Interconexión Eléctrica S.A. E.S.P. (ISA) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to ISA's results presentation for the Fourth Quarter of 2020. Joining us today, we have Bernardo Vargas Gibsone, ISA's CEO; Carolina Botero, CFO; Cesár Ramírez, Chief Energy Transmission Officer and Ernesto Carrasco, Chief Road Concessions Officer. My name is Diana Cardona, Investor Relations analyst. This event is being broadcasted in Spanish with a simultaneous translation in English. A Q&A section will be held following the presentation. During the presentation, you may ask questions via the online chat located on the right side of your screens. Please provide your name and the name of your company. At this point, I will turn the call over to Mr. Bernardo Vargas, ISA's CEO. Please, Bernardo.

Thank you, Diana. I welcome everyone, who is joining us in this conference of results. Thank you for joining us. I also welcome the other colleagues of the group who are here with us. First, I invite you to turn to the next slide to review the ISA Group's most important milestones for 2020. Slide 3 shows that in 2020, showed us that we are all not alone. Instead, we are completely connected because our future and the future of others depend on them. For our company, 2020 meant the opportunity to demonstrate that our commitment with sustainability leads us on the right path and that our choices and priorities help us to make a better world and a better society. In this sense, our attention was focused in the first place on protecting the health and integrity of our employees and their families, in this season of pandemic and transmission. Secondly, to guarantee continuity in the provision of energy transmission services, road concessions and telecom. All of these are decisive for the connectivity, well-being, progress and development of our communities. Finally, they allow us to be a part of the solution to support thousands of people that have been affected in a relevant manner, given the current circumstances. Financially, once again, we achieved various milestones that will remain recorded as highlights of our 53-year history as we continue to grow profitably by capturing efficiencies to permanently improve our performance and competitiveness. In 2020, return on equity closed at 15.6%, one of the highest in ISA's history. EBITDA was COP 6.6 trillion for the group, 24.4% higher than 2019. And the EBITDA margin reached 64.6%. If we exclude construction, the EBITDA margin would be 75.3%. Net income reached COP 2.1 trillion, 25.7% higher than 2019. And operating revenues were COP 10.2 trillion, representing a 24.9% increase. In line with these results, we want to point out our stock performance. Let's turn to the next slide to see it in detail. As shown in the graph, ISA's share experienced an outstanding performance, accumulating growth of 31.1% for the year and becoming the share with the highest valuation on the Colombian Stock Exchange. In 2020, ISA's shares exceeded their historical peak 6 times and closed the year again with a historical peak of COP 25,700 per share. This is satisfying. And we know that this was due to our shareholders' confidence in ISA. They understand how these results is due to a combined effort and ethical so we can guarantee continues and secure revenues. We expect that during 2021, ISA's stock will continue to show its prudent resilience supported by revenue stability, an ambitious and diversified business plan and a strategy that gives a key role to the environment, society and corporate governance. As you know, this is increasingly more relevant to investors everywhere. Next slide, please. In Slide 5, we see in 2020, our growth did not stop. We continue to expand ISA's footprint in the region as follows: in Colombia, to start in March, ISA won a project for the design, construction, operation and maintenance of the La Loma-Sogamoso transmission line. This project will reinforce the service in the north of the country and facilitate the connection of unconventional renewable energy sources. It is evidence of ISA Group's commitment to decarbonization and flexibility of the energy matrix in Colombia through projects that enable the incorporation of other cleaner and more efficient energy sources. On the other hand, in October, we formalized our entry into the road concessions market with the acquisition of 100% of the shares of Costera concession. This fourth generation road concession, connects Cartagena and Barranquilla, 2 major cities. And is part of the most important international and tourism commerce corridor in the northern part of the country, and we have high expectations for this in Colombia. In August, through ISA Peru, ISA purchased 100% of the shares of the Orazul Energy Group. Concessions are -- by this group are in perpetuity and will generate annual revenues of approximately $13 million. In addition, in December, we won 2 projects via public tender through Consorcio Transmantaro, which will oversee their design, construction, operation and maintenance, improving quality of life for the inhabitants of Southern [ Link ]. In Brazil, we also continue to reaffirm our significant position in the state of São Paulo winning a project in December through ISA CTEEP in the state of São Paulo that represents annual revenues or nearly $13 million and 63 kilometers of transmission line. We also signed an agreement, which was reported yesterday to acquire 100% of the shares of PBTE. The company has an EBITDA margin of over 90% and will contribute annual revenues of $128 billion to ISA. All these projects. Mentioned above, generate additional revenues, annual revenues for the group of approximately $130 million. Next slide. At ISA, we give a priority importance to the topics related to the environment support for communities and in these areas, we had great advancements for the year. This is our strategy for 2030, that is called our future. In all these initiatives, I want to highlight that we are all one when we declared our well-being is linked to that of everyone's. For this program, this helps different activities related to the pandemic. Like respirators, the application of vaccines in Brazil and to populations that are far away, isolated, and we have given $4.5 million for several actions to mitigate the pandemic's impact by flattening the curve and supporting and protecting health care personnel, which is the first-line of [ fighting ] as well as the most vulnerable communities and we will provide the necessary health care to these populations. As for the environment, we are proud to mention that at the end of 2020, our project Conexión Jaguar, achieved 7 of our projects. And together with other programs, with environmental will allow us to achieve 11 million tons. In addition, Conexión Jaguar, we won the 2020 addition of the environmental finance volume calorie carbon market as the best corporate emission offsetting project, which is one of the most prestigious awards in the world in the voluntary carbon market worldwide. Conexión Jaguar was also included in the Latinoamérica Verde 2020 ranking, which recognizes the best 500 environment and sustainable development initiatives committed to the planet and grow with sustainability. Other recognitions we would like to highlight today. First, the inclusion of ISA for the third year in the FTSE4Good initiative, which recognizes public companies that comply with global corporate investments standards that apply the best corporate sustainability practices. Second, for the first time, we won bronze in the Sustainability Yearbook 2021. As one of the most sustainable energy utility companies in the world. Additionally, for a sixth consecutive year, the company was included in the Dow Jones Sustainability Index, which recognizes companies with the best environmental, social and economic performance worldwide. ISA is one of the top 10 energy utility companies in the world. This announcement ratifies our commitment to give a profitable with sustainable to our shareholders and to generate sustainable value for our shareholders, bringing positive environment and social impacts and maintaining business sustainability. This goal hand in hand. As for education, we should remember that we are working on improving the quality of education throughout our territories in Colombia. Great allies in this endeavor include the Fundación Barco and the United Way Foundation. In 2020, in this area, in Colombia, we made it possible for more than 7,700 children to continue to study remotely from home. Also, we supported the [indiscernible] community in structuring their own education system, reaching more than 50 schools in this community. All of this evidences our responsibility and ISA's commitment with a fundamental concept of sustainable value. I will turn the call over to our CFO, Carolina Botero so that she may further discuss the financial results that I have already mentioned. Go ahead, Carolina.

