Hidroituango Insurance

Company News    Nov 12, 2021 2:53 PM

Another chapter has begun in the challenges that Hidroituango must continually face to complete the work and generate electricity.

The new challenge is the insurance for the completion of the construction, La Republica reported.

The insurance companies Mapfre and Suramericana defined their terms to continue insuring the hydroelectric power plant.

Mapfre will provide all-risk policies for assembly, sabotage and terrorism, while the civil liability and tort policies will be with Suramericana. Coverage for the transportation of goods and completed civil works is also guaranteed.

EPM said that although the continuity of the all-risk policy has not been achieved, it will continue with other coverage, demonstrating the market’s confidence in the completion of the hydroelectric project.

“An adequate risk transfer scheme is achieved,” EPM said.

However, the company cannot leave the construction without all-risk coverage, and EPM decided to insure the project through a self-insurance fund.

Economist and utilities expert Luis Guillermo Vélez clarified that this is not a fund but a ‘budgetary availability’ aimed at mitigating risks that may occur.

“An all-risk insurance is difficult to get in general. EPM’s decision is better than nothing,” Velez said.

Bottom-Line: We wonder why EPM could not get an all risk insurance for Hidroituango? Maybe it is the high degree of uncertainty, the fight between the mayor of Medellin and contractors, the mayor’s decision to sue Mapfre against the counsel of his legal advisors, the lawsuits against EPM, the risk for the communities…

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