BOGOTA (Reuters) - Colombian public services holding company Empresas Publicas de Medellin (EPM) said on Tuesday it will sell its participation in two Chilean interests for $138 million, part of a plan to increase its liquidity the year after the near collapse of a hydro-electric dam resulted in thousands of evacuations.
EPM, controlled by the government of the city of Medellin, has said it is seeking to raise some 4 trillion pesos ($1.18 billion) in assets to offset problems caused by the near-collapse of the Hidroituango dam in mid-2018.
The company will sell its participation in EPM Transmision Chile S.A. and the Los Cururos SpA wind farm, located about 330 kilometers (205 miles) north of Santiago, Chile, to AES Gener S.A. and its subsidiary Norgener Renovables SpA, EPM said in a statement.
EPM added that insurer Mapfre will cover damages incurred when the control room and other areas of the $4 billion Hidroituango dam had to be flooded last year.
Nearly 5,000 people were evacuated from their homes amid fears of mass flooding.
The policy covers up to $2.5 billion for infrastructure damage and up to $628 million for the costs associated with delays in getting the dam working.
“Once the value of the accident is quantified, and keeping in mind the conditions and limits established by the insurance policy, the resources will be repaid to EPM,” EPM general manager Jorge Londono said in the statement.
Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by David Gregorio