Thank you, Bernardo. Good morning, everyone. I am incredibly happy to be with you again to discuss with you how strongly the group's financial results closed in 2020 and in the fourth quarter of the year. Let's go to Slide 8, please. A summary of the main milestones that marked the year in financial terms, which we have been explaining, [indiscernible] of our conferences can be seen here. First, as Bernardo mentioned, 2020 results were outstanding. What did we accomplish this year, the entry of projects in the different countries. At CTEEP, the periodic tariff review on RBSE's adjustments. In the different companies of the group, financial expenses were below expectations due to low interest rates and inflection indexes. In our Chilean concessions, the decrease in financial returns due to the progress in their concession period. In addition, as we mentioned several times, we work throughout the year at ISA. And at each of our affiliates with an emphasis on the efficient management of AOM expenses. As Bernardo would say, this became a mantra for the group. Now focusing on the fourth quarter. We can highlight a positive impact on revenues because of the consolidation of Orazul and Costera, added to the entry into operation of 4 energy transmission projects in our affiliates. In the Chile, with the Cardones-Polpaico transformer bank. Inter Colombia with a second Ocaña transformer, ISA CTEEP with [indiscernible] and REP with the Expansion 20, which will generate annual revenues for $14 million. Second, in the quarter, we recorded in our financial statements, the application of the announcement of the [ Comisión de Valores Mobiliários de Brazil ], the CVM, on the treatment of contract assets for ISA CTEEP and its companies in December 2020. Let's remember that before this announcement, at the end of the construction stage, the difference between the present value of the project's cash flows and the construction value was calculated. Furthermore, it was recognized in the income statement P&L as an efficiency when the result was higher. Following the CVM's announcement, as of 2020, each project will have a margin during the construction stage. Month-to-month, as we execute the CapEx, we will carry the result of applying this margin to the income statement monthly. By 2020, CVM's announcement had the following impacts. On EBITDA, COP 292 billion. On results of companies jointly controlled by ISA CTEEP, COP 300 billion. And on ISA's net income, COP 200 billion. The third point we need to highlight and what has to do with the CTEEP, the CVM requested that the impact of a change in the regulatory weighted average cost of capital, WACC, on the RBSE increased from 6.64% to 7.71%, resulting from a new periodic tariff review be fully recorded in the fourth quarter of the year, and not deferred as we had been doing. The impact on EBITDA was COP 178 billion and on results COP 42 billion. Let's go to Slide 9, please. Based on the above, in 2020, EBITDA was COP 6.6 trillion. An increase of 24% compared with 2019, with a total EBITDA margin of 64.6% and 75.3%, excluding construction. Furthermore, EBITDA for the fourth quarter of 2020 reached COP 1.9 trillion, an increase of 38.4% compared with the same quarter of the previous year. The total EBITDA margin reached 63.5% and 71.4%, excluding construction. Let's go the next slide. As we already mentioned, we closed the year with a net income of close to COP 2.13 billion, an increase of 26% compared with 2019 in an incredibly challenging year for the entire world. This reflects the resilience of our businesses. The quick adaptation of the ISA Group to this new way of operating, implementing its biosecurity protocols to reactivate all construction operations after stopping for almost 2 months in virtually all our countries. It also shows a stricter responsibility in handling expenses. This 26% variation, besides incorporating the same effects that positively impacted EBITDA is explained by the 124% increase in the results of ISA CTEEP's jointly controlled companies because of the higher profits resulting from the application of the CVM's announcement. An additional 21% increase in depreciation and amortization resulting from the consolidation of new companies and projects. The profit also reflects a 13% increase in net financial expenses due to higher debt to finance the acquisitions of Orazul and Costera. The consolidation of Costera's debt on the continuous progress of the all this ISA Group's advancements. Similarly, because of higher net income, income tax and minority interest increased by 39% and 54%, respectively. Minority interest correspond to the net income percentage that is distributed to the shareholders outside the