CONSORCIO TRANSMANTARO S.A. FINANCIAL STATEMENTS [Individual] II QUARTER as of June 30, 2014 (dollars in thousands) NOTE June 30,2014 June 30,2013

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1 Statement of Financial Position CONSORCIO TRANSMANTARO S.A. FINANCIAL STATEMENTS [Individual] II QUARTER as of June 30, 2014 (dollars in thousands) ACCOUNT NOTE June 30,2014 June 30,2013 Assets 0 Current Assets 0 Cash and Cash equivalent 6 Other financial assets Trade accounts receivable (net) 7 Other accounts receivable (net) 8 Accounts receivable from related parties 18 Advance payments Inventory Biological assets Income tax assets Other non financial assets Non current assets or Group of assets for Provision Classified as Held for Sale Non currente assets or Group of Assets for Provision Classified as Held to Distribute to Owners Non current Assets or Group of Assets for Provision Classified as Held for Sale or Held to Distribute to Owners Total Current Assets Non current Assets Other Financial Assets Investment in subsidiaries, joint and associated businesses Trade accounts receivable 7 Other accounts receivables 8 Accounts receivable from related parties Advance payments Biological assets Investment properties Properties, Plant and equipment (net) Intangible assets different from the capital gain 9 Deferred taxes assets Capital gain Other non financial assets Total Non current Assets TOTAL ASSETS Liability and Equity Current Liabilities Other Financial liabilities 11 Payable Trade accounts Other Payable accounts Payable accounts to other related parties 18 Deferred Income Provision for employee's benefits Other provisions 10 Profit tax liabilities Other non financial liabilities ,403 15,260 11,837 12,014 25,013 13, ,475 1, ,035 2,999 1, ,216 46, ,969 22, , ,301 2,803 2, , , , , , , ,050 3,667 3,719 3,146 3,485 14,729 10, ,088 1,088 Liabilities included in Group of Assets for Provision Classified as Held for Sale Current Liabilities 22,630 22,095

2 Total non currente Liabilities Other Financial Liabilities 11 Trade accounts payable and other accounts payable Trade accounts payable Other accounts payable Accounts payable to related parties Deferred income Provision for employee's benefits Other provisions 10 Liabilities for deferred taxes 17 Other non financial liabilities 0 Total non current liabilities 0 Total Liabilities 0 Equity 0 Issued capital Premium issuance 0 Investment shares 0 Own shares in portfolio 0 Other capital reserves 0 Earnings accrued 0 Other equity reserves 0 Total Equity 0 TOTAL LIABILITY AND EQUITY 0 543, ,163 6,259 4,802 53,536 47, , , , , , ,409 13,410 11,375 96,611 85, , , , ,065

3 Profit and loss statement CONSORCIO TRANSMANTARO S.A. FINANCIAL STATEMENTS Individual II QUARTER as of June 30, 2014 (Dollars in thousands) ACCOUNT NOTE From April 1 to June 30, 2014 Revenues from ordinary activities Cost of sales 13 Gross Gain (loss) Sales and Distribution Expenses Administrative Expenses 14 Gain (loss) on derecognized financial Other Operating Income 18 Otros Gastos Operativos 18 Other gains (losses) Income (loss) from operating activities Financial Income 15 Financial expenses 16 Net exchange differences Other income (loss) of subsidiaries, joint Gains (losses) arising from the difference between Previous Book Value and Fair Difference between the carrying amount of the assets distributed and the carrying Income before profit tax Expenses for profit tax 17 Gain (Loss) from Continuing Operations Income (loss) from discontinued operations, net of income tax Profit (Loss) of the Fiscal year 0 From April 1 to June 30, 2013 Accumulated from January 1 to June 30, 2014 Accumulated from January 1 to June 30, ,493 32,683 45,275 40,408-10,863-22,557-21,328-19,443 12,630 10,126 23,947 20, , ,769 20,902-21, ,769-20,902 12,797 9,665 23,572 20,436 3,137 1,800 5,500 3,186-5,397-10,382-11,311-17, ,111 1,200-6,438 10,375-4,028 18, ,472 1,205-6, ,903-2,823 12, ,903-2,823 12,

