The Company

Strategy

The use of tech­no­lo­gi­cal inno­va­tion toget­her with ope­ra­ti­ve effi­ciency makes our con­ti­nuous impro­ve­ment pro­cess to be a goal sha­red by all tho­se who are part of LITSA.

Ongoing and per­ma­nent trai­ning of all LITSA´s mem­ber, boos­ting the growth of the Com­pany dif­fe­rent sec­tors, and thus, encou­ra­ging an inte­gral deve­lop­ment of LITSA, fos­te­red by the par­ti­ci­pants them­sel­ves.

Trai­ning in new busi­nes­ses and con­ti­nuous deve­lop­ment gua­ran­tee best results. All this enables the satis­fac­tion of our sha­rehol­ders and our per­ma­nent growth.

Background

Foun­ded on Sep­tem­ber 21st, 1994 with the pur­po­se of taking part of the Inter­na­tio­nal Public Bid­ding sum­mo­ned by the Natio­nal Energy Secre­ta­riat to award the Cons­truc­tion, Ope­ra­tion and Main­te­nan­ce of the Second Sec­tion of the Trans­mis­sion Sys­tem asso­cia­ted with the Cen­tral Hidro­eléc­tri­ca Yacy­re­tá (Yacy­re­tá Hydroe­lec­tric Power Plant), which is the lar­gest gene­ra­tion plant of this type of energy in Argen­ti­na.

On Octo­ber 25th, 1994, LITSA was selec­ted as the suc­cess­ful bid­der — as an Inde­pen­dent High Vol­ta­ge Trans­mis­sion Com­pany — of the Public Bid­ding for the cons­truc­tion of 591 km of 500 kV lines, the exten­sion of two 500 kV Subs­ta­tions, the cons­truc­tion of a new 132 kV Subs­ta­tion and the Ope­ra­tion and Main­te­nan­ce of this trans­mis­sion sys­tem.

The group of com­pa­nies that cons­ti­tu­ted LITSA, all of them with an outs­tan­ding back­ground and wide expe­rien­ce in impor­tant pro­jects, took up the cha­llen­ge of finan­cing the pro­ject with their who­le tech­no­lo­gi­cal capa­city and patri­mo­nial sol­vency.

LITSA could achie­ve impor­tant miles­to­nes to con­tri­bu­te to the Argen­ti­nean elec­tri­cal industry trans­for­ma­tion: the first loan to an Argen­ti­nean pri­va­te com­pany made by the Ban­co Inter­ame­ri­cano de Desa­rro­llo ‑BID- (Inter-Ame­ri­can Deve­lop­ment Bank), the cons­truc­tion of the 500 kV lon­gest line, wit­hout inter­me­dia­te subs­ta­tions, with a total length of 506 km bet­ween Cen­tral Hidro­eléc­tri­ca Yacy­re­tá and SADI (Argen­ti­ne Inter­con­nec­ted Sys­tem) at the Sal­to Gran­de Subs­ta­tion, achie­ving the con­nec­tion of Misio­nes Pro­vin­ce elec­tri­cal sys­tem with the Who­le­sa­le Elec­tri­city Mar­ket (WEM), through the cons­truc­tion of a 85 km long, 500 kV power line

Shareholding Structure

Contract

The Elec­tro­duct Con­tract ente­red into on Novem­ber 7th, 1994, with the Natio­nal Energy Secre­ta­riat, it has a 94-year- term and mar­ked three dif­fe­rent periods: the cons­truc­tion period that con­tem­pla­ted a 22-month-term during which LITSA finan­ced the pro­ject cons­truc­tion at its own risk; amor­ti­za­tion period; a 10 year-term as from the Com­mer­cial Qua­li­fi­ca­tion, during this period LITSA recei­ved a fixed monthly fee; and the current exploi­ta­tion period and up to the expi­ra­tion of the con­tract in the year 2088 when LITSA is remu­ne­ra­ted as per the tariff agreed upon by the high vol­ta­ge power trans­mis­sion.

The high vol­ta­ge power trans­mis­sion-rela­ted public ser­vi­ce and the faci­li­ties ope­ra­tion and main­te­nan­ce star­ted as from the pro­jects com­mer­cial qua­li­fi­ca­tion.

Investment and Financing

All the pro­jects requi­red an invest­ment amoun­ting to US$ 182,2 millon, finan­ced by regio­nal enti­ties of outs­tan­ding pres­ti­ge such as the Ban­co Inter­ame­ri­cano de Desa­rro­llo ‑BID- and the Agen­cia Fina­mex that bac­ked up LITSA´s com­mit­ment and made it pos­si­ble the suc­cess of all the ope­ra­tions.

Market Share

As an Inde­pen­dent Trans­mis­sion Com­pany, LITSA ope­ra­tes wit­hin the Who­le­sa­le Elec­tri­city Mar­ket (WEM) by means of its Elec­tro­duct Con­tract.

In that sen­se, LITSA ren­ders the Public Ser­vi­ce of Extra-High Vol­ta­ge Elec­tric Power Trans­mis­sion (500 kV) bet­ween Rin­cón San­ta María Subs­ta­tion (Corrien­tes Pro­vin­ce) and Sal­to Gran­de (Entre Ríos Pro­vin­ce), and also bet­ween Rin­cón San­ta María Subs­ta­tion and the San Isi­dro Subs­ta­tion (Misio­nes Pro­vin­ce) with qua­lity inde­xes well abo­ve the ave­ra­ge of the sec­tor.

This indi­ca­tor high­lights our mar­ket Lea­ders­hip, becau­se it is pla­ced well below tho­se values obtai­ned by other Elec­tric Power Trans­mis­sion Com­pa­nies, in cons­tant terms and during the last 10 years of ope­ra­tion of the Extra High Vol­ta­ge Elec­tri­cal Sys­tem.