Friday, September 12, 2008

US Agency Signs Grant To Help Electric Cooperatives In RP

MANILA, Philippines (Mindanao Examiner / September 12, 2008) – The US Trade and Development Agency on Friday signed an agreement with the Philippines’ Rural Electrification Distribution Financing Corporation that would help finance various projects that will benefit electric cooperatives in the country.

The grant will finance the technical assistance that REFC requires to help rural electric cooperatives minimize energy losses and power outages while increasing electric supply, improving their distribution systems, and increasing their financial viability.

REFC has chosen the Virginia-based National Rural Electric Cooperative Association International Ltd. (NRECA) to provide the USTDA-funded technical assistance.
USTDA Senior Commercial Officer Patrick Wall and REFC President Lamberto Canlas signed the grant worth $404,510 grant (about P19 billion).

The rapid growth of the customer bases of rural electric cooperatives in the Philippines has strained their ability to plan and invest in distribution repairs. REFC said it is working to address this problem as well as to enable the cooperatives to expand their distribution to underserved areas.

REFC was formed in 2000 by 15 rural cooperatives as a financing arm to provide guidance and loans to improve the electric distribution system in the country.

The USTDA advances economic development in developing and middle-income countries and helps enhance US commerce with these countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits, and business workshops that support the development of a modern infrastructure and a fair, open trading environment.

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