As you probably knew, CLIMBS will soon operate in Nepal. And the realization of this milestone is getting nearer every day. In fact, the launching of this partnership is expected to be held this month in Nepal, following our successful deliberation of the business plan on the last week of May 2014 in that country with our Nepalese counterparts.
Barring any serious hitches, we are looking forward to start operating within the first quarter of 2015. As I have said earlier, CLIMBS will have a 49% share of the capitalization. We are talking about a 60 to 65 million pesos in terms of investment. However, CLIMBS will open the opportunity for our member coops to invest. I was thinking that 10 coops may put up 5 million pesos each with CLIMBS taking care of the rest.
In this light, we will hold a business forum come August this year. As pointed out earlier the venture will be managed by CLIMBS for 7years. I already have in mind who will be sent to manage the business, but I will keep their identities anonymous in the meantime, pending the finalization of the decision on the matter at hand.
You might ask, why Nepal? Well, it is because of the dynamic coop movement in that country. In fact, cooperativism in Nepal is considered the third pillar of their economy: the government being the first and the second pillar is the private sector. It is good to note that there is no insurance coop in Nepal.
With this development, we can say with pride that the CLIMBS insurance model will be exported to South Asia. Aside from this prestige, which is in fact a very good business venture. We continue to hope and pray for the success of CLIMBS’ first international exposure and thank you all for your continued support.
Meanwhile, the proposed merger of CLIMBS and Cooperative Insurance Services of the Philippines (CISP) is now under study. On the part of CLIMBS we have already created a committee to study the proposal coming from CISP.
However, we just learned that CISP and FICCO-MBA are also having merger talks regarding their insurance portfolio. So we believe that both should finalize first their agreement before CLIMBS can proceed with the due diligence audit on CISP.
The earlier they can finish their talk, the earlier we can act on the proposal given by CISP.
The CLIMBS Journal, Vol.1 No.25