State-run National Electrification Administration (NEA) has extended a total of P1.9 billion worth of loans to 87 electric cooperatives last year and in the first two months of 2012, to help finance various electrification projects.
Of the amount, P1.395 billion worth of loan packages were granted last year, benefiting 64 cooperatives.
The loans were meant to settle the cooperatives’ power accounts with its providers for a particular period, NEA explained in a statement on Monday.
Also, a total of P515 million worth of loans were granted to 23 cooperatives in the first two months of the year.
According to NEA, Cagayan I Electric Cooperative, Inc. (Cagelco I) received the biggest loan amounting to P665 million worth of stand-by credit.
La Union Electric Cooperative Inc. (Luelco) garnered the second biggest loan with P610 million. It was used to finance its monthly shortfall on the settlement of power accounts with the state-run National Power Corp. and the National Grid Corp. of the Philippines (NGCP). Also, Isabela I Electric Cooperative Inc. (Iselco I) received P560 million.
“NEA continues to assist ECs [electric cooperatives] in enhancing their financial, institutional and technical capabilities in order to better serve their member-consumers and help them uplift the quality of their life,” the agency said.