Electric Cooperatives (ECs) nationwide are enjoined by the National Electrification Administration (NEA) to strictly adhere to the recommendations of the Commission on Audit on the implementation of Sitio Electrification Program (SEP) Projects.

In a technical advisory, the NEA said that all ECs must comply strictly with the timeline set for the project completion and energization in Item 3.a of the Memorandum of Agreement between the NEA and the ECs to avoid suspension of further release of subsidy funds.

Under the MOA, item 3.a states that "the project(s) should be implemented and completed within six (6) months after receipt of the subsidy appropriations by the recipient from NEA."

If projects cannot be completed within the initial six-month period, ECs must submit written request for extension within thirty (30) days before the deadline, as mentioned in item 3.b of the MOA.

Item 3.b also states that the "NEA shall act on the request for an extension within the same 30-day period. Furthermore, any extension of the said six-month period shall, in no case, exceed three (3) months."

The NEA reiterated these provisions of the MOA following the COA's issuance of Audit Observation Memorandum (AOM) No. 2022-057 regarding the implementation of CY 2022 Audited Electric Cooperatives' Subsidy Funded Projects particularly the delays incurred in the construction of the distribution line under the 2011 and 2019, and in the energization of four (4) projects under 2014 to 2019 SEP.###