Hidroituango Contractors Boost Claims Against EPM by US$1.25 Billion
Hidroeléctrica Ituango S.A. (HI) – the original construction-contractor consortium for the US$5 billion, 2.4-gigawatt Hidroituango hydroelectric project here in Antioquia – have boosted their lawsuit demands against Medellin-based electric power giant EPM by a whopping US$1.25 billion, claiming losses triggered by a four-year delay in project completion.
In an August 20 filing with Colombia’s Superfinanciera financial oversight regulator, EPM revealed that HI previously had sued EPM for COP$2.49 trillion (US$619.7 million). But now, HI has since updated its financial claims to COP$7.5 trillion (US$1.87 billion), according to EPM.
“On June 24, 2025, EPM responded to the arbitration claim filed by HI before the Center for Conciliation, Arbitration, and Amicable Composition of the Medellín Chamber of Commerce, identified as file number 2024 A 00033. Additionally, EPM filed a counterclaim in the same proceeding,” according to EPM.
“The initial [HI] complaint seeks, among other claims, a declaration of breach by EPM of the BOOMT [build, operate, own, maintain, and transfer] contract, primarily related to the alleged breach of Milestone 10, which refers to the entry into commercial operation of [electric power] generation unit 8, and an order to pay the remuneration and penalty clauses,” according to EPM.
The original BOOMT contract had meant that EPM would own, maintain and oversee Hidroituango for the first 50 years of operation, following which EPM would transfer Hidroituango project back to Hidroituango S.A.
However, a 2018 collapse of a diversion tunnel at Hidroituango set back completion of the hydroelectric project to early 2027 rather than 2022.
Crucially, an international arbitration tribunal decided December 10, 2024, that the three main contractors at the Hidroituango project were not responsable for the 2018 tunnel collapse.
The Colombian Chamber of Infrastructure, Antioquia Section (CCI-Antioquia) hailed that ruling and denounced former Medellin Mayor Danield Quintero for falsely accusing the contractors of causing the tunnel collapse (see Medellín Herald December 11, 2024).
“Daniel Quintero, who due to media zeal, his irresponsibility and that of his closest collaborators, ends up leading EPM to have to pay an enormous amount of money in compensation — money from all Antioquians that will increase even more due to the enormous waste of the previous administration,” according to CCI-Antioquia.
While EPM will respond to the amended claims by the HI contractors this month, “HI and EPM remain committed to continuing to jointly explore the possibility of reaching an agreement that would allow for the definitive resolution of the legal and economic conflicts in dispute or litigation arising from the BOOMT contract, subject to compliance with legal procedures and the decisions of the Arbitration Tribunal,” EPM added.
