NEA approves P343.45 million worth of loans to power cooperatives

nea approves p343 45 million worth of loans to power cooperatives - NEA approves P343.45 million worth of loans to power cooperatives

LOANS granted to electric cooperatives in the seven months to July amounted to P343.45 million, according to the National Electrification Administration (NEA).

The NEA citing data from its Accounts Management and Guarantee Department, said that around P240.37 million in loans went to bankroll electrification projects and working capital requirements for nine electrical cooperatives, while P103.08 million were issued as calamity loans.

Of the electrification loans, NEA said P167.96 million went to capital expenditure projects of eight electric cooperatives, while P33.64 million went to the Occidental Mindoro Electric Cooperative, Inc. as a working capital loan; P38.76 million went to to Misamis Oriental I Rural Electric Service Cooperative, Inc. for the acquisition of modular generator sets.

NEA said the remaining P103.08 million was allocated to calamity loans for 12 electric cooperatives in Bicol, MIMAROPA (Mindoro, Marinduque, Romblon, and Palawan), and the Visayas.

The loans were used to rehabilitate power distribution facilities damaged during Typhoons Ursula and Tisoy.

“The calamity loans have a maximum 10-year repayment term, with a grace period of one year and an interest rate of 3.25% per annum,” the NEA said.

Meanwhile, NEA Administrator Edgardo R. Masongsong issued a memorandum allowing a 30-day extension to the payment deadline for loan amortizations of the  cooperatives owed for the second quarter.

“Assuming that there will be no collections on loan amortization from the electric cooperatives until December of this year, this will result in no loan releases from the NEA to the electric cooperatives as well,” Mr. Masongsong said.

NEA is a government-owned and controlled corporation under the Department of Energy. The agency offers loans to qualified electric cooperatives such as regular, calamity, and concessional loans, among others. — Revin Mikhael D. Ochave

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