Good morning. Thank you for joining us in this webcast of results of ISA and its companies for the second quarter of 2023. During this presentation, you can ask your questions through the window that appears on the right-hand side of your screens. Please write your name and your organization, and in the very last part of the event, we will have a Q&A session. Mateo is the person that will be supporting us with this presentation.
Mateo, let's move on to the next slide, please. Today, we are with Juan Emilio Posada, our President, Daniel Isaza, VP of Corporate Finance, Patricia Castaño, VP of Corporate Strategy, Gabriel Melguizo, VP of Power Transmission, and Eduardo Larrave, VP of Road Concessions. I am Diana Cardona from the team of investor relations. Let's look at the next slide, please, to leave the floor to Juan Emilio, who will provide you the highlights of this quarter. The floor is yours.
Let me repeat, I had my mic off. Thank you, Diana. As always, what a pleasure to be with all of you, and thank you for joining us again. To begin, let's move on to the next slide, please, Mateo. I would like to take several minutes to frame the achievements of this quarter within the dimensions of our 2030 ISA strategy, which is based on the generation of sustainable value. On the very first of the three dimensions, which is generating value for shareholders, we set out ambitious financial challenges by 2030.
In this sense, today, we still honor this commitment with up-growing financial results, even in a setting in which we have a deceleration of the scalers of our revenue, and also with a sound financial structure, which allows us to keep growing and making good business opportunities, which, as we will see, have reached $21 billion for the next 12 months.
In this same dimension, we also highlight the two lots awarded to ISA CTEEP by the end of June. Projects which not only guarantee the continuity of our business, but also the profitability of a shareholder, while we expect EBITDA margins above 90% and real returns for shareholders of double digits. Within the second dimension, to create a positive social and environmental impact, we highlight the commissioning of projects, Cuestecitas-La Loma, Oliveros, and [Smart Balls] in Colombia, as well as the project Coya in Peru.
These projects not only generate additional revenue and growth, but also they enable and enhance the network to transport clean energies. In Brazil, our program, Conexión Jaguar, backed the first project of conservation that creates carbon credits in a zone which is a natural heritage for humanity. Lastly, the dimension to ensure corporate effectiveness through two projects bid in energy transmission, six expansions, and a private connection. We ensured the continuity of our business and contributed to energy transition.
These milestones are framed by the internal control model, SOX, or Sarbanes-Oxley Act, which was successfully implemented by ISA and its company this year. The adoption of SOX controls means more trust in the integrity of the information that we provide to different stakeholders, the proper monitoring, and the timely response of the risks of the business, as well as the instruments of corporate governance and the practices of transparency.
Mateo, let's move to the next slide, please, to look at these aspects closer. The core of our corporate strategy is sustainability. Our goal here is to create sustainable value, and our objective is to create a positive social and environmental impact where we operate. This is one of the three pillars that we have. Give you a second here. Consequently, we'd like to remind you that since 2017, ISA has developed a program, Conexión Jaguar, in which it contributes to the conservation of biodiversity by implementing projects in priority areas to protect habitat, especially that of jaguars, and to develop communities nearby.
The program supports several initiatives that add a potential reduction of more than 7 million tons of CO2, contributing to meet the goals of the Agreement of Paris , the biological biodiversity, and the sustainable development goals. As I said before, in the second quarter of the year, Conexión Jaguar backed the first project that generates credits of carbon in an area classified as a natural heritage area in Brazil.
Also, more than 231 credits of carbon was certified with high international standards, and these will be traded in the international voluntary market, with the potential of reducing about 430,000 tons of CO2 by 2030. This is the progress shown this quarter. This project reached the gold level, which is the highest category granted by Verra, which is an organization that establishes global standards for climate action for contributing exceptional benefits to biodiversity, to climate, and communities. Mateo, let's move on, please, to the next slide. Investments executed represent specific advances in all of our strategic dimensions.
During the second quarter of the year, we executed investments for COP 1.1 billion, a figure that really represents a specific contribution of ISA to the energy transitions, since most of the projects that we include here enabled the entry of renewable energies, non-conventional, to the interconnected systems and will contribute to enhance the grid, improving its reliability, its resilience, and its capacity. Looking at this by countries, CapEx was distributed as follows.
In Colombia, 30% of that CapEx was concentrated, and we advanced in building several projects, including connections of non-conventional renewable energy sources to the national grid, expansions and projects UPME earned in past bids, which were made, yes, in the past. Brazil also participated with 30%, since ISA CTEEP kept working with its reinforcements and improvements in building six energy transmission projects. In Chile, we continued executing projects in our two main businesses.
