Bulk of loans extended to electric cooperatives (ECs) in the first half of the year were deployed as working capital, according to the National Electrification Administration (NEA).
A total P560.66 million worth of loans were extended to 18 ECs as of end-June 2023.
Of the P560.66 million, 48.5 percent or P272 million were for the working capital of six ECs including the Central Pangasinan Electric Cooperative, First Laguna Electric Cooperative, Antique Electric Cooperative, Zamboanga del Sur II Electric Cooperative, Lanao del Norte Electric Cooperative and Misamis Oriental II Electric Cooperative.
Another P225.81 million or 40.3 percent was utilized as capital expenditure loans of 13 ECs that include the First Laguna Electric Cooperative, Quezon I Electric Cooperative, Sorsogon I Electric Cooperative, Iloilo III Electric Cooperative, Northern Negros Electric Cooperative, Leyte V Electric Cooperative, Zamboanga del Norte Electric Cooperative, Misamis Oriental I Rural Electric Service Cooperative, Bukidnon Second Electric Cooperative, Siasi Electric Cooperative, Basilan Electric Cooperative, Siargao Electric Cooperative and Surigao del Sur I Electric Cooperative.
The remaining P12.85 million was extended to Misamis Oriental I Electric Cooperative for its modular generator set while another P50 million short-term loan was availed of by Lanao del Norte Electric Cooperative.
NEA has been offering financial assistance to ECs through its enhanced lending program which consists of regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy and modular generator set loans.
NEA supervises all 121 ECs nationwide and monitors such distribution system parameters as systems loss and reliability, circuit kilometers and substation capacity to ensure they remain operationally reliant and technically efficient in delivering the services.