ISA growth. It had an important increase since the higher profits were mainly explained by the events already mentioned in ISA CTEEP and its companies in which the group has a 36% interest. Net margin reached 20.3% in 2020 compared with 20.1% in 2019. Let's go to Slide 11, please. As a consequence of the events already recorded during 2020, the operating EBITDA margin increased significantly compared with the previous year, reflecting a financial strategy. Folks focused on cost efficiency and on those items that we can manage, seeking permanent profitability in our operations. REO (sic) [ ROE ] as Bernardo mentioned, reached one of its highest levels in history with 15.6%. Excluding extraordinary events, in other words, the light blue section of the graph, ROE increased by 200 basis points between 2018 and 2020, from 10.4% to 12.4%. This reaffirms ISA's commitment to grow profitably and generate sustainable value for its shareholders. The net debt-to-EBITDA indicator [ over though ] it increased continues at adequate levels for companies with our characteristics and even below the requirements to maintain our current risk rating. These results allow us to continue taking advantage of our profitable and sustainable growth strategy. Let's go to Slide 12, please, to talk about debt. As of December, the consolidated financial debt amounted to COP 22.8 trillion, an increase of 26% compared with December 2019. This increase was explained by the financing of the Orazul and Costera acquisitions and the consolidation of Costera's debt. As well as the construction of different projects in the countries where we operate. Always choosing the best moment and the most adequate debt structure for the group. Looking at debt increases by country, we can highlight the following. ISA issued its first green bond in Colombia for a value of COP 300 billion aimed at the connection of nonconventional renewable energies to the national interconnected system. This is a milestone in the market, as is the first green bond issuance made by a real sector company in the stock exchange market. In Colombia, the consolidation of Costera's debt for COP 1.6 trillion was also recorded. Consorcio Transmantaro in Peru, reopened the international green bond for $400 million, and we can add $200 million to that. The transaction reached up 4.5 times demand. The resources will be used to finance energy efficiency-related projects. Our affiliate ISA Peru received disbursements of $158 million for the acquisition of Orazul Energy Group. In the case of ISA CTEEP, disbursements for more than $420 billion where received to finance its construction projects and the purchase of PBTE. Finally, in Chile, disbursements of $160 million were received for the acquisition of 100% of Costera's shares. Notwithstanding the group's higher debt, debt indicators continue at the levels seen throughout the year as the increase in debt was accompanied by higher EBITDA generation. Let's go to Slide 13, please. I would like to take this opportunity to give our shareholders some great news. Not only was ISA share the highest valued share in 2020, as Bernardo highlighted, but also because of our management and outstanding financial results, ISA is going to pay a dividend per share of COP 1,304, an increase of 93% compared with a dividend paid in 2020. This is the highest dividend per share in ISA's history. Our dividend continues its upward trend, showing an annualized growth of 35% in recent years, well above inflation in Colombia and the performance of other investment alternatives available in the market. The dividend consists of the following: first, an ordinary dividend of 70 -- COP 744 per share, which is equivalent to 40% of net income and is consistent with our historical practice, to give 40% to 30% off. In the second place, we have to be -- this is -- we will pay an extraordinary dividend of COP [ 559 ] per share equivalent to 20% of net income for a total payout of 70% and a dividend yield of 5.1%. Both indicators are above our historical average. In the coming years, we plan to continue our dividend practice of distributing between 40% and 45% of profits. We should highlight that this increase in dividends will be funded with our own cash without the need for new debt. Since in addition to starting the year with a significant availability of resources during 2021, we'll see an increase in the amount of dividends we received from our affiliates by 87%. As already mentioned, during this year, CTEEP will receive recognition from KE, which represents approximately COP 430 billion more in its cash flow. Therefore, CTEEP increases its capacity to deliver higher dividends than in the previous year as reported in its