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

Good morning. My name is Matteo [indiscernible]. I'm an investor and analyst, and thank you so much for being here today. We will be presenting the results of the third quarter. [Operator Instructions] [indiscernible] will be here as well. Please go to the next slide. We also have our CEO, Juan Emilio Posada; we also have Patricia Castaño, who is a Corporate Strategy Vice President; Daniel Isaza, Energy Transmission VP. Today's agenda starts, explain the relevant events for this quarter, then Daniel Isaza will be giving us the financial results and then we will go back to Juan Emilio for the closing messages, and then we will have the Q&A session.

Daniel, let's go to the next slide. Thank you so much, Matteo, and I'm very pleased to be here with you today. Thank you so much for being here with us. Now let's move on. Within the 3 domains of our strategy ISA 2030, this is a strategy that is based on adding sustainable value, and we have several topics to mention about the third quarter. On the first domain or dimension, providing value to shareholders. And based on the challenges for 2030 today, we still show our commitment with this increasing financial results. We have a robust capital strategy, and we also want to show that this is sustainable. In this value dimension, we also want to highlight that we have 41 projects that are being executed. And at the end of this stage, they will add COP 1.7 billion and the EBITDA margin will be around 90% of that value. This figure, the COP 1.7 trillion includes the product of one project and 3 expansions in Brazil and one bidding process in Peru that we -- that was awarded to us in the third quarter. So then we will get COP 317 billion. This not only highlights our leadership capabilities in the market, but also our commitment to expansion and sustainable growth across the region. We can highlight that our return on average equity for the first 12 months up to September 30, 2023, is still at a very healthy level of 14%. In the second dimension, of our sustainable value strategy, the one that is related about being in a positive social and environmental impact, we want to highlight the bid that we have the entrepreneurship and the Conexión Desarrollo program. Through this program, we have contributed to over 40 projects in different sectors to improve financial indicators, operational indicators and formalization of business owners in the regions. Please program Conexión Desarrollo was recently awarded by El Expectador, which is a newspaper here in Colombia. So this award recognizes the best entrepreneurial practices. And last but not least, we also continue to use technology and innovation as growth leverages, levers that will help us in this energy transition. [indiscernible] we will be talking about this a little bit more concrete example about innovation are the capabilities that we've been developing in technological solutions such as batteries and smartphones. We have been able to participate in certain bidding processes. These battery systems help improve the capacity of the grid, increase the supply of energy at certain times, and we have cost effective solutions. Something important that we would like to highlight is the offer of the Apple project. This is a system that controls flows in Chile. It is a very innovative system based on batteries that allows us to send more electrons through the same lines without risking the supply. And even protecting in case of secret failures. The benchmark reference of this project is around $400 million. On the other hand, solutions such as Smart Vault, that are already in execution in some of our projects allow us to redirect the flows of circuit to optimize distribution of energy transmission and the use of the grid. In summary, these advanced energy solutions are a move forward towards our search of a more reliable grid, energy grid that also increases its productivity for the next years. By combining innovation and technology, we can improve the grid's capacity to face challenges, and we also increase the reliability of energy supply. Daniel, after covering the progress in these 3 dimensions in our sustainable value strategy, let's move to the next slide so we can go deeper or we can delve into some of these topics. Additionally, we want to tell you about 4 subsequent events that happened in the third quarter. Things that happened in October, and we think this is -- this could be of your interest. On October 27, last Friday, ISA in partnership with Grupo de Energia Bogota, one of the largest energy transmission bid that was conducted in Peru is the link Huanuco Tocache Celendin Trujillo and the 500-kilovolt Celendín Piura from now onwards, TOCE, CEPI that will be -- those would be the 2 acronyms that would be used, TOCE, CEPI. So the length is over 1,000 kilometers for the Peruvian lines. The estimated investment by [indiscernible] is around $833 million. And once this project is in operation towards 2029, it will lead to annual revenues of $83.5 million, consolidating our participation in the energy transmission system of Peru even more. Another important event that happened in October after closing the quarter, on October 18, ISA Intervial signed a complementary agreement on the Ruta del Maipo in Chile with the MOP, the Ministry of Public Works. So the estimated investment is $83 million. This agreement includes the construction of street, pedestrian bridges and other works that will increase safety on the road. Estimated time of construction is 2.2 years. In Panama we are waiting to be awarded the Carretera PanAmericana Este and we presented our best offer in the auction that took place in July, and we are waiting for a decision. We're waiting to get this be awarded. This is a project that includes the enablement of 246 kilometers, operations and maintenance for over 14 years. The road, this is part of the PanAmerican way. This is a road in Panama and its length is 270 kilometers. And last but not least, on October 31, we presented an offering for project Orbit -- the Southern Orbital concession in Santiago, Chile. This is a road. This is a concession that it's about building and operating a greenfield project with a length of 24 kilometers and several underground sections and the investment is over $5 million. The limit is 46 years of this concession. After covering these events that happened in October, now we can move to the next slide to delve into some of these aspects. Let's remember that the central pillar of our corporate strategy is sustainability. And one of the 3 pillars of this sustainable value strategy is about producing a positive social and environmental impact in the countries where we have presence. For instance, through the Conexion Desarrollo program, we strengthened communities in the regions where we have an impact and we have social and environmental initiatives when