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

Good morning, everyone. Welcome to the fourth quarter results conference for ISA and its companies. We are joined today by Cesar Ramirez, ISA's acting CEO and Chief Electric Power Transmission Officer; Carolina Botero, Chief Financial Officer; Olga Patricia Castaño, Chief Strategy Officer; and Ernesto Carrasco, Chief Road Concessions Officer. My name is Diana Cardona, Investor Relations Specialist. At the end of the event, we'll have a Q&A session. During the presentation, you can ask these questions through the window that appears on the right side of your screens. Please provide your name and the name of the company you represent. To begin the conference, I would like to give the floor to Cesar, who will present the highlights of the quarter. Go ahead, Cesar.

Thank you, Diana. It's a pleasure to be with you today. To begin with, I invite you to move to the next slide to review some highlights of the fourth quarter of 2021. In 2021, ISA and its company executed investments for COP 4.2 trillion 48.6% of these investments in Brazil, where the acquisition of PBTE was completed in the first quarter. In addition, we have the progress of the construction of electric power transmission, whether to ISA CTEEP in past being processes. We also advanced in Peru in the Coya-Yana projects and Chincha-Nazca and Colombia in the execution of several UPMES projects that also have advanced in a very important fashion. In Chile, the expansion of 2 substations of the INTERCHILE grid, Maitencillo and Pan de Azucar. And also, we progress in the construction of Rutas del Loa, Third Lanes in Maipo, another road projects in the rest of the country's road concessions. On the other hand, the most important milestone of the year was being awarded to build and operate the Kimal-Lo Aguirre line of more than 1,400 kilometers. One of the most important transmission projects in the continent, in Latin America. In Chile, it is the first direct current line, and this will allow connecting the energy from renewable projects in the north of the country to the center and south of Chile, that's leveraging the decarbonization of the energy metrics. And it is also important to highlight that ISA CTEEP will develop the first large-scale battery energy storage project in the Brazilian transmission system. The installed capacity will be 3 MW with a storage capacity of 2 hours in the Sao Paulo. This project will include additional grid reinforcements and will benefit around 2 million people in the Southern area of Sao Paulo. The system will operate at peak times of grid consumption, ensuring safety and reliability in the provision of the service. It is expected that the enter into operation will be in November of this year. The estimated income, it's about BRL 27 billion. It's about $5 million. Let's move to the next slide please. As always usual, we are going now to report on our progress in the social environment and governments, ESG. With the purpose of continuing strengthening the independence and neutrality of XM as operator and administrator of the Colombian energy market. Since the National Government and Ecopetrol signed an inter-administrative contract for the purchase of the shares owned by the State in ISA, some commitments were established to comply with this premise. In this sense, great progress has been accomplished at the Extraordinary Meeting held at the end of 2021 the new Board of Directors of the company was approved, which comprised entirely of independent members with respect to ISA and Ecopetrol. Also, female representation was strengthened as it went from 20% to 40% participation. Also, we are working to ensure the termination of the Unity of Purpose and management between ESA and XM and between Ecopetrol and XM. Today, XM is not part of the Ecopetrol Company Group. ISA maintains the regional recognized leadership as one of the companies with the best and most Vanguard sustainability, corporate governance, ethics and transparency practices. This has been ratified by international institutions as important as the Dow Jones Sustainability Index, which for the seventh consecutive year, recognized us as one of the companies in the region with the outstanding performance and environmental, social and economic matters. Another good news is our Conexion Jaguar program, however, which received this year's Boscares award from WWF Colombia, Accion Climatica and Reforestamos for its actions in favor of forest conservation. Finally, in 2021, we also aim to be in reference as a diverse, equitable company. This is why we are immensely proud that ISA's parent company, ISA INTERCOLOMBIA, ISA TRANSELCA, and XM have obtained the EQUIPARES Silver Seal for Labor Equality for their firm commitment to the implementation of the Gender Equality Management System, granted by the Ministry of Labor and the United Nations Development Program in Colombia. The company's results were outstanding, has a total average female participation of the 4 companies reached 32.7%. While the average for the energy mining sector, it's 29%. Let's move on to the next slide, please. I would like to take a few minutes to tell you about the progress of ISA and its companies an innovation in 2021, which, as you know, is part of the strategic dimension to ensure corporate validity through time. As initiative to leverage economic revival in the region ISA and Rockstart launched a call for an acceleration program aim at 10 start-ups in Latin America that will generate a positive social and environmental impact with our technology. The call received more than 320 applications for more than 5 countries. The selected projects will be connected with entrepreneurship ecosystem in the region where Rockstart will put them at the service of this entire community of investors. On the other hand, at an internal level, we have promoted the identification of challenges in our operations and processes to seek innovative solutions supported by the innovation ecosystem. Some of these challenges were developed by interdisciplinary groups and later presented our knowledge and innovation events. Others were launched to the external ecosystem to work with our partners, startups and universities obtaining very positive results. In 2021, we received several external recognitions where some of our companies were awarded for the progress in both projects and innovation culture. Another achievement this year was that XM was able to export more than 1 million carbon credits from Colombia projects through its EcoRegistry and Ecotrade platforms. Finally, ISA CTEEP will operate the first digital substation, which represents a digital transformation milestone. The project will double the energy supplied in the Vale do Paraiba region with the Sao Paulo State and will bring benefits such as greater availability, efficiency and reliability. During 2021, we invested $19 million for the acceleration of the innovation system and in projects that seek increased excellence and competitiveness of the current business and create a social impact and environmental impact. In addition, in Colombia, we obtained tax benefits for more than COP 12 billion for projects that have received the approval of the Ministry of Science, Technology and Innovation. Let's go to the next slide, please. 2022 will be a year of big, interesting challenges for the consolidation of the largest energy group in Latin America, for which we will become stronger in order to increase our competitiveness and participate in large projects in the future. In this sense, we are working with Ecopetrol to ensure value generation for both companies through the search for an implementation of synergies. We have identified more than 50 ideas translated into 8 categories with work initiative. Today, we prioritize those initiatives that allows us to capture materialize. And some of them are ISA's entrance into the United States leverage by Ecopetrol's successful experience in that country, joint management of some sourcing categories that can represent significant cost savings and the provision of electric infrastructure services. We will be updating you on the progress of this joint effort. So now let's go to the next slide. And I will give Carolina, the floor to go forward into the explanation of the financial results of ISA and its companies.

