NEA loans to electric cooperatives reach P1.29 billion in first half

The National Electrification Administration (NEA) on Tuesday, July 24, said loans it extended to electric cooperatives (ECs) in the first half reached P1.29 billion, higher by nearly 23% compared with the P1.05 billion recorded in the same period last year.
“At least 46 of the 121 ECs supervised by the state-run agency have availed of the P1.294 billion worth of loans, including calamity loans, during the first six months of the year,” said Leila B. Bonifacio, department manager of the NEA accounts management and guarantee department, in a statement.
Of the total amount, P755 million went to 36 electric cooperatives for their capital expenditure projects while P80 million were borrowed by four ECs for the rehabilitation of their power distribution systems that were damaged by typhoons Lawin, Urduja and Vinta.
NEA extends calamity loans with a 10-year repayment term. The loans have a maximum grace period of one year at an interest rate of 3.25% per annum.
NEA Administrator Edgardo R. Masongsong said the loan facility is part of the agency’s response to President Rodrigo R. Duterte’s directive of speeding up rural electrification and removing all barriers to the country’s total electrification. — Victor V. Saulon