Red Eléctrica Internacional has reached an agreement with Bow Power to acquire 100% of CCNCM, the company holder of the concession contract for the 220 kilovolt (kV) Carhuaquero-Cajamarca Norte-Cáclic-Moyobamba electricity line and associated substations, in the northern area of Peru. The transaction is valued at 205 million dollars (181.36 million euros).
Since the end of 2017, the company ‘CCNCM’ has been managing and operating, under a 30-year concession contract with the Peruvian state, 372 km of 220 kV and 138 kV circuit, in addition to four substations in the regions of Cajamarca, Amazonas and San Martín, all of them in the north of Peru.
The transaction, which includes debt assumption, is subject to obtaining the relevant authorisations. The revenue generated by CCNMC is around 18 million dollars per year (15.92 million euros).
Red Eléctrica Internacional is the electricity transmission company of reference in the south of Peru, where it has been present since 1999. With this new acquisition, it will now be the holder of a total of six electricity transmission concession contracts in Peru that amount to 1,686 km of line circuit.
With the acquisition of CCNMC, Red Eléctrica Internacional expands its presence in the north of the country and puts itself in a preferential position for both the future interconnection between Peru and Ecuador and for other electricity transmission grid developments in northern Peru.
This acquisition is fully aligned with the international development strategy of the Red Eléctrica Group and consolidates the Group’s presence in one of the most economically developed countries in the region.
With the acquisition of these assets, Red Eléctrica Internacional will now go on to manage a grid of 1,686 km of circuit in Peru in addition to the 1,729 km it currently manages in Chile.
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