Thanks a lot, Cesar. Good morning to everyone. As always, I'm very happy to speak to you today. I will present the financial results of ISA and its companies for this quarter in detail and for the 2021 year. Let's move to the next slide to know the most important milestones that will help us to understand these numbers. Here, we can see a summary of the main milestones by quarter that marked the year in financial terms. And we have been explaining each of our conferences. First of all, we might say that the 2021 results were very positive, considering, as we told you a year ago in the fourth quarter 2020 conference. But this year, there would be no extraordinary events for ISA CTEEP, such as the periodic tariff review and the adjustments to the RBSE defined by ANEEL, which represented additional revenues on additional EBITDA for COP 1.1 billion trillion and that was translated in additional income for ISA of COP 250 billion in the 2020 year. At that conference, we also told you what we would be in 2021. Let's take a look at these commitments. The first, the entry into operation of electric power transmission projects in the different countries where we operate. Second, the consolidation of PBTE that let's remember that it starts as of April 2021. Revenues for a full year from ORAZUL in Peru and in the Ruta Costera in Colombia. But besides these positive effects expected for the 2021, there were others that helped us to more than offset the one-off in ISA CTEEP in Brazil at the revenue and EBITDA levels. They were number one, the IPCA performance in Brazil resulted in higher revenues of COP 830 billion on the IPP for COP 4 billion. Also in Brazil, in the second quarter of 2021 ANEEL recognized the capital costs for additional 3 years to complete the period until the target review. So that's June of year 2020. This resulted in additional revenues for ISA for COP 313 billion. Finally, at an income level in the third quarter of 2021, 2 non-recurring events occurred. That we explained in the former quarter presentation, and they were the recognition of the debt reprofiling costs and INTERCHILE and the change in the income tax rate in Colombia as a result of the tax reform. Together, they had a negative impact on income of more than COP 420 billion. So if -- of the results of 2021, we exclude these 2 non-recurring events that affected income specifically in September, we would have in 2021, an income of 1.4% higher than 2020. That let us remember that they have the COP 250 billion because of the recognition of the capital cost on the RBSE of ISA CTEEP. Now, focusing on the fourth quarter, the 2 most relevant events were: number one, the positive impact on our revenues due to the entry into operation of projects in Colombia, Brazil and Chile by the end of 2020; and second, the award performance of the IPC Broad Consumer Price Index and the IGPM General Market Price Index in Brazil and of the IPP Producer Price Index and the TRM Market Representative Rate in Colombia, which contributed to higher revenues and income. These 2 effects led both revenues and EBITDA grew by 16.3% and 18.6%, respectively, compared with the fourth quarter of 2020. I Net income totaled more than COP 450 billion with a decrease of COP 50 billion, mainly due to higher financial expenses and lower results of the jointly-controlled companies. As it didn't take into account the impact of the incorporation of the construction margin in the fourth quarter of 2020 according to the CVM as pronouncement. Finally, as part of our strategy to 2030, ISA position itself in the international capital market. Diversifying its financing resources and taking advantage of its attractiveness in terms of liquidity, depth and diversification. In this regard, in November, ISA successfully completed its first bond issuance in the international capital market for $330 million. The issuance has a total term of 12 years and an interim rate of the 3.82% and an oversubscription of 4.3x the amount offer. The issuance listed on the Singapore Stock Exchange market had investors from the United States, Canada, Europe, Asia and Latin America, among others. The proceeds didn't increase the company's debt level as they will be used to replace internal and external debt. But this is one of the beautiful things to these operations, we reduced the exposure of the debt portfolio to the IPC and increase the participation of USD debt. Taking advantage of the international bonds as a hedging instrument for the company's investment portfolio in USD, mainly Peru and Chile. Let's go now to the next slide. For the full quarter of 2021, total revenues reached COP 3.1 trillion, 16.3% higher than in the same period of 2020. This increase is explained by the following events, and let's start with the electric power transmission business unit. First, we have the entry into operation from the end of 2020 of the projects, Conexion, Moquegua-Papujune Connection and Conexion Talara in Peru. In Chile, the second transformer bank at Cardones, Maitencillo and Pan de Azucar Substation, the Nueva Pan de Azucar-Polpacio reactive compensation and expansion of Nueva Maitencillo and Nuevo Pan de Azucar substations. In Brazil, the Nova Porto Primavera-Rosana transmission line, the entry of IE AGUAPEI, and IE ITAPURA the installation of 3 synchronous compensators and the energization of 41 reinforcements and upgrades during the quarter. And finally, in Colombia, the AAA connection and incorporation of the UPME interconnection Noroccidental. Secondly, and again, by geographies, we find the following: Brazil, we have higher revenues mainly to the inflation adjustment of IPCA of revenues in ISA CTEEP and its companies. That represented a COP 136 billion. And the incorporation of PBTE for COP 74 billion. In Colombia, we have higher revenues for COP 81 billion, mainly to the incorporation of the aforementioned projects. But also higher revenues from connection services and the effect of higher IPP and TRM that were higher. In Peru, we had higher revenues of COP 24 billion, mainly due to the exchange rate effect. And of course, the road concession business presented an increase in revenues of 16.4%, equivalent to COP 60 billion and mainly has a result of high growth returns from contract assets and revenues from mains in construction until management in Chile. Partially offset by the termination of the Ruta del