EPM Wins 1st US$150 Million Insurance Payment for Hidroituango Damages
Medellin-based electric power giant EPM announced December 4 that insurer Mapfre has issued its first payment – totaling US$150 million – for damages to the US$5 billion, 2.4-gigawatt “Hidroituango” hydroelectric project in Antioquia.
The payment “corresponds to the figure recommended by the [insurance] adjuster according to the expenses and investments made by EPM in the recovery of the project,” according to the company.
“This first prepayment is for material damage to civil works. The company continues in the process of quantification of the damages, the replacement of equipment and the repairs of the project as it progresses in its diagnosis, design and contracting, which is permanently informed within the adjustment process.”
The Mapfre policy covers up-to-US$2.55 billion for material damage to infrastructure and equipment, plus up-to US$628 million for lost power sales due to an expected three-year delay into operation (end-2021 instead of the originally planned end-2018).