The consent to arbitration between EPM and the Hidroituango Society was confirmed following a decision by a Arbitration Courtwhich supported the agreement with the support of the Office of the Attorney Generalaccording to information published by Weekly magazine.
The decision ends the legal process triggered by the registered emergency 2018 at the hydroelectric power station in Antioquia.
The mayor of Medellín, Federico Gutierrezand the governor of Antioch, Andres Julian Rendonpublicly referred to the decision, emphasizing that arbitration made it possible to resolve a long-term conflict between the two entities associated with the project.
You can now continue following us Facebook and in ours WhatsApp channel
Both officials said the agreement was being worked on recently two yearswithin their administrations.
“For two years, when we came to government, Governor Andrés Julián Rendón and I have been working on a win-win agreement for Antioquia, Medellín and Colombia. Today the Arbitration Court approved the arbitration between EPM and Sociedad Hidroituango with the approval of the Attorney General’s Office,” said the Mayor of Medellín, who is also Chairman of the Board of Directors of EPM.
In accordance with Gutiérrez’s statements, the approved arbitration procedure provides for Protection of public heritage, the financial sustainability of EPM And the guarantee of energy production for the countryAspects highlighted in the agreement.
The President added that the resources resulting from the closure of the litigation will be targeted social investmentwithout specifying specific amounts.
The Hidroituango Society is the owner of the hydropower project and its shareholding composition corresponds to this 52.8% to the government of Antioquia and in 46.3% to EPM.
EPM acts not only as a partner, but also as Main contractor work under a standard contract boom – Build, operate, maintain and transfer – formalized in 2011as explained The Colombian in previous publications.
The origin of the dispute stems from the emergency that occurred 2018when the Hidroituango Society filed a lawsuit before the Medellín Chamber of Commerceand requires EPM to respond to suspected contract violations related to cost overruns and technical failures that occurred during the emergency.
In December 2023The arbitral tribunal hearing the case ruled that EPM was responsible for the cost overruns and failures Auxiliary diversion systemorder the payment of 781,828 million pesos to cover financial expenses and repair work. This decision was later challenged by EPM in court State Councilor.
He July 23, 2024The Council of State upheld EPM’s appeal and suspended the effect of the arbitral award, allowing a negotiation scenario between the parties. After the arrival of new administrations in the Mayor’s Office of Medellín and the Government of Antioquia, talks were encouraged to find an amicable solution.
In a letter to the Medellín City Council, the EPM reported that it is “working to draft a comprehensive agreement that will allow the final resolution of legal and economic conflicts,” clarifying that this process is subject to the procedures and decisions of the relevant arbitration court.
The now approved arbitration formalizes this dialogue process and resolves the ongoing legal controversies between EPM and Sociedad Hidroituango. As Mayor Gutiérrez announced, the technical, financial and operational details of the agreement will be presented in January 2026as soon as the relevant internal procedures have been completed.
Governor Andrés Julián Rendón also commented on the decision, echoing the position of the Medellín Mayor’s Office and pointing out that the agreement allows institutional continuity of the hydroelectric project, considered strategic for the national energy system.
This is the Hidroituango power plant largest hydroelectric power station in the country and its full commissioning has been the subject of constant monitoring by local, regional and national authorities since the emergency 2018due to its impact on energy production and public finances
About The Author
