EPM vs Hidroituango contractors

Company News    Nov 2, 2021 5:17 PM

The fight between the mayor of Medellin, Daniel Quintero, and the Hidroituango contractors continues.

Quintero announced an agreement with the current Hidroituango construction contractors, where it was agreed to extend the current contract at least until the bidding process to be opened by EPM comes to an end, La Republica reported.

This agreement with the CCC Consortium, would be extended until three months after the end of the current contract, which ends next December 31st of the current year.

“We are going to guarantee that there will be no neglect of the project. There will be an extension until the end of the bidding process. That is why there will be an extension, allowing us to have a new contractor,” Quintero said.

However, the consortium’s legal representative, Santiago García, said that this deal is false and explained that they have not held new meetings with EPM, so for now they are only analyzing the continuity and assignment of the contracts.

Quintero said that EPM will have to activate a contingency mechanism with a view that the work is not totally paralyzed, in case the ruling for CoP$4.3T against the current contractors is confirmed.

In addition, the construction companies Conconcreto S. A., Coninsa Ramón H. S. A. and Construções e Comercio Camargo Correa S. A., filed a lawsuit for slander and libel against the Mayor of Medellín, Daniel Quintero, Portafolio reported.

A few weeks ago Mayor Quintero said publicly that the builders of Hidroituango had delivered the work with deficient materials.

The builders explained that there were some inconveniences due to events related to acts of force majeure in the development of the project, generating the problems reported.

They added that Mayor Quintero has insisted on mistreating the name of the companies, for which he has the option of retracting or being sentenced to up to 8 years in prison.

Bottom-Line: Analysts and experts agree that an eventual change of contractors would generate a huge delay in the project development due to the fact that the incorporation of a new plan could take months or even years, considering the complexity of Hidroituango.

However, Quintero believes that this process can be completed in three months without any negative effect on the project. Ah, this considering that the contractors even accept this “agreement”.

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