Atlántica Transmisión Sur S.A. (ATS or the project) is a special purpose entity (SPE) that won a 30-year concession contract to operate and maintain about 915 kilometers (km) of transmission lines along the Peruvian coastline (crossing four departments: Lima, Ica, Arequipa, and Moquegua). ATS began operating on Jan. 17, 2014. Based on the concession contract, ATS receives annual guaranteed revenues (RAG, its Spanish acronym) depending on its availability levels. As of December 2021, these revenues amounted to $52.2 million. The tariff is dollar-denominated and payable monthly in Peruvian nuevo soles (PEN). The concession defines an annual adjustment mechanism every May 1 by the U.S. Producer Price Index (PPI). In our view, the terms of the concession agreement and high availability
