September 30, 2023

EPM’s 2020 Capex, Opex Budget Tops US$4.9 Billion

Medellin-based multinational utilities giant EPM announced November 25 that its 2020 capital and operating budget will hit COP$17 trillion (US$4.9 billion).

“The budget authorized by the EPM board of directors responds to a rigorous planning exercise and includes resources for the attention of the Hidroituango hydroelectric project, which in 2019 has reached important milestones in the protection of communities, care of the environment and technical recovery of this future power plant,” according to EPM.

“The budget also includes items for the expansion and replacement of electric power distribution networks and the development of aqueduct and sewage works in order to increase the coverage of services for citizens [as well as] maintain and/or improve their continuity and quality,” according to the company

The 2020 budget will be financed through three sources: cash-on-hand totaling COP$1.9 trillion/US$548 million (11%), current income from public services including electric power, natural gas, sanitation and drinking water, which in 2020 will total COP$9.8 trillion/US$2.8 billion (58%), and capital resources raised, which for next year will be COP$5.3 trillion/US$1.5 billion (31%).

“The capital resources raised include planned loan disbursements, compensation that is expected to be received from the insurer [Mapfre] for damages caused in the contingency of the Hidroituango hydroelectric project, and dividends that the company will receive from national and international subsidiaries,” according to EPM.

The EPM 2020 budget will be distributed as follows:

• Operating expenses: COP$5.9 trillion/US$1.7 billion (34%).
• Commercial operation expenses: COP$3.9 trillion/US$1.1 billion (23%).
• Investment expenses: COP$4.8 trillion/US$1.4 billlion (28%).
• Debt service: COP$1.8 trillion/US$520 million (11%).
• Cash availability: COP$600 billion/US$173 million) (4%).

EPM also aims to transfer part of its profit surpluses to the municipality of Medellín — its sole shareholder — totaling COP$1.3 trillion (US$375 million) during 2020.

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