both are reinforced or strengthened. Since 2021, we have focused our efforts in supporting entrepreneurial projects and we have benefited over 1,800 people and investments totaled COP 5 billion in tourism, agriculture, livestock and agribusiness. Thanks to this program and as I told you before, we were awarded a BIBO award. We have participated in San Andrés, the province of Bolevia, the province of Bichara and the province of [ Serco]. Additionally, through the affiliate in Brazil, we got a recognition in the gold category by GHG protocol. This is an international body that is in accordance with the methodologies to quantify the carbon footprint. This demonstrates that ISA reveals in a transparent manner its GHG emissions. Now let's move to the next slide. Now let's talk about investments. The executed CapEx is COP 3.5 trillion. And specifically, in the third quarter, we went up to COP 1.1 billion. They all contribute to the energy transition and are centered in the human being. Most of these projects will enable interconnected system and will strengthen transmission lines. This CapEx was distributed in the following manner. 85% and was focused on the energy transmission business, 13% on roads and 2% on telecommunications. Now let's talk about countries. In Colombia, 32% of the investment was here in Colombia, and we move forward in the construction of other project expansions. The ones that were awarded by recent bidding processes and these 2 projects. Brazil participated for Brazil's share was 41% with an extensive plan of improvements on construction. In Chile, we continue executing projects in our main 2 businesses. Energy Transmission, we work in 4 expansions. We increased capacities and a new substation in the ISA inter Chile network and also the project Kimal-Lagunas, which is 100% owned by ISA and also Kimal Lo-Aguirre, where ISA owns 33%. As for roads, we moved forward in building Section 1 and Section 2 of Ruta de Rio. So we were improving these roads and Ruta del Rio as well. Additionally, in Ruta del Rios, we started execution, the complementary agreement that was signed on the first semester and the Ministry of Public Works of Chile between those 2 entities. In Peru, we focused 10% of investments, and there are 9 projects started to unfold. On the white boxes below each figure, you can see the distribution of the investments, considering our equity share in those business lines or in those countries. We continue to work in the construction of 38 construction projects, energy transmission projects and 3 road projects through ISA and the companies we control. All these projects will represent over 7,000 kilometers of transmission lines at 133 kilometers of roads. Now, Daniel, let's move to the next slide. In the third quarter, we also were able to reach some milestones in Brazil through ISA CTEEP. We were awarded Lot 1 that will have over 1,000 kilometers of transmission lines and will extend the life of our portfolio with this concession, which is a 30-year concession. Additionally, we were able to get the award of 3 extensions in Brazil and one bidding process that includes projects -- new projects in Peru. In total, the aggregated reference investment is COP 2.9 trillion or almost COP 3 trillion. So in ISA, we continue to work to ensure our corporate sustainability by participating actively in the bidding processes where we have presence. Later on, we will delve into the growth opportunities that we have in the region. So let's move to the next slide, Daniel, please. Let's remember that we reported a total of committed and pending investments by 2030 that amounted COP 25 billion the gray column on the left. Now during the third quarter, these commitments went up COP 28 billion. That variation is explained mainly by the execution of COP 1 billion but it can be substracted from the figure that was reported at the close of the 2 -- of the second semester and some awards, some new awards plus COP 0.5 billion. So this takes us to the second bar, that is COP 28 billion. As for orange bars, they show the estimated execution of this investment up to 2030. For instance, we estimate an average annual execution of COP 5 billion in years 2024 to 2027, Now I encourage you to look at the green bars. Out of those COP 28 billion investments that are pending for execution, we would like to highlight the following: first, COP 17 billion in awarded projects at the close of September 2023 in all our businesses and geographies. Plus COP 4 billion that our commitment in reinforcement and improvements in CTEEP in Brazil. These 2 groups, the COP 17 billion and the COP 4 billion COP will provide new revenue to ISA. With these investments that are pending to execute that are about COP 28 billion, ISA consolidates itself as one of the largest platforms of energy transmission and road infrastructure. Now let's move to the next slide. During the third quarter, we completed the construction of 4 projects to strengthen the energy grid in the region. In Colombia, we had 2 projects of [indiscernible] energy in the province of Caldas and the connection to the NabusiMake solar project in the province of Magdalena. in Brazil 13 reinforcements were in operation. And the first 4.0 substation that is equipped with cutting-edge technology when it comes to control and protection. This technological advances will move to other projects where ISA operates. Finally, in Peru, the COYA project, C-O-Y-A, that represented an investment of $297 million and allows the connection of clean energy sources from [indiscernible] started operation in the previous quarter. Together, this project provide over 400 kilometers of circuit to the transmission grid. And the revenue is about COP 100 billion. ISA continues to consolidate its presence in the energy market, contributing to the development and progress of Latin America. Now let's go to the next slide, Daniel. In the next 12 months, we see opportunities, investment opportunities in the region. Can you please click? There you go. These opportunities amount COP 14 billion and 14% corresponds to Energy Transmission and 40% to road infrastructure. In Colombia, we anticipated cost by the minor energy unit and bidding processes of $1.7 billion, $1.7 billion. In Brazil, we see business opportunities that are valued at around $3 billion. In Chile, the government has revealed important opportunities in the energy transmission sector with bidding processes for substations and the battery storage project that I mentioned before. Additionally, we anticipate participation in bidding processes and expansions of existing routes in the roads business with an estimate of $4 billion in investments. This portfolio of opportunities also includes opportunities of energy transmission in Peru that amount to $1.5 billion. Now let's move to the next slide. To give the floor to our financial VP, Daniel Isaza, with the financial results of the quarter.