Maule concession contract. Now let's talk about construction revenues. The increase in operating revenues in the quarter was partially offset by the 16.6% drop in construction revenues. Explain among other reasons by lower revenues in Brazil due to the decrease in the construction margin and by the fact that in the last quarter of 2020, the retroactive favorable impact of the CVM pronouncement on the incorporation of the construction margin was accounted for. At the accumulated level and despite not having the ISA CTEEP 1 of in 2020, operating revenues grew 9.8%, being at COP 11.2 trillion. Let's move on to the next slide, please. As a result of the above, for the quarter, EBITDA increased by 18.6%, reaching COP 1.8 trillion. EBITDA margin, excluding construction went from 67.4% to 72%, ratifying the solid operating behavior of eScience company. Operating costs totaled COP 1.2 trillion, 13.1% higher than in the same period of 2020. Regarding this, it's important to understand the dynamics of both construction and administration, operation and maintenance costs that we call AOM. Construction costs increased by 15.5% to higher activity in Chile, Peru and Brazil, partially offset by lower activity in Colombia due to the entry of 100% of Ruta Costera and the termination of the Ruta, the Maule concession contract. AOM totaled COP 690 billion, representing a growth of 11.3% compared with the same period of 2020. This increase is mainly explained by the consolidation of PBTE, the entry into operation of new electric power transmission projects and an increase in conservation and maintenance cost in road concessions in Chile. Due to the increase in the U.S. and the resumption of work during the quarter. So now for the accumulative amount for the whole 2020, 1 year, what do we see? First, we see an increase of AOM of 9.6%, a lower number than the operating revenues of 13.2%. These solidifies ISA's permanent commitment to the efficient management and rigorous control of the expenses. Second, EBITDA increased by 8.4%, reaching COP 7.1 trillion. EBITDA margin, excluding construction went from 75.3% to 76.1%. So let's move on now to the next slide to learn more about the behavior of the net income. When we talk about the 2021 net income, I would like to highlight that the important point here is that we accomplished a net income that is 5% higher of what we budgeted for the year. reaching COP 1.7 trillion. Now, when we compare 2021 against to 2020, what we will need to take into account. Number 1, as it was anticipated a year ago that 2020 is not a good comparison foundation taking into account the non-recurring events. I already mentioned that took place in ISA CTEEP and that generated net income of COP 250 million. The second thing that we need to take into account is that we have 2 events and non-recurring rise in the third quarter of 2021 that impacted negatively the income and COP 421 million. Now, they were the reprofiling of the successful placing in the international business of ISA INTERCHILE. And second, the updating of the deferred tax of Colombian companies due to the tax reform. All of the above explains the mathematical for -- of the income of 19% when compared against the close of 2020. But if we take into account those impacts of the third quarter of 2021, as mentioned before, the accumulated income will reach COP 2.1 trillion, an increase of 1.4% compared with the previous year. So now let's go to the next to expand the graphic. As we observed, the component that contributed most to the increase of the income is the operating income because of the new projects mentioned also the cancellation activity and because of the behavior of macroeconomic variables, especially in Brazil and in Colombia. This ratifies the solid behavior of the operation level of ISA and its company. And of course, the component that decreases the amounts are the net financial expenses with a growth of 70% regarding 2020 year. Due to the non-recurring event explained in the third quarter are related with a recognition of costs linked to the reprofiling of the debt of INTERCHILE in addition to the indebtedness to increase indebtedness to finance the growth of the group and a higher expense by the different exchange rates. Let's go to the next slide, please. So now let's take a look at some financial indicators. ROA reached 11.6%, December 2021, reaffirming our behavior to grow with profitability and generating sustainable value to our shareholders. This indicator decreased when compared with the 2020 quarter due to the aforementioned non-recurring effects recording the third quarter However, we continue to offer a double-digit role to our shareholder, which is very attractive considering the nature of our business. This means predictable income over the long term with low volatility. In other words, we offer our shareholders a risk-return ratio, well above other investment alternatives available in the market. As we have seen EBITDA margin, excluding construction was 76.1%, which is a sign of a financial strategy focused on the permanent profitability of our operations. The debt EBITDA indicator was 4.1x. This figure continues to be below what is required to maintain our current risk rating, which allows us to continue leveraging ISA's growth according to the ISA 2030 strategy. Let's move on to the next slide, please. As of December, the consolidated financial debt amounted to COP 28 trillion, an increase of 23% compared with December 2020. This is mainly explained by: number one, the international issuance of green bonds in INTERCHILE for $1.2 billion to restructure the debt from the construction stage of the project, which improved the company's capital structure and free up resources for shareholders to finance new projects. Second, in Brazil, the issuance of bonds and debt disbursements in ISA CTEEP for COP 1.9 trillion to finance the lots awarder in 2019 at the end of this year. And finally, a net exchange rate effect of COP 1.9 trillion due to the devaluation of the Colombian Peso against the Real and the USD dollar and the revaluation against the Chilean Peso. The debt indicators remain stable and within the limits defined by the risk rating agencies as the increase in the debt has been accompanied by higher EBITDA generation. Let's move on to the next slide, please. This is a new chapter that I would like to show to -- for you