manso diversion: a work we built together · its generation capacity to meet colombia’s ... power...

ISAGEN S.A. E.S.P. 1

Manso Diversion:A Work We Built Together

INSTITUTIONAL PRESENTATION

ISAGEN is a Colombian public utility company primarily dedicated to generating and selling electrical energy. ISAGEN is Colombia’s third largest power generator. The company’s infrastructure currently consists of five hydroelectric power plants and one thermal power plant located in the departments of Antioquia, Caldas, Santander and Tolima. Together, they have an installed capacity of 2,212 megawatts.

ISAGEN’s strategy is focused on expanding its generation capacity to meet Colombia’s growing electrical energy demands. In 2010, the Guarinó Diversion began operations and in 2013, the Amoyá River Hydroelectric Power Plant and Manso Diversion started up. Currently, ISAGEN is making progress in the

construction of the Sogamoso Hydroelectric Plant in Santander and carrying out renewable energy studies.

OUR SHAREHOLDERS

14.24%ColombianEmployees

represented byPension Funds

5.06%Foreign

Shareholders

12.95%EPM

57.66%The Government

10.09%Minority Shareholders

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Manso Diversion: A Work We Built Together2

BUSINESS CONCEPT

Corporate responsibility is a commitment to our stakeholders in which we seek to generate harmonious, productive and responsible relationships based on ethics and transparency.

We strongly believe that companies are comprised of human beings who exist to meet the needs and expectations of other groups of human beings, which together form society. This is why, together with the communities in the areas of influence of our projects under construction and power plants, we strive to improve economic growth, social development and environmental protection.

3ISAGEN S.A. E.S.P.


MANSO DIVERSION - LOCATION AND CHARACTERISTICS

Borders on the municipalities of Samaná and Norcasia in CaldasLocation

104 GWh-yearAverage Additional Annual Energy for the Miel I plant

Resolution No