State-run National Electrification Administration (NEA) welcomed the signing into law of the bill establishing an emergency and resiliency fund for electric cooperatives (ECs).
On June 29, President Rodrigo Duterte signed into law Republic Act 11039, also known as the “Electric Cooperatives Emergency and Resiliency Fund Act.”
The new law provides the ECs access to financial assistance during natural calamities for the immediate rehabilitation or reconstruction of damaged infrastructure.
“We believe this new measure reflects the Administration’s commitment to support ECs and their member-consumer-owners, as it assures the immediate rehabilitation of power facilities damaged by natural calamities and relieves them of the financial burden stemming from the cost of reconstruction,” he said.
The NEA chief also expressed his gratitude to the Senate and the House of Representatives, particularly the Energy committees of both chambers of Congress, saying the EC Emergency and Resiliency Fund Law addresses the needs of ECs that require government assistance in the aftermath of disasters.
“The NEA looks forward to working with Congress and the Department of Budget and Management (DBM) to ensure that the budgetary requirements of RA 11039 are fully integrated in the 2019 NEA budget,” Masongsong said.
Under RA 11039, the NEA will manage the EC Emergency and Resiliency Fund. The agency is also tasked to formulate policies in consultation with the National Disaster Risk Reduction and Management Council (NDRRMC) to ensure its effective implementation.
The EC Emergency and Resiliency Fund will have an initial funding of P750 million, which shall be drawn from the NDRRMC funds.