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Fortune General pays P10-M advance claim of Mindanao hydropower plant
Thursday, 05 July 2012 19:54
NON-LIFE insurer Fortune General Insurance Corp. has paid P10 million representing its 10-percent share of a P100- million advance payment for rehabilitation works requested by Bubunawan Power Corp. for its Bubunawan Hydropower Plant in Northern Mindanao.
The P100-million advance payment is part of a collective policy with a total sum insured of P592,591,446. Fortune General’s 10-percent share covered the period April 10, 2011 to April 10, 2012.
Bubunawan Power Corp. is a joint venture operating the Bubunawan Hydropower plant, one of the first privately developed hydroelectric plants in Northern Mindanao. The plant site is located along the Bubunawan River, near sitio Kable, barangay Inbatug, Baungon town and barangay Kilog, Libona town, both in Bukidnon.
Bubunawan Power Corp. filed a flood claim (total loss) resulting from typhoon “Sendong” last Dec. 16, 2011 under a fire policy with catastrophic perils extension.
Last March, Fortune General had earlier issued a P1- million check representing its 10-percent share on a P10- million advance payment agreed upon by the panel of insurers. The check was released under a loan-and-trust receipt agreement in favor of the Land Bank of the Philippines Corporate Banking Department 1.
Bubunawan Power Corp., through Land Bank of the Philippines (LBP) Insurance Brokerage Inc., later requested an additional interim payment to finance rehabilitation works. It accepted the P100-million offer presented by the panel of insurers as additional interim payment.
Fortune General was the first member of the panel of Bubunawan’s insurers to release its share of P10 million for the additional interim payment requested by the hydropower company to finance rehabilitation works.