Thank you, Juan Emilio, and good morning, all. It's a pleasure to be here with you today. Now let's move to the next slide, please. Showing you financial results on this slide, I would like to emphasize on 2 points. This is a slide that we already showed in the past and the number that is inside this bubble is COP 10.6 billion , which is the revenue level that ISA has had for the first month of the year. As you can see on the left-hand side on this chart, this revenue is distributed by type of currency. Only 18% of this revenue is in COP, so 82%, the remaining 82% comes from strong currencies such as USD, Chilean peso, and Brazilian real. To your left -- to your right, you can see the composition of this revenue by duration. And again, we're showing income that is even larger because we are growing at a pace because of the concessions that we have that are over 10 years. And in Chile, we have revenue for over 10 years because we have a project that is perpetual. So this is a quick view of the total revenue and by business line, energy, roads and telecommunications and on the upper part of the chart, we see the behavior of -- sorry, of the -- yes, of the quarter. And then at the bottom, we see the last 9 months. So 2 things are happening here. And we will be explaining this in the next slides, and they are related with an important reduction in the roads business -- in the revenue of the roads business, and it happens due to the way road concessions are being accounted for in Chile. They use the same accounting method that is used in financial assets, and they recognize a monetary correction of the financial assets. So in the third quarter of 2022, we've been explaining since then, the change in the accounting methodology in Chile. Originally, this was recorded in Chilean peso. And now it is recorded in [indiscernible] or fostering units. And this is why there was a revenue that was linked to this monetary correction, that is above COP 250 billion. And this year, in this quarter, we do not have that revenue. It is linked to the monetary correction. It's not that there has been a drop in the collections or the tolls collections that we have in Chile. This reduction is related to the accounting methodology that was used. The growth in energy is a highlight. In the revenue, it's only 2%. This is related to the revaluation of the COP, the Colombian peso, even though businesses are growing in local currency since there is a revaluation when you get this in the consolidated financial statements, you see a reduction compared to previous quarters. Later we will elaborate a little bit more on this. So we have a growth of -- double-digit growth, 12% growth in the business of energy and 7% in growth and 4% in telecommunications. Now let's go to the next slide. Just to explain what's happened here, the reductions in the quarterly revenues, we wanted to show you here a longer series of operational revenue without construction for the last 7 quarters. Why aren't we removing construction from this chart? As you are aware, ISA not only produces operational income but also in the countries where concessions are recorded by the financial asset methodology or the contract assets methodology, which is the case of energy transmission in Brazil. In those countries, when we talk about infrastructure, we see a cost in the financial statements linked to construction, and it also has a revenue. It is theoretical and it is the result of applying the CapEx execution, which is our margin of the profit. This is the way this is being accounted for there, but it doesn't have a reflection on the cash flow. What's interesting about this slide is that if we think about the revenue and we compare the profile of the previous chart and the lines that you've seen here, which is an indicator of the exchange rate between Colombian peso and USD, which is the yellow one and the one for Peruvian source is the gray bar. You can see this that there is a devaluation of the Colombian peso. So for each real, Chilean peso especially in the first quarter of 2023, we were including each unit of those currencies at an exchange rate that was 20% higher than the one that we had before. As you may all know, there is a relevant revaluation of the Colombian peso. So this is why we're starting to take the income and the results of these companies that have a different currency from the COP. So this is why -- well, this is -- most of the explanation of what we are seeing here as income reduction or revenue reduction. There is another element on this chart and that's the one that I was explaining before, and this is related to the accounting methodology of financial assets or road concessions in Chile, which is the green component that you see here. And it illustrates the effect of the monetary correction of the financial assets. So there were some strong moments in 2022, the third and fourth quarter and even in the first quarter of 2023 due to inflation. Basically, that is reflected in the net present value and increases the value of the financial assets, and this also reflects on the revenue. It does not affect the cash flow. And this effect in the third quarter of 2023 is very small is COP 13 billion, especially if we compare it with the effects that we had on previous quarters. Now let's move to the next slide, please. In terms of margins, and here, we see the net profit to the right and the EBITDA on the left. So with an increase in the EBITDA in the first 9 quarters of 9%. And the net profit is increasing by 15%. So the profit that we have accumulated from compared 2022, the profit that we had has improved. So we were expecting a profit that was growing from COP 2.2 billion and 15% in 2023, and this is something that we keep, and we think we will