THE National Electrification Administration (NEA) approved a credit facility to support non-network and smart-grid capital expenditure (capex) requirements of electric cooperatives (ECs).
“As a result of our series of discussions with the ECs and to provide them with easy access to funding, we are proposing to establish a Credit Facility for non-network capex projects and smart grid requirements for electric cooperatives,” NEA said in a memorandum dated Oct. 1.
NEA said it recognizes the need for the ECs to be globally competitive, with the facility to support digitalization and automation initiatives.
“In order to address the efficient, reliable and safe operation of the ECs’ distribution system particularly the interconnectivity of all substations through Supervisory Control and Data Acquisition, Distribution Automation System, Advance Metering infrastructure, Geographical Information System, Outage Management System and Digital Dashboard Command Center, among others, must be funded,” NEA said.
Under the policy, ECs will be entitled to borrow up to P50 million per project based on validated cost.
Non-network projects and smart grid projects will have a maximum repayment period of 15 years and 20 years, respectively, with a grace period of up to one year on principal payment.
NEA noted that the proposed projects are subject to evaluation by its Technical Services Sector, Corporate Planning Office or Information Technology Communication Services Department. — Sheldeen Joy Talavera