to see the perspective of ISA and its company for the 2022 year. And to give you a lot of different reasons why we see ISA has a very attractive and profitable investment for this year. Let's go to the next slide, please. What do we expect in terms of income for 2020? Look, we'll obtain additional revenues for COP 42 billion per new UPMES Sabanalarga, Ocana and El Rio substation and more than COP 3 billion for -- from connections based on nonconventional energy sources. In Brazil, we have the entry into operation of Ieitaunas, Biguacu and Tres Lagoas with an annual revenues of COP 71 billion and the jointly controlled companies Ieaimores, Ieparaguacu, Ivai, which will contribute annual revenues of COP 384 billion. All these that we present a growth between 7% and 11% of the net income when compared with 2021. Now there are some situations that could mean higher profits has the prevalence of inflationary pressures in Colombia and Brazil, which, as you know, are the indexes of our revenues. Also being awarded different growth opportunities, some of them linked to acquisition process of ongoing companies has occurred in resin years, which will generate EBITDA very quickly in our financial statements. Let's move on to the next slide, please. Our committed investment plan for the next 5 years amounts to COP 12.7 trillion. This CapEx by country is broken down as follows. Around 45% in Brazil, which includes the reinforcement plan and improvements to the ISA CTEEP grid as well as the CapEx necessary for the installation of the battery bank mentioned at the beginning of this presentation. In addition, we estimate investments in IEMG, Evrecy, IEITAUNAS, Biguacu and Riacho Grande. 21.7% in Colombia with El Rio, Sabanalarga, Cerromatoso, Cuestecitas and Sogamoso La Loma, UPME and smart bulbs in Transelca. In Peru, we'll continue to make progress in the Coya-Yana and Chincha-Nazca projects in CTM. The remaining 21% will be executed in Chile. This includes Inversiones Chile contributions to the Kimal-Lo Aguirre project, where our interest is 33%. Also in this country, the execution of CapEx continues. For regulatory safety works in the current concessions and the execution of works in Rutas del Loa. Remember that these investments correspond to those already awarded to ISA's companies. And what we expect is that this amount will grow as we are awarded new bids or acquire ongoing companies as has occurred in the past. This is why in the following slide, you will see the portfolio of greenfield opportunities that we have identified in the region for this year as our growth strategy doesn't stop. Let's move on to the next slide. As we mentioned, for 2022, we have a pipeline in the region for more than $6 billion. Most of them are concentrated in Colombia and Brazil. Colombia accounts for 34% of these opportunities in electric power transmission that UPME has pre-published 7 national transmission system projects, for which it is expected that the final selection documents will be published during the year, thus officially opening the corresponding codes for bids. In the road concessions business unit also in Colombia, is starting its participation in 5G bid. Some of them are in pre-bidding and others already in the bidding product. Brazil accounts for 33% of the opportunities represented in 2 and our attenders in 2 the middle and at the end of this year. In Chile, we expect several electric power transmission calls for bids from the national electric coordinator. For the construction of new transmission lines and substations. In addition, we'll have the Ruta del Bosque rebate and other existing concessions. Finally, in Peru, we highlight interconnection of Peru-Ecuador stands out. Besides these opportunities already mentioned, we are paying attention to anything that could happen in M&A possibilities in the region. Were seeking not only the continuity of the business, but also an attractive return for our shareholders. Let's move on to the next slide, please. Finally, but not least, last but not least, I would like to reaffirm that all our efforts aim to repay our shareholders for their trust. Not only by making their investment increasingly profitable, but also by making the best decision for their well-being and to achieve a better future as a society. This is, for us, generating sustainable value. Delivering for our shareholders has been and will continue to be an imperative for ISA. We have been working hard to warranty that the returns maintain a balance between an attractive remuneration via dividends and ensuring the resources to leverage the expected growth, which will ultimately result in a great value for their investments. All of the above as part of a very careful leverage discipline closely observing our debt EBITDA indicator. Accordingly, at the general shareholders' meeting to be held next Friday, March 25. The proposal for 2022 will be to pay an ordinary dividend of COP 749 per share, which represents 50% of the net income for 2021. This proposal shows that our dividend continues to maintain its upward trend with an annual growth of 17% in the last 7 years. well above inflation in Colombia and well above the performance of other investment alternatives available in the market. As you may recall, that represents a dividend yield of 3.3%. As you may recall, last year, we distributed a dividend of 70% of our net income that was comprised of an ordinary of 40% due to ISA has been in practice that is based on living about 40% or 50% of the profit and a 30% extraordinary due to the incremental dividends received by the affiliates, mainly originated by the one-off and is CTEEP that was the recognition of the cost of capital on the RBSE assets and the periodic tariff review. And that was translated in income additionally time close to the COP 1 trillion. With the purpose of continue and strengthening our corporate governance practices, the Board approved to innovative policies, the practice of having a 50% dividend of the dividend. With this, we are representing -- reiterating that balance due a good paid to our shareholders and a sustainable growth in the future in a very healthy financing strategy. With this announcement, we materialize one of our strategic pillars to generate value to our shareholders. I thank you a lot for your attention, and I will give the floor again to Diana to begin with the Q&A session.

