Tags: General News, Water Electricity and Utilities
By Anna Valmero
MANILA CITY, METRO MANILA – A P135.9 million financing agreement was earmarked for improving power supply to 86,000 households and reduce carbon emissions in the rural communities of northern Mindanao.
The Bukidnon Second Electric Cooperative Inc. (BUSECO) will use the budget to install a 10MVA substation in Kisolon in Bukidnon.
It will also fund the construction of a 25-kilometer 69KV transmission line from Lunocan to Kisolon, and replacement and calibration of installed meters.
BUSECO covers the northern part of Bukidnon Province, consisting of the city of Malaybalay and nine municipalities including Baungon, Malitbog, Libona, Manolo Fortich, Sumilao, Impasug-ong, Lantapan, Cabanglasan, and Talakag.
“With improved capacity, our electric cooperative will be able to bring better electricity services to rural homes in 170 barangays in Bukidnon and meet the increasing power demand by small and medium enterprises (SMEs) in the agribusiness sector,” said Edgardo Masongsong, general manager and chief executive of BUSECO.
Masongsong said the project will help expand economic investments and create jobs in the countryside.
Issued by Bank of the Philippine Islands (BPI), the fund is managed in the country by the LGU Guarantee Corp. (LGUGC), a private corporation that facilitates development financing for projects of local government units.
It is guaranteed by the partial credit guarantee program under the Electric Cooperative System Loss Reduction Project (ECSLRP) financed by the Global Environment Facility (GEF) and administered by the World Bank.
World Bank country director Bert Hofman said BPI’s support to BUSECO is the fourth of such financing arrangements under ECSLRP’s credit guarantee program.
This credit enhancement is critical because rural electricity cooperatives have been perceived as “poor credit risks.” The PCG program encourages commercial banks to support expansion of electricity networks, reduce losses, and bolster financial performance of participating electric cooperatives, said Hofman.
“This financing is projected to curb over 100,000 tons of carbon dioxide through 2020, by reducing technical losses. When losses are reduced, electric cooperatives buy less power, thus avoiding some costs for purchased power that would otherwise be passed on to customers,” said Hofman.
He noted that financially strong electricity cooperatives are a critical element in making EPIRA work.
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