Santa Marta receives an Essmar in intensive care from the State: these are the millionaire liabilities that threaten the company's rescue

The mayor assures he has a plan to recover it, but the Council warns that liabilities could be a problem for water in Santa Marta. Mayor Carlos Pinedo Cuello will assume the presidency of the Board of Directors of Essmar during the transition process. Photo: Santa Marta Mayor's Office10.08.2026 19:01 Updated: 10.08.2026 19:01 Santa Marta recovered Essmar, but with it came one of the biggest problems the mayor, Carlos Pinedo, will have to face: transforming a company with millions in obligations and enormous operational challenges into the tool to start solving the city’s historic water crisis. ALSO READ The lifting of the intervention ends a period that began in November 2021. Almost five years later, problems persist that directly affect users: neighborhoods with supply difficulties, dependence on water trucks, and recurrent sewer overflows. Now something fundamental changes: the responsible party. Pinedo regains decision-making capacity over Essmar, but will also bear the political cost of what happens with it. "A new stage begins" "The company regains its administrative autonomy and a new stage begins for Santa Marta," assured Pinedo, who will assume the presidency of the Board of Directors. The lifting of the intervention ends a period that began in November 2021. Photo: Essmar The leader recognizes that recovering the company does not mean immediately solving its problems. "With a responsible handover process and the implementation of a work plan, we will move forward to regain the trust of the people of Santa Marta and improve the provision of water and sewer services," he stated. He also asked for patience: "Like any transition, it will require time and responsible decisions, but we will work to make this process as smooth as possible." Five years and the crisis continues For public finance expert Darío Quintero, the balance of the intervention must be contrasted with the reality faced by users. In Santa Marta, there is still suffering from water shortages in more than 30 neighborhoods. Photo: Social media During these years, investments, maintenance, and infrastructure recovery have taken place, but the structural solution remains pending. At the beginning of 2026, the Magdalena Interprofessional Committee publicly demanded the lifting of the intervention and warned that Santa Marta continued to face an "irregular, intermittent, and deficient" water service, in addition to "serious and recurrent faults" in the sewer system. Administrative instability also fuels questions. During the intervention, ten managers passed through Essmar, including one whose tenure lasted only 24 hours. "Essmar had a total of ten interveners who went through it with shame, without glory, but with embarrassment," questioned councilor Juan Carlos Palacio. "If after all these years we still talk about water shortages, overflows, and a company that needs to be saved, then we have to ask what the intervention was for," he added. The ghost of 200 billion pesos The biggest concern lies in the accounts. In September 2025, Essmar recorded liabilities exceeding 177 billion pesos, although it clarified that this figure did not fully correspond to payable debt and placed its "net liability" at 47.108 billion pesos. The mayor assures he has a rescue plan to recover the entity. Photo: Courtesy Of the 177 billion pesos, 56.908 billion pesos corresponded to deferred liabilities related to public lighting collection and another 73.740 billion pesos to commercial, financial, and fiscal obligations incurred before the intervention. The company then claimed to have "financial capacity to cover the costs and expenses derived from its operation" and stated that it had reduced the liabilities generated during the intervention by 57%. However, Palacio estimates that the current total liabilities could approach 200 billion pesos. "That’s what all of us in Santa Marta are asking: where will that money come from to clean it up and make it useful for the citizens?" he said. The councilor urged the mayor to act cautiously before using district resources: "I beg the mayor to first take that money and invest it in social programs that Santa Marta so badly needs, before committing the District’s finances to that mess." Quintero warns that it will be the handover that will determine the real extent of the problem. "The known balance corresponds to September 2025. The financial snapshot that matters now will be the one resulting from the 2026 handover," he notes. For the expert, it cannot also be concluded that Santa Marta must automatically disburse 177 billion pesos. "The decisive data will not only be how much the gross liabilities amount to, but how much the payable debt truly represents and what Essmar’s capacity is to respond to it through its own operation," he explains. Pinedo’s plan Pinedo decided to bet on saving the company and support the process with major infrastructure projects. Mayor of Santa Marta, Carlos Pinedo. Photo: Social media A key piece will be the Potable Water Treatment Plant El Curval, projected to supply around 800 liters per second additionally. This is complemented by new sources of supply and the desalination solution proposed with the participation of the national government. In sewerage, the administration highlights the recovery of the North EBAR, with an investment of over 31 billion pesos, as well as the Bellavista and Pescaíto collectors and other works contemplated in the Master Plan for Water and Sewerage. But the works will need a financially sustainable and technically capable company to operate them. The handover will finally reveal which company Santa Marta received: cash, receivables, payable debts, contracts, litigations, labor obligations, infrastructure, and pending commitments. ALSO READ If it manages to clean it up, increase water availability, and reduce overflows, Essmar could become one of the main achievements of its administration. If debts consume resources and the crisis continues, it could become the inherited problem that tarnishes its government. You might also be interested in: #SismoColombia #AbelardoDeLaEspriella Photo: EL TIEMPO By Roger Urieles, for EL TIEMPO Santa Marta. On X @rogeruv Follow all Colombia news on Facebook and Twitter, or in our weekly newsletter. EL TIEMPO NEWSLETTERS Register for our newsletters and receive news in your email according to your interests. Stay informed about what really matters to you. EL TIEMPO GOOGLE NEWS Follow us on GOOGLE NEWS. Stay always updated with the latest news, coverage, stories, and analysis directly on Google News. EL TIEMPO WHATSAPP Join El Tiempo’s channel on WhatsApp to stay up to date with the most relevant news at the moment. EL TIEMPO APP Stay informed with the EL TIEMPO app. Receive the latest news, coverage, stories, and analysis directly on your device. SUBSCRIBE TO THE DIGITAL Reliable information for you. Subscribe to EL TIEMPO and access our journalistic content unlimitedly.