Thanks a lot, Carolina. So we open them in this space. We have a lot of different questions that we're going to try to answer. The first question is from Andres Duarte Perez, Corficolombiana. He asked us what is the battery bank and if there's going to be any more storage possibilities in the region?

I will answer that question and it is a very interesting question Andres. A battery bank are lithium batteries arrangement is not different from the technology that is used in some appliances. The difference is that these beta set of these batteries there's kind of panels with those batteries to get to the capacities that we mentioned. Basically, they end up being sent modules set up in some containers. That's one of the common ways they are installed. But besides the battery element, which is very important, what it provides the possibility of interacting and connecting to the grid system where as where we operate is a controlled systems. We have some control systems that allows that these power banks are synchronized, of course, to the energy system, and they can as he mentioned to store energy at that time where there is an excess of demand in some cases. So to allow the storage of energy electricity to be able to deliver that electricity when there is a peak. These works because of these characteristics to eliminate restrictions of limit of conduction of electricity getting to a node, connecting it temporarily as in the case, as we mentioned in Brazil, 2 hours, and it would increase 30 megawatts of that node, allowing to supply that additional demand without the need of having to increase the capacity of the grid installed. So that is a clear example how a battery bank can actually eliminate restrictions of capacity in the distribution or transmission of electricity. And also it has other important characteristics for the Power Systems is actually satellite voltage regulated frequency and maintained the necessary balance between the offer and the demand. So now -- these solutions are solutions that every single time the people in charge of the planning of the power systems are taking into account that in order to try to resolve these restriction conditions and to improve the conditions of the service. In Colombia, there is already call for bids that was for Barranquilla. That's another call for bids in Brazil. As we explained in the south of the Sao Paulo state, the history of substation. And now we're seeing that from the different systems of the region are starting to adopt this technology. So we have an estimate that this is a market that is going to grow. Of course, due to its characteristics and taking into account that this is a very important aspect. Power systems every single time they need to move into that flexibility to be able to respond properly to the installation of these new renewable nonconventional sources of energy or power has solar and wind then have a very high variability. But these devices, as I mentioned, are going to allow to manage this viability. And that's a characteristic side, it's going to be necessary in the power system. Therefore, we're pushing development in this technology in the future. And that's why the importance that ISA or ISA companies that we start getting into these type of projects. Thanks.

