By Brazil Stock Guide – Alupar Investimento S.A. (BVMF: ALUP11) said its Peruvian subsidiary secured a government auction to develop power transmission infrastructure across several regions of the country. The disclosure was made in a filing to Brazil’s securities regulator CVM.
The concession, valued at $220 million in investments, is expected to generate annual allowed revenue of $31.8 million, equivalent to a RAP/CAPEX ratio of 14.5%. The contract will run for 30 years, beginning once operations start in November 2029.
The projects will extend across Arequipa, Lima, Apurimac and Puno. In Arequipa, the works include the construction of four new substations and transmission lines of 220/138 kV. In Lima, Alupar will add new bays to existing substations and build 17.4 kilometers of transmission lines. In Apurimac, the company will expand substations and lay 77 kilometers of 138 kV lines. Finally, in Puno, the concession foresees the construction of a new 138 kV substation, the expansion of another, and the implementation of 108 kilometers of transmission lines.
With this new contract, Alupar’s contracted investments in Latin America will reach approximately $950 million through 2029, spread across Peru, Chile and Colombia. The company’s consolidated RAP is set to increase to $136.8 million.
Alupar also operates in power generation in Peru through the La Virgen hydropower plant, which has an installed capacity of 93.8 MW.
“We are reinforcing our contribution to the growth and diversification of Peru’s energy matrix, underlining Alupar’s commitment to sustainable economic development in the country,” said Luiz Eduardo Muniz Coimbra, head of investor relations at Alupar.