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36 Years. RURAL ELECTRIFICATION PROGRAM. 5 October 2005 H onesty, E fficiency and S olidarity A uditorium. REPUBLIC ACT 6038 (1969). Created NEA as the Primary Agency to implement the RURAL ELECTRIFICATION PROGRAM (REP) - PowerPoint PPT Presentation

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  • RURAL ELECTRIFICATION PROGRAM5 October 2005Honesty, Efficiency and Solidarity Auditorium

  • REPUBLIC ACT 6038(1969) Created NEA as the Primary Agency to implement the RURAL ELECTRIFICATION PROGRAM (REP)

    Provided for the organization & supervision by NEA of ELECTRIC COOPERATIVES (ECs) nationwide

  • Characteristics of Rural Electrification During the Early Years of ImplementationElectrification was made possible by using small generating units of 30 to 60 kwService was only available in municipal centersLow voltage of electricity suitable only for lightingService was available for 3 to 6 hours usually in the evening

  • STATUS OF RE PROGRAMJune 1969Northern Nueva EcijaElectric Service CooperativePorac Electric ServiceSix Mexican BarriosElectric Service CooperativeSapang Palay Rural Electric Service CooperativeInfanta Light & PowerService CooperativeCabatuan CommunityElectric Coop Assoc, Inc.Misamis Oriental Rural Electric ServiceVictorias Electric Service CooperativeSouthern Farmers CooperativeLubang Electric Service CooperativeSource:EA Annual Report 1968-1969MERALCODagupan Elect CorpCabanatuan Elect CorpAEC & SFELAPCOVECO & MECOBOHOL Provincial Elect SystemPECOCEPALCO Davao Light & Power Co., Inc.COLIGHTILPI

  • PRESIDENTIAL DECREE 269(1973)TRANSFORMED NEA INTO A GOVERNMENT CORPORATION AND DECLARING AS A NATIONAL POLICY OBJECTIVE THE TOTAL ELECTRIFICATION OF THE PHILIPPINES

  • OVER-ALL STATUS THEN AND NOWFIRST YEAR (1969)Status of Energization

    Municipalities/Cities (52%) Potential 1,422 Energized 739

    Connections (19%)Potential6.210MEnergized1.217M

    2005Status of Energization

    Municipalities/Cities(100% energized) 1,609

    Barangays Coverage41,930 Energized38,978 % Energization 93%

    Connections Potential 17.04M Served 12.28M % Energization 72%

    Population Served 73M (Approximate)

  • ElectricDistributionUtilitiesCoverageEnergized%CoverageEnergized%PotentialServed%Electric Cooperatives1,451 1,451 100 36,003 33,165 93 11,141,200 6,939,953 62MERALCO111 111 100 4,317 4,243 98 4,416,000 4,173,508 95 PIOUs/LGUs/Others47 47 100 1,610 1,570 98 1,486,0001,165,363 78TOTAL PHILIPPINES1,609 1,609 100 41,930 38,978 9317,043,200 12,278,824 72 Municipalities/CitiesBarangaysConnectionsPERFORMANCE BY UTILITYAs of July 31, 2005

  • PERCENT ENERGIZED90 - 100% - 96 ECs80 - 89% - 9 ECs60 - 69% - 4 ECsPIOUs / LGUs - 2670 - 79% - 6 ECs59 & Below - 4 ECsSTATUS OF BARANGAY ENERGIZATIONAs of July 2005

  • DMPCD-1/12/05

  • 1st GOCC to be ISO 9001

  • Note: Savings due to the restructuring amounts to approximatelyP161 M or 49% reduction in operating expenditures. RESTRUCTURING

    ps dbm ceiling

    NATIONAL ELECTRIFICATION ADMINISTRATION

    PERSONAL SERVICES

    (In Thousand Pesos)

    PROPOSEDDBM

    LEVELCEILING%

    PARTICULARS20052005CHANGE

    SALARIES AND WAGES84,55676,869-9%

    OTHER COMPENSATION

    MANDATORIES22,05817,155-22%

    - Year-End Bonus and Cash Gift8,5158,5150%

    - RATA8,4793,576-58%

    - PERA and Add'tl Comp.5,0645,0640%

    FIXED EXPENDITURES10,86610,357-5%

    OTHER AUTHORIZED

    ALLOWANCES25,2082,568-90%

    - Children's Allowances1740-100%

    - Medical Allowance1,0550-100%

    - Meal Allowance3340-100%

    - Rice Allowance6,0770-100%

    - Productivity Incentive8448440%

    - Board Per Diems36360%

    - Year-End Incentive Pay15,0000100%

    - Clothing Allowance1,6881,6880%

    TOTAL142,688106,949-25%

    mooe dbm ceiling

    NATIONAL ELECTRIFICATION ADMINISTRATION

    MAINTENANCE AND OTHER OPERATING EXPENSES

    (In Thousand Pesos)

    PROPOSEDDBM

    LEVELCEILING%

    PARTICULARS20052005CHANGE

    1.Travelling Expenses26,99115,020-44%

    2.Communication Services6,2905,910-6%

    3.Supplies and Materials5,5005,325-3%

    4.Gasoline,Oil & Lubricants1,5781,5780%

    5Lease/Rental IT Equip8508500%

    6Water, Illumination and Power10,00010,0000%

    7Auditing Services6,6736,6730%

    8Training & Seminar Expenses7,7576,770-13%

    9Maintenance of Motor Vehicles

    for Official and Employees8908900%

    10Extraodinary and Miscellaneous2,8252,8250%

    Expenses

    11Awards and Indemnities5000-100%

    12Taxes, Duties and Fees4004000%

    13Fidelity Bond & Insu. Premiums3,5441,392-61%

    14Other Services33,03930,732-7%

    TOTAL106,83788,365-17%

    COB-DBM Ceiling

    NATIONAL ELECTRIFICATION ADMINISTRATION

    COMPARATIVE OPERATING BUDGET

    CY 2005

    (In Million Pesos)

