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P238-M LOANS EXTENDED TO POWER COOPS IN 5 MONTHS – NEA

The National Electrification Administration (NEA) released P238-million worth of loans, including calamity loans, to various electric cooperatives (ECs) in the first five months of 2020.

Data from the NEA Accounts Management and Guarantee Department (AMGD) as of May 31, 2020 showed that P238.606-million was borrowed by 16 ECs across the country.

The calamity loan extended by the NEA to electric coops has a maximum 10-year repayment term.

The bulk of the amount, or P135.526 million, was used to finance the ECs’ capital expenditure (CapEx) projects and working capital requirement. 

Meanwhile, a total of P103.080 million was released as calamity loans to 12 ECs operating in Mimaropa (Mindoro, Marinduque, Romblon, and Palawan), Bicol, Eastern and Western Regions.

The amount was used for the rehabilitation of their power distribution lines and facilities damaged by typhoons — ‘Tisoy’ and ‘Ursula’ — that hit the country last year. 

Topping the list of the ECs that availed of calamity loans were the Northern Samar Electric Cooperative, Inc. (P20.506 million) and the Sorsogon I Electric Cooperative, Inc. (P18.353 million).

They were followed by the Oriental Mindoro Electric Cooperative, Inc. (P14.223 million), Masbate Electric Cooperative, Inc. (P9.634 million), and Iloilo III Electric Cooperative, Inc. (P9.078 million).

The calamity loan extended by the NEA to electric co-ops has a maximum 10-year repayment term, with a grace period of one year and an interest rate of 3.25 percent per annum.

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