4 Cash Flow Statement- CONSORCIO TRANSMANTARO S.A. FINANCIAL STATEMENTS [All] II QUARTER As of June 30, 2014 (Dollars in thousands) ACCOUNT NOTE As of January 1 to June 30, 2014 As of January 1 to June 30, 2013 Cash flow from operating activities Operating activities cash collection types Sale of goods and provision of services 0 44,229 35,226 Royalties, fees, commissions and other revenue 0 Contracts held for purposes of brokerage or trading 0 Leasing and later sale of these assets 0 Other cash collections related to operating activities 0 6,058 7,720 Cash payment types for operating activities 0 Goods and services providers 0-13,105-18,323 Contracts held for purposes of brokerage or trading 0 Payments to and on behalf of employees 0 Preparation and acquisition of assets for leasing and others held for sale 0 Other cash payments related to operating activities Interest received (not included in the Investment Activity) 0 5,392 3,333 Interest paid (not included in the financing activity) 0-11,914-11,316 Dividends received (not included in the Investment Activity) 0 Dividends received (not included in the Financial Activity) 0 Income taxes (paid) refunded 0-2,351-2,231 Other cash collections (payments) 0 Cash Flows and Cash Equivalent From (Used in) Operating Activities 0 28,002 13,507 Cash flow from investment activities 0 Cash collection types for investment activity 0 Repayment of Loans Advances and Loans Granted to Third Parties 0 Loss control of subsidiaries or other businesses 0 Loan repayments received from related parties 0 Sale of Equity Financial Instruments or Other Entities Debt 0 Derivatives Contracts (futures, forwards, options) 0 Sale of shares in Joint Ventures, Net of expropriated Cash 0 Sale of Property, Plant and Equipment 0 Sale of intangible assets 0 Sale of Other Long-term Assets 0 Government Grants 0 Interest received 0 Dividends Received 0 Cash collection types for investment activities 0 Advances and loans granted to third parties 0 Get control of subsidiaries or other businesses 0 Loans granted to related parties 0 Purchase of Equity Financial Instruments or Other Entities Debt 0 Derivatives Contracts (futures, forwards, options) 0 Purchase of Subsidiaries, Net of Acquired Cash 0 Compra de Participaciones en Negocios Conjuntos, Neto del Efectivo Adquirido 0 Purchase of Property, Plant and Equipment 0-6 Purchase of Intangible Assets 0-48,187-23,081 Purchase of Other Long-term Assets 0 Income taxes (paid for) refunded 0 Other cash collections (payments) related to investment activity 0-1,916-2,931 Cash Flows and Cash Equivalent From (Used in) Investment Activities 0-50,109-26,012 Cash flows from financing activities 0 Cash collection types for financing activities 0 Obtaining loans 0 114, ,735 Loans from related parties 0 4,000 Changes in shares on subsidiaries ownership that do not result in loss of control 0 Issuance of shares 0 Issuance of other equity instruments 0 Government grants 0

5 Cash payment types for financial activities 0 Loan amortization or loan payment 0-76, ,226 Financial leasing liabilities 0 Loans from related parties 0-124,000 Changes in shares on subsidiaries ownership that do not result in loss of control 0 Repurchase or redemption of shares from the company (Shares in portfolio) 0 Acquisition of other shares in Equity 0 Interest paid 0 Dividends paid 0 Income taxes (paid) refunded 0 Other cash collections (payments) related to financing activity 0 Cash Flows and Cash Equivalent From (Used in) Financing Activities 0 38,250 27,509 Net Cash Increase (Decrease) and Cash Equivalent before variations in Foreign 0 16,143 15,004 Effects of variations in Foreign Exchange Rates on Cash and Cash Equivalents 0 Cash and Cash Equivalent at the beginning of fiscal year 6 15,260 7,362 Cash and Cash Equivalent at the End of the fiscal year 6 31,403 22,366