Thanks a lot Cesar. We have 2 questions from Andrew McCarthy at Credicorp.

The first question is that we have debt refinancing plans? And the second is how is the hedging of the index assembly revenues versus the inflationary pressures in costs and CapEx.

Go Carolina, please.

I would start with the second question that you asked. To give you a work that we always do with the most important financial exercises, I'm talking about budget. I'm talking about finance and planning there are long-term projections. But in the last one, we analyzed basically debt that you're asking for, and it's what happened with the main results of the company if in the indexers of each of the countries where we operate, the inflationary indices would increase more or less 100 basis points. The net impact is a positive effect. Why? Because let us remember that if we go to Brazil, where there's a high impact due to these inflationary effects, a 100% of our revenues in -- is indexed in the IPCA and we know that behavior that IPCA has been having. So to give you an example, a 100 basic points of more in IPCA, it had an effect to us in EBITDA of a COP 124 billion. And at the profit level, because let us remember that we only collect 36% of these results. And also, it's part of what you ask Andrew out of social impacting costs. At the profit level, this value is translated in a positive impact in COP 30 billion, and we did the same for all the rest of the indexers, IPCA in Brazil. In Colombia, we need to take into account the IPP, which is an indexer of big part of the revenues but the IPC, which is the cost. In Chile, we took into account IPC and also the IGTM that is indexers in the 70% and 75% of our revenues of tax. So when we do the math, the positive effect of adding 100 basis points to these indexers. At EBITDA, it will be 2.2% and a net income of 0.4% positive. I hope that with this, I have answered your question to that first part. The second part of the question has to do with debt refinancing plans. We permanently work in optimizing our capital structure as a proof of that was the beautiful operations that we did INTERCHILE last year. And now we are working in doing the same for Costera, which is one of the big upsides that Costera has to us and is able to obtain an optimization in the financial part. I would say that's the immediate operations that we have in mind. But as I mentioned before, is a task that we permanently execute in -- to the list and he's always thinking about optimizing capital structures on financing at the level of our portfolio, the same happened with the so successful operation of the issuance of bonds in Colombia through which not only we accomplish every time we mentioned during the presentation. But also to decrease our weighted financial cost in more than 100 basis points. Thanks a lot.