In power transmission, we worked in three expansions of the ISA Interchile network and in the projects Kimal-Lagunas, which is 100% of ISA, and the project Kimal-Lo Aguirre, which is 33% of ISA. When it comes in terms of roads in Chile, we advanced in the construction of Rutas del Loa, as well as the improvement and road safety works in Ruta de la Araucanía and Ruta de los Ríos. And these improvements and additional works will generate new revenue or term expansions of the concessions.
In Peru, we advanced in three expansions and reinforcements: two substations, one connection, and the projects Yana and Chincha-Nazca. With regards to the Yana project, I have to point out that we have detected geological risks at the [Yanao] substation, and that these will impact the commissioning of this project. Consequently, we are really analyzing different alternatives for the mitigation and the cost related, which will be timely informed or reported to the market.
If we analyze these figures considering our effective share in the energy transportation platforms in which we have other partners, the investment execution of ISA in the second quarter would rise to COP 830 billion and would be mainly focused in Colombia, 40%, followed by Chile, 33%, and Brazil, 17%, and ending with Peru, with 10%.
These minor participations in Brazil and Peru, it is because we have major partners there, and that is why the total figure there is not as large. We will continue working, building 36 projects through ISA and the companies that we control. These projects will represent more than 3,400 km of transmission lines and 136 km of roads. Once in commission, these will generate new revenue for ISA above COP 1 billion.
In addition, Conexión, a company that is set in Chile, in which ISA shares 33% of its capital, is advancing in its environmental licensing and engineering phases of the Kimal-Lo Aguirre project. This project is the first in Chile with the HVDC type of technology. It is called the high voltage direct current, and its commissioning will enhance the decarbonization of the energy matrix in this country, transporting clean energy of non-conventional sources of renewable energy from the north of Chile.
The referential CapEx of this project is $2 billion, and the annual revenue that it will receive when it enters commercially in operation is $130 million of 2023, of which ISA will consolidate its 33% share through the equity method. Mateo, let us move on, please, to the next slide. During the second quarter, we ended the construction of projects that will enable a cleaner energy matrix in the region in Colombia. At the end of June, we had the commercial commissioning of the Sabanalarga-Bolívar project, one of the bids of UPME 2017, a project that provides a stronger power transmission system in the Caribbean region, decreasing the restrictions, improving the continuity and the demand of the service in the departments of Bolívar and Atlántico in Colombia.
Also in Colombia, we began the commercial operation of the smart bulbs devices at the substation Santa Marta, which, as we mentioned in other times, increased the capacity of the system, favoring its reliability and renewable energy connections to the system. Meanwhile, in Peru, a very important milestone took place. We began the experimental operation of Project Coya in June, which was previously required to authorize the commercial operation that was given last week.
Let us remember that this project leads to connect clean energies from La Sierra to Lima, improving the capacity and reliability of the system in that country. Lastly, in Brazil, we have the commercial operation of 14 reinforcements and improvements of the ISA CTEEP network. All of the above, really, all of these projects add up to 450 km of circuits to the transmission network and generate annual revenue of over COP 130 billion.
Next slide, please, Mateo. To develop our growth strategy, we ended the second quarter with big highlights. ISA CTEEP won or was awarded two lots in the first energy transmission public bid made this year by ANEEL in Brazil. With these new projects, ISA continues consolidating its share in the electric market of Brazil, which is the biggest in Latin America, creating progress and development for the population of that country.
These projects have an estimated investment by ANEEL of over BRL 2,400 million , which is about COP 2.1 billion, and an annual revenue of BRL 226 million , which is about COP 200,000 million. Lot seven is of great importance for energy transition, since through its more than 1,000 km of line, it will transport energy of solar generation sources over the metropolitan region of Rio de Janeiro, relieving loads on the Governador Valadares substation.
In addition, it is the entrance of ISA CTEEP to Rio de Janeiro, where it was not present yet. Its maximum construction term defined by ANEEL is 66 months, and the second lot that we won, number nine, includes the works in the substation Água Vermelha, which will enable the connection of new projects of photovoltaic generation in northeast of São Paulo and in the Triângulo Mineiro. Its construction term determined by ANEEL is of 36 months.
