologies with the deployment of renewable energy resources; that way, the regional power utilities can scale down their carbon footprints while at the same time lowering the cost of power for their consumers.
Additionally, NEA had logged P303.73 million worth of loans that had been funneled for the capital expenditure (capex) projects of at least 19 borrower-ECs, including those of Basilan Electric Cooperative; Bohol I Electric Cooperative; Bohol II Electric Cooperative; Bukidnon Second Electric Cooperative; Camarines Sur I Electric Cooperative; Camarines Norte Electric Cooperative; and Davao Oriental Electric Cooperative.
The others have been: First Laguna Electric Cooperative; Iloilo III Electric Cooperative; La Union Electric Cooperative; Leyte IV Electric Cooperative; Northern Samar Electric Cooperative; Quezon I Electric Cooperative; Quezon II Electric Cooperative; Siargao Electric Cooperative; Surigao del Sur I Electric Cooperative; Tarlac I Electric Cooperative; Zamboanga del Sur II Electric Cooperative; and Zamboanga del Norte Electric Cooperative.
NEA further noted that P101.36 million worth of working capital credit window had been granted to Abra Electric Cooperative; Busuanga Island Electric Cooperative; Camarines Sur III Electric Cooperative; and Camotes Electric Cooperative.
The Lanao del Norte Electric Cooperative was similarly granted a loan of P50 million; which has been classified under the short-term credit facility of the electrification agency.
The performance and system improvements of the electric cooperatives are currently under rigid scrutiny, with many provincial areas complaining of recurring brownouts or power interruptions causing them inconvenience on their daily lives and have likewise been crippling the flow of investments in these affected domains.
