EPM signs energy alliance with India's Kalpataru

This EPM press release was translated from Spanish by an automated system

EPM signed a strategic alliance with the company Kalpataru Projects International Limited (KPIL). as part of the strategies that seek to leverage the growth of their energy transmission and distribution businesses.

“These types of alliances, due to the size and capacity of Kalpataru, open up opportunities for future growth not only in transmission and distribution but in the entire energy sector, and why not, in the infrastructure sector. We are confident that this alliance will successfully leverage the growth expectations that we have set in our strategic direction," said Jorge Andrés Carrillo Cardoso, general manager of EPM.

KPIL has experience in energy transmission and distribution projects through turnkey (EPC) solutions, developed in a broad business portfolio in Europe, Asia, Africa, Central America and South America.

This alliance also seeks to benefit users of the energy service, since the cost of electrical expansion projects in Colombia is paid via tariff. “The more competitive our offer is and the more we are awarded the projects of the Mining and Energy Planning Unit (UPME), the lower the cost of the energy rate for users will be,” highlighted manager Carrillo Cardoso.

Selection process

The selection of the strategic ally was carried out through a process that began with the identification of 37 firms that, once their experience, effectiveness, technical and financial capacity to contract and execute projects of transmission lines and electrical substations, as well as their interest in the possible alliance, first 17 were purged, then 10 and later 2 firms, of which Kalpataru was selected.

This process was led by an interdisciplinary EPM group in charge of evaluating the score of the invited firms according to the established criteria. The chosen firm meets the expected technical and financial capacity and has a high contracting capacity that can generate significant economies of scale.

With this alliance, it is expected to expand the EPM Group's participation in the energy transmission market in Colombia, guaranteeing firm prices and greater agility in both the preparation of offers and the execution of projects.

The EPM Group currently participates with 8.49% of the energy transmission market in Colombia and 38.5% of the distribution.