Napocor president Jesus N. Alcordo said the move is part of the power company’s preparations for its forthcoming privatization. Alcordo said the tentative plan is for the bidding to take place by end August and will be conducted using Napocor’s electronic bidding (e-bidding) system.
Napocor’s existing Industrial All-Risk (IAR) policy is set to expire by the end of next month.
Documents show that the Napocor board has decided to hire a consultant for the company’s insurance coverage. Alcordo said this will enable Napocor to conform to international practice. "We want a policy that conform to internationally-accepted standards and responsive to the forthcoming changes arising from Napocor’s privatization," he said.
Alcordo said the company’s $10-billion insurable assets consist primarily of its power plants, substations and transmission line network throughout the country which will eventually be sold to private investors as part of Napocor’s privatization program.
He said at least four companies have signified interest to participate in the e-bidding. These are Benfield Greig Marsh, Jardine Davies, Generali Pilipinas, and Aon Risk Services. As it is, Jardine Davies and Marsh hold a significant majority of Napocor’s existing policies.
The Napocor chief said a provisional award should be given to the winning bidder by Sept. 7, just in time for the Sept. 20 expiry of the present policy.
Because of the magnitude of its insurance requirements and the value of its fixed assets, Napocor will be more actively involved and work with GSIS in farming out the policy to a number of reinsurance companies.