Thanks a lot, Carlo. Diego Buitrago from Bancolombia, Marie Alejandra and Noriega and other people ask about our advancement, and it has to do with entering to the United States, Vienna, thanks.

Thanks for that question. About that, I would like to inform that since 2021, we started a consulting with McKenzie to have an update understanding of the industry in the United States and propose alternatives to enter. What is next? What we have to do is to identify the objectives and the selection of the best options. So with all these analyses, we are seeing about how we approach this market. This is a topic that it's been, of course, taken to the Board of Directors for its analysis and next steps.

Thank you, Cesar. Alfonso Lopez from Portafolio asks what are the opportunities of new businesses this year in energy transmission as well as in the road concession business.

As it was very well announced by Carolina, the company continues with a growth strategy in business that is very aggressive. And as a matter of fact, we are looking at transmission as well as routes in both businesses. We have the 2 typical sources of growth, the brownfield and we have greenfield in roads as well as in transmission. I'm going to answer a little bit about the electricity transmission. And then I will give the word to Ernesto Carrasco, who is the Chief Executive Officer of Roads, for him to explain a little bit more about the details that is happening in that department. So now in electricity transmission, what do we have? We have -- in greenfield, we have in Colombia, we starting today projects of about $270 million. There are 2 very important projects, that is Alcaraván substation and transmission lines and La Paz substation. This is connecting Bojacá with Guaviare and Arouca, to have an idea about the size of that project, and there are other projects [ Caballero ] substation, Carreto substation, [indiscernible] substation, there a new one in Barranquilla. So we have a very important series of projects. In Ecuador, we are starting also starting a project yesterday that was seen in the media that there's already the directive for enolase to establish the conditions for investment. So we are looking it a very careful year project, which is no oriental transmission system. This is an oil region of Ecuador, and that's a project that is about $290 million. In Peru, equally, we're very active. We also are looking at projects of about $1 trillion there are a line, which is 500 kV in Piura Nueva-Frontera, which is an interconnection Peru and Ecuador that is very, very important. To continue with this interconnection that today we write to Ecuador and to have the possibility of going to Ecuador or Peru. I think that's a Piura project, which is a strategic importance, but older connections of 220 KV Reque-Nueva Carhuaquero, the Tumbes substation. We also have a big project that we have started already. That is a connection of 500 kV to Chiclayo-Trujillo. So that's a very important list of projects that we are starting already to be able to participate on that. Chile is also offering opportunities, not the ones that we just won last year, but there are still a group of projects. One of them that is very important, is very close with a transmission line that is the new Laguna, 100 kV came on. So I think that this is a project that is parallel and reinforce the red current project that's been very awarded in Brazil, there are 2 color biddings, the first one that we're going to have now in June, it's a bidding that has 13 projects that add at more than $2,000 million. We are talking about 1,000 $1.4 billion, and those are projects, and there is a lot of different projects that are in miniseries and in Sao Paulo, that in greenfield. So now in brownfield, we've seen also some assets in Brazil and a platform of an investor that is starting. I cannot talk about it. We have an agreement, but we are starting the possibility of some assets, our very important investment. And also in Chile, we have a platform that we are starting that also is protected information until to an MBA. So what I want to mean with this is that we have a very important list of projects that we are analyzing. We are making an effort to try to be successful with some of them to contribute to that path of growth by 2030. So the detail of opportunities on road. I will give the floor to Ernesto Carrasco for him to tell us a little bit about what it's been in that area. Cesar, thanks a lot.

