NEA extends P293-M loans to electric coops as of end-June

State-run National Electrification Administration (NEA) on Tuesday said it has extended a total of P293.021 million worth of loans, including calamity loans, to 13 electric cooperatives (ECs) in the first six months of 2021.

In a statement, the NEA said P165.849 million went to eight ECs for their capital expenditure (CapEx) projects, citing latest data from its Accounts Management and Guarantee Department (AMGD).

The eight ECs were Davao del Norte Electric Cooperative, Inc. (DANECO), La Union Electric Cooperative, Inc. (LUELCO), Quezon I Electric Cooperative, Inc. (QUEZELCO I), Bohol II Electric Cooperative, Inc. (BOHECO II), Bukidnon Second Electric Cooperative, Inc. (BUSECO), South Cotabato I Electric Cooperative, Inc. (SOCOTECO I), Tarlac I Electric Cooperative, Inc. (TARELCO I), and Occidental Mindoro Electric Cooperative, Inc. (OMECO).

Meanwhile, two other ECs, namely Bantayan Island Electric Cooperative, Inc. (BANELCO) and Camarines Sur III Electric Cooperative, Inc. (CASURECO III), secured working capital loans amounting to P70 million.

The remaining balance, or P57.172 million, went to five ECs as calamity loans, which they used for the repair and rehabilitation of their damaged power distribution systems due to previous typhoons Quinta, Rolly, and Ulysses.

Recipients of calamity loans include CASURECO III, QUEZELCO I, Marinduque Electric Cooperative, Inc. (MARELCO), Oriental Mindoro Electric Cooperative, Inc. (ORMECO), and Camarines Sur IV Electric Cooperative, Inc. (CASURECO IV), according to the NEA.

The electrification agency said it has been offering financial assistance to ECs through its Enhanced Lending Program, which consists of regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy and modular generator sets loan.

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, the NEA said. -MDM, GMA News