Government seeks reinsurance of Napocor’s ass

Government said yesterday it will conduct a public bidding for the re-insurance of National Power Corporation’s (Napocor) properties currently insured with the Government Service Insurance System (GSIS).

Only private insurers registered to transact directly with Lloyd’s of London or rated according to internationally accepted standards shall be qualified to participate in the bidding, a statement from Malacañang said.

Domestic insurers will also be allowed to participate.

The government has created a special committee chaired by Finance Secretary Jose Camacho for the bidding.

President Arroyo has ordered that the committee meet not later than Friday and award the winning bid at least 15 days before the renewal date of Napocor’s insurance coverage.

A study by Credit Suisse First Boston last year placed the total value of Napocor‘s assets at around $4.5 billion to $5 billion.

Napocor President Jesus N. Alcordo said they have shortlisted at four of the largest insurance brokers in the world that have qualified in the pre-bid conference last August 29 to participate in the scheduled submission of bids by September this year. These are: Heath Lambert Group, Agnew Higgins Pickering, Aon Energy and Alexander Forbes Risk Services.

Just like the proposal of Napocor, the bidding will be done electronically not like the GSIS’s proposed envelope bidding.

"In line with the information technology thrust of the government, the most suitable electronic bidding process shall be used for the process," the order said.

It was also specified in the Malacañang order that the winning brokers shall post the necessary performance bond to secure such contract. The bond was also part of Napocor’s proposed bidding rules. – Donnabelle Gatdula