Colombia
Press Release

Due to Hidroituango contingency, Mapfre insurer made a third payment to EPM for 100 million dollars

Bnamericas Published: Wednesday, September 01, 2021

This EPM release was published using machine translation.

Medellín, August 31, 2021 | EPM received this Tuesday, August 31, an advance payment of 100 million dollars for material damage in the Ituango Hydroelectric Project, by the insurance company Mapfre, with which the resources received so far for the contingency registered in the work in April of 2018 amount to 350 million dollars.

Jorge Andrés Carrillo Cardoso, general manager of EPM, highlighted this good news for the Company and for the development of Hidroituango. "The 350 million dollars received to date for the compensation of the contingency in the Ituango Hydroelectric Project, through the 'all risk construction and assembly' policy, are the product of this new payment of 100 million dollars, added to the 150 million dollars delivered by Mapfre in December 2019 and the 100 million dollars reimbursed in September 2020 ”, said Carrillo Cardoso, who added that“ thanks to the teamwork of various areas of EPM this milestone was achieved ”.

This figure paid by Mapfre corresponds to that recommended by the Adjuster, based on the expenses and investments made by EPM in the recovery of Hidroituango.

Last July, the Company updated the value of the investments necessary for the completion of the Project by 2.1 trillion pesos, resources that will ensure the entry into commercial operation of the first two generation units in the second half of 2022 and the six units remaining between 2023 and 2025. Conello, the total investments in the future plant amount to 18.3 billion pesos.

The resources obtained from this payment from the insurer are destined to attend to the recovery of the Ituango Hydroelectric Project and the development of the works, which will allow the hydroelectric plant to be in operation, which will generate 17% of the energy that the country needs.

Insurance

The insurance policy 'all construction and assembly risk' that covers the contingency that occurred in the Ituango Hydroelectric Project, on April 28, 2018, has an insured limit of 2,556 million dollars for coverage of material damage to infrastructure and equipment.

It also has coverage for the delay in the entry into operation of the Hydroelectric Plant (money not received due to damages derived from the contingency) for 628 million dollars, amounts that establish the maximum liability of the insurer. It is important to indicate that the compensation will correspond to the value of the damage suffered by the Project and covered by the insurance, considering that it is a partial loss.

EPM continues to adjust the claim generated by the contingency of April 28, 2018 in the project and is committed to providing its constant collaboration to Mapfre and the Adjuster in said process that is carried out in accordance with the terms and conditions of the policy.

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