IDEA talks Hidroituango

Company News, Regulation & Policy    Aug 26, 2021 4:04 PM

Manager of the Institute for the Development of Antioquia (IDEA), Julián Vásquez, spoke about the negative effects of the Hidroituango delay and the proposal to sell the stake to EPM.

The expert said that Antioquia has stopped investing in four projects due to Hidroituango’s inoperability, La Republica reported.

He recalled that the governor’s office and IDEA presented a proposal to sell their participation in the project to EPM.

“We have given a time, about nine months, we suspended the activation of the arbitration tribunal, looking for EPM to accept the proposal,” Vasquez highlighted.

Vasquez said that they are not interested in money, as the main concern is for the equity of Antioquia and this proposal is key.

“Our main concern is that the profits should reach the regions and the difficulties should be addressed, which is why we have made progress with the Arbitration Tribunal,” he said.

Vásquez explained that the proposal has not generated discord, and it will allow the project to start operating next year, and solve the conflict.

“The activation of the Tribunal does not mean that the parties cannot reach an agreement with the proposal made to EPM,” Vasquez said.

He said that the loss of profits for the department could be up to CoP$1T, due to the delay of the mega project.

“The only thing, we are interested in is the participation in shares. We must know how much the participation of IDEA and the Governor’s Office is worth, which will allow the resources to reach the territory and not be concentrated in Medellín,” Vasquez said.

Bottom-Line: EPM is in a complicated position in this process. The Mayor of Medellin rejected this proposal, but that means a long and costly legal process for the company.

The governor’s office wants to leverage this to gain a stake in EPM, and it seems like the discussions will continue.

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