ISA Seeks Bridge, Bonds for Peru Project

Colombia’s state-owned Interconexion Electrica (ISA) is shopping around for banks to provide a bridge loan while it studies options to finance the construction of a dual transmission line it recently won a concession for in Peru. On June 17, ISA won the concession to build two 500KV lines from Chilca, in the south of Lima to Zapallal, 100km to the north. The cost is estimated at $125m. “We are looking at different options, but we will likely do a bridge loan before issuing bonds in Peru for the project,” ISA CEO Luis Fernando Alarcon tells Latin Finance. The first transmission line, which will initially transmit 200KV, has to be built in 20 months, the second in 30 months. ISA is the largest electricity transmission company in Peru, with more than 7,000km of power lines. In its native Colombia, ISA is studying the possibility of entering the highway business and possibly the natural gas sector down the road. It is seriously studying a bid for the Colombian government’s Ruta del Sol project, says Alarcon.