EPM’s plan to change Hidroituango contractors

Company News    Nov 5, 2021 3:49 PM

EPM announced a Plan B for the search of a new constructor.

General Manager Jorge Andres Carrillo said that the company is analyzing the possibility of extending the current contract “but under certain clauses,” Portafolio reported.

“The builders themselves told EPM, that it is not viable to assign the contracts for Hidroituango. The idea is to guarantee the continuity of the megaproject so that there are no doubts about the stability, safety and dates of entry into operation,” Carrillo explained.

The expert said EPM raised the possibility to the consortium of ceding the contract and “hopefully in advance.”

EPM put on the table the intention of seeking a new contractor through a bidding process, extending the current contract until a new firm is selected.

The company’s Plan B consists of extending the contract of the current CCCI construction consortium until a new one is selected. The contracts for consulting services during the construction of the megaproject, the supervision services and the construction of the dam, power plant and associated works are in force until December 31st, 2021.

According to EPM there are already eight “new” companies interested in continuing with the construction of Hidroituango, four national and four foreign. The opening of the bidding would take place next week.

Bottom-Line: EPM’s plan is not innovative, and in the hypothetical case that the builders accept an extension, this process will take time and will be very complex.

The company and the Mayor’s Office of Medellin blindly believe that this transition will go smoothly. Good luck especially in the negotiation with the current contractors.

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