Philippines NEA Celebrates 40 Years of Progress

Officials at an REFC signing ceremony

It's been 40 years since the government of the Philippines, on the recommendation of NRECA International, Ltd., established the country's National Electrification Administration (NEA). At the time, only about one in 10 Filipino citizens had access to electricity. The NEA set an ambitious goal of universal electrification, primarily through the establishment of rural electric cooperatives (REC).

Since then, NRECA International has helped the NEA create 119 RECs, providing electricity to more than 80 percent of the country's rural population. And last year, NEA and Filipino electric cooperatives reached a milestone, making electricity available to 8 million consumers. The economic development brought on by these successes has improved the lives of millions of rural Filipinos.

To celebrate the NEA's successes, the government of the Philippines has designated August as "National Electrification Consciousness Month." In addition, NEA will convene a three-day International Convention on Rural Electrification in Pasay City on August 3. The event will feature discussions by local and international leaders in rural electricity, including experts from the NRECA.

REFC: Another Positive Turn

The long and productive relationship between NRECA International and the NEA took another positive turn in 2002 with the establishment of the Rural Electrification Financing Corporation (REFC). This cooperative-owned financing entity, headquartered in Manila, is loosely patterned on the structure of the U.S. Cooperative Finance Corporation (CFC).

More than 50 Filipino electric cooperatives have joined the REFC, with a cumulative investment of about $4 million in stock equity. To date, REFC lending programs have surpassed $10 million, funding projects ranging from system upgrades and replacements to the purchase of high-quality utility equipment.

Effort Helps Quantify Demand for U.S. Products

NRECA, with advisory help from CFC staff, continues to support the growth of the REFC. One such assistance program helps Filipino co-ops finance and import U.S. commodities and services. NRECA and the U.S. Trade and Development Agency (USTDA) recently helped fund an REFC effort to quantify demand for U.S. products such as distribution transformers and treated wood poles. The survey resulted in new REFC financing for some $2.5 million worth of U.S. goods and services. And project leaders expect the program to grow in the coming years.

Another recent initiative, launched with USTDA support, helps selected Filipino co-ops design, finance and construct improvements to their distribution systems that will reduce system losses. This effort will not only increase U.S. utility commodity sales, but could avoid millions of metric tons of carbon emissions.

For more information on NRECA's work in the Philippines, visit the Philippines country page on the NRECA International Foundation Web site. You can also find a feature on work in the Philippines by NRECA International Foundation volunteer Travis Housley in this newsletter and a feature on the Kandiyohi-ILECO sister co-op relationship in the March 2009 issue of "International TieLine."