FACTS ABOUT BOHECO II

    BOHECO II has proven to be an important contributor to the economic and social development of Bohol.

    And noted as an indispensable partner in the promotion of Bohol in sustainable eco-cultural tourist hub in the Visayas and the Entire Philippines.

Awards

Congratulations to the Board of Directors, Management, Employees and Member-Consumers of BOHECO II for most upward management performance that has garnered the most improved electric cooperative award, most outstanding Board of Directors award, and Turn-Around Electric Cooperative for the Year 2003; RATED as Category A+ and Extra Large Cooperative.

Year 2002 was a mixture of anxiety, reawakening and hope for our cooperative. Anxiety in the sense that on the first quarter of the year, our coop was like a “ship without a captain”, not to mention the restructuring account of NPC bills in arrears. It considered the most distressful stage that system losses rise up to 20%, a fluctuating 90% collection efficiency, and a huge amount that affects the financial cash flow. We were left with only an officer-in-charge with the cooperation and help for each department – technical, financial and institutional.

Sometime in the second quarter of the year, our coop requested BOHECO I for a loan of P23 Million to pay its bills in arrears with NPC, including its current bill so that the coop can avail of the 3% prompt payment discount.

From L to R: Engr. Jeremias Boligao-BOHECO I BOD, GM Carlos B. Itable, Dir. Mario C. Suyman-BOD President of BOHECO I, Dir Nicerita B. Soriano-BOD President of BOHECO II, Engr. Teofilo L. Bajao-OIC of BOHECO II, Engr. Virgilio Fortich-AGM BOHECO I

    A loan contract between BOHECO I and BOHECO II was signed on April 29, 2002 by and between Dir. Mario C. Suyman, BOD President of BOHECO I and Dir Nicerita B. Soriano, BOD President of BOHECO II, witnessed by Dir. Jeremias Boligao, GM Carlos B. Itable of BOHECO I, Engr. Teofilo L. Bajao, OIC of BOHECO II and Engr. Virgilio Fortich, AGM of BOHECO II. And by May 2002 the amount of P23 Million was released enabling BOHECO II to pay all its obligations with NPC and at the same time availing the 3% prompt payment discount.

    Halfway through the year, our Board of Directors made a Board Resolution No. 37, Series of 2002 asking the BOHECO I Board of Directors to let Engr. Carlos B. Itable manage not only BOHECO I but also BOHECO II. This move was considered as one of the very big steps towards a “big brother - small brother” relationship in the rural electrification in our province.

    Fr. Francisco G. Silva, Presidential Adviser for Rural Electrification (former NEA Administrator) approved the BOHECO II Board Resolution No. 37, Series of 2002; requesting the management of BOHECO I, that GM Carlos B. Itable will hold as concurrent Acting General Manager of BOHECO II.

    By July 17, 2002, Her Excellency President Glroia Macapagal Arroyo confirmed the consolidation by management of BOHECO II and the appointment of Engr. Carlos B. Itable to manage BOHECO II Backed by a Memorandum of Agreement and this marked the reawakening of the dilapidating spirit of BOHECO II.

During in the following processed of 180-day Rehabilitation Efficiency Plan (REP) for the improvement of our cooperative specifically to lower our system loss and to improve our collection efficiency. This gave us a new hope to rise from a dwindling technical and financial condition to an aggressive, competitive and confident BOHECO II who is ready to give dedicated service and selfless cooperation for the betterment of our member-consumers.

The 2.5 MVA Sub-station located at Canhaway, Guindulman, Bohol

August 8, 2002, commissioning of 2.5 MVA Sub-station located at Canhaway, Guindulman, Bohol. This substation will serve three (3) municipalities of Duero, Guindulman & Anda.

YEAR 2003 THE TURNAROUND COOPERATIVE

    Positive evaluation has rated to BOHECO II after 180 Day Final Assessment from January 2003 to June 2003; BOHECO II submitted Rehabilitation and Efficiency Plan (REP) that covers institutional, technical, financial and managerial reforms, including financial restructuring needed to achieve prescribed levels of coop’s efficiency accounts with NPC.

    BOHECO II has updated current NPC payments and has availed three percent (3%) prompt payment discount and up-to-date in the payment.

    The same is up-to-date in the payment of loans after loan condonation implementation and advance of one quarter.

    And also significantly reduced its system losses 17.14% has lowered to 10.88% after 180 day action plan.

    However, coop’s collection efficiency was attached high reflecting an Average Days Receivables (ADR) of 38 days vs. 36 days target. BOHECO II has maintain its non-power cost per customer below to standard of P1,300 per customer per year and a customer per employee ratio of 628:1 and has suffered (P5,326) on which NEA standard is 1:200.

