BILECO to conduct public hearing on application for approval of 2011-2016 capital expenditure program, authority to secure loan

By RODRIGO S. VICTORIA, PIA Biliran
January 9, 2012

NAVAL, Biliran  –  The Biliran Electric Cooperative, Incorporated (Bileco) will hold a public hearing that will involve the future financial outlook and how it will relate to the improvement in the delivery of  quality services of the lone electric cooperative in the province of Biliran.

The public hearing is scheduled on January 24, 2012 at around 10:00 o’clock in the morning to be held at the Bileco main office located in Barangay Caray-Caray, Naval, Biliran, according to a Bileco press statement dated January 5, 2011 furnished to PIA.

The public hearing will tackle the Energy Regulatory Commission (ERC) Case No. 2011-157 entitled “In the matter of the application for approval of capital expenditure program for the years 2011-2016 with prayers for authority to secure loan from the National Electrification Administration (NEA) and provisional authority”, it said.

The press statement added that Bileco’s capital expenditure application was already published in Leyte-Samar Daily Express on November 23, 2011 and order and notice of public hearing was also published on January 2 and 9, 2012 in Philippine Daily Inquirer. Copy of capital expenditure application and notice of public hearing were furnished also to the local government units in the province.

The Bileco press release prepared by Maria Theresa Sambitan, MDO/BAPA Coordinator and approved by Samuel G. Trinidad, Jr., ISD Manager also invited the electric cooperative’s member-consumers to attend the public hearing for them to be able to know the objective of the capital expenditure project that will be implemented by Bileco to improve its facilities and to ensure its continued good service.

It mentioned also that the ERC delegation will be led by Commissioner Alfredo J. Non who will preside the public hearing that will be conducted.

Meanwhile, in the ERC application for approval of capital expenditure program for the years 2011-2016 of Bileco, the projects are as follows with its corresponding total project cost: substation sub-transmission development projects - P54,378,211; primary distribution development projects - P21,425,326.50; asset renewal projects - P7,777,386.30; other capital expenditure: network projects - P19,063.587.70; other capital expenditure: non-network projects institutional development (ISD) - P4,359,900; other capital expenditure: non-network projects finance services department (FSD) - P3,275,819.8; other capital expenditure: non-network projects technical services department (TSD) - P3, 209,661.90. The grand total of the network and non-network projects is P113,358,561.22.

Some of the big projects to be undertaken by Bileco that are part of the 2011-2016 capital expenditure program include the construction of 69KV sub-transmission line (Biliran to Caray-Caray, Naval) 16.5 kms., construction of new substation 3.15MVA at Brgy. Caray-Caray, Naval, installation of additional line protection for feeder 1 and 2, construction of double circuit line Caray-Caray-Atipolo Naval (2.8 kms.) and Caray-Caray-Naval Poblacion (5 kms.), upgrading of distribution line from 1-phase to 3-phase (Bliss Calumpang to Brgy. Cabibihan, Caibiran) 20.8 kms., replacement of rotten poles and defective kilowatthour meter , new connections and distribution transformer requirement.

Moreover, it was reflected in Bileco’s application for authority to secure loan that the total project cost of P116,759,318.07 will be financed through a 15-year term loan from National Electrification Administration (NEA) with interest of nine percent annually subject to its present lending policies on loan approval and releases and through internally generated fund known as Reinvestment Fund for Sustainable Capital Expenditure.

Out of the total project cost of P116,759,318.07,  P92,159, 378.92 will be sourced out from NEA and the P24, 599, 939.15 will be sourced out from member’s contribution for capital expenditures based on the summary of proposed financiers and the corresponding desired borrowing of Bileco.