NPC sets tender notice for $ 18-M reinsurance policy
Friday, February 02, 2007
By MYRNA M. VELASCO
State-run National Power Corporation (NPC) has issued tender notice to all prospective local and foreign reinsurance companies for its -million industrial all-risk policy.
The policy will cover the power firm’s insurance from March 1, 2007 to March 1, 2008. The solicitation of tenders is being made through the joint bidding committee comprising of the Department of Finance, NPC and the Government Service and Insurance System.
The submission of bids has been slated by the committee from January 29 to February 23; and this will be followed by a pre-bid conference on February 12. The scheduled bidding date is February 26.
It would be noted that the reinsurance policy being sought by NPC this year is almost double from last year’s .4 million which was awarded to the Malayan Insurance Company.
The insurance policy provides financial protection for the state-run power firm in the event that its assets are damaged either through man-made or natural calamities.
On record, the company was made to deal with several disaster-induced costs last year, including the Semirara oil spill and the damage inflicted on its Tiwi and Makiling-Banahaw and Bacon-Manito (BacMan) power plants with the wrath of super typhoons Milenyo and Reming.
NPC gave initial statements that the commercial losses it incurred from the plants’ forced shutdowns shall be claimed against its insurance policy.
Based on the terms drawn up by the pre-qualification, bids and awards committee (PBAC), the interested insurer, whether local or foreign entity, is required to have a credit rating of at least "A" preferably bestowed by Standard & Poor’s or an equivalent international rating agency as of June 30, 2006.
The other securities, it was noted, must be rated "BB" by Standard & Poor’s or other international credit rating agencies with the same stature.
"The lead reinsurer shall certify that it will provide a lead line of at least 30 percent of the reinsured risk," the bidding terms stipulated further.
Any prospective reinsurer will be issued the bid documents upon filing of letter of intent and upon payment of a non-refundable required for its participation in the auction.
Republic Act 656, as amended by Presidential Decree 245, requires government-owned and controlled corporations to insure their properties against any insurable risk with the General Insurance Fund of the GSIS, and pay the premiums thereon which shall not exceed the premiums charged by the private insurance companies.
The insurance broker is mandated to enter into a valid and comprehensive service contract with the GSIS and NPC to highlight the broker’s responsibility to respond to the needs of the power firm.
posted by philpower @ 9:38 PM,
