NEA Q1 loans to power cooperatives hit P102M

THE NATIONAL Electrification Administration (NEA) said it disbursed P102.4 million worth of loans to five electric cooperatives (ECs) in the first quarter, mostly for the capital expenditure (capex) and working capital needs of two utilities.

In a statement Monday, the NEA said P59.5 million went to Davao del Norte Electric Cooperative, Inc. and the Camarines Sur III Electric Cooperative, Inc. (Casureco III).

The remaining P42.9 million consisted of calamity loans to Casureco III, Marinduque Electric Cooperative, Inc., Oriental Mindoro Electric Cooperative, Inc., and Quezon I Electric Cooperative, Inc.

“These ECs availed of the calamity loans for the repair and rehabilitation of their respective power distribution systems and other facilities that were damaged by typhoons Quinta, Rolly, and Ulysses last year,” NEA said.

NEA’s calamity loan is payable over 10 years, with a grace period of one year at an interest rate of 3.25%.

This year, the agency has set a lending target of P500 million to support the electrification projects of ECs. The total excludes calamity loans.

In 2020, 20 ECs borrowed P439.98 million from the NEA, with the bulk of the funds going to capex and working capital. Some P311.90 million went to 12 ECs, while P128.08 million went out as calamity loans. — Angelica Y. Yang