Will Antioquia sell its participation in Hidroituango?

Company News, Regulation & Policy    Jul 9, 2021 4:33 PM

The Governor of Antioquia, Luis Fernando Suarez Velez, made a proposal regarding Hidroituango.

Suarez proposed selling to EPM the participation of the Governor’s Office and IDEA in the Ituango Hydroelectric Society, corresponding to 52.88%, La Republica reported.

The Governor’s Office of Antioquia is willing to sell its participation in the project to EPM, in exchange for a direct participation in the company.

“This to avoid a prolonged and damaging judicial conflict between the main public institutions of the region,” the governor’s office said in a statement.

EPM representatives announced that they will analyze with their technical, legal and financial teams the scope of this proposal and the convenience for the organization.

“A virtuous and synergetic path is proposed, in which everyone wins: EPM, Mayor’s Office of Medellín, Governor’s Office of Antioquia, all people of Antioquia and our country,” Suarez said.

The main reason for this proposal is based on the fact that EPM, as constructor of the Hidroituango project, has some obligations with the Hidroituango Society, which have not been fulfilled and are the reason for several lawsuits.

“The solution of a conflict with the complexities and repercussions of this one, should not lead us to judicial scenarios, this should be the last option,” Suarez explained.

Bottom-Line: EPM is going through a big corporate credibility crisis, and adding more politics to the company could end up affecting this situation.

The company needs a radical restructuring, but including more political participation does not sound like the best alternative…

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