Financing these projects will be made directly by ISA CTEEP with own resources and debt in Brazil. EBITDA margins are expected above 90%, thanks to the use of synergies with our existing assets. Mateo, let us move on to the next slide, please. In addition to the lots of Brazil during the second quarter, ISA added to its portfolio other projects that are not subject to bids that represent major steps in our strategy to create sustainable value. Firstly, two agreements were signed between the Ministry of Public Works of Chile and the concessions Ruta de la Araucanía and Ruta de los Ríos, with an estimated investment of UF 1.5 million , which is about COP 285,000 million.
These agreements include the construction of bridges and other improvements that will expand the term of the concessions for eight months for Ruta de la Araucanía and nine months for Ruta de los Ríos. Going back to the energy transmission business, ISA was awarded six expansions in Brazil and a private connection in Colombia, which in total will add a CapEx of about COP 84,000 million. The materialization of these investment opportunities is something that we really feel proud about.
With this, our growth strategy, which is profitable and disciplined, is nonstop. Next, we will give you an update of the portfolio of opportunities of investments in the region. Mateo, please, let us move on to the next slide. In the following 12 months, organic investment opportunities in the region rise to $21 billion. 74% of this correspond to energy transmission and 26% to roads. Looking at this per countries, in Colombia, we expect bids by the UPME, which exceed $2 billion, and also bids for roads for $1.7 billion. In Brazil, there will be bids made by ANEEL amounting to $11 billion.
In ISA, we will selectively analyze the opportunities we see in Brazil to determine the lots that have more synergies with our portfolio, strategy, and investment goals. In Chile, we identified opportunities in the energy business for $400 million in transmission line bids, substations, and in a project of battery storage, which is large scale. Also in Chile, for the road business, we expect to participate in bids of existing routes with an estimated CapEx of over $3 billion.
In Peru, we have identified opportunities and bids in energy transmission for $1 billion. Lastly, in Panama, we have opportunities that exceed $1 billion in the business of energy transmission and roads. We highlight in these opportunities the fourth line in the transmission business and the Carretera Panamericana Este project, or CPE. This road is part of the strategic plan of the government of Panama.
The Panamericana Road entirely, which includes the CPE and also the west, CPW, has more than 750 km long between Costa Rica and Colombia. The first project that was bidded is the section east, which joins Panama City with the Darién province, which is close to Colombia. ISA Intervial presented an offer for this project in July, and the opening of envelopes should take place in the third quarter of this year. If successful, this investment would positively contribute to the growth of the business and to the goals of ISA's 2030 strategy. Now let's listen to Daniel Isaza, who will talk about the financial results of the quarter. Mateo, let's move to the next slide, please, so Daniel can provide his presentation.
Thank you, Juan Emilio, and good morning to all of you. It's a pleasure to be with our investors and with the market today to show you the financial results of the second quarter of 2023. Let's look at the next slide, please. On this slide, you can see the revenue. On the very top part of the slide, you can see the performance of the second quarter of this year that we are reporting now, compared with the second quarter of 2022. At the bottom, you see the accumulated results, the first six months of this year, compared with the first six months of 2022.
The first that we'd like to show you is that in the quarter, we have an increase of total revenue by 9%, which surpassed COP 3.5 billion compared to the COP 3.2 billion displayed in the second quarter of 2022. So there's a growth in every business. In energy, the business reached a 3% growth compared to the second semester of 2022. This is due to several things. First, we have our value promise, new revenue with the commissioning of projects in all the geographies.
In addition, we have increases because of the contractual climbers, which have to do with the inflation changes of price levels, which in the second quarter of the year grew at rates lower than those observed in past quarters. It's because of the financial asset logic, which is how we see the accounting in Brazil. On the financial statements, when you compare them, it creates a lower revenue than what we saw in 2022. That has an influence so that our transmission energy is lower. Also, we have the effect of the conversion.
Remember, in the income statement, the results in currencies that are not pesos are given in an average rate. In the semester, in the quarter of 2023 compared to those of 2022, there's a devaluation. So the revenue in other currencies are higher than those in pesos. In Chile, we see growth rates that are high, 39% in the quarter, almost 60% for the semester. This is related to what we've been reporting to the market since the third quarter of 2022, with the change of how we account the financial assets and also the road concessions also in Chile, which are accounted for as financial assets.
