EPM Acquires Electricaribe Operations For Cartagena & Surrounding Region, Consortium To Take Barranquilla & Santa Marta
Today, the utility operator Empresas Públicas de Medellin (EPM) owned by the city of Medellin, was awarded in a competitive process the operation of Caribe Mar, the electrical utility formed by the Colombian government out of Electricaribe.
Due to insolvency, the Colombian government took control of Electricaribe and split the assets into two operating units: Caribe Sol and Caribe Mar. Caribe Mar includes the City of Cartagena, Bolivar, and the surrounding departments including Bolivar itself, Cesar, Córdoba and Sucre.
Caribe Sol provides electricity in the departments of Atlántico, La Guajira, and Magdalena including the cities of Barranquilla, Atlántico and Santa Marta, Magdalena. Caribe Sol was awarded to a consortium of the Empresa de Energia de Pereríra, and Latincorp; both belonging to Grupo Servigenerales.
EPM in this action acquires 1.5 million new electrical customers: households & businesses.
The new General Manager of EPM, Álvaro Guillermo Rendón López, indicated that “as an operator of the electric energy service in the Caribbean Region, the group is committed to growth with sustainability in the marketing and energy distribution in Colombia, as a contribution to the country’s growth and quality of life of the inhabitants of the departments of Bolívar, Cesar, Córdoba and Sucre.”
With this acquisition, EPM will reach 35% market share, up from 23% in Colombia’s energy distribution market, extending its services to a population of 19 million people. “With Caribe Mar we will add in the next months 1.5 million new clients in the Caribbean region. We thank all of them for the opportunity and confidence to allow us to reach their territory. We are working with everyone to be able to provide them with an electrical energy service with continuity, quality and the coverage this region deserves.” said Rendón.
After today’s award, the Colombian National Government must close the financial transaction to purchase 100% of the shares, set up the new company and prepare and deliver the assets and liabilities included. Only then will Grupo EPM take control of operations.
Meanwhile, energy service will continue to be provided as it is today by the national government as trustee of Electricaribe in its insolvency.
According to EPM, a team of officers and directors, accompanied by bank investment and external advisors, carefully studied and analyzed the feasibility and opportunity of the operation, that is expected to require almost $4 billion USD of additional investment to repair and modernize the Caribbean electrical network, notorious for its unreliability, especially in comparison to the rest of the country.