Power co-ops take out P238-M loans in Jan-May

By Jordeene B. Lagare – June 7, 2020
from The Manila Times

Various electric cooperatives (ECs) have secured more than P238 million in loans in the first five months of the year, the National Electrification Administration (NEA) said on Friday.

Data from the NEA’s Accounts Management and Guarantee Department showed that 16 ECs have availed themselves of P238.606 million worth of these loans, including calamity loans, as of May 31.

The bulk of the amount, or P135.526 million, was used to finance the cooperatives’ capital expenditure (capex) projects and working capital requirements.

Meanwhile, the agency released P103.08 million in calamity loans to power cooperatives in Regions 4B (Mindoro island and the provinces of Marinduque, Romblon and Palawan), 5 (Bicol), 6 (Western Visayas) and 8 (Eastern Visayas).

The amount was used for the rehabilitation of the cooperatives’ power distribution lines and facilities damaged by Typhoons “Tisoy” and “Ursula” last year.

Northern Samar Electric Cooperative Inc. and Sorsogon I Electric Cooperative Inc. topped the list of ECs that availed themselves of calamity loans with P20.506 million and P18.353 million, respectively. Oriental Mindoro Electric Cooperative Inc. was next with P14.223 million, Masbate Electric Cooperative Inc. with P9.634 million and Iloilo III Electric Cooperative Inc. with P9.078 million.

ECs can avail themselves of calamity loans with a maximum 10-year repayment term, with a grace period of one year and an interest rate of 3.25 percent per annum.