We turn them into UF to better reflect the changes there are in the income statement, especially in the debt, which is in UF, and also hired in UF, which are the FOMENT units in Chile. Lastly, with regards to this slide, here you can see the total revenue of the semester is COP 7.5 billion, and the growth compared to the first half of last year is 24%. On this slide, there are two interesting ways to think about ISA's revenue. Of course, those COP 7.5 billion that we have in the first semester of the year. On the left-hand side, what you see is the composition of that revenue per currency.
ISA is a company that's proudly Colombian, that began with a growth strategy and diversification in the region, and now is present in several countries and in several businesses. So it's exposed to different currency, and it's interesting to see that more than, let's say 26% of ISA's revenue is in dollars. It's mainly from Chile, from the business of energy transmission, from Peru, also from the energy transmission from Colombia with the UPME's, which also have revenue in dollars.
And it also has an exposure to the Chilean peso of almost 20%, which has a good performance compared to the stronger currencies, and 37% to the Brazilian real. So you can see here that we consolidate this 100%, despite our having a lower participation. The exposure to pesos is 17%. It's the lowest of the exposures that we have to the four currencies seen on this graph. On the right-hand side, you can also look at this revenue and the value promise, and it's the duration of the revenue, because most of our revenue are long-term. As typical, it is for infrastructure. You could say that 75% of this company are for more than 10 years.
And of that revenue, 25% is perpetual. In some of our concessions, there are revenues. And only 5% of our company's revenue consolidated have a duration of less than five years. So there's a good regional diversification. It's part of our promise value and long-term revenues that give us an outlook that's quite interesting for the company. On this slide, we really focus more on the EBITDA and the net income. During the quarter, the EBITDA reached almost COP 2.4 billion, up 7% compared to the same period in 2022.
And the net income of the quarter has grown 23%, almost 22% compared to the year before. We would explain these figures really because they're influenced because of the revenue, and when it comes to the accumulated, we see higher rates, 22% of the EBITDA, and we end with an EBITDA of COP 5.1 billion. And the net EBITDA grew 22% with closing with a net EBITDA of COP 1.5 billion. For context, the profit of the entire 2022 was COP 2.2 billion. On the bottom of the screen, you see the margins. Operating margin on the left, represented by the EBITDA margin.
And here you can see a reduction of 1 percentage point- 2 percentage points of the total margin EBITDA. And this has to do with operating and construction revenue and those of the controlled companies, and also without construction, excluding construction, you see 1 percentage point. In the next slide, we'll look at this even closer. Although operationally, there is a reduction of our profit margins, net-wise, if you look at the proportion between the net margin and revenue, you do see an increase.
In the first six months of 2022, we had 18% of a net margin, and this semester in 2023, it is 20%. What is happening here? This is mainly because of financial expenses. Those of ISA not only have the payment of interest, but also the adjustments for the conversion or difference of exchange. As a proportion of the revenue, the financial expenses of the first semester of this year have dropped compared to the revenue. In the first semester of 2022, it was 22% of revenue, and instead this year, it is 17%, 5 percentage points less, and that is why we have a recovery of the points lost in the EBITDA.
There is also recovery with the financial expenses and the exchange differences that we will also look at closer ahead and the effect this has. It is also very relevant to look at the slide on the bottom right because this has to do with the profit of the equity. It was 15%, and we are talking the ROAAE. If you compare this with recent figures, it is the same figure that we reported in the first quarter of 2023, and it is above that of December 2022, which was 14%, and the first semester of 2022, which was 12%. We keep our profitability in the first semester, and we are with levels above those of 2022.
Next slide, please. On this slide, we really designed it to discuss with you the variation seen with our EBITDA. I think it is didactical to show you the elements that can vary an EBITDA, and we have to think about three. One, is that there are changes in the composition of our income statement. Remember, in ISA, we have two types of operating revenue. One is the operating revenue, which has to do with the capital and our concessions, and the revenue from construction. You can see in the platforms in which you account concessions as a financial asset.
When the CapEx executed is also registered as an additional revenue, we have those two types of revenue. The operating revenue is higher than that of construction, because the operating revenue always includes the capital invested, while those of construction have a lower margin because it is more theoretical and it is assigned above the CapEx invested according to the IFRS standards. While there are more revenue for operations, the EBITDA increase, or if there is more for construction, the EBITDA drops. The third is the ratio of both revenue and the variation in the profitability it has.
