Napocor to fasttrack reinsurance bidding

The National Power Corp. (Napocor) has asked the joint bidding committee headed by the Department of Finance (DOF) to fasttrack the second bidding of its $6.5 billion industrial all risks insurance policy.

It was learned that the state-owned power firm has already proposed to the multi-agency bidding committee to proceed with the bidding before the end of the month.

Napocor feels that the pre-qualified bidders have already had ample time to factor in the impact of last month’s terrorist attacks in the US on the global insurance market.

It will be recalled that the pre-qualified bidders decided to submit letters of regret in the Sept. 26 reinsurance bidding of Napocor.

The bidders which backed out in the first Napocor reinsurance bidding were Heath Lambert, Aon Energy, Marsh & McLennan Companies Inc., Arthur J. Gallagher, Alexander Forbes Ltd. and Agnew Higgins Pickering.

The joint bidding committee is considering conducting the second bidding by early part of November, instead of end-October. Napocor will use its electronic bidding process being used in the purchase of its coal and fuel supply requirements in choosing a reinsurance broker.

It said the electronic process would help the Government Service Insurance System (GSIS) farm out 95 percent of the insurance policy that will cover Napocor’s assets.