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
|Discount||RAP ISA CTEEP
|Contract signature||Implementation Deadline ANEEL||Necessity Date¹||Environmental License (LI)||Initiation of Construction|
Auction 013/2015 10/28/2016
|Auction 05/2016 04/24/2017||IE Ivaí
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.
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.
|(BRL million)||2Q19||2Q18||Chg (%)||1H19||1H18||Chg (%)|
|ISA CTEEP (Reinforcements/Improvements)||23.1||45.0||(48.6%)||40.6||64.5||(37.1%)|
Updated on August 2, 2019.