What we see here in the first semester of 2022 and 2023, there is a reduction in the operating margin from 70%- 75%, and this has an impact on the margin of 1.1%. The margin of the construction business increased, and that improves the margin in 1.6%. The mix of both revenue, we have more construction this semester because we are developing more projects and infrastructure compared to the first half of last year, and this shows a variation. What I would like to zoom in on this slide, is that we are aware and we closely monitor our operating profit.
Something happens there that is particular to the structure of our contracts that have indexes, that have a lag when it comes to the inflations that we have observed. The costs of these companies typically are indexed to the inflations seen the year before. We see an increase of revenue through the climbers, which is lower to the ones we see in costs, which are mostly indexed to the inflation of 2022, which in the entire region were much higher than now. Next slide, please. Here, now, we look at the balance, and this slide really zooms in on the debt. It's interesting to see what's happening here.
The company has deleveraged significantly, and this can be seen with the indicator we see on the top right, which is gross debt over EBITDA, which had a level of 4.2x at the end of 2022. Today, it's at 3.5x . There are two things happening here. The first I explained, the increased EBITDA, not only because we provided the value promise, but also because of the conversion effect. The average rates of this semester compared to those of last year, there was a devaluation of the peso.
The average rate this year is higher than the other currencies, so the EBITDA is higher there. When it comes to the debt, the rates that convert everything to peso turn into the exchange rates at the end of the period. The peso at the end of the period had a relevant revaluation compared to the other currencies in which we have debt. So the EBITDA is higher because of the average exchange rate, and it's smaller because of the conversion rate. On the left, you can see how the total debt balance has changed.
In December 2022, it's COP 34 billion, and now in June 2023, it's at COP 32.3 billion. So the bar on the left. The left is the conversion effect. Here you can see the debts that we had when the peso was devaluated. There is a lower value of the debt turned into Colombian pesos. The variations of the debts in countries are significantly lower than this, but in the net, we have an increase of the debt balance in the countries ranging between COP 700 billion and COP 800 billion from December 2022 and June 2023.
Another data that has to do with this leverage, and it's important for you to understand our growth and to be comfortable in the investment degree, we see the net debit over EBITDA, that in December 2022 was at 3.4x, and in June this year, it's at 2.9x. On the very bottom of the screen, you can look at the debt composition. These are also in our income statement. On the left-hand side, you can see that ISA's debt is more long-term, which is normal in a company that, like we saw in the previous slides, and almost half of the debt is at fixed rate.
So we're not suffering really with interest rates increases that we've seen recently. Those that are in variable rates have a natural coverage with the scalers of our revenue. Most are rates that really depend on the inflation, and the proxies of those inflations are indexed in our revenue. We really have an expansion or increase of our net profitability, because the fixed rates do not change and are not affected, and those that are variable, we are protected because we have the index of the debt that are variable and the scalers of our revenue.
Per type of instrument, 83% of ISA's debt is hired with capital markets, and that corresponds really to the long-term profiles we have. The debt that we have, the capital market that you can see on the bottom right-hand side, 43% is with green bonds, which is very interesting with our promise for sustainability. Next slide, please, Mateo. On this slide, now to end the financial results section, we zoomed in this quarter on investments. Here, although the bars have texts that are quite small, I would like to explain to you what this top left-hand side graph is all about.
We have been reporting to the market historically, ISA's CapEx projection. It is important to understand financially this business and the valuations, and price estimates, and to take a look at ISA's value. Our current estimate at June 2023 of the CapEx that we will be investing by 2023 ascends to COP 25 trillion, and this is close to 12% more than we have reported in the first quarter. It has got the variations because we have been awarded different projects. This adds to the different revenues that we have, and also because of variations of the CapEx figures because of the conversion markets and others.
Within those COP 25 trillion, there are two types of investments. The first, and these are the first four bars that you can see, is what we call the backlog. What does it mean? These are commitments acquired for investments, meaning these are the bids that we are awarded with new contracts of our concessions, complementary agreements that are already committed to the state. There is no commercial risk, but of course, there is a risk for execution and time.
All of these contracts that add up to COP 13.8 billion have revenue related. Once in operation, after the construction phases, we will see revenue generated. This is a driver of growth for ISA's promised value. The next four bars are investments that are committed in CTEEP, in reinforcements and improvements to the existing basic grid in Brazil. These investments also have revenue that is assured once they are in operation. The third graph under backlog, have to do with equity contributions of Kimal-Lo Aguirre.
