NEA Releases PHP1.54B Loans to Electric Co-ops in H1 2025

The National Electrification Administration (NEA) disbursed PHP1.54 billion in loans to 24 electric cooperatives (ECs) nationwide during the first half of 2025, underscoring the government’s ongoing efforts to expand rural electrification and improve energy services.

According to the NEA’s Accounts Management and Guarantee Department (AMGD), the loans were sourced from a PHP1.795-billion credit facility earmarked to bolster EC operations through capital and working capital financing.

Of the total loaned amount, 20 ECs obtained PHP893.65 million to fund capital expenditure projects aimed at improving infrastructure, expanding distribution lines, and upgrading power systems in far-flung communities.

An additional five cooperatives received a combined PHP650 million in working capital loans to maintain day-to-day operations and ensure continuous power delivery to their member-consumers.

Loan disbursements accelerated in the second quarter of 2025, with PHP967 million released between April and June, up significantly from PHP577 million in the first quarter, according to NEA-AMGD data.

“The increase in loan uptake reflects a growing need for financial support among our ECs, particularly in areas where power demand and operational costs are rising,” said NEA Administrator Antonio Mariano Almeda.

Almeda said the agency remains committed to helping ECs sustain reliable and affordable electricity in rural areas, which are often more vulnerable to supply instability and financial constraints.

NEA’s lending program forms part of its broader statutory mandate under Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 to promote and accelerate rural electrification through viable and sustainable ECs.

The agency provides financial and technical assistance to ECs, which are responsible for distributing electricity to more than 11 million households, especially in Mindanao, the Visayas, and other underserved regions.

“These loans are investments in resilience and development,” Almeda added. “We are ensuring that cooperatives can deliver on their mission despite rising challenges, including aging infrastructure, natural disasters, and market fluctuations.”

NEA is expected to release the full-year performance report in early 2026, with projections pointing toward continued high demand for capital support among cooperatives undergoing system upgrades and service expansion.