- This agreement marks AAGES first transaction in Latin America. AAGES is a joint venture between Abengoa and Algonquin for the development and construction of sustainable global water and energy infrastructure projects.
- ATN3 has a 30-year Concession Agreement granted by the State of Peru.
- The Concession Agreement allows for a predictable U.S. dollar-denominated revenue stream.
- Transaction closing is expected in Q2 2019, following satisfaction of certain conditions.
Lima, Dec. 27, 2018 – Abengoa-Algonquin Global Energy Solutions (“AAGES”), a joint venture between Abengoa. and Algonquin Power & Utilities announced that it has entered into an agreement with Abengoa Peru S.A for the transfer of ATN3 S.A. (“ATN3”), a wholly subsidiary of Abengoa Peru, subject to the satisfaction of certain conditions. Abengoa will carry out the engineering, procurement and construction of the project.
ATN3 is a Peruvian special purpose company incorporated in June 2013 for the development and operation of a new transmission line and associated substations located in the Region of Cuzco. The Project, which is part of Peru’s transmission system expansion plan, consists on the design, finance, construction, ownership, operation and maintenance of a new 220-kV power transmission line (with a length of approximately 201 miles), a new 138-kV power transmission line (with a length of approximately 5 miles), two new 220/138-kV substations (Kayra and Onocora), and the expansion of three existing substations (Suriray, Quencoro and Tintaya Nueva) (the “Project”).
The Project will be operated under a concession agreement with the State of Peru. The concession agreement includes an operation period of 30 years from Commercial Operation Date. The Concession Agreement grants ATN3 an annual fixed tariff denominated in U.S. dollars and indexed to the U.S. CPI. Closing of the transaction is expected on Q2 2019.
Armando Zuluaga, CEO of AAGES, stated “This agreement marks AAGES first operation in Latin America and the proof of concept of the joint venture between Abengoa and Algonquin for the development and construction of sustainable global water and energy infrastructure projects”. “This is the first of what we expect to be several international projects undertaken by AAGES in the coming years that meet our investment criteria”. It is contemplated that this project would be an appropriate investment candidate for Atlantica Yield.
AAGES is a joint venture between Algonquin Power & Utilities and Abengoa, formed to capitalize on the opportunity to leverage the strengths of each organization to develop and construct sustainable global water and energy infrastructure projects (www.aa-ges.com)