Since we did not consolidate this in the balance, and these investment figures have to do with the IFRS consolidated standards, here we see the capital contributions that we have committed to make for the connection, which we have a 33% share, and this will be developed by this CapEx, which is about COP 2 billion, and will be executed by all three partners, and with the project finance debt that will be hired ahead to carry out this project. These three bars are the backlog, which for ISA means COP 18.4 billion.
Now, when it comes to reports to the market, the projection of other investments that we estimate for the period by 2030, without considering other bids that we have. When it comes to the CTEEP, in which we are trying to generate revenue, here you can see that these are part of the best projects that we have by the end of 2030 with reinforcements, and the next number is 1.3, and it has to do with our maintenance projects, especially in Colombia, in which the regulation does compensate the infrastructure as if it was new.
So it is not that we have additional revenue, but the total revenue do compensate these projects of maintenance that we have to make of the networks. Then we see the COP 0.6 billion in regulated XM projections. Here I would like to stop for a minute because these are projections that XM request an authorization from the CREG for the system. Only after the approval given by the CREG, we execute them, and so those investments are charged to the market.
So that COP 0.6 billion of investments is invoiced by XM. So really the cash here is zero. It does not affect this. It is equivalent to the investment. There are other related investments for the maintenance of our assets and in IT. So these two groups of investments backlog, COP 18.4, other investments projections of COP 25.1, leads us to believe that as of August 1st, as of today until 2030, the execution of this money will be made at the pace of what we see on the top right-hand side.
The last comment about this slide, 88% of our investments projected by 2030 are for energy, 7% in roads, and 5% in telecommunications. On the bottom right-hand side, the graph shows you composition by country. As here you can see Brazil is 54%. It has got the CTEEP, followed by Colombia, 23%. With this, I give Juan Emilio the floor, and thank you for your attention.
Daniel, thank you. I would like to close by giving you the following messages that summarize this talk. Firstly, the projects that we were awarded in the first quarter show that we are still competitive, maintaining the requirements for the profitability that we demand from our new businesses, because we take very seriously our commitment to our shareholders to create sustainable value.
Secondly, the projects that were commissioned and those that are still under construction are specific steps towards an inclusive and sustainable energy transition, which in turn will help us tangibly advance towards our three strategic pillars for sustainable value. First, to generate a positive social and environmental impact. Second, to add value for the shareholder. Third, to maintain the corporate effectiveness of ISA and its companies.
A third component of the summary is that we have ambitious growth outlooks backed by a portfolio of opportunities of $21 billion in the following 12 months, and that we have the financial capability to continue expanding ISA's print in the region and provide our value proposition. Next slide, please, to begin the Q&A session. Diana, thank you, and thank you all for joining us.
Okay. Thank you, Juan Emilio. Thank you, Daniel. Let us begin the Q&A session. Here I have a couple of questions made by Florencia. She wants to know if we could give her an update of the Kimal-Lo Aguirre project, and if we see more delays in the approvals of several of the countries where we have projects underway.
Gabriel, please.
Thank you, Juan Emilio. Good morning to everyone that is joining us in this meeting. When it comes to the Kimal-Lo Aguirre, it is advancing according to the timetable. Right now, we are building ties with the communities, detailed engineering, and we are looking at the environmental impact studies, which will be presented in next months. In addition, there is an advancements to finance the development of the first phases of the project. One, it is called the Green Label, which is given to sustainable projects with high international standards. That is in term of the Kimal-Lo Aguirre.
When it comes to possible delays due to approvals of projects in Latin America, really, this is a constant that we see in Latin America. The main cause of delays of projects globally really is the environmental license. And it happens that most projects are delayed because of this, but also the authorities recognize these delays as additional times given to execute the projects. As we have seen this, and we do hope that this will happen, anyway, we will continue working to have less impacts when it comes to environmental licenses. This answers both questions. Thank you.
Sure, Gabriel, thank you. Diana, next question, please.
Yes. It also comes from Florencia, and she asks why there is an increase of the short-term debt, and how do we expect to refinance it.
Daniel, would you mind answer this question, please?
Yes. Thank you for the question. Indeed, there is an increase in the short-term debt. In the total debt, I showed you that there is a lower debt and an indicator of a leverage that dropped from 4.2x in December 2022 to a lower figure in June 2023. What happens with the composition of the debt is that, especially in CTEEP in the first semester of 2024, which as of now appear in the short-term debt. When it comes to these debts, mainly we have debentures, which are bonds in Brazil for the development of infrastructure. And financing those debts, surely, again, will go through capital markets on a long-term basis that meets the profiles of the revenue that we have there. Thank you.
