Regulation & Policy Sep 19, 2021 10:32 AM
The Inspector General ruled on the Hidroituango case, and the Sociedad Antioqueña de Ingenieros y Arquitectos (SAI) spoke out on the effects of this decision.
The association questioned the determination made by the entity, saying that this action could affect investor confidence in the infrastructure sector, La Republica reported.
“The confirmation of such a ruling constitutes an extremely worrying precedent that would have the effect of eroding investor confidence in the infrastructure sector, in addition to putting the project itself at risk,” SAI said.
The SAI said that the magnitude of the alleged damages caused by gross negligence, weighs on the good name of companies that, over many years, have participated with remarkable success in infrastructure works in Colombia and abroad.
“At this time it is not possible to measure the financial consequences, but they could be devastating,” SAI said.
It is important to remember that the Inspector General issued a fiscal responsibility ruling against more than 23 individuals and companies in this case.
The SAI explained that the Inspector based much of his ruling on extremely serious grounds.
“The entity is assuming that the budgets and initial concepts of complex engineering works, which take years to build, are definitive and unchangeable. The reality is that they are developed on the basis of limited knowledge that is supplemented by knowledge gained during construction,” the association said.
Bottom-Line: This decision is already having an effect on the project, as EPM started the search for new contractors, in case some of them cannot or do not want to continue with the project. This represents a new challenge for the company in the goal of rescuing this important project and could delay the entry into operation of the plant, once again.