LEYTE-V Electric Cooperative Inc. (LeyecoV ) plans to borrow most of its required P1.14 billion capital expenditure (Capex) to finance its five-year Distribution Development Plan (DDP). This was learned at the hearing of Leyeco V’s application for the approval of its Capex and DDP on Nov. 9.
Leyeco V Finance Services Department Manager Jannie Ann J. Dayndayan explained that internally-generated funds will not be enough to cover its DDP. They expect to raise only P198,615,950.92 from the Reinvestment Fund for Sustainable Capital Expenditures in the 2011-15 period.
This represents only 17.35% of the needed P1,144,391,024.98 needed for the DDP. Leyeco V thus intends to raise the rest of the P945,775,074.06 by borrowing from National Electrification Administration (9% p.a. interest), Rural Electrification Finance Corp. (9%) and banks (10%). The loans from these institutions are payable for five years.
Meanwhile, Energy Regulatory Commissioner Alfredo J. Non who presided over the hearing cut the proceeding short after intervener Pete Ilagan, president of National Association of Electricity Consumers for Reforms, kept asking technical questions from Leyeco V.
Non decided that Leyeco V first conduct a consumers’ orientation to answer Ilagan’s queries so that the clarificatory questions on the next hearing will be limited only to those involving the Capex and DDP. Leyeco V has scheduled the orientation on Dec. 2. by Felix N. Codilla III
(WLWE issue of Nov. 7-13, 2011)
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