Thank you, Daniel. Diana, next question, please.
The next question is made by a lot of people, is if we can give them an update on the business of energy transmission.
Sure. Thank you for the question. Daniel? No, Gabriel, could you please answer this?
Thank you, Juan Emilio, and all those that asked this question. When it comes to regulatory change, we have to clarify several things. First, the regulator has made three issuance. One in 2016 establishes a change to use a reposition of depreciated cost, and also to review different parameters, which are part of the methodology to determine the revenue. This was in the last project issued since 2016. In parallel, CREG has issued two resolutions, one and 73 in 2021, that establishes the methodology to estimate the cost for energy transmission.
This cost has not been determined yet, and then we would have this value when we have the final remuneration of the energy, which we mentioned before. What's next? According to discussions held with the regulator, we expect that in the second half of 2023, we will have the fourth resolution issued and the final methodology. The application of all this can begin in 2025, depending on the times required to provide the information by companies and the regulations per se. That's it, Juan Emilio. Thank you.
Thank you, Gabriel. Next question please, Diana.
Okay, here we have two questions for the roads business that I think we can answer them. One, Lucas is asking, did you make an agreement with Construcciones El Cóndor to participate in the road business, right? Why has nothing happened with this agreement? Second question, also, if the Panamericana road that we introduced is solely for maintenance, or does it also include construction?
Thank you, Diana. Eduardo, could you please answer this question made by Lucas? Both questions, please.
Okay. Good morning. Yes. With regard to the first question with El Cóndor, this alliance was made several years ago to carry out projects together in Colombia and Peru. We've studied four projects, and we've offered or bid for two. Today, what we see is that after our attempts, we do not see in the immediate future a project in which we have an active alliance. So what we've decided mutually by both parties is to end our alliance, and now we are looking at the administrative part so we can do this the best way possible.
With regards to the second question, the project in Panama is 246 km between Panama City and Yaviza in the extreme east of Panama. The investments that should be made are different types. There are sectors in which we have to rebuild and build infrastructure and revamping, and others for the traditional maintenance. So in short, it has construction in different sectors, especially those close to Panama City. So it's a mix of both. Thank you.
Eduardo, thank you. Diana, next questions?
Yes, we have from Andrés Duarte from Corficolombiana. He asks, "With regards to these results of the quarter and with the contractual scalers, what do you expect for the rest of the year?"
Perfect. Thank you for the question. Daniel will provide the answer. Thank you.
Yes, thank you. Indeed, although we see a ralentization of these climbers in the first quarter of the year, we still displayed strong growth, which ralentized in the second quarter. By the end of the year, what we see in our projections, with six real months and the best estimate is for the end of the year, we will be within the range that we reported to the market and to the assembly, which is an increase of 10%-15% compared to the profit of 2022, which was of COP 2.2 billion.
Thank you, Daniel. Diana, are there any more questions?
Yes, we have a last question from Stephanie from Corficolombiana is, "How do you expect to see a convergence between the IPP and the IPC, and how long do you think that these two indexes will diverge?"
Thank you, Stephanie, for your question. Now, Gabriel, please provide the answer.
Thank you, Juan Emilio, for the question. Well, the truth, this topic is being reviewed by the regulator with DANE and Banco de la República to determine the best indicator possible for the rates. This is something that we do not control at all. We support this through the guilds, especially through Andesco, but this is something that the CREG is working directly with DANE and Banco de la República. We are just providing support to Andesco. That is my answer, Juan Emilio. Thank you.
No, thank you, Gabriel. Diana, no more questions then?
No, Juan Emilio, no more questions. We can end the event here.
Okay, to our analyst investors and those interested in ISA's performance and future, to all of you, thank you so much for your interest and for joining us today. To all of our team of investor relations, communications, and vice presidents, thank you for attending this. This is an eternal note. This is the last time that Diana will be with us as a moderator of these webcasts because she is moving to another area of ISA in the Vice Presidency of Strategy. Diana, thank you so much for your support, your assistance.
Thank you so much. Juan Emilio, thank you for your kind words. Thank you to the market for listening to us for all of these quarters. Really, it has been great working with all of you, and I have learned a lot from all of you. As Juan Emilio said, fortunately, I am staying at ISA. I will be here for whatever you may need in the future, and I will be here in Medellín. Thank you all, and have a nice day.