Video | Plan for Cali to acquire one of the country's largest hydroelectric plants and thus generate energy: 'It won't cost the people of Cali a single peso'

InterviewThe mayor of Cali, Alejandro Eder, explained to EL TIEMPO the progress of the project that started in January and revives the desire for Emcali to become a power generator. The mayor of Cali, Alejandro Eder, in an interview with EL TIEMPO about acquiring the Salvajina hydroelectric plant. Photo: Jaiver Nieto Álvarez / CEET and EL TIEMPO archiveJOURNALIST16.10.2026 19:03 Updated: 16.10.2026 19:03 The long-held desire of the Municipal Companies of Cali (Emcali) to be an energy-generating company, an ambition that remained shelved and held back by political infighting and millions in cost overruns since the 1990s, is being reactivated 30 years later. #ElTiempo #NoticiasColombia #ÚltimaHora Photo:With an eye on recovering lost ground and being on equal footing with cities like Bogotá and Medellín, whose utility companies bring them large dividends, Mayor Alejandro Eder detailed to EL TIEMPO how the plan to acquire the asset of the Salvajina hydroelectric plant was designed and is progressing. This historic decision, as the mayor of Cali stated, seeks not only to secure control of the revenues and drinking water of the country's southwest, but also to revive the growth vocation of the city's crown jewel: its public utility company, Emcali. Salvajina regulates the waters of the Cauca River, the main water source of the capital of Valle del Cauca, which supplies drinking water to 80% of the city. In an interview with this publication, the mayor of Cali discussed the scope of this financial operation and the impact it will have on the public company's finances and on the district's economy. Mayor, tell us exactly what this great initiative to acquire Salvajina in its entirety consists of. Will the district have to put up money, or what is it about?Mayor Alejandro Eder. Photo:Samir RojasThe first thing to say is that this is a goal we in Cali have had for decades. Emcali was the crown jewel among Latin America's public utility companies until the 1980s. From then on, the company stagnated, and we have seen how other public utility companies, mainly in Colombia, gained the advantage. Today Emcali is a company that is a fraction of what it once was. I have studied this issue a lot in recent years, and I would say that one of the main reasons, beyond the political meddling or the mismanagement the company suffered in the past, has to do with the fact that it got out of the power generation business. That is why I always had the goal, as a candidate and later as mayor, of ensuring that we could stabilize Emcali financially with the operations it has today in water supply and energy distribution, but also that we would pursue generation projects — real projects, that is, large ones, not simply solar or wind generation, which are very important but very small — but rather return to the world of large-scale generation.Alejandro Éder, mayor of Santiago de Cali. Photo:Jaiver Nieto Álvarez.That is why, starting January 1, 2024, when my term began, we started looking for options in the country. We looked at various hydroelectric plants and concluded that the best option would be the Salvajina hydroelectric plant.Salvajina Dam. Photo:Private archiveThis is a hydroelectric plant that was acquired by the private sector 30 years ago, and today we are in the process of recovering it, acquiring it, and having it become part of the public assets of the people of Cali. The most important thing involves several aspects. First, this is an operation that will not cost the people of Cali a single peso. We are not going to go into debt, no one has to reach into their pocket, and the Mayor's Office does not have to put up money. What will be done is a share exchange with Celsia.The mayor of Cali, Alejandro Eder, at a security council between Valle and Cauca. Photo:Cali Mayor's OfficeMayor, can you explain to the citizens this financial swap with the company Celsia, which is a private company of the Argos Group?Emcali owns 18% of Celsia. An exchange will be made for the asset of the Salvajina hydroelectric plant. The second thing is that this is a very relevant project because this is one of the largest hydroelectric plants in the Colombian southwest and one of the largest in the country. It produces around 300 megawatts of energy. That is 30% of the consumption of the city of Cali, and it is a very important cash box, so to speak, for Cali to enter the generation business, and we will also have a growth vocation. In other words, with this in Cali's portfolio, we in Cali can dream of continuing to grow in Cali's energy generation to reach the levels of the Public Enterprises of Medellín (EPM) or the Bogotá Energy Company. And third, with this acquisition we are also gaining greater control over the Salvajina reservoir, which regulates the Cauca River, but is also the solution for securing drinking water for Cali, for southern Valle del Cauca, and for northern Cauca for at least the next century. So, at a time when we see the importance of water, when we see how scarce it is becoming, for Emcali to have control of this fundamental element for life is a great necessity. Celsia Photo:CelsiaThe idea is that by acquiring this hydroelectric plant and having Emcali become a generator, revenues will also somehow be generated for the district, and that this will translate into social investment projects, a model very similar to what happens in Medellín, as you mentioned, where EPM generates resources for the city of Medellín itself. Is that what Cali wants to achieve?That is what we want to achieve. And as you know, from the very beginning, even from the campaign, I have always been very clear that Emcali — I am convinced, in my deep conviction — must be a public company owned by the people of Cali. But in the same way, it must be a company managed with a business vocation, that is, to generate value for its shareholders, who are the people of Cali. For that, it must have a growth vocation, it must enter new businesses, it cannot be squeezed by political interests or union interests, and it must be very well administered. So in that way we are pursuing this business, entering generation, very similar to the Bogotá or Medellín model. In Cali, much of the water comes from the Cauca River. Photo:EL TIEMPO archiveMayor, how will the hydroelectric plant be managed by the district of Cali?This will be done through a subsidiary. That subsidiary will have a corporate governance structure on par with the company that currently administers it, which is Celsia, and in that