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8 CONSORCIO TRANSMANTARO S.A. NOTES TO THE FINANCIAL STATEMENTS As of June 30, 2014 (Expressed in US Dollars) 1. INCORPORATION,ECONOMIC ACTIVITY AND FINANCIAL STATEMENTS APPROVAL (a) Incorporation and economic activity Consorcio Transmantaro S.A. (hereinafter the Company ) was incorporated in January The Company is a subsidiary of Interconexión Eléctrica S.A. E.S.P. (company with legal address in Colombia). The Company legal address is Av. Juan de Arona 722, piso 6, San Isidro, Lima, Peru. The Company principal business activity is the electric power transmission produced by generating companies. Furthermore, the Company renders operating and maintenance services for transmission lines and sub-stations to private companies. The Company s electric energy transmission operations are developed in accordance with the Electrical Concession Law and its regulation, wich are regulated and supervised by the Supervising Organism of Investment in Energy and Mining (OSINERGMIN for its Spanish acronym). 2. CONCESSION CONTRACT OF ELECTRICAL TRANSMISSION SYSTEMS Mantaro-Socabaya concession On January 1998, the Peruvian government (represented by the Special Committee established by Supreme Resolution No PCM on December 30, 1996) approves to the Company the Mantaro-Socabaya electrical transmission system concession. As a result of the approval, the Company obtained the right to design, build and commercially develop the electrical transmission system, as well as its corresponding maintenance and repairing. The concession term is for thirty three years, starting on February By virtue of the aforementioned approval, the Company signed with the Peruvian government the Build, Own, Operate and Transfer contract (named BOOT contract) which establishes the rights and obligations of both parties, as well as the rules and procedures that are in force for the design, supply of goods and services, construction and commercial exploitation of the Mantaro-Socabaya electric transmission system, the rendering of service and transfer of all goods to the Peruvian Government as of the completion of the concession. The Mantaro-Socabaya transmission line started commercial operations on October 8, From that date, it has rendered a public service of electric power transmission and it is part of the National Interconnected Grid - SINAC. In reward of the service, the Company receives an income corresponding to the fee regime set forth in the concession agreement regulated by the Energy and Mining Superintendence Organism (OSINERGMIN). As payment for its electric power transmission service, the Company receives a fee corresponding to the total transmission cost, which corresponds to the annuity of the carried out investment, including operating and maintenance overheads as well as other outgoings. During the concession lifetime, the remuneration is adjusted annually in accordance with the Unites States of America Finished Goods Less Food and Energy index. The Peruvian Government, via the Ministry of Energy and Mines (MEM), guarantees that the Energy and Mining Superintendence Organism (OSINERGMIN) shall set forth the necessary tariff mechanisms and the corresponding values to insure that the total transmission retribution received by the Company shall be entirely recovered from their customers. Extension N 1 On June 2009, the Company and the Ministry of Energy and Mines signed an addendum to the Concession Contract detailing an extension to the Mantaro-Socabaya electric transmission line capacity amounting to 505 MV AR. The commissioning was in July As of June 30, 2014 investment of US$72,730,449 has been made.

9 Chilca- La Planicie- Zapallal concession The Company entered into a concession contract with the Peruvian government on September 8, The contract has been made under BOOT modality, expires after 30 years from the commissioning date. The commissioning was on June As of June 30, 2014 investment of US$140,402,997 has been made. Ica-Independencia concession On October 21, 2009, the Company entered into a concession contract with the Peruvian government to carry out the construction of the Reinforcement Sur Medio Transmission System: Independencia Ica Transmission Line 220 kilowatts (Kw). The commissioning was on June of As of June 30, 2014 investment of US$ 10,370,280 has been made Zapallal-Trujillo concession The Company entered into a concession contract with the Peruvian government on February 18, This contract has been made under BOOT modality, expires after 30 years from the commissioning date. The commissioning date of the project was on December As of June 30, 2014 investment of US$ 212,179,564 has been made. Talara-Piura Concession The Company entered into a concession contract with the Peruvian government on August 26, This contract expires after 30 years from the commissioning date. The commissioning of the project was on August As of June 30, 2014 investment of US$ 21,595,924 has been made. Pomacocha-Carhuamayo Concession The Company entered into a concession contract with the Peruvian government on July 22, This contract expires after 30 years from the commissioning date. The commissioning date was on September, As of June 30, 2014 investment of US$25,464,186 has been made. Trujillo- Chiclayo Concession The Company entered into a concession contract with the Peruvian government on September 27, This contract expires after 30 years from the commissioning date. As of June 30, 2014 investment of US$116,885,227 has been made. Machupicchu-Cotaruse Concession The Company entered into a concession contract with the Peruvian government on December 22, This contract expires after 30 years from the commissioning date which shall be effective in 24 months after the closure date of the concession process. The project was halted in 2012 due to the negative support by SERNANP (National Service of Protected Natural Areas by the State). On January 4, 2013 the project with the signing of the Addendum No. l was reactivated. The new commissioning date shall be January 4, As of June 30, 2014 investment of US$51,473,273 has been made. Mantaro-Montalvo Concession The Company entered into a concession contract with the Peruvian government on September 26, This contract expires after 30 years from the commissioning date which shall be effective in 38 months after the closure date of the concession process. As of June 30, 2014 investment of US$ 11,730,553 has been made. Private Contract - Compañía Eléctrica El Platanal S.A On September 2008, Red de Energía del Perú S.A. transferred to the Company the contract that had previously entered into with Compañía Eléctrica El Platanal S.A. (hereinafter CELEPSA). As a result, the Company was committed to construct the El Platanal Chilca transmission line as well as to provide an electric energy transmission service to this client. This contract is in force for a period of 20 years. The final investment in the transmission line was US$16, 606,850. The service became operational on August 2009.