be moving around the same range. And we saw this in the shareholders assembly. On the next slide, Daniel, please. There is an explanation or this is the way the change in the EBITDA margin unfolded. As you know, this company moves in a simplified way by 2 situations. One, there is a change in the compensation of the operations and maintenance revenue, which is the largest income compared to construction revenue where we develop infrastructure projects. Considering the accounting methodologies that I already explained. These 2 businesses have different margins. The construction business has a significantly lower margin than operations and maintenance because it not only compensate the maintenance and the operation of assets but also capital investments. So what's been happening when you compare 9 months of 2022 against 9 months of 2023 is that there is a compression of 2 points in the operational margin in operations and maintenance. This is mainly related to the change of trend since we see less inflation in most of the countries, the reduction in Colombia is very slight. But in countries such as Chile and Brazil, inflation reduction is relevant. So those new inflation indicators in many cases are the ones that are increasing revenue, and they are smaller than inflation indicators that are increasing costs, which are cost index of many operations and maintenance costs. So what's happening is the opposite of what was happening last year where costs were being calculated with lower inflation and revenue with higher inflation. There are also changes in the composition and the margin in the revenue in construction. Additionally, there is a reduction of 0.5% in the margin, and this is linked to lower revenue in the controlled -- in the co-controlled companies, and this is related to the way we recognize revenue in Brazil, in [indiscernible]. So this is also part of the calculation, and we see less revenue due to the monetary correction of the financial assets, and this is lower than last year due to the decrease in the inflation rates. Let's move to the next slide. Juan Emilio was telling you about the company's backlog in terms of investments, COP 28 billion. And it's very important to think about this figure in terms of our capital structure. And here, the sites are very positive and we are experiencing a very healthy situation, a leveraging situation. So the indicator between the gross debt over EBITDA is 3.4x. Last year, it was 4.2%. So there is a significant reduction in the leveraging indicator. The balance of the debt -- since the peso is getting stronger compared to other currencies, the debt that we have in dollars has a lower value in COP. So this is showing us the translation effect and we can see how between December 2022 and September, we have a reduction of 9% in the consolidated debt balance COP 3.9 trillion. So the debt composition, which is shown at the bottom of the slide shows some of the elements of our debt profile, I would like to highlight that we have -- we are participating more in the capital market in the long run. So 43% of these emissions are green bonds. Now let's move to the next slide. On this slide, I would like to add something. To wrap up my session and give the floor back to Juan Emilio. To highlight one of the most relevant ISA's attributes. Definitely ISA is the energy transmission platform that is more diversified by Country and by asset class. And this has a lot of benefits in regulated benefits -- businesses. What you see here is the total revenue of the energy transmission business. For the last 12 months, up to September 2023, this looks similar to the COP 10.6 billion of total revenue that we have in the first 9 months, it is a little bit higher, and it is the proportion of total income that we have for the last 12 months in the energy transmission business. What you can see here is that the portfolio is diversified. In Brazil, we have an important component, 48%. And remember that this is based on the IFRS consolidation standard. We have 25% in Colombia, 22% in Peru. Now if we zoom in, and we want to understand the diversification based on assets, let's double-click on Colombia. Out of those COP 10.9 billion, 25%. This COP 2.8 billion that you see at the center of this circle. It is interesting saying that business that started with some legacy assets to date, the revenue is 60% of the total revenue. Expansion projects give us some revenue in dollars for periods of 25 years, and they amount to 25% of our revenue. And there's also a 16% that comes from the B2B revenue that doesn't come from the government, but from companies and the amount or the total 16%. So there's a very interesting diversification based on the assets class. And the next circle explain the diversification based on asset class in Brazil. Brazil essentially had some legacy assets and then the RBC component then this contract was renewed. Today, this revenue is 21% of the revenue. 21% of the income is received by the operation and maintenance of those legacy assets and 23% of the income is related to expansion process that we have won in public auctions. So these are also fixed incomes for long periods, 30 years. Unlike the ones in Colombia, they end in 2030, Colombia's project finished in 2025. And then these assets will become legacy assets. It's very important to highlight here that in [indiscernible] Juan Emilio was explaining this when we were talking about the investment backlog. Today, these improvements lead to 24% of the revenue. And these are compensated investments. So this is a very interesting growth line. We continue to invest in it as Juan Emilio explained. And with this, I will give the floor back to Juan Emilio so he can continue with the presentation. Thank you so much.

