Company News, Regulation & Policy Oct 23, 2021 2:39 PM
Colombian President Iván Duque spoke about the situation of the Hidroituango project.
Duque said that the crisis of the mega project must be resolved through the insurers’ coverage, La Republica reported.
He said that the payment by the policies must be made to cover the costs generated by the project, even more so after the entry into reorganization process of two of its construction contractors.
“The situation in Hidroituango should be removed from the political arena and, instead, should be resolved with the payment of the policies,” the President said.
Duque said that it is key that the works at the hydroelectric plant continue, to deliver two turbines next year.
The President highlighted that it is important that the policies pay for this project, since that is what they were designed for, even if the Nation has no shares in Hidroituango.
He added that one turbine will enter in June and the other in November 2022.
“We cannot be playing with the uncertainty of a project that, in addition, has brought so much interest from multilateral banks. Culminating it with speed and responsibility, recognizing the loss and acting with the insurance system, is what is required at this moment,” Duque said.
The President warned that if there are further delays in the project schedule, there could be an impact on the future cost of tariffs.
“The financial stability of companies in Antioquia and Medellín, which have been built with so much effort over so many decades, could be put at risk,” Duque concluded.
Bottom-Line: The Hidroituango case seems to have no end, and uncertainty continues to increase due to the possible search for new contractors. This would imply a new delay in the project, which could lead to new lawsuits against the firm.
Duque said the project should be removed from the political arena, but the recent lawsuits against Carrillo’s appointment as manager of EPM do not help to do so.
And this weekend brings news that EPM has officially asked the consortium to cede its contract to other suppliers. How much delay will that bring? How much project risk? How much risk of a human and ecological disaster?
