CLIMBS’ nepalese partners approve Business Plan

The historic joint venture between CLIMBS Life and General Insurance Cooperative and Nepalese cooperatives is now inching closely to its realization. In fact, the launching of the insurance cooperative partnership is slated towards the middle of July this year according to CLIMBS President and CEO Fermin L. Gonzales.

Gonzales said that CLIMBS and its partners in Nepal have already approved the business plan of the partnership which was deliberated on by both parties from May 20 to 25, 2014 in Nepal. CLIMBS he said, is now in the thick of complying with the requirements set by the Nepalese government such as a position paper and other related documents.

CLIMBS partners in this venture are the National Cooperative Federation of Nepal (NCF/N), Nepal Agricultural Central Cooperative Federation Ltd. (NACCFL), and Nepal Federation of Savings and Credit Cooperative Unions Ltd. (NEFSCUN). Gonzales said the insurance and cooperative departments in Nepal are very supportive of the undertaking.

Gonzales explained that under the partnership, CLIMBS will infuse 49% of the estimated 250 million Rupiah (around 125 million pesos) capitalization and will manage the business for 7 years. This means he said that CLIMBS will put up between 60 to 65 million pesos in this venture. But he said CLIMBS will give its members the opportunity to invest, saying he is targeting 10 primaries to pitch in at least 5 million pesos each and the rest will be shouldered by CLIMBS.

In this light, Mr. Gonzales said CLIMBS will conduct a business forum sometime in July and August this year. He added further that he had already in mind who would be sent by CLIMBS to manage the partnership in Nepal. He did not however, elaborate their identities since it is still premature to do that.

As to the significance of the development, Gonzales said that it enhances the business of CLIMBS adding that it will boost the prestige of CLIMBS in particular and the coop movement in the Philippines in general for having expanded the cooperative insurance to South Asia.

Source: The CLIMBS Journal, Vol.1 No.25