Thank you, Daniel, and Daniel Toto. Can you please move to the next slide? These were the messages aim at strengthening key messages of the presentation. First and foremost, as you can see with the backlog that Daniel Isaza was mentioning, it is nothing more than the total of the committed investments that are pending their execution and they totaled COP 28 billion. We are highly committed to this investment. So we demonstrate the commitment that we have with our company. We are investing permanently, and we are also committed to adding value to this company not only to the shareholders, but also to all the dimensions. Additionally, we are also enabling energy transition by energizing these 4 projects because these 4 projects improve reliability on the systems and the efficiency of the grid. And finally, I hope we were efficient in our message. I also hope we were compelling. We have a sound financial capability that allows us to expand as a diversified platform in terms of currency, business types, in Latin America. And finally, and I ask Daniel to move to the next slide, please. Let me share my thanks to ISA's Board of Directors since October 20 -- on October 27, we reported that I will be the CEO up to January 2, 2024. This has been an incredible time that has been filled with challenges and also achievements. So I would like to capitalize on this to reflect about the milestones and achievements. Thanks to the Board of Directors. Thank you to the senior management and to all the people that are part of ISA in the countries where we have presence around 5,000 people in total. So my deepest thanks to the Board for trusting me and for their generous message that is highlighting our achievements. With my leadership, we have experienced exponential growth. We have exceeded the target. We have been able to achieve record highs of growth, and we've been able to achieve important milestones towards meeting the targets of the 2030 strategy. I am very proud of our success -- expansion success in Chile, Peru, Brazil because we were able to get new businesses for around $2.7 billion and over 3,000 kilometers of infrastructure between July 26 and the present. We continue to grow and I hope these figures continue to be as encouraging as they've been. We were also able to make to make progress in the sustainable value strategy. We also defined a 2.0 [indiscernible] strategy. We implemented seamlessly, the [ service Axle stocks low ] in record time. We created an impact [ Creamos Impacto ] is a social innovation project that aims at providing access to power energy and connectivity to all the communities that are in the area of influence of ISA's infrastructure in the entire continent. We are working. So all the communities that are in our influence area have access to power energy and data connectivity. We strengthened our organizational talent system since we were able to strengthen the succession model in critical positions. Some people retired. So there was a movement in the succession chain. And these people were promoted from our own company or they call or they came from Ecopetrol. We certified some women. We also created ISA Campus, our corporate university. As you can see, this is just to mention some important achievements. All this was possible due to the effort and commitment of the ISA team and all the companies in Latin America and the excellence, quality and reliability culture. It was strengthened, thanks to the leadership and participation of all the ISA employees. So I celebrate these achievements, and I wish a great future to ISA with lots of success in its 2030 strategy. And thanks again to the entire team and to all the recognition. Now let Matteo. Let's start the Q&A session and my deepest thanks to all of you.