10 Private Contract Minera Miski Mayo S.A. On March 2009 the Company entered into a concession contract with Miski Mayo mining company. Under the terms of the contract, the Company was committed to construct a transmission line and a Kv sub-station, and additionally provide an electric energy transmission service. This contract is in force for a period of 30 years. The final investment in the transmission line was of US$16,808,047. The transmission service provision started on March Private Contract - Duke Energy S.A. and Kallpa Generación S.A. On July 2009 the Company entered into two contracts one with Duke Energy S.A. and the other with Kallpa Generación S.A. Under the terms of the contracts, the Company was committed to construct the 220 Kv cell at the Chilca Nueva sub-station and the construction of the Kallpa III 220 Kv cell at the Chilca sub-station, respectively. The Company was also contracted to supply an electrical transmission service. The total value of each construction contract amounts to US$1,309,000 and US$1,392,210, respectively. Both contracts are in force for 20 years and both transmission services were provided on May Private Contract - Fenix Power Perú S.A. On August 2010 the Company entered into a Transmission Services Contract with Fenix Power Perú S.A. Under the terms of the contract, the Company was committed to construct a transmission line, a 220 Kv sub-station, and to provide an electrical energy transmission service. The total investment was US$15,805,860 and the contract is in force for a period of 20 years. The transmission service started to be provided on March, Private Contract - A TN2 S.A. On November 2012, the Company entered into a Contract for Transmission Services with ATN2 SA, under which it is committed to the construction, operation and maintenance of facilities for the provision of electricity transmission. Private Contract - Minera Suyamarca S.A.C. On November 2012, the Company entered into a contract for Electrical Energy Transmission Services with Minera Suyamarca S.A.C. Under the terms of the contract, the Company was committed to the construction, operation and maintenance of facilities to provide electric transmission service. Private Contract - Termochilca S.A.C. On December 2010, the Company entered into a contract for Electrical Energy Transmission Services with Termochilca S.A.C. Under the terms of the contract, the Company was committed to the construction and operation of facilities to provide electric transmission service. The total investment was US$9,117,138 and the contract term is of 20 years. The provision of the transmission service started on August Private Contract - Luz del Sur On October 2013, the Company entered into a Contract for Transmission Services with Luz del Sur S.A.A., under which it is committed to the construction, operation and maintenance of facilities for the provision of electricity transmission service. The investment cost has been budgeted at U.S. $ 2'283, 152 and the term of the contract is 30 years. 3. Machu Picchu Cotaruse Trust Project Background Under the Concession Contract of Guaranteed Transmission System Project Línea de Transmisión Machupicchu Abancay Cotaruse in 220kV (Concession Contract ), the Ministry of Energy and Mines, representing the Peruvian Government and in its capacity as Grantor, awarded the right to design, finance, supply the goods and services required to construct, operate and maintain the line and provide the Service to the Company, acting as

11 Concessionaire, all in accordance with the Contract and Applicable Laws. In accordance with the provisions of the Concession Contract, the Company as Concessionaire, in order to meet the goal therein, was empowered to obtain own financing or from third parties that considers fits its best interests as well as provide guarantees on Concession goods, the Concession of Guaranteed Transmission System, transmission flows or any other asset or right that corresponds to the Concessionaire, in order to secure such financing. By means of the official document Oficio N /MEM-VME dated February 25, 2013, the Deputy Minister of Energy of the Ministry of Energy and Mines, on behalf of the Grantor, expressed his consent that the funding involves the transfer in trust domain of the Concession to a trust so that the Company may transfer or assign its rights or obligations, assign its contractual position or novate any or all of its obligations under the Concession Contract, without prejudice to the obligation of the Concessionaire to self-fulfill with each and every one of the provisions of the Contract and applicable laws Management Trust Contract (a) Description of Operations On October 18, 2013, pursuant to the Trust Management Contract (hereinafter the "Contract") entered into by the Company (hereinafter the "Settlor") and La Fiduciaria S.A (hereinafter the "Trustee"), the trust equity was established. The Trust Equity is intended to sign the loan agreement and manage the credited funds or to be credited in the collecting bank, and exercise and manage the rights and obligations of the concession contract, in accordance with the terms of the Management Trust Agreement. The Trust Equity started its operational phase on October 18, 2013 by loan agreement between the lender and the Trust Equity, which conferred a medium-term financing up to the amount of U.S. $ 78 million, which shall have a maturity of six calendar years counted from the closing date. As of June 30, 2014 no disbursements have been made. Payment of principal was defined by a Balloon installment to be paid in the last installment, and the interests shall be paid semiannually. (b) Trust Property The trust equity comprises: (i) contributions, (ii) the outstanding contributions, (iii) property of the Concession, (iv) concessions, (v) the rights and obligations of the concession contract SGT; (vi) expenditure, (vii) the collection rights, (viii) all-cash flows, and (ix) once the transfer agreements of contract position have been signed, ancillary contracts shall follow. A summary of the main assets and liabilities statement of financial position of the Company related to the operation of the trust equity as of June 30, 2013 and December 31,2013 is presented below

