A contract to carry out the civil works necessary for the commissioning of generating units 5 to 8 of the Hidroituango Hydroelectric Project, in the Antioquia department was recently awarded to the CYS Consortium by Empresas Pblicas de Medellin (EPM), a public utility.
The project was awarded to the consortium recently following the completion of the open bid process. The consortium is made up of the companies LTD Sucursal Colombia, Schrader Camargo S.A.S., as well as Yellow River CO.
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Following their selection, the CYS Consortium will execute a contract for civil works valued at more than $252 million USD. It will be concluded in the next three years and four months.
How the Hidroituango Hydroelectric Project has been planned
The project’s implementation has been planned in two stages. Each stage consists of four energy producing units, according to EPM. EPM confirmed that this has been the case since the project’s initial development.
Turbines in Units 1 to 4 were completed in the first stage. Units 5 to 8 are expected to be completed in this newly awarded second stage.
The contracting process for Hidroituango has raised concerns. The contractor, CCC Ituango, had been working on the dam for more than ten years. They were required to renegotiate the existing contract in December by the then-mayor of MedellÃn, Daniel Quintero, who unexpectedly quit recently. That request was rejected by the organization, which led to a legal dispute.
Furthermore, despite complaints from independent consultants, the Ituango PC-SC Consortium had previously submitted a bid for more than $200 million USD. According to a thorough report by the engineering consulting firm Poyry/Afry, the Cauca River flow runs over the spillway or via the bypass tunnels rather than through the generation turbines, as would be planned. This would likely cause stress on the dam, increasing the risk of structural failure. This stress would be caused by delays in finishing Hidroituango and commissioning the eight turbines. These turbines were brought up earlier in the two stages of the project.
Since Quintero actively participated in the construction process as chairman of the board of the city-owned EPM during his tenure, questions have been raised about the project. These questions stem from his questionable actions.
Why there have been doubts about the project’s implementation
As of late, there have been questions surrounding the Hidroituango Hydroelectric Project because of Quintero’s murky actions.
The home services company claimed there weren’t enough Colombian firms with expertise in hydroelectric dams. These firms were also keen on taking on the Hidroituango project. As a result, on August 26, 2022, the Chinese Yellow River CO firm requested that the home services company lower the standard requirements needed to complete the project.
In a letter to EPM, Yellow River CO notified EPM that they had identified another approach to working with a local company experienced in similar initiatives. They stressed the need for EPM to reevaluate one of the suggested options. They also requested that the Colombian participant provide evidence of their competence in order to satisfy specific conditions.
After Quintero denied CCC Ituango’s application for a contract to continue operations, it came to light that competent local companies hesitated to participate in the project. As a result, the company declined to go on when the initial contract phase expired.
The Colombian Chamber of Infrastructure severely criticized EPM for altering the project’s standards. This association of entrepreneurs in the construction industry accused the city company of tweaking the requirements. They alleged that it was done to make it smoother for a certain company to win the contract. This claimed contractual malpractice is referred to as tailor sheets in Colombia.