quarterly results presentation a week ago. In addition to the payment of this dividend, our cash position for 2021 allows us to continue to finance the investments planned for this year and to maintain a healthy leverage level that contributes to achieving our investment goals for 2030 while maintaining our credit rating and having financial flexibility for future growth. This announcement today continues to honor one of our strategic pillars, generating value for our shareholders. Slide 14, please. We're now going to present a financial perspective look at 2021 regarding the performance of ISA Group's main business units and those onetime events in 2020 that will not be repeated in 2021. So that you have an idea of what to expect for the year. Let's go to Slide 15. What can we expect for 2021. As far as revenues, we have the entry start operation -- start operating projects in most of the countries where we operate. In Colombia, the [indiscernible] and the 12-month consolidation of Costera. In Brazil, new PBTE revenues for 9 months and the entry into operation of jointly controlled companies. IEAIMORÉS, [ IEPARAGUAÇU ] in the second half of the year. In Peru, the 12-month consolidation of Orazul and the entry into operation Quellaveco and PetroPerú. Finally, in Chile, through our affiliate INTERCHILE, the start-up of several transmission projects that have completed their construction phase. All these projects added together, will bring new consolidated revenues of approximately $600 billion per year -- I'm sorry, COP 600 billion per year. Moreover, thanks to the CVM's announcement on the inclusion of the construction margin, will generate higher revenues for CTEEP's projects and its subsidiaries on the CapEx to be executed during 2021. That's all we can expect. Nonetheless, it's worth noting that in 2021, we will not have an ISA CTEEP, the nonrecurring events of 2020, which impacted positively on the group's results, such as the periodic tariff review and the RBSE adjustments defined by ANEEL. We explained in detail these effects in our second quarter results. We will also not have the impact on the CVM's request on the fourth quarter record of the more than 100 bps change in the regulatory WACC on the RBSE. Totaling all these onetime events were recorded in 2020 that won't be repeated in 2021, we find that they impacted revenues and EBITDA by COP 1 trillion and net income by COP 254 billion. Now regarding road concessions in Chile, the maturity of Ruta del Maule will be in March. We'll continue to record at the accounting level, not cash. The decrease in performance of the financial income from road concessions as its term comes to an end. On the other hand, we'll continue to work on our initiative to control and monitor AOM expenses with emphasis on administrative expenses. In this sense, we consider the situation in post pandemic as an opportunity to generate savings initiatives, which were included in our 2021 budget. We expect our operating cash flow generation to continue the increasing trend because in addition to consolidating new businesses, we will receive recognition of KE from the RBSE during the 12 months of the year, and until July 2023, will represent a monthly cash flow of COP 36.6 billion. This gives us peace of mind concerning the necessary cash flow, we will have to cover our investment, dividend and debt service commitments during the year. Let's go to the next slide. The year closed with investments of almost COP 5 trillion. During 2021, we'll have a committed CapEx of approximately COP 6 trillion, which we distributed by country as follows: in Brazil, 44% to contribute the equity from the purchase of 100% PBTE shares plus the projects under construction, improvements and reinforcements being carried out by ISA CTEEP; in Colombia, 20% to continue with the construction of [indiscernible]; in Peru, 19% for the COYA-YANA project; in Chile, the remaining 17% for projects in INTERCHILE and to continue with the construction of Rutas del Loa safety regulations works and the third lanes in Ruta del Maipo. Looking at CapEx projections. Today, we have achieved 53% of the investment goal for 2030. However, we should note that most of the projects are just beginning the construction process, which takes an average of 3 years to start commercial operations and therefore, to generate EBITDA. It's important to remember that this amount of investments will increase as ISA wins bids or M&A projects that are currently contemplated in its investment portfolio as part of its growth strategy. I'll now turn the call over to [ Ãrez ], Chief Energy Transmission Officer, Cesár Ramírez, who will describe the businesses -- the business perspectives. Cesár.

