NORECO 2 avails of P55M industrial loan from PenBank

CEBU, Philippines - With a promise to further enhance the services given by their company to the residents of the northern and southern part of Negros Oriental, the Negros Oriental 2 Electric Cooperative has signed a Memorandum of Agreement with Penbank for a long term industrial loan worth P55 million for expansion and upgrading projects.

Penbank, a rural bank operating in the Visayas and Mindanao region, released the amount to officials of NORECO 2 in order for them to immediately achieve their goal of finishing their projects by the second quarter of next year.

Rodrigo Rivera Sr., the chairman and CEO of RD Corporation, which holds the RD group of companies, said that they are happy with the start of a long-term partnership with NORECO 2 and they did not hesitate in giving the loan since it would help a lot of people in Negros Oriental.

“Extending loans can practically help a number of Filipinos and we are glad that through the loan made by NORECO, a lot of people would benefit from it,” added Rivera.

Despite it being a rural bank, Penbank have continuously extended their services through supporting big projects in line with their goal to “pursue excellence in whatever service they do,” said Rivera.

Penbank, which has 32 branches in Mindanao, have also approved of long-term industrial loans for projects like this in the Mindanao area. The bank also has eight more branches in the Visayas, six of these are in Cebu .  

NORECO General Manager Engr. Ephraim Taclob said that they would immediately be starting with their expansion and upgrading projects which have been estimated to reach P85 Million.

Taclob said that their plans are in accordance with the RA 9136 or the “Electric Power Industry Reform Act of 2001 which mandates the assurance of quality, reliability, security and affordability of the supply of electric power.”

Taclob said that through their upgrading of systems, facilities and expansion, they would be able to prevent low voltage problems in the area, as well as power interruptions, and fluctuating power supply.

“These projects are envisioned to address the complaints of the residents,” said Taclob who said that they have started some of the projects already but have stopped due to financial constraints and needed to find means to proceed with their upgrading.

He said that since “Penbank have come to their rescue” they would be able to accomplish their plans by the early months of 2010.

Included in their investment plans is the upgrading of the Tanjay, Bayawan and the Dumaguete substations and the construction of a substation in Dauin.— AJ de la Torre