Colombia City Offers Celsia Stake for Dam

Cali, Colombia’s third-largest city, seen from the hills above it; file photo, January 2016. (Photo: Hectorangelazul, CC BY-SA 4.0, via Wikimedia Commons)

COLOMBIA · ENERGY

The city of Cali wants to trade its Celsia stake for a hydroelectric dam, which would put a Colombian city into power generation. Mayor Alejandro Eder and Roger Mina, manager of the city-owned utility Emcali, announced the plan on Thursday 15 October.

Celsia is a listed Colombian energy company and the power arm of the conglomerate Grupo Argos, so a change among its shareholders matters to investors. El País Cali and 90 Minutos report that the Celsia stake would go in exchange for the Salvajina plant in the Cauca River basin.

What Cali Is Offering

Emcali, the municipal company that sells power, water and telephone services in Cali, owns a minority shareholding in Celsia Colombia. It has offered to give that Celsia stake to Celsia in exchange for the whole of the Salvajina hydroelectric plant.

Cali is Colombia’s third-largest city, with a large industrial and farming region around it. Mayor Eder, who runs the city government, said the plan would add a generating asset without new debt, according to El País Cali.

Why Salvajina Matters to Cali

Salvajina sits in the basin of the Cauca River, which runs through the Valle del Cauca region around Cali. The city says the plant also helps control floods, regulate river flow and supply drinking water, according to 90 Minutos.

Colombia’s wholesale power market, where prices can swing sharply when rain is scarce, is the risk the city wants to reduce. Mina told El País Cali that owning a plant would cut Emcali’s exposure to those purchases, including in an El Niño dry spell.

How the Swap Would Work

Under the proposal, Emcali would pay for Salvajina with its Celsia shares instead of cash. The city says no extra public money would be needed, according to 90 Minutos.

Mina described the offer as non-binding, meaning an expression of interest rather than a signed contract. Two valuations, one for the shares and one for the plant, will show whether the exchange is even or leaves a difference to settle.

The Approvals Still Needed

The Cali city council must authorise the sale of the Celsia stake, and the city has already sent the proposal to it. Public statements so far do not give a date for that vote.

The sale also follows Colombia’s Law 226 of 1995, which sets the rules for public bodies that sell their shares in companies. After valuations and talks, the two sides would still have to sign a binding offer and close the deal.

Aerial panorama of Cali, the city whose utility wants a hydroelectric dam; file photo, May 2020. (Photo: Neoredacturus, CC BY-SA 4.0, via Wikimedia Commons)

Celsia and the Power Market

Celsia generates power at plants across Colombia, and Salvajina was sold to a private owner about thirty years ago, according to the mayor. The swap would therefore return a dam to public hands while Celsia’s shareholder list changes.

Colombia relies on dams for most of its electricity, so dry-season risk is a live issue, as El Niño blackout fears in Bogotá show. The mayor said Colombian energy prices are set by the national government, not by the city.

What It Means for You

If you hold Colombian shares or follow the country through funds, the swap is a small, concrete change in who owns a major power company. It would not move prices overnight, since the deal is still an offer and a council vote lies ahead.

If you live in Cali or run a business there, the city says the goal is steadier power costs over time. Any effect on household bills is a future promise, not a decision.

What Is Not Known

Celsia has not published a response to the offer, and the final value of the swap has not been set. The mayor spoke of an offer accepted, while the utility manager called it a non-binding expression of interest.

The date of the council vote and of any closing is also open, and the council could change or reject the plan. Public statements so far come from the city and Emcali, not from Celsia.

More: Colombia news in English, every day from The Rio Times.

Frequently Asked Questions

What is Cali offering to Celsia?

Emcali, the city-owned utility, offers its Celsia stake in return for the full Salvajina hydroelectric plant. City officials say it needs no extra cash or new debt.

Who must approve the swap?

The Cali city council must authorise the sale of the shares. The two sides must also finish valuations and sign a binding offer.

Is the deal final?

No, because so far Emcali has made a non-binding offer and talks continue. Celsia has not published its position.

Why does Cali want a dam?

City officials say a plant of its own would reduce Emcali’s exposure to volatile wholesale power prices. They also point to flood control and drinking water in the Cauca River basin.

Sources: El País Cali, Emcali proposes giving its Celsia stake in exchange for Salvajina, 15 October 2026; El País Cali, Mayor Eder announces Emcali will buy the Salvajina plant from Celsia, 15 October 2026; 90 Minutos, Emcali seeks to acquire the Salvajina hydroelectric plant, 15 October 2026.

Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error