ISA CTEEP constantly assesses market opportunities for growth and has been making progress in this sense. The Company’s strategy is to expand its presence throughout Brazil by means of auctions and/or acquisitions that are synergetic with existing operations, while keeping its minimum required return in mind.

In the last three years, the Company has bid successfully for ten lots in ANEEL’s transmission auctions, which will add a further 2 thousand kilometer extension to its transmission lines, adding 8 thousand MVA in power to its portfolio. The new projects amount to an estimated investment of BRL 2.9 billion, with an increase in RAP of approximately BRL 448 million, once the assets are operational.

Project evolution is in line with the challenging estimated budget and schedule, which considers a reduction in CapEx and the anticipation of entry into operations ahead of ANEEL’s estimated schedule. Until March 31, 2019, approximately BRL 346 million were invested in 10 new projects.

Auctions Subsidiaries % ISA CTEEP Location ANEEL CAPEX
ISA CTEEP Participation
(BRL MM)
Discount RAP ISA CTEEP
(BRL MM)
Contract signature Implementation Deadline ANEEL Necessity Date¹ Environmental License (LI) Initiation of Construction

Auction 013/2015
10/28/2016
IE Paraguaçú
(Lot 3) 
50% Bahia
Minas Gerais
255 0,0% 54 Feb/17 Feb/22 Jan/192 2Q19
IE Aimorés
(Lot 4)
50% Minas Gerais 171 0,0% 36 Feb/17 Feb/22 Jan/192 2Q19
IE Itaúnas
(Lot 21)
100% Espírito Santo 298 25,1% 47 Feb/17 Feb/22 Jul/18 3Q18³
Auction 05/2016
04/24/2017
IE Ivaí
(Lot 1)
50% Paraná 968 33,2% 134 Aug/17 Aug/22 Feb/214 -
IE Tibagi
(Lot 5)
100% São Paulo 
Paraná
135 32,2% 18 Aug/17 Aug/21 Jan/17 3Q18
IE Itaquerê
(Lot 6)
100% São Paulo 398 44,5% 46 Aug/17 Aug/21 Jun/18 3Q18
IE Aguapeí
(Lot 29)
100% São Paulo 602 52,7% 54 Aug/17 Aug/21 Dec/18 5 -
IE Itapura
(Lot 25)
100% São Paulo
(Bauru)
126 57,6% 11 Aug/17 Feb/21 Jan/20 2Q18
Auction
02/2018
06/29/2018
IE Itapura
(Lot 10)
100% São Paulo
(Lorena)
238 73,9% 10 Sep/18 Sep/22 Sep/21 2Q19 -
IE Biguaçu
(Lot 1)
100% Santa Catarina 641 66,7% 38 Sep/18 Sep/23 Sep/21 1Q20 -
Total 3.831   448  
1 According to concession contract
2 Conditioned to Lot 2 (Alupar)
3 IE Itaúnas is formed of the implantation of tarnsmission line 345 kV Viana 2 (ES) - João Neiva 2 (ES), the construction of new substation 345/138 kV João Neiva 2, and the expansion of substation 345 kV Viana. The Company began its construction work of substation Viana. The installment license for the Transmission Line and the João Neiva 2 Substation has not yet been issued.
4 To receive the totality of RAP
5 IE Ivaí obtained an installment license for the Sarandi Substation of 525/230 kV in April of 2019. Installment licenses are pending for the project's transmission lines and other substations.
6 IE Aguapeí obtained an installment license for the Baguaçu substation and its associated transmission lines in June of 2019. The Alta Paulista substation and its associated transmission lines obtained an LP and await the issuance of their LI.

ISA CTEEP and its wholly and jointly owned subsidiaries invested BRL 96.4 million in 1Q19. Reinforcement and improvement investments are not comparable between periods because they use different project portfolios and depend on ANEEL Authorizing Resolutions.

Investments
(BRL million) 1Q19 1Q18 Chg (%)
ISA CTEEP
(Reinforcements/Improvements)
17,4 19,5 (10,5%)
Total Subsidiaries 78,9 77,8 1,5%
Operational 7,8 6,2 26,3%
Pre-operational 71,1 71,6 -0,7%
Total 96,4 97,3 -0,9%
Note: Realized investments are demonstrated in the competence vision

Updated on March 31, 2019.