Message

In 2008, CTEEP continued to pursue its plans for growth, maintaining a secure and stable financial position, despite the effects of the global economic crisis. After a year full of achievements, we are convinced that we have completed important stages in the company’s development.
Even in a year marked by such difficulty, we achieved impressive results. Permitted Annual Revenue (PAR) grew 15.3% in relation to 2007, totaling R$ 1,802.4 million. EBITDA reached R$ 1,316.7 million, up 16.6% on the previous year.
In order to consolidate our position as a major player in the Brazilian electricity sector, we invested R$ 327.2 million in projects for increasing transformer capacity, construction, upgrading transmission lines, and other reinforcements. During the year, 42 projects were energized and 36 km of new transmission lines installed, signifying an increase of 1,040 MVA.

As part of our growth strategy, the company played a major role in the auctions carried out by ANEEL in 2008, acquiring important lots, such as the Rio Madeira transmission line project, which will allow our expansion into the states of Rondônia, Mato Grosso and Goiás, and contracts in the south and southeast of Brazil, ensuring the growth of our activities and CTEEP’s regional expansion.

With a solid regulatory system, Brazil has a favorable business environment, with great growth potential in the electrical sector, based on the Accelerated Growth Program, which represents investments in the order of R$ 270 billion by 2010. For this reason, Brazil stands out as a strategic platform for the growth of the ISA group and the achievement of its goals for the energy integration of Latin America.

For 2009, we foresee a period of growth and of the consolidation of CTEEP as one of the major players of the electricity transmission sector in Brazil. The company will maintain its competitive outlook, staying in touch with opportunities to add complementarity, synergy and competitive advantages to its business. To this end, we have an investment plan that will allocate more than R$ 2 billion in the period from 2009 to 2011, including the investments resulting from the successful acquisitions in the 2008 transmission auctions.

We are aware that these financial and operating results are only sustainable when they are based on respect for people and the environment. At CTEEP, we believe that dialog and the generation of value for all of our stakeholders are essential to ensuring the sustainability of the business. As a result, our activities are guided by the search for economic, social and environmental balance.
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The results achieved in 2008 also depend on the contribution of our employees, who make CTEEP an outstanding company, and one that is prepared for future challenges. We are thankful for the dedication of our team, and especially for the work built up over the years by José Sidnei Colombo Martini, whose experience and professionalism helped to make CTEEP Brazil’s leading private-sector electricity transmission concessionaire. We also thank our customers for placing their trust in us, and our shareholders, for their unstinting support for the operation in Brazil.

César Augusto Ramírez
CEO

Luis Fernando Alarcón Mantilla
Chairman of the Board of Management