Good morning to everybody. In regarding to roads, what we see is that infrastructure investment is going to continue being a very important factor for American Latin America to close gaps to improve competitiveness in the region. In that regard, we see that they are active government. In Colombia, we find the government with a 5 generation of concessions, which is a multimode program. Our interest is centered in the roads, and there are 2 processes are open that we are following with a lot of interest where they are Magdalena Troncal 1 and Magdalena Troncal 2. Those are the roads that connect Puerto Salgar-Barrancabermeja and Sabana de Torres-Curumaní. Those are biddings that should be taking place next month of March, April. And with water in May in Chile, there is also a very active plan of rebidding by the government. This corresponds to projects that were in the '90s initially when they return democracy. There are strategic assets that connect the exit of Santiago with some populations and they're located on the road number 5, which is the highway that goes from north to south Chile. So there are a lot of rebidding that are process. There are 2 projects specifically that were launched and that we are following. One is the concession between Chillán-Collipulli that corresponds to our Ruta del Bosque concession. That is a be -- the recent offering June awarded in July and the other one is a very important project, which is the connection between Santiago and Line. This corresponds to 68 road and these 4 concessions at $2.2 trillion. So that's what we're working right now in greenfield projects. And also looking at opportunities in brownfields in the countries that are our interest in our region. Thanks a lot to both of you.

Thanks a lot to both of you. We have a lot of questions, and we're very happy for that interest in ISA. We're going to answer 2 questions more because time is running out. But the other questions, we're going to send a reply through e-mail. A lot of people are asking about what are the possible operational synergies that we have identified with Ecopetrol. Patricia, please?

Thanks a lot, Cesar. Yes, to that question. About the people that asked that question. I think it's a very important one because there is a work this year in 2021 besides closing the topics of financial -- with disintegration with the Ecopetrol Group. -- there is an identification of ideas or possible synergies. Many of them happen based on the initial conversations between the teams of ISA and Ecopetrol. And those ideas were classified in 8 work groups that are having some conversations to identify how possible those synergies are and which of them could be materialized this year. Those 8 group works are in 3 blocks: one that responds to current operations of ISA as well as Ecopetrol and how they are. We are talking about infrastructure, electrical infrastructure of Ecopetrol and how ISA can actually provide some services to optimize those operations of Ecopetrol. We're talking about linear infrastructure with Zai. And also, we're talking about value capture in procurement, those 3 work groups in current operations. We also have some work tables about transversal topics in operations like cybersecurity, environmental management and science, technology and innovation. And finally, there is a third block that puts together 2 working tables more new businesses of energy and energy transition and the entry into the United States. That third block with these 2 working tables answer to those joint possibilities of growth of Ecopetrol as well as ISA in the topics that are presented in the strategy, but it corresponds to new opportunities. The advancement is all these tables, work tables. It's going through a 4 phase path. First, ISA getting to know the works of the teams, an ideation of the possibility of synergies or prioritization of which of them are more possible to execute and doable in the short-term. And finally, each roundtable is building for those synergies prioritized and schedule, work schedule to materialize these benefits. Important to highlight and also there's work in each of these tables, I will highlight a lot the advance that we have in the current operations, specifically it has to do with electrical infrastructure in Ecopetrol and how ISA can actually generate benefits. For example, savings in AOM, storage for operations and acquisition of existing connections or new connections. And also in storage that has been identified some important topics where we can actually generate savings by the joint management of some of the categories.

Thanks a lot, Patricia. The last question comes from Andres Duarte, Corficolombiana. And is if the increase of the 2021, excluding the nonrecurrent that also are excluding the nonrecurrent of the 2020 effects -- so if you allow me to answer that question. Go ahead, Carolina, please.

Allow me to answer that question.

Go ahead Carolina, please.

Andres, thanks a lot for that question. Look, when we mentioned during the whole presentation that if we excluded these COP 423 billion from the 2 non-recurring events that we accounted in September 2021, because of the effect of 5 points more in the rate, tax reform. And this successful operation INTERCHILE, we finished with a profit $2.2 billion. That is higher than 1.4% to the 2020. But this doesn't take into account the 2020 non-recurring events that were positive as we mentioned more than COP 250 billion purchasing profit. We would exclude the 2020, and we compare 2020 with all this 250 on 2021 without that punishment of the 423. Our net income in comparable terms would have increased 11.4% in 2021. Thanks a lot.

Thanks a lot to everybody for being with us in this conference. We expect you to be back here for future meetings. And the questions that we couldn't answer in here, the team would answer to you. Thanks a lot. [Statements in English on this transcript were spoken by an interpreter present on the live call.]