Thank you so much, Juan Emilio. So let's start the Q&A session. The first question that we have is by Andres Duarte and he's asking us. What is the explanation of the lower activity in gross construction?

Thank you so much for your question. So I would like to ask how our business world VP, to answer your question, Andres.

Thank you, Juan Emilio. Andres, thank you so much for your question. In the roads business, right now, we have works in executions that amount to $472 million. The largest one is the [ LoRa ] route. We are also executing works in our [indiscernible] and De Los Rios. The lower route, which has an investment of around $349 million. The progress is 69%. We had some delays on the third quarter because the Ministry of Public Works took some time to approve certain projects and also the expropriation of some territories. So it's important to highlight that in Chile, this risk is taken on by the state. The activities of sector A which represents the largest section of the project continues in execution and it will be completed by 2024. It is important to highlight that the expectations that we have in the short and mid run are very positive, as Juan Emilio mentioned, We have signed 3 new complementary agreements in Chile for about $160 million. We are waiting to be -- for the awarding of the PanAmerican road in Panama, which is approximately $287 million, and we also submitted a offering for Southern Orbital in Santiago. This is a road that will be connected. And our ring of Santiago with an estimated CapEx of $500 million. So we will be able to know the results of the process in about a month. We also have a very robust pipeline of projects in Chile, Colombia. We are waiting for processes to move forward and to -- and for the bids to open. Thank you so much for your question.

This is the second question. This was also asked by Andre [indiscernible]. He is asking us about the current growth expectation of ISA in Colombia? Is it based on the expansion plan or the road map of just energy transition.

Thank you so much for your question. Gabriel Melguizo, he's our Energy Transmission VP to answer this question.