Thank you, Carolina. I am delighted to join you this morning. Let's go to the next slide. In 2021, the outlook is positive. We had great challenges. It challenged our efficiencies on our contingency plans. As well as the normalization of infrastructure, construction, operation and maintenance activities. Perspectives for 2021 are very positive. By 2021, greenfield project were impacted by the pandemic as well as a greater normalization of infrastructure, construction, operation and maintenance activities. By 2021, the greenfield project bids, representing over $2.2 billion have been identified so far. This is a great challenge, considering the growing competitiveness of this type of process, stimulated by a greater number of bidders as seen in Brazil at the end of previous year. One of these bidding processes is the -- in Chile, the transmission line, which goes from Kimal to Lo Aguirre with an investment of the $1,500 million becoming the largest greenfield project for which ISA and its companies have submitted bids. Strategically, we have to mention the first call for bids in Colombia for large-scale battery banks in the Barranquilla. And we should also mention the big Peruvian tranche of the Interconexión Perú-Ecuador, which will contribute to achieving the vision or the Andean Electrical Integration System, SINEA, are also noteworthy. ISA's experience indicates that in addition to greenfield projects, brownfield projects also become attractive opportunities for the business, especially in countries where ISA has presence. This allows leveraging these opportunities in operating synergies and capturing efficiencies in the provision of service. Based on these opportunities and despite increasing competition, in 2021, ISA expects to once again exceed the annual goal of awarded investments that guarantee the sustainable growth of the business. In the next slide, we're going to talk about the great adaptive challenges to businesses. This future network should be more flexible. They will have to integrate new generation technologies and more active consumers while maintaining the reliability and resilience of the system as a priority. For this purpose, the future network is to incorporate new technologies to adapt the existing network to the new operational and economic context, efficiently manage energy flows and integrate new energy centers, especially nonconventional renewable energies into the system. These needs are being included in network expansion decisions and our specific business challenges in 2021. For instance, the addition of HVDC technology in the Kimal-Lo Aguirre project, which will allow the integration of large volumes of renewable generation through a more reliable and resilient national grid. Also, you've seen the marine cable technology, unusual in our region, which will be implemented in the Interligacao Eléctrica Biguacu project by ISA CTEEP in Brazil. It's a connection to Santa Catalina. It's a marine section, very interesting. It will enable the completion of the Colombia-Panama interconnection. And this is done by ISA CTEEP. This Colombia-Panama interconnection is a key link for the integration of Central and South America. We have to remember that the solution -- another very important technology is what it's called as FACTS, which is a flexible AC transmission systems. This is increasingly closer through smart valves-type projects to improve transmission capacity in critical nodes of the Colombian system, particularly the Atlantic Coast and in the repowering of the Carabyllo-Chimbote-Trujillo, 500-kilowatts transmission line in Peru. At the same time, seeking to contribute to the clean development goals, the business will continue to focus on the connection segment growth, committed to the connection of almost 1,500 megawatts of nonconventional renewable energy that will be in operation by 2023. To finish, I will add that in 2020, the energy business unit closes a strategic cycle with its goals met. 2021 began with a great business challenges requiring adaptation in a changing and challenging environment to continue growing with sustainable value. I turn the call over to Ernesto Carrasco, Chief Road Concessions Officer.