    In the financial evaluation BOHECO II has a positive net margin of the performance standard per distribution utility. And likewise, the coop has adhered NEA’s comprehensive programs reforms in order to survive and compete in the EPIRA Law (RA 9136) otherwise known as “Electric Power Industry Reform Act of 2001”.

YEAR 2003 A SUSTAINING MOMENTUM OF BOHECO II

    The 1st quarter of 2003 management urged all employees to sign “Pledge of Continuous Support” in order to sustain the leveled award for BOHECO II and also to commence its core values. There were various initiatives had been introduced in all departments, but not limited to the board of directors; they themselves endorsed a continuous recognition and support to GM Carlos B. Itable’s leadership.

A.)    UPLIFTMENT EMPLOYEES MORALE

    Placement of employee to the right position had been implemented after NEA approved the 2003 REORGANIZATION Scheme of BOHECO II. On that processed it took more than four (4) months in this Reorganization Scheme had been implemented. And part of this changing image of BOHECO II. Last September 18, 2003 the coop had transferred to its new owned headquarters at Cantagay, Jagna, Bohol, for about 1.5 kilometers distance from previous office that coop had rented for 26 years.

B.)    AGGRESSIVE PACE OF MSD

    The Member Services Department (MSD) aggressively introduced and implemented the Policy No. 44; a new Reading, Collection, and Disconnection Scheme that out of 490 barangays; the 211 BAPA’s and 175 ECA’s on which coop had ceased to absorb system loss, and they enjoyed the two percent (2%) prompt payment discount on their monthly power bill. This pace really contributed much to lower the coop’s system loss and high collection efficiency. Its institutional consciousness of member-consumers had strongly committed to support the new management approach and troubleshooting stage.
    On the other hand, BOHECO I had introduce its resources that BOHECO II can avail the Housewiring Material Loan (HWL) to less fortunate potential consumers. For this program, a rapid increase of household connection which categorized from Large to Extra Large Cooperative.

C.)    FINANCIAL ASPECTS

Her Excellency President Gloria Macapagal Arroyo issued Executive Order (EO) No. 119 provided among others the guidelines on the assumption by PSALM Corporation of Rural Electrification Loans incurred by the Electric Cooperatives for the purpose of financing the rural electrification program. One of the conditions prior to loan assumption as outlined in the EO No. 119 is the issuance by the NEA Board of guidelines for the submission by ECs of a Performance Improvement Program (PIP) and/ or Rehabilitation and Efficiency Plan (REP). The intention of the first 180-day PIP/REP was to achieve a level of efficiency that would somehow give an indication as to whether the ECs can survive the competitive environment of the distribution sector. On the over-all, the impact of the improvements as a result of implementing the strategies and action plans of the 180-day PIP/REP may not be significant, however it is expected that individually, drastic improvement must be realized for many of the ECs.

    Below is the BOHECO its accomplishment report for the 180-days Rehabilitation Efficiency Plan (REP) from January 1, 2003 to June 30, 2003. The record showed that BOHECO II met the target within the NEA standard except the Average Collection Period which was due to changes in the collection schedules and payment to NEA Loan which was subject for loan condonation of Section 60 of RA 9136 and Executive Order No. 199.

UNPRECEDENTED EXCELLENT PERFORMANCE

UNPRECEDENTED EXCELLENT PERFORMANCE

Calendar year 2004 was a trying year for BOHECO II since it has passed the test of recovery stage the rehabilitation set-up. The management has focused and directed towards challenging goals to attain a lean organization.

    Our cooperative remains and able to sustain the previous recognition as “Turn around Electric Cooperative”; Most Improve Electric Cooperative; for the fact that BOHECO II had attained a 98% collection efficiency. Its System Loss had lowered to 11%; the power reliability indexes had record above NEA standard and also a well developed institutional relationship to our local leaders and member-consumers it really count much. As much, BOHECO II remained as Category A+ and Classify as Extra Large electric Cooperative. These serve as one good gauge of actual capability and performance.

    As the whole, BOHECO II has attained a relative high its performance for year 2004. Yes, in deed this achievement could not be possible without the continuous support of our Members-consumers. With the great help of our GM Carlos B. Itable who is religiously vigilant on order to achieve this remarkable performance.

    On March 14, 2005, no less that Her Excellency Gloria M. Arroyo has recognized BOHECO II for its valuable “Unprecedented Excellent Performance” at Ceremonial Hall, Malacañang Palace Manila. This award can be considered as another milestone in the history of electric cooperative in the country. And we could not imagine nor dream to be one of the PGMA Awardees.