The aggregate loans disbursed by the National Electrification Administration (NEA) to the electric cooperatives reached P439.983 million last year, according to the agency’s accounts management and guarantee department.
The biggest pie of the loan had been soaked up by 12 electric cooperatives for a total of P311.903 million, according to the electrification agency, and these were mainly funneled for their capital expenditure (capex) projects and working capital requirements.
The government-run agency said it was able to top its programmed level of lending by 127-percent; as the original target was just set at P245 million for loan facilities that shall be earmarked for electrification projects of the ECs.
Based on the list released by NEA, the EC-recipients of the loans had been Cagayan II Electric Cooperative Inc. (CAGELCO II); Camarines Sur I Electric Cooperative Inc. (CASURECO I); CASURECO III; Davao del Norte Electric Cooperative (DANECO); Masbate Electric Cooperative (MASELCO); and Misamis Oriental I Rural Electric Service Cooperative Inc. (MORESCO I).
The others have been: Occidental Mindoro Electric Cooperative Inc. (OMECO); Sorsogon I Electric Cooperative Inc. (SORECO I); Sulu Electric Cooperative Inc. (SULECO); Surigao del Sur I Electric Cooperative Inc. (SURSECO I); Ticao Island Electric Cooperative Inc. (TISELCO); and Quezon I Electric Cooperative Inc. (QUEZELCO I).
The other fraction of the loan amounting to P128.080 million had been extended as calamity credit facility to the electric cooperatives, according to NEA.
“The calamity loan, which bears an interest rate of 3.25-percent per annum, has a 10-year repayment term and one-year grace period,” the electrification agency emphasized.
The power utilities that availed of the loan facility include those in Camarines Sur, Masbate, Occidental Mindoro, Sorsogon and Ticao Island – areas that had been battered by typhoons last year and in 2019.
The other EC-beneficiaries of the calamity loans were: Iloilo III Electric Cooperative Inc. (ILECO III); Lubang Electric Cooperative Inc. (LUBELCO); Marinduque Electric Cooperative Inc. (MARELCO); Northern Samar Electric Cooperative Inc. (NORSAMELCO); Oriental Mindoro Electric Cooperative Inc. (ORMECO); Tablas Island Electric Cooperative Inc.; and First Catanduanes Electric Cooperative Inc (FICELCO).
NEA emphasized that the single biggest amount of calamity loan that was released went to FICELCO – that was at P25 million, and it was used by the utility firm “for the repair and rehabilitation of its damaged power distribution facilities due to the onslaught of recent typhoons Quinta and Rolly.”
It has to be noted that many electric cooperatives – especially in the Bicol region and the Southern Luzon provinces, have been perennially ravaged by strong typhoons and these induced major damage in their facilities.