Thank you, Cesár. Good morning, everyone. Let's go to the next slide to see the perspectives of the road concessions perspective. For this 2021, the expectations. Let's remember our strategy for the plan 2030 has 4 pillars. Growth in certain geographies and profitable projects. We have to start with the capacity -- existing capacities. We can -- Bernardo said, that the Costera concession enter into CTEEP's portfolio in October of 2020 during the pandemic, and we had to hold the operation of an operation that connects, Cartagena and Barranquilla and includes the [indiscernible] [ interrelation ]. This will include more than 300 people, and this will have advancements. That's how the teams -- the work teams were conformed. And this was a government -- corporate governments at ISA, which consisted hiring and we had to capture excellence and innovation. The ambulance services and for 2021, we plan to continue with the programs we have defined and to continue with the routine maintenance program, users, the revenue capture, improvements in the roads, the efficiencies in the concession. And of course, we have the finalizing the construction phase. At the end of January, we had a functional of 73% completion rate. And we have an advancement of 93%. And we hope to finish the construction during the rest of this year. Also in [ transversally ], we have an operation excellence. In the Strategy 2030, we look -- we seek to have efficiencies and we will achieve this. We have restored our synergies. And we have best practices and know-how among our companies in the road concessions area. We excel in innovation. And we have a preservation. We supported in localization. We have the collection, the addition of new technologies, we're exploring some asphaltic technologies and in the collection area and excellency the CapEx where we are defining the analysis, the strategy and bids. And of course, to meet the deadlines and to deliver quality results. The growth consolidation, we have good perspective in our infrastructure. We think this is a key area in our governments, and presents a series of interesting opportunities in the primary market. In the secondary market, we have important advances in bids. There are 11 projects that we are at over 70% of completion. In 2021, when we finalized the construction of 7 projects in Costera. And in 2022, we will begin the construction of additional projects. So we can foresee to adopt the capital at the final of the construction phase as an investor of long-term investor in ISA and taking into account the operations in Chile, we have space in these processes in the secondary market. Coming back to the primary margin for 2021, we have bids that we are following in Chile. They have some requirements in Chile in Carahue, it's our -- the El Bosque concession, which contemplates going into 2022, but has some development this year. The 2028, that is the [indiscernible] San Antonio Antonio project and the [indiscernible] concession, which part of the concession El Bosque. Also in Chile, there are bidding processes in place, completely new projects like this private initiative for the remainder of this year. These 4 projects alone have $1.9 billion. In Colombia, through our alliance with [ Condor ] last week, our bidding was for the Cauca, was the first bidding of 5G project that closes and constitutes a milestone as we were able to deploy our strategy and this is a pillar for our growth. This is part of the proposals that we are waiting for, and we are in the process of evaluation of these bids. And in May, the concessions will be awarded. There's been an announcement that there will be bidding projects. Very important in the [ North 2 ], [ Alberte Larmeja ] and San Roque among others. These 3 projects alone have $1.4 million in CapEx. To meet these challenges, we need to solidify the teams. So we're going to have a series of processes, most likely simultaneously, and we have to be prepared for this simultaneous analysis of different projects. Likewise, we need to capitalize, implement improvements and learn from the lessons learned from last year in Chile and [indiscernible] that we recently completed, as I said to you last Friday. So we have a challenging year with a number of opportunities ahead of us. I give the call to Diana Cardona, who will start the Q&A portion.