12 Assets accounts related to trust fund operations Cash and Cash equivalent 397,195 33,114 Other accounts receivable 3,506,161 3,061,622 Other assets 191, ,494 Intangible assets 51,181,707 27,311,416 Total asset 55,276,384 30,760,646 Liability account related to trust fund operations Accounts payable 103, ,917 Accounts payable to related parties 8,557,403 4,166,427 Total Liability 8,661,246 4,393,344 Net asset related to trust fund operations 46,615,138 26,367,302 As of June 30, 2014 disbursements for administrative costs was US$ 15,163. A summary of the major components of the statement of cash flows of the Company related to the operations of the trust assets during 2014 is presented below: OPERATION ACTIVITIES Payment to suppliers of goods and services 3,997, ,312 Net cash provided by operation activities 3,997, ,312 INVESTMENT ACTIVITIES Additions of intangible assets (23,870,291) (27,311,416) Net cash used in investment activities (23,870,291) (27,311,416) FINANCING ACTIVITIES Trust contributions 20,236,800 26,393,218 Net cash provided by financing activities 20,236,800 26,393,218 NET CASH INCREASED 364,081 33,114 CASH AT THE BEGINNING OF THE YEAR 33,114 - CASH AS OF JUNE 30, ,195 33, SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used by the Company for the preparation and presentation of financial statements are as follows: (a) Compliance Statement and basis for the preparation and presentation

13 The attached financial statements were prepared in accordance with International Financial Reporting Standards (hereinafter IFRS) as issued by the International Accounting Standards Board (hereinafter IASB), in force as of December 31, 2013 which include the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and the interpretations issued by the Standing Interpretations Committee of the International Financial Reporting Standards (IFRIC) or the former Standing Interpretations Committee (SIC ) - adopted by the IASB. For these purposes the historical cost basis was used except for certain items of financial instruments measured at fair value at the end of each period, as explained later in this section of relevant accounting policies. Historical cost is generally based on the fair value of the consideration given in the exchange of assets. The fair value is the price that would be received when selling an asset or the price paid to transfer a liability in an organized transaction between market participants at a measurement date, regardless of whether that price is directly observable or estimable by another valuation technique. In estimating the fair value of an asset or liability, the Company considers the characteristics of the said asset or liability if market participants would consider the time to place a price on the measurement date. The fair value for purposes of measurement and / or disclosure in these financial statements is determined on that basis. Additionally, for financial reporting purposes, fair value measurements are categorized into three levels: 1, 2 or 3; depending on the extent to which the information for measuring fair value are observable, and the significance of these to the fair value measurement in its entirety, as follows: Level 1: The information is quoted prices (unadjusted) in active markets for identical assets or liabilities to which the Company can be accessed at the measurement date. Level 2: Information is different than quoted prices included in Level 1, which are observable for the asset or liability, either directly or indirectly. Level 3: The information is not observable for the asset or liability. (b) Responsibility for the information and estimates The information contained in the financial statements is the responsibility of the Company management. To prepare them, some estimates have been used to quantify certain assets, liabilities, income, expenses and commitments recorded in the financial statements based on experience and other relevant factors. The final results could vary from these estimates. The estimates are reviewed on an ongoing basis. Changes to accounting estimates are recognized prospectively and accounted for the effects of changes in the related gain or loss for the year in which the relevant changes are made. The estimates and their sources of uncertainty considered most important to the preparation of the financial statements of the Company relate to: - Determination of the functional currency and record foreign currency transactions. - Lifetime of property and equipment and intangible assets. - Fair value, classification and risk of financial assets and liabilities. - Impairment of long-lived assets - Deferred income tax. - Estimated revenue for transmission delivered but not billed. - Provision for maintenance and replacements. - Probability of contingencies. ( c ) Functional and presentation currency The Company prepares and presents its financial statements in U.S. dollars, which is the functional currency. The functional currency is the currency of the primary economic environment in which an entity operates. ( d ) Financial Instruments