way we can guarantee not only significant profitability for the people of Cali and the region, but also that this strategic asset of the Nation — because it is a strategic asset of the Nation — is well administered for Colombians. This is one of the most important hydroelectric plants in the country, as I said. And in the case of Cali, the truth is it is something tremendous. Why? Because we in Cali can dream again of an Emcali that is among the most respected and most profitable companies in Latin America and Colombia.How many resources is Cali expected to receive? Let's assume Emcali and the district acquire the hydroelectric plant and it begins operating. How many resources are expected per year from that energy generation for Cali?Initially, it is estimated that this investment will have a profit, sales of around 400,000 million pesos annually, and the cash flow remaining after all expenses of 250,000 million pesos per year. From that, obviously, some resources will go toward investing or reinvesting in maintenance, and even in growing this new energy generation business of the people of Cali. But we are talking about the possibility of more than 100,000 or 150,000 million pesos per year from just this first investment. The important thing there that we in Cali must see is that we have to grow this new business line as quickly as possible once this transaction is finalized. That must also be remembered. Here we are not only announcing to the people of Cali and to public opinion that this is being worked on. This did not just start yesterday. We have been working on this since January, but we have now reached a point where, after making the initial evaluations and making a non-binding purchase offer, we received the interest of the counterparty. We have already presented a draft agreement to the Cali City Council, seeking authorization to be able to divest Emcali's Celsia shares in exchange for the Salvajina asset. How long does this process take to close the deal?We are announcing it at this moment, but in any case, at least four or five months are still needed to finalize and close the deal. I also want to be very clear about something: if for X or Y reason the purchase of the Salvajina hydroelectric plant does not happen, Emcali's investment in Celsia will not be liquidated; that is, the only reason the Celsia shares would be handed over is in exchange for the hydroelectric plant — they will not be sold if the deal does not happen. But in any case, the process is moving forward.What factors could influence the negotiation not bearing fruit?A negotiation of this type and of this size is a very complex negotiation that requires a great deal of finesse, both technical and legal. But let's say that at this moment we are at a level of progress, a very advanced level, and I trust that all of this will turn out very well.Does Celsia have the willingness?Of course it has the willingness — that is why we are already taking this project to the Council. And here we are also in the hands of the Cali City Council, that it move forward as well. Of course, at this point we already need the Council to give us authorization for the divestment of the shares. Once they give it to us, then we sit down with Celsia to finish negotiating the price and the timing of the exchange. The idea, Mayor, is to finalize that big bet before your term ends next year... Long before. That is, I hope this will be ready by March 2027 or by April, more or less. But this is also something that will be very important because let's remember that Cali has just experienced an earthquake. We need our city to have, just as Bogotá has and just as Medellín has, significant non-tax revenues in order to continue developing Cali. You have heard me say, and the people of Cali have heard it: when I ran my campaign I said, 'We are going to revive Cali.' Today we are in the process of rebuilding Cali, and part of that is having a public company owned by the people of Cali, but one that is profitable, that truly generates significant dividends. Often when people go to Medellín or Bogotá, those from Cali don't understand why it seems like those cities have money to spare. Part of the reason is that they have public utility companies that are extremely profitable, and they are profitable precisely because they are in the generation business. If the project nevertheless moves forward and comes to a good end next year, in the first half of the year you were mentioning, how can the initiative be further shielded so that the next district government does not halt this great bet?That is precisely where we are seeking to structure the subsidiary. Mayor, when the hydroelectric plant passes into Emcali's hands, does the utility company begin operating it?The important thing to understand here is not that the hydroelectric plant is being purchased to incorporate it into Emcali; what will be acquired is the company that owns the hydroelectric plant, and it becomes a subsidiary, and that subsidiary will have an independent corporate governance structure. Also, above all, because we today do not have experience managing a hydroelectric plant; what is sought is an operation and maintenance agreement, probably with Celsia itself, during the first five or six years, and that will allow for an orderly and responsible transition of this acquisition. Rest assured that if we manage to finalize this transaction, Emcali will once again be among the most important public utility companies in Colombia and will be positioned to continue growing. The important thing there is that we in Cali understand that this is a process. One swallow does not make a summer; a single hydroelectric plant will not make Cali one of the great companies of Colombia. But if Cali manages well, if we in Cali choose well next year, if the people of Cali and Emcali continue to be managed with good business judgment, its assets can continue to grow, and we could dream that in five or ten years, Emcali will be paying dividends of two trillion pesos to the city. But for that, we must stay on the path of good public administration. CAROLINA BOHÓRQUEZEL TIEMPO CorrespondentCaliSee more newsThe inauguration of the new EL TIEMPO headquarters. Photo: Follow all the news from Colombia on Facebook and Twitter, or in our weekly newsletter. EL TIEMPO NEWSLETTERSSign up for our newsletters and receive news in your email according to your interests. Stay informed about what really matters to you. EL TIEMPO GOOGLE NEWSFollow us on GOOGLE NEWS. Always stay up to date with the latest news, coverage, stories, and analysis directly on Google News. 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