FG’s N1.8trn Mambilla power plant project puts brokers on toes
Of about 500 insurance brokers registered and operating in the nation’s insurance sector, 26 brokers have sent in their proposals to the federal government for insurance services to insure N1.8 trillion Mambilla Hydro-Electric Power plant situated in Taraba State, The Guardian has gathered.
Investigation revealed that many brokers are on their toes to submit their bid to underwrite the risks in the proposed power project as the deadline for the submission of bid for the insurance of this plant is yet unknown as at the time of writing this report,The Guardian learnt that the Ministry of Power will, thereafter, scrutinise the applications and finally approve only about 10 brokers to insure the assets of the project.
Expert in the industry, who spoke to The Guardian on the development said after final approval has been made by the federal government, brokers will now have to evaluate and assess the risks exposed to by the Federal Government and advice on the type of insurance policies suited for the project, recommend and on the selection of underwriters based on their strengths, and ensure prompt payment of claims whenever any risk occur on the power project.
Confirming this development at the investiture of Shola Tinubu, as the new President of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Lagos, the Minister of Power, Works and Housing,Babatunde Fashola, said: “26 brokers have submitted proposal for the Mambilla Power Plant in Taraba State and we are expecting more applications in the coming weeks.”
He said the Federal Executive Council (FEC) had earlier approved the construction of Mambilla Hydro-Electric Power plant the sum of N1.8 trillion ($5.792 billion) expected to generate 3,050 megawatts Mambilla Hydro-Power project at Gembu in Taraba State.
He disclosed that the construction of four damns required would take 72 months period before completion.According to him, Nigeria is expected to provide 15 per cent counterpart funding in the joint venture agreement with China. However, Mambilla is to deliver 3,050 megawatts.
He noted that the project has been mooted since 1972, but could not come to fruition until recently. And this, has always been move embarked on by Insurance brokers to canvass on the need for government and private individuals to insurance their assets through the brokers, and it seems federal government had realised this and put measure in place to ensure the power plant is insured through insurance brokers in the country.
The Managing Director, Manny Insurance Brokers, Kayode Okunoren, had appealed to the federal, state and local governments to always channel their insurances through the brokers as they are universally recognised as insurance intermediaries employed to use their skills and expertise in arranging insurance protection in the very best interest of their clients who are the consumers.
Brokers are regarded as a ‘go-between’ between the providers of insurance services that is insurance and reinsurance companies and the consumers of such insurance services who are the insuring public.
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