We're going to start the duration of this conference given the number of questions that we have. We invite you to send the questions through the window on the right of your screens. Let's start with the first question. From the strategic point of view, I would like to know your opinion about some positive factors that a capital as a shareholder. Is there something that may worry you such as the ISA's management?

Yes. No. I would say that this -- as of now, we don't have anything to comment about this. As we said publicly, the bids are happening in [ ecopetrol ], and we still haven't had any discussions that would complement our strategy. But we expect that this happens that we can reach a determination.

Another question. It's about the Colombia-Panama connection. Is there any progress in this regard?

Can you comment, please, Cesár?

Well, we continue advancing with the studies, the marine studies, this required to meet the licensing requirements and what is the marine route. It's important that this year, we signed an agreement additional in this regard. And with the [ SINEA ] so we can make progress. This is a progress that has a different pace than other projects, given all the difficulties and restrictions, that we have not only in the construction, licensing, concessions negotiations with the indigenous communities. As well as the West Coast of Panama, which is a process that has very complex protocols. And in some way, I want to reinstate that there are some commitments by governments, including the Colombian government, to advance in the project. So we -- whatever is required that we can meet those requirements quickly so that we can meet all the terms.

Thank you, Cesár. The next question is by [indiscernible] Diego. What motivated the company to raise the [indiscernible] this year? And why the higher dividends?

Bernardo, I can take this question. I'm going to answer in 2 parts. First, rationally. The rationale, we had because we had excellent investment results by ISA. That we had in this presentation, we grew 26% with respect to 2019. This is in 2020. Now in 2021, as we mentioned, we're going to receive dividends by 87% more than we received in the previous year. This is mainly due to CTEEP given the excellent results achieved in 2020 and the larger cash flow that the company will receive in 2021 over the assets of the existing network. So we're going to have additional cash flow of COP 419 billion. With this that we mentioned, we're going to have an available cash of -- to give larger dividends. After having met all our obligations and we won't have any debt at all, not a single peso. And we're going to service the debt for the year, and we're going to cover the cash for the year. So this is the rationale. We always have some checkpoints. And this year, they were more rigorous given that [indiscernible], we do not want to incurring any debt in order to provide -- since we have COP 1.4 billion that I already mentioned. Second, very important. We check with our 3 rating agencies. We are below the levels negotiated to maintain our rating. And we stress this even more because this 2021, we're looking at new opportunities in investments. So this indicator, we calculate it only with what we have already committed in CapEx. But this year, it's going to be a more fluid because we're going to add 3 new businesses where we are operating. And even then, we will be under the rating levels that we have agreed to with the rating agencies. And third, very relevant. It's included in the question. We have the committed investment plan for 2021 to 2025. So that's the answer as to why we are increasing the [indiscernible] [ 70 ]% again. And 40% as our regular practice and 30%, given the extraordinary results for the excess cash that is going to assume through our subsidiaries.

The next question by Jesus Herrera is, do you expect to refinance all the maturities you have in 2021? And if you -- if so, do you expect to do it through the capital markets?

Well, I think that question has been answered in the previous response, but I'm going to repeat that the cash flow operational in this definition perfectly covers the service of debt in 2021. So we do not need to refinance anything in this regard. Thank you.

Thank you, Carol. Jesus Herrera has a question. Could you comment on any progress in the tariff review in Colombia?

I can answer this, Bernardo. No, there has not been any progress. We're waiting for this first half of the year to have a new proposal by CREG, so we can discuss it amongst all the transmission partners so we can contribute to this definition. Thanks.

Now we have a roads concession question. What are the projects more immediate in the pipeline in which ISA is interested?

Ernesto, go ahead.

Thanks, Bernardo. As I've mentioned earlier, if we look at Colombia, the bids where we are participating and they are about to start the bidding process. It's the access [ Porte Dos ], [ Almaca Bermeja ] and [ Rio de San Roque ]. In the Chilean side, there's a [indiscernible] bid, [ Santejo San Antonio ], [indiscernible]. These concessions are the most immediate and where ISA has the deepest interest. Thank you.

Thank you, Ernesto. Okay, we're running out of time. We remind you that all questions that we were not able to respond today, will be published in our web page in the following days. Mr. Bernardo Gibsone will have closing words.

Diana, thank you very much, and everyone for your interest in ISA Group's results in 2020. Diana explained it already any doubt that you have, any questions, will be addressed by the Investor Relations group. We thank you for your attendance and your inquisitive and permanent follow-up by all of you as to the advancements of this group, and we expect to giving -- continue giving you positive results to a company that analysis that -- so that we can have a representative. Our results in the Colombian stock market is reflected in our positive initiatives, and we can grow with sustainability. We want to have a sustainable value permanently. Thank you, everyone, and have a great day.

Thank you for your interest in ISA. We say goodbye in this conference. Have a happy day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]