14 The financial instrument is any contract that gives rise simultaneously, a financial asset in one enterprise and a financial liability or equity instrument in another enterprise. Financial assets and liabilities are recognized when the Company becomes a party to the contractual agreements of the instrument. Financial assets and liabilities are initially recognized at fair value plus transaction costs directly attributable to the acquisition or issuance of the same, except for those at fair value through profit or loss, which are initially recognized at fair value and whose transaction costs directly attributable to their acquisition or issuance, are recognized immediately in profit or loss for the period. Financial assets Purchases or sales of financial assets are recognized and derecognition on accounts using the method of accounting from the date of hiring, which are recognized at that date : a) the asset to be received and the liability to pay and ( b) derecognition of the asset that is sold, recognition of any gain from the sale or other disposition, and the recognition of a receivable from the buyer. The financial assets held by the Company comprise loans and receivables. Accounts receivable are reported in trade accounts receivables and accounts receivables from related parties and loans are included in other receivables (current and non-current ) in the statement of financial position. Loans and receivables are non-derivative financial assets that entitle to fix or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months from the date of the statement of financial position. These are classified as non-current assets. These financial assets are initially recognized at fair value and subsequently measured at amortized cost less any allowance for impairment cost. Financial liabilities Financial liabilities and equity instruments are classified according to the content of the contractual arrangements and taking into account the economic content of the contract. An equity instrument is a contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The Company does not have financial liabilities at fair value through profit or loss or financial liabilities held for trading. Financial liabilities consist of accounts payable, accounts payable to related entities, financial obligations and other liabilities, which are valued after its initial recognition at amortized cost using the effective interest rate method, recognizing in the results the accrued interest during the relevant period. (e) Inventories Inventories are valued at cost or at net realizable value, whichever is lower. Cost is determined using the weighted average method. Allowance for impairment is made for those inventories that are in poor condition, charged to income of the fiscal year in which such impairment is identified. ( f) Intangible assets Concession Agreement with the Peruvian Government The Company has adopted IFRIC 12 - Concession Contracts to record concession contracts with the Peruvian Government (Note 2). For a concession contract to be within the scope of IFRIC 12, it must meet the following two criteria: - The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them and at what price; and - The grantor controls through ownership, beneficial entitlement or otherwise any residual interest in the infrastructure at the end of the term of the agreement.

15 The Company uses the model of intangible assets to record their concession contracts. The intangible asset represents the right granted by the Peruvian Government to charge the users for the transmission electricity service. The extensions to the infrastructure are recorded as additions to intangible asset because they are expected to generate future economic benefits for the Company. Replacements and significant maintenance that the Company must make to the infrastructure of power transmission system to maintain standards of quality and reliability of service required in the Concession Agreement, and does not generate future economic flows for the Company, and are accounted as expenses when incurred. An intangible asset arising from the Concession Contract is amortized using the straight-line method over the term of the contract. The amortization expense on intangible assets with finite useful lives is recognized in the statement of comprehensive income in the expense category that is consistent with the function of such intangible assets. Computer software Licenses for computer software acquired are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over 5 years. Intangible assets with finite useful lives are assessed to determine whether they had any value impairment whenever there is an indication that the intangible asset may have suffered such deterioration. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net income from the sale and the carrying amount of the asset and is recognized in the statement of comprehensive income when the asset is derecognized. (g) Machinery and equipment The machinery and equipment are stated at cost less depreciation and any recognized impairment loss of value. Initial disbursements, as well as those incurred subsequently related to goods whose cost can be measured reliably, and it is probable that the future economic benefits of them are recognized as fixed assets. Expenditures for maintenance and repairs are recognized in the period incurred. Gains or losses resulting from the sale or withdrawal of an item of property and equipment are determined as the difference between the proceeds of the sale and the book value of assets, which are recognized in profit or loss for the period when that sale was done. Depreciation is calculated based on the straight-line method over the estimated useful lives of different assets, as follows, assuming that the land on which the buildings stand and other structures have an indefinite useful life and therefore are not subject to depreciation. Years Improvements in leased facilities 10 Vehicles 5 Furniture and fixtures 10 Other equipment De 4 a 10 Estimates of useful lives, residual values and depreciation methods are reviewed at the end of each period to evaluate possible significant changes in prior expectations or the expected pattern of consumption of future economic benefits embodied in the asset, incorporating prospectively effects of any change in these estimates against the net profit or loss for the period in which they occur. (h) Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to be available for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are accounted for in the period incurred. Borrowing costs include interest and other costs that an entity incurs in connection with the signing of loan agreements. Capitalization of costs begins when the financial obligations to prepare the activities are well underway and are incurring expenses and loan costs. The capitalization of interests is performed until the assets are ready for their

