NEA extends P343-M loans to power cooperatives from January to July

State-run National Electrification Administration (NEA) said Thursday it has extended a total of P343.445 million worth of loans to electric cooperatives during the January to July period.

In a statement, the NEA said the lion’s share of loans worth P240.365 million went to fund the electrification projects and working capital requirements of electric cooperatives, translating to 98% or P245-million target for the period.

Broken down, P167.962 million were provided for the capital expenditure projects of eight electric cooperatives, such as P33.641 million to Occidental Mindoro Electric Cooperative Inc. (OMECO) as working capital loan, and P38.762 million to Misamis Oriental I Rural Electric Service Cooperative, Inc. (MORESCO I) for the procurement of modular generator sets.

The NEA also provided calamity loans amounting to P103.080 million to 12 electric cooperatives in MIMAROPA, Bicol, Western and Northern Visayas regions for the reconstruction and rehabilitation of their power distribution facilities damaged by previous 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% per annum, it said.

NEA Administrator Edgardo Masongsong has also issued a memorandum extending for 30 days the payment deadline for loan amortization of electric cooperatives due for the second quarter of 2020 even though the extension will affect the agency's cash inflow, particularly its Internally Generated Fund.

"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.

The NEA, a government-owned and -controlled corporation attached to the Department of Energy (DOE), offers a wide-range of loans to qualified electric cooperatives, 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. -MDM, GMA News