Eri Silva
Colombia: Economy, Finance & Politics (2020-2021)
All coverage published by Brightwire
Recovery efforts at the Ituango Hydro Project in June 2018 after the diversion tunnel collapse two months prior. (Proyecto Hidroeléctrico Ituango)
GEB shareholders approve merger of subsidiaries shared with Enel Americas
29 June 2021
Grupo Energia Bogota's (GEB) shareholders approved the proposed merger between the subsidiaries it shares with Enel Americas — Codensa, Emgesa and Enel Green Power, GEB said in a filing.
Shareholders also approved the "redefinition" of investments into Emgesa and Codensa.
The merger will include non-conventional renewable energy assets in Colombia, Costa Rica, Panama and Guatemala into a single company, Enel Colombia.
Enel Americas will own 57.345% of the new company, GEB will own 42.515% and minority shareholders will own the remaining shares, according to Fitch Ratings.
Changes to the shareholding structure were caused by GEB exchanging its roughly 8% preferred shares in Emgesa and Codensa for a proportional ownership in the Enel Green Power companies in Colombia and Central America, the ratings agency added.
Finance Ministry agrees to sell its 51.4% stake in ISA to Ecopetrol for COP 14.2 trillion
12 Aug 2021
The Colombian Finance Ministry agreed to sell its 51.4% stake in Interconexion Electrica (ISA) to Ecopetrol for COP 14.2 trillion (USD 3.7 billion), the company said in a SEC filing.
Ecopetrol must make the payment, COP 25,000 (USD 6.44) per share, in USD by Dec 6, La Republica reported, citing Finance Minister Jose Manuel Restrepo.
The Finance Ministry will gradually monetize the payment back into COP when conditions are favorable, Restrepo said. The deal is expected to close in three to four weeks.
Restrepo emphasized that the government will continue to be the majority shareholder of ISA through Ecopetrol.
He said resources from the sale will be used toward the economic reactivation of the country following the pandemic.
US removes FARC from terrorist list, adds 2 splinter groups
30 Nov 2021
The US revoked its designation of the Colombian group Revolutionary Forces of Colombia (FARC) as a foreign terrorist organization (FTO), according to a State Department release.
It added Revolutionary Armed Forces of Colombia – People's Army (FARC-EP) and Segunda Marquetalia as FTOs.
The designation of FARC-EP and Segunda Marquetalia is directed at those who refused to demobilize following FARC's 2016 peace accord with the Colombian government and those who are engaged in terrorist activity.
Iván Márquez, FARC's former head negotiator, announced on video that a group of dissidents would be taking up arms again under the name Segunda Marquetalia on Aug 29, 2019 in Havana, Cuba. (AFP)
Colombian court ratifies COP 33 billion fine against ex-Odebrecht execs
22 Nov 2021
Colombia's Attorney General Office ratified a COP 33.5 billion (USD 8.5 million) fine against two former Odebrecht Colombia executives, a government release shows.
Eleuberto Antonio Martorelli and Eder Paolo Ferracuti were sanctioned for their roles in embezzling public funds while part of the management of the Ruta del Sol construction consortium.
The former directors falsified documents that would have revealed irregular payments to Compania de Profesionales de Bolsa, a company allegedly contracted by Ruta del Sol for advisory services.
Ruta del Sol’s owners — Odebrecht, Episol and Corficolombiana — were sanctioned in December of 2020 for collaborating in anti-competitive practices to ensure the consortium was granted a public road works project and for embezzlement during the project's execution.
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One of the two newly protected maritime areas, the Cordillera Beata (MinAmbiente Colombia)
Colombia to expand protected maritime zone in 2022
02 Nov 2021
Colombia has committed to placing a total of 30% of its maritime area or 28.4 million hectares (70.3 million acres) under protection by 2022, President Ivan Duque said at the COP26 climate conference.
In order to reach the goal, the country will create two new protected maritime areas totaling 16 million hectares in Colombia's Northern Pacific and Caribbean coasts.
Combined with Ecuador, Costa Rica and Panama, the area will create the largest protected maritime zone in the western hemisphere, Duque said.
Colombia’s Comptroller's Office finds 26 people, companies responsible for COP 4.3 trillion in damages connected to Ituango
07 Sept 2021
Colombia's Comptroller's Office found 26 people and companies responsible for COP 4.3 trillion (USD 1.1 billion) in fiscal damages caused by delays to the 2,400-MW Ituango Hydro project, the Comptroller said in a release.
The office started an investigation into alleged errors in the project's planning and execution that led to the 2018 diversion tunnel collapse.
The indicted include former Antioquia Governors Luis Alfredo Ramos Botero and Sergio Fajardo Valderrama, former EPM managers Federico Restrepo Posada and Juan Esteban Calle Restrepo and former Medellin Mayor Alonso Salazar Jaramillo.
The three companies that comprise the CCCI construction consortium — Camargo Correa, Conconcreto and Coninsa Ramon H — were also accused.
All appeals or requests for remedy must be filed in five days.
BanRep raises monetary policy rate to 2%
01 Oct 2021
Banco de la Republica raised Colombia's monetary policy rate by 25 bp to 2% — the first movement in a year, according to a release by the Central Bank.
The increase was due to economic growth and a rise in consumer prices as YoY inflation hit 4.44% in August, above the target range of 2% to 4%.
Analysts predict that the board will continue to raise the rate for the rest of this year, ending at 2.50% in December, Reuters reported.
The Central Bank also increased its inflation prediction to 4.5% for this year from 4.1% and increased its GDP prediction to 8.6% from 7.5%.
(Banco de la República)
Venezuela's Monomeros seized by Colombian corporate regulator
08 Sept 2021
Colombian regulator Supersociedades imposed the highest level of oversight on fertilizer producer Monómeros, a Venzuelan state-owned company based in Colombia, due to its economic distress, the regulator said in a release.
Monómeros has been struggling to obtain the needed credit to pay for raw materials as U.S. sanctions restrict its access to financial markets, despite being under the control of the opposition since Colombia joined the U.S. in recognizing opposition leader Juan Guaidó as Venezuela’s interim president in 2019.
Last month, Venezuelan President Nicolas Maduro stated he would make the return of Monomeros to his administration a key point in Mexico City talks with the opposition. Maduro’s administration aims to redirect the company’s production to Venezuela to help revive the country’s economy.
Maduro’s comment sparked concern from Colombian officials considering Monómeros' departure could risk the country’s food security. The fertilizer producer supplies about half of Colombia’s domestic market — 45% of the agricultural sector including about 70% of the coffee, potato and palm industries.
"In no case can Colombia allow the company to change its shareholders," Congressman César Lorduy said during a radio interview. Supersociedades said the seizure is meant to force Monómeros’ management to adopt measures aimed at remedying its critical economic position.
