THE STATE-RUN NATIONAL ELECTRIFICATION Administration has facilitated the release of P908 million in loans to 48 electric cooperatives in the first nine months of the year, through its Enhanced Lending Program, the agency said recently.
In a statement, NEA said the loans are expected to help electric cooperatives to be operationally strong and viable to ensure a competitive electricity industry.
NEA said it encourages the electric cooperatives to avail of its program since the loans being offered have ?competitive? annual interest rates of 9 percent per annum for loans that mature in over two years, and 8 percent for loans maturing in two years or less.
Other features of the program include exemptions from charges for term loans; longer repayment periods; faster processing; the use of electronic fund transfers; lower minimum requirements; availability of assistance in the preparation of project feasibility study; and the availability of ?personalized? service for the borrowers.
Electric cooperatives had availed of loans mostly for the rehabilitation and upgrading of their distribution systems, NEA added.
According to NEA, four cooperatives availed of P34.46 million worth of calamity loans for the rehabilitation of their distribution systems, which were damaged by typhoons ?Cosme,? ?Emong,? ?Kiko? and ?Feria.?
So-called Single Digit System Loss Loans were also granted to 16 cooperatives to assist them in the reduction of their annual systems losses by at least 1 percent yearly, thus improving system reliability.
These loans were worth P168.58 million.
Among the activities for the reduction of systems losses included the purchase or replacement of power transformers; meter pole clustering; rehabilitation of defective lines and replacement of defective kilowatt-hour meters; and the installation of grounding transformers gas circuit breakers, system power protectors or meters.
Concessional loans worth P93 million were also given to the Cagayan II Electric Cooperative for the construction of a 17-kilometer, 69-kilovolt sub-transmission line and the installation of a 10-megavolt ampere substation, while Lubang Electric Cooperative was granted P4.98 million for the rehabilitation of distribution lines, replacement of electric meters and the purchase of vehicles.
Meanwhile, 34 cooperatives were granted Rural Electrification Loans, among which is P50 million for Benguet Electric Cooperative for the extension of distribution lines to 106 municipal areas.
