The loans extended by the National Electrification Administration (NEA) to the country’s electric cooperatives (ECs) reached P364.5 million as of end-September, and that already topped the scale of credit window allotted for them this year.
The government-run agency said the credit facilities funneled to the power utilities include those on calamity loans, which had been accessed by the ECs so they can push for the repair of their facilities walloped by natural disasters, primarily typhoons.
Data from NEA’s Accounts Management and Guarantee Department (AMGD) showed that the bulk of the loans at P261.462 million had been for capital expenditure (capex) projects; and the other big-ticket items were for the ECs’ working capital requirements and purchase of modular gensets.
The agency emphasized its loan target for the ECs this year, excluding calamity loans, had been set at P245 million; hence, it is apparent that the amount was already exceeded by roughly 7.0-percent.
On the calamity loans, this accounted for the bulk of the credit facility tapped by the ECs; and this was accessed by at least 12 ECs – namely: the Camarines Sur III Electric Cooperative, Iloilo III Electric Cooperative; Lubang Electric Cooperative; Marinduque Electric Cooperative; Masbate Electric Cooperative; Northern Samar Electric Cooperative, Occidental Mindoro Electric Cooperative, Oriental Mindoro Electric Cooperative, Sorsogon I and II Electric Cooperative, Tablas Island Electric Cooperative and Ticao Island Electric Cooperative.
NEA said the specified electric cooperatives had all sustained significant damage in their facilities with the onslaught of typhoons Ursula and Tisoy last year.
The agency noted that a calamity loan has 10-year repayment term – and a grace period of one year and an interest rate of 3.25-percent per annum.
NEA stated that most of the power utilities also availed of the lending facilities offered because they needed cash “to bankroll their various rural electrification projects.”
The ECs which borrowed for their capex needs included Cagayan II Electric Cooperative Inc., Camarines Sur I and III Electric Cooperatives; Davao del Norte Electric Cooperative, Masbate Electric Cooperative, Misamis Oriental I Electric Cooperative, Sulu Electric Cooperative, Surigao del Sur Electric Cooperative, Ticao Island Electric Cooperative and Quezon I Electric Cooperative Inc.
The biggest loan amounting to P38.762 million, according to NEA, went to Misamis Oriental I Rural Service Electric Cooperative; and this has been earmarked for its procurement of modular gensets.
Another sizeable borrowing at P33.641 million was availed of by the Occidental Mindoro Electric Cooperative, mainly to bankroll its working capital requirements.