Zamcelco thanks Celso over NEA’s nod on loan credit PDF Print E-mail
Friday, 08 January 2016 13:49

By PHILIP ABUY

Zamboanga City Electric Cooperative OIC-General Manager Edgardo Ancheta on Thursday thanked District 1 Congressman Celso Lobregat for his intercession, which led to National Electrification Administration’s speedy approval of the P187 million worth of loan credit, earlier applied for by Zamcelco with the NEA.

Such an application is a requirement that Zamcelco has to comply to ensure continued supply of the 50-megawatt power, which it contracted with Western Mindanao Power Corporation (WMPC) December of last year, as a way of solving the city’s five to six-hour daily brown-out problem.

Lobregat broke the good news last Tuesday, saying he was personally informed by NEA Administrator Editha Bueno, about the loan credit’s approval.

In an interview, Ancheta said, without Lobregat’s intervention, “it would have taken quite long, before such an application gets a positive nod from NEA. So, I am thanking the good congressman for his undying effort in helping Zamcelco.”

To recall, WMPC officials earlier cited the importance of Zamcelco having a credit line in the amount of P187 million, as this serves as guaranty, that the cooperative, will have somewhere to draw money from to pay them, especially, if the cooperative’s cash flow runs short.

Despite the absence of said loan credit line, both WMPC and Zamcelco officials, proceeded to sign the contract for a 50-megawatt power last December 13, in order to let local electric consumers enjoy a brown-out free Christmas season.

However, Ancheta said, Zamcelco has no need of touching said load credit at this time, “because our present cash flow indicates that even without borrowing money, we have the capability of paying WMPC and other independent power producers, which supply us power”.

Besides, Ancheta said, “NEA even allows Zamcelco to continue scouting for other creditors that offer lower interest rates, lower than that of NEA itself”.

The OIC-general manager pointed at the Development Bank of the Philippines (DBP), as one of the creditors, willing to lend money to Zamcelco after assessing that the coop’s cash flow is in a state of solvency. — Philip Abuy