"There was a proposal within the committee to trim down the pre-qualified bidders," Napocor president Jesus N. Alcordo said but declined to say how many pre-qualified bidders will be left. He said the committee will decide on Oct. 18.
The pre-qualified bidders are: Health Lambert, AON Energy, Marsh and McLennan Companies Inc., Arthur J. Gallagher, Alexander Forbes Ltd., and Agnes Higgins Pickering.
He said Napocor, together with the Government Service Insurance System (GSIS), would be revising some of the terms and conditions of the insurance contract in preparation for the proposed second bidding in the early part of November.
The first reinsurance bidding of Napocor last Sept. 26 failed after the six pre-qualified bidders expressed their regrets, claiming that they could not bid because of the prevailing uncertainties in the insurance market following the terrorist attacks in the United States.
According to Alcordo, the new terms and conditions will carry a higher deductible, from $500,000 to $2 million.
He said the bidders will have more time to submit their initial placement of 60 percent from the original proposal of three days to two weeks. But the Napocor chief said they will still have to maintain ample safety nets in the insurance policy.
He said under the bid security review portion, they would still require the winning bidder to put up a bond which will be forfeited if the insurance firm fails to submit a 60-percent initial placement.
Since the second bidding will be carried out next month, the bidders will have ample time to prepare and the market should have calmed down by that time, Alcordo said.
Napocor will have to secure its $6.5 billion worth of fixed assets since its insurance policy expired last Sept. 30.
With the absence of an insurer for the time being, Napocor is now under a temporary self-insurance scheme wherein it will just get from a budget set aside for insurance premiums if necessary to finance its insurance claims if there are any.
Since the self-insurance would be short-term in nature, the joint bidding committee, has also asked the consultant of Napocor Currie and Brown to have a more detailed presentation by today.
Napocor is also proposing another alternative, the so-called "captive company" wherein it will put up its own firm to handle its insurance needs.
Such captive company scheme, Napocor said, could be patterned the successful practice of another government-owned firm, Petron Corp.’s Petron General Insurance Corp. (Petrogen).