Thank you so much, Juan Emilio. Andres, everyone, good morning. Thank you so much for your questions. First, I need to start by saying that one of ISA's focus is that the energy transition that only happens in Colombia but also in the other countries where we have presence. In the case of Colombia, the national government, together with the sector has been working on their road map. So several mechanisms are aligned. The National Energy Plan, it was published by [indiscernible] in July this year. And this is also in line with the expansion plans, plans that include transmission relevant projects, energy transmission relevant projects. So their road map is in line with all these instruments. Now regarding the projects that are currently going to be in bidding processes. We are participating in these processes, and we are putting all our effort to get this project and continue to work with the energy transition. Thank you so much for your question, Andres. And the floor is yours, Matteo.

Thank you. Jose [indiscernible] is asking this question, and he's asking what is the CapEx guidance that we have for 2023 and based on the execution of this quarter, is it in line with the CapEx execution by the end of the year.

Thank you, Matteo. Thank you, Jose, for your question. I will give the floor to Daniel to answer this question.

Thank you for your question, Jose. The close of September, we have executed COP 3.5 trillion. And our projection for the fourth quarter of this year is COP 1.8 trillion. So we would be closing the year in COP 5. 3 trillion, which is in line with our initial CapEx projection for this year.

Okay. Great. We have another question by Andres [indiscernible] asking us, what are the -- what's the share of the concession that you won in Peru?

Thank you so much for your question. Sebastian, you can provide the answer to this.

Andres, thank you so much. We are very happy to have on the largest project in Chile. Investments of about $800 million and over 1,000 kilometers of transmission lines. energy transmission lines. So in October 26, we signed an alliance with Grupo de Energía Bogotá. This alliance or partnership is subject to regulatory approvals by Peruvian entities, especially by index copy, but the goal is to have a co-control structure together with Grupo de Energía Bogotá, where ISA's participation of 50% and Grupo de Energía Bogotá. And another 50%. As I mentioned before, this is subject to regulatory approvals from Peruvian entities.

We have a question from Leonardo Botero. And he's asking us, what is the contingency plan in Colombia? It can the blowup of transmission towers, especially during El Nino.

Thank you so much, Leonardo, for your question. I will give the floor to Gabriel so he can answer.

Thank you so much. Juan Emilio, let me clarify that Colombia has very complex years when it comes to terrorist attacks to infrastructure. This year, we haven't had any important events against the infrastructure. And we hope that this situation continues. So we hope we don't get any terrorist attacks against the transmission towers. So we conduct a rigorous asset management and as part of this, we have contingency plans, not only for -- to protect against these terrorist attacks but we also want to ensure high availability and reliability of the service in all the operation in the country. Now the El Nino phenomenon post several threats. But as part of asset management, we are focusing our efforts in overcoming El Nino phenomenon, and we are highly prepared.

Another question by [indiscernible] and he's asking us. In the mid-run, are there any new bonds issuances or rear shares repurchasing?

Thank you so much for your question. And Daniel Isaza can answer this question.

Thank you. Yes, actually, we are assessing in Colombia to go to the capital market with some bonds in pesos, in COP to finance -- to fund our investment plan. And with these bonds issuance, we are solving our liquidity situation for the investments that are coming for next year. Regarding debt repurchase, we have a partial repurchase of the bond that we have in Inter Chile. And this is a process where we want to take advantage of the market moment where there is an important discount level -- the bond. So we would be executing these operation soon. We don't want to repurchase any shares so far.

We have 2 questions from Juan Jose. First question, have you found a headhunter to find the replacement for -- of our CEO, Juan Emilio? In the search of the CEO -- are you starting now the process? Or are you waiting until January to find the new CEO?

Thank you so much for your question. ISA bylaws say that the Board of Directors is the one that decides who is the person that will be nominated as the new CEO. This is a process that is led by the organizational talent Committee of the Board. And also in the bylaws, it is said that it should require the assistance of a headhunter. Everything is done by human resources. And the agreement that we reached is so recent. So I guess they are just starting to take the first steps towards this. And the talent committee is the one that will be defining the headhunter. So it is a process that will not take long. Usually, it will -- it starts as soon as possible.

Thank you so much, Juan Emilio for sharing your answer. And this is all for today. Thank you so much, everybody, for being here with us, and have a great day. Thank you so much.