    PROPOSEDDBM%

    LEVELCEILINGINCREASE/

    PARTICULARS20052005(DECREASE)

    A.OPERATING EXPENDITURES

    - PERSONAL SERVICES142.69106.95-25%

    - MAINTENANCE AND OTHER

    OPERATING EXPENSES106.8488.37-17%

    TOTAL249.53195.31-22%

    B.CAPITAL OUTLAY/SUBSIDY/EQUITY

    - Rural Electrification1,527.41860.00-44%

    - Office Furniture & Equipment11.689.00-23%

    TOTAL1,539.09869.00-44%

    C.Guarantee Releases - WESM500.000.00-100%

    C.DEBT SERVICE1,785.761,785.76-0%

    D.CONVERSION OF INTEREST ON

    NG ADVANCES500.00500.000%

    E.OTHERS16.0416.040%

    GRAND TOTAL4,590.423,366.11-27%

    Sheet1

    NOTES TO CORPORATE OPERATING BUDGET

    CY 2005

    1PERSONAL SERVICES (ANNEX - 2)

    SalariesP76.87

    Other Compensation30.08

    Total106.95

    The implementation of NEA 's Restructuring plan per IRR of RA 9136, will result to personnel

    complement of 422. Other benefits such as rice, medical, children allowance and meal subsidy

    being received by NEA employees in the previous years were not considred. Likewise, the RATA

    of key positions was adjusted based on the equivalent rank of the positions and not on the salary

    grade of the position.

    2MAINTENANCE AND OTHER OPERATING EXPENSES ( ANNEX - 3 )

    This account includes the following:

    a.provision for travelling costs, semi-expendable supplies and materials;

    b.communication services;

    c.water, illumination and power services; and

    d.other administrative expenses necessary in the continous office opearations.

    3RELEASES FOR RURAL ELECTRIFICATION ( ANNEX - 4)

    This represent financial assistance by NEA to ECs for the rural electrification projects to

    attain 100% barangay electrification level by 2008 to be funded by subsidy support

    from NG and by NEA's internally generated funds, (collections from PSALM and the EC's)

    in the amount of P 260 million and P 500 million, respectively.

    4SHORT TERM CREDIT FACILITY

    These are short term loans extended to ECs for emergency payment on their arrears to NPC.

    . . . 3

    5OFFICE FURNITURE AND EQUIPMENT (annex - 6)

    The amount of P 9 million shall be utilized for the acquisition of new and/or replacement

    of old and unserviceable office furniture and equipment.

    6DEBT SERVICE

    Projected debt service for CY 2005 is P 1,785.76 broken down as follows:

    Principal1,161

    Interest421

    Forex Loss184

    Gurantee Fee19

    Total1,786

    7CONVERSION OF INTEREST ON NG ADVANCES

    This represents partial conversion of interest made by the BTr on NEA's matured foreing loans.

    8OTHERS

    This includes payment for:

    Trust LiabilitiesP6.05

    Current Liabilities9.99

    Total16.04

    . . . . 4

    asume

    BASIC ASSUMPTION USED:

    CY 2005

    1.Foreign Exchange Rate : $1 - P 1

    CY 200353

    CY 200456

    CY 200555

    2.Reduction of In-House Operations by 12% due to the following:

    a.Salaries and wages will reduce by 23% because of the implementation of NEA's restructuring

    plan per IRR of R.A. 9136.

    b.Personnel Services cost was based on 422 plantilla positions approved by the DBM in December 2003

    c.Pronouncement on economy measures.

    3Collection of Loan Amortization from PSALM

    PSALM will pay NEA the amount of P 1,654.97 M for CY 2005. Part of collection from

    PSALM will be relent to ECs for their rehabilitation and upgrading programs as well

    as for settlement of power accounts based on short term credit facility and in accordance

    with the new terms and conditions and criteria formulated or to be formulated by NEA.

    4National Government Support

    a.National Government will continue the provision of subsidy support for implementation of barangay

    electrification program by 2008

    b.Conversion of Interest on NG advances made by BTr on NEA's matured foreign loans amounting to

    P 500 million.

    c.Forex losses and part of the interest charges on old foreign loans chall be advanced by the national government.

    page 24

    5Loan Repayment/Net Lending

    BTr will service/advance the forex losses and part of the interest charges on old foreign loans

    NEA will pay principal and interest at pass-on/current rate.

    6OTHER RECEIPTS

    aService fee - 5 % shall be imposed on subsidy releases to ECs.

    bNEA to pursue the sale of foreclosed properties to generate additional funds.

    7OTHERS

    aInflation Rate of 10%

    bHistorical Data

    cMedium-Term Philippine Development Plan

    . . . .25

    Sheet6

    NATIONAL ELECTRIFICATION ADMINISTRATION

    COMPARATIVE STATEMENT OF INCOME AND EXPENSES

    2004 - 2005

    (In Thousand Pesos)

    PROPOSED

    BUDGET

    CY 20042005

    REVENUES

    Operating Revenues170,028278,904

    Others - Revenues61,20148,369

    TOTAL231,229327,273

    OPERATING EXPENSES

    Personal Services10

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