CCI in disagreement with EPM

Company News    Dec 6, 2021 3:05 PM

The Colombian Chamber of Infrastructure (CCI) has expressed its disagreement with EPM’s decision to prepay its debt with the Inter-American Development Bank (IDB).

The CCI said that this is a “wrong” and “irresponsible” decision, La Republica reported.

It is important to remember that EPM signed a voluntary payment scheme with the IDB to pay off a loan for US$450M, so that once the transaction is finalized the international organization will cease to be a lender and financier of Hidroituango.

For the Chamber of Commerce, and as initially requested by the Antioquia’s Inter-industry Committee to the National Government, the most appropriate thing to do will be intervene in the municipal utility as they are “uneasy” with EPM’s decisions.

“You do not prepay a US$450M debt overnight. That affects any company from a cash and financial point of view, when the dollar is at CoP$4,000,” CCI’s José Fernando Villegas said.

Villegas added that EPM’s announcement to change contractors, materials and designs are also a red flag for the project development.

“We see a lot of improvisation from EPM,” Villegas concluded.

Bottom-Line: See our opinion of this announcement, here.

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