Future funds for Hidroituango

Company News    Nov 23, 2021 5:38 PM

In an extraordinary session held on November 17, EPM’s Board of Directors approved Ordinary Future Funds for the year 2022.

These funds were assigned directly to the main components of the Ituango Hydroelectric Project, La Republica reported.

Thanks to this approval, EPM’s administration is authorized to sign an extension of the current contract for the corresponding pieces, which guarantees the continuity of the project’s construction activities, a priority goal for the company.

In total, the project will generate 2,400MW with its eight units of 300MW each, which will meet 17% of the country’s energy demand.

The currently estimated schedule for the commercial operation of the eight generation units considers the entry of the first two units in the 2H22.

It is important to remember that to be completed, the project will have to find a mechanism to insure construction risks, since the current insurers will not extend their contracts. EPM decided to manage this through a self-insurance fund to continue with the development of the project.

Bottom-Line: Guaranteeing the continuity of the works is of vital importance for the country.

The great challenge for EPM will be to find an all-risk insurance, considering that no insurance company is willing to deal with this ‘hot potato’.

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