The magnitude of loans extended by the National Electrification Administration (NEA) to the electric cooperatives (EC) surpassed P1.0 billion mark last year, according to the government-owned agency.

In a statement to the media, NEA emphasized that at least 28 electric cooperatives (ECs) availed of loan facilities that had been processed by its Accounts Management and Guarantee Department (AMGD) – the last batch prior to end-year 2023 of which had been P27 million worth of credit facilities.

According to NEA-AMGD, the loans granted last year had been higher by 143.22-percent versus targeted loan releases of P700 million.

The bulk of the loans at P474.69 million had been funneled to 19 ECs for their capital expenditure (capex) requirements – and the beneficiaries had been power utilities in Basilan, Bohol, Bukidnon, Camotes Islands, Davao del Sur, Iloilo, Laguna, Leyte, Misamis Oriental, Negros Occidental, Northern Samar, Quezon Province, Siargao, Siasi, Sorsogon, South Cotabato, Surigao del Sur, Tawi-Tawi, and Zamboanga del Norte.

Significant loans were also availed of for the working capital needs of the ECs – and these have been valued at aggregate P465 million.

The 11 power utilities with working capital-anchored borrowings have been the ECs servicing Antique, Aurora, Batanes, Bohol, Camiguin, Central Pangasinan, Laguna, Lanao del Norte, Misamis Oriental, Negros Oriental, and Zamboanga del Sur.

Additionally, P12.85 million worth of loans had been granted to Misamis Oriental I Rural Electric Service Cooperative, Inc. (MORESCO I) – and that was utilized for its purchase of modular genset facility.

Another P50 million worth of loans had also been extended as short-term credit facility to Lanao Del Norte Electric Cooperative (LANECO), which has been servicing customers covered by its franchise area in the Mindanao grid.

On its supervisory role over the more than 120 electric cooperatives in the country, NEA is similarly taking the critical function of extending them loans to satiate part of their financial requirements for their operations as well as for programmed projects.

During calamities, it is also state-run electrification agency that the ECs can run to for loans if they would need repair or rehabilitation of their facilities adversely affected by these disasters.

And to ensure that these power utilities servicing regional areas are within standards on their operations, it is also NEA that has been assessing both their technical and financial performance in serving the end-users.