Company News Sep 3, 2021 2:53 PM
EPM received an advanced payment due to the Hidroituango contingency.
Mapfre paid US$100M for material damage in the Ituango Hydroelectric Project, La Republica reported.
With this payment, the company has so far received US$350M for the contingency registered at the construction site in April 2018.
“These resources will be invested in the works that will put the hydroelectric power plant in operation,” EPM said.
EPM’s Jorge Andrés Carrillo Cardoso said that the US$350M is part of the indemnity for the contingency in the Ituango Hydroelectric Project, through the ‘all risk construction and assembly’ policy.
“This new payment for US$100M, is in addition to US$150M delivered by Mapfre in December 2019 and US$100M reimbursed in September 2020,” Carrillo said.
The ‘all risk construction’ insurance policy covering the contingency has an insured limit of US$2.5B for coverage of material damage to infrastructure and equipment.
“This insurance has a coverage for the delay in the entry into operation of the hydroelectric plant for US$628M, amounts that set the maximum liability of the insurer,” EPM said.
Bottom-Line: EPM must explain in more detail the destination of these resources and the progress of the works. Uncertainty about Hidroituango is still very high.