16 intended use. If the resulting value of the asset exceeds its recoverable amount, an impairment loss is recorded. ( i) Impairment of long-lived assets The Company periodically reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation is identified, corporate assets are also distributed to individual cash -generating units or, alternatively, the smallest group of cash -generating units for which a consistent and reasonable basis distribution is identified. The recoverable amount is the higher of fair value less cost to sell and value in use. Value in use is determined based on estimated future cash flows discounted to their present value using a discount rate before tax that reflects current market assessments regarding the value of money in time and the specific risks of the asset. This evaluation requires the use of estimates and assumptions such as the volumes of projects, tendered investments, operating capital budgets, readjustment rate, established rates and operating costs. If it is estimated that the recoverable amount of an asset (or cash-generating unit ) is less than its carrying amount, the carrying amount of the asset ( cash-generating unit ) is reduced to its recoverable amount. An immediate impairment loss of value is recognized as an expense. An impairment value loss can be reversed later and recorded as revenue in the income for the period, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss has been recognized for the asset ( cash-generating unit ) in prior years. As of June 30, 2014, the Management of the Company believes that there is no evidence to indicate that the net book value of machinery and equipment and intangible assets cannot be recovered. (j) Leases Leases are classified as finance leases when the terms of the contract they transfer substantially all the risks and rewards incidental to ownership of the leased asset. All other leases are classified as operating leases. The Company as lessor Finance leases where the Company transfers substantially all the risks and benefits incidental to ownership of the leased asset, is recognized as account receivable under finance leases, either at the fair value of the leased asset ( expenditure incurred in the construction of the asset ) or by the current value of the minimum lease collection, whichever is less. Subsequently, at the date of the use of the asset the finance lease operation is recognized under the financing method as a receivable account recorded as account receivable of the capital quotas lease pending collection. Proceeds from finance leases are apportioned between finance income and the reduction of the receivable accounts under finance leases so as to determine a constant rate of interest on the remaining balance of the account receivable. These financial payments are recognized as financial income in the statement of comprehensive income. Collection or payments under operating leases are recognized as income or operating expenses in the statement of comprehensive income on a straight line basis over the lease term. The Company has not made any finance leases as lessee. (k) Provisions Provisions are recognized when the Company has a (either legal or constructive ) obligation as a result of a past event; it is probable that the Company might have an outflow of resources embodying economic benefits to settle that obligation, and a reliable estimation can be made of the obligation amount.

17 The amount recognized as a provision corresponds to the best estimate of the date of statement of financial position of the expenditure required to settle the present obligation, taking into account the risks and uncertainties surrounding most of the events and circumstances surrounding the valuation thereof. When the amount of the provision is measured using cash flows estimated to settle the obligation, the carrying amount is the present value of the corresponding disbursements. In the event that it is expected that part or all of the expenditure required to settle a provision may be reimbursed by a third party, the portion receivable is recognized as an asset when it is virtually certain its recovery, and the amount of that portion can be reliably determined. Provision for significant maintenance and replacement As part of its obligations under the Concession Contract signed with the Peruvian Government ( Note 2), the Company assumes responsibility for the maintenance and replacement of the infrastructure it manages. Maintenance costs and significant replacements needed to maintain the conditions required by the Peruvian Government, are estimated and recorded as an expense and a provision at the end of each financial year, according to the estimated period of use of assets which will be given maintenance or be replaced. Provision for Technical Quality Standard for Electricity Service ( NTCSE ) The Technical Quality Standard for Electricity Service ( NTCSE ) is mandatory for the supply of services related to the generation, transmission and distribution of electricity subject to price regulation services under Supreme Decree No EM Technical Standard quality electrical Services, which sets the minimum levels of quality for electrical services and regulates the application of compensation for breach of the parameters of quality of electricity supply and tolerances. These obligations are recorded at the time the interruptions events occur that exceed the tolerance level under the statement of comprehensive income. This financial compensation for interruption of power is calculated based on the number of interruptions and the total duration of interruptions, and is repaid to the generators that have been affected. Compensation arising from deficiencies in the transmission may not exceed 10 % of the Company half-year sales. (l) Contingent liabilities and assets Contingent liabilities are not recognized in the financial statements, they are disclosed in a note to them. When the possibility of an outflow of resources to cover a contingent liability is remote, such disclosure is not required. Contingent assets are not recognized in the financial statements they are only disclosed in note to the financial statements when it is probable that an inflow of resources will occur. Items previously treated as contingent liabilities shall be recognized in the financial statements in the period in which a change is likely to occur, that is, when it is determined that it is probable that an outflow of resources will take place to cover such liabilities. The items treated as contingent assets will be recognized in the financial statements in the period they are determined to be virtually certain that an inflow of resources will occur respectively. (m) Employee benefits Employee and workers benefits include, among others, employee benefits in the short term, such as wages, salaries and social security contributions, paid annual absences, paid medical leave of absence, and profit sharing and incentives, if paid within twelve months after the end of the period. These benefits are recognized against profit or loss for the period in which the employee has developed services that give them the right to receive them. The corresponding obligations payable are presented as part of other liabilities. (n) Revenue recognition Revenue is recognized when it has transferred all the risks and rewards of the service provided, it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of revenue can be measured reliably, regardless when the payment is performed. Revenue is measured at the fair value of the consideration received or receivable, taking into account the conditions of payment contractually defined and excluding taxes and fees.

18 The following specific criteria must be met to recognize revenue: ( n.1 ) Construction services Revenues and costs for building services projects are recognized in the statement of comprehensive income, according to the method of percentage of project progress to date of the statement of financial position. The Company does not recognize any profit margin in the provision of these services because they are provided, managed and / or supervised by a related company which is the one recognizing the profit in its financial statements. ( n.2 ) Energy transmission services Revenues from energy transmission services are recognized in the accounting period in which it is provided, in accordance with the provisions of the concession contract signed with the Peruvian Government. The transmission service provided and not billed is recorded in accordance with estimates of power transmission actually performed, the same does not differ significantly with subsequent actual invoice. ( n.3 ) Operation and maintenance Income from operation and maintenance services to third party facilities are recognized as the service is provided. ( n.4 ) Interest income Interest income is recognized on the basis of the proportion of elapsed time, using the effective interest method. Interest gained is included in the line of interest income in the statement of comprehensive income. (o) Recognition of costs and expenses Expenses are recognized when a decrease in future economic benefit has arisen related to a decrease in an asset or an increase in liabilities, plus the expenditure can be measured reliably, regardless of when they are paid. (p) Foreign currency The functional currency of the Company is the U.S. dollar (U.S. $). Transactions in other currencies than the U.S. dollar are considered "foreign currency " and are recognized using the exchange rates prevailing at the date of exchange transactions. At the end of each reporting period, the balances of monetary items denominated in foreign currency are translated using the exchange rates prevailing at that date. Balances of non-monetary items carried at fair value that are denominated in foreign currency are translated using the exchange rates applicable at the date when the fair value was determined. Balances of non-monetary items are recognized in terms of historical cost in foreign currencies and are translated using the exchange rates prevailing at the date of exchange transactions. Exchange differences arising from monetary items are recognized in net profit or loss in the period in which they occur. (q) Income Taxes The expense for income tax comprises the sum of the current income tax payable and estimated deferred income tax. The current income tax is determined by applying the tax rate established in the fiscal year in force at the year net tax gain. The deferred income tax is the amount of tax expected to be recovered or paid on temporary differences between the carrying amounts of assets and liabilities and their respective tax basis. Liabilities Deferred income taxes are generally recognized for all taxable temporary differences. The deferred tax assets are generally recognized for all deductible temporary differences and tax credits, rebates and unutilized tax losses, to the extent that it is probable that the Company will have sufficient future taxable profit to be made effective. Such assets and liabilities are not recognized if the temporary differences come from goodwill or from the initial recognition (other than in a business combination ) of other assets and liabilities in a transaction that does not affect the fiscal outcome or the accounting profit result.

19 The deferred tax liabilities on income are recognized for taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except in cases where the headquarters is able to control the timing of the reversal of the temporary difference and is probable that the temporary difference will not reverse in the foreseeable future. The tax assets deferred income arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available which such temporary differences can be used. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that probable the Company will have future taxable income enough to recover all or a portion of such assets. Taxes Deferred income assets and liabilities are determined using the tax rates that are expected to apply when the asset is performed or the liability is settled, based on rates and tax laws enacted or substantively approved shall be practically completed at the end of the reporting period. The measurement of such deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Taxes on income, both current and deferred, are recognized as income or an expense and included in the determination of net profit or loss for the period, except if such taxes relate to items recognized in other comprehensive income or directly in equity results in which case the current tax or deferred gain is also recognized in other comprehensive income or directly in equity, respectively. (r) Net profit or loss per share The gain or basic loss per common share has been computed by dividing the net profit ( loss) for the year attributable to ordinary shareholders by the weighted average number of common and investment shares outstanding during the year. Because there are no common potential diluent actions, i.e., financial instruments or other contracts that give the right to obtain common shares and investment income (loss ) diluted per common share is equal to the gain ( loss) per common share. (s) Segment A business segment is a distinguishable component of an enterprise that supplies a single product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. A geographical segment is a distinguishable component of an enterprise that is engaged in providing products or services within a particular economic environment and that is subject to risks and returns that are different from those of the other components operating in other economic environments. Management has considered its organizational and management structure and its internal financial reporting systems to identify its segments, concluding that the only segment of the Company is the transmission of electrical energy. 5. FINANCIAL RISK MANAGEMENT The Company is continually exposed to market risks, liquidity risks and credit risks arising from changes in the exchange rate and interest rates. These risks are managed through specific policies and procedures established by the Finance Department. The Finance Department is responsible for risk management; which identifies, evaluates and hedges financial risks. (i) Market Risk Exchange rate risk The Company charges the electric energy transmission service in soles. The exchange rate risk arises from receivables and therefore is exposed to changes in the exchange rate. The exchange rate exposure is monitored periodically. The Company has not assessed the operations or establishes formal procedures to hedge exposure to exchange rate.