ISA seeks piece of US$21bn LatAm investment pie

Colombia’s Interconexión Eléctrica (ISA) will pursue projects over the next year that require combined investments of US$21bn, executives said on Tuesday.

Opportunities have been identified in tenders for developments worth US$11bn in Brazil, US$3.8bn in Colombia, US$3.8bn in Chile, US$1.1bn in Panama and US$1bn in Peru.

The projects include power transmission lines, roads and telecommunication networks. 

"We have ambitious growth prospects supported by existing investment commitments amounting to 25tn pesos [around US$6.4bn],” ISA chief executive Juan Posada told analysts in a quarterly earnings call. 

“We have the financial capacity to continue expanding ISA's footprint in the region [and are] advancing with our commitment towards an inclusive and sustainable energy transition."

The Medellín-based firm has allocated capex of 25tn pesos for the rest of the decade, including 3.4tn pesos in the second half of 2023, 5.3tn pesos in 2024, 5.1tn pesos in 2025, 3.8tn pesos in 2026, 2.3tn pesos in 2027 and 5.2tn pesos from 2028 to 2030.

Energy projects account for 88% of the overall figure, roads 7% and telecommunications 5%.  

ISA’s head of corporate strategy, Patricia Castaño, said the company is currently working on 36 projects, including 3,400km of power lines and 136km of roads. Once in operation, the developments will generate expected annual revenue of more than 1tn pesos. 

ISA reported a second-quarter profit of 692bn pesos, up 4% on the same period last year. It attributed the improved performance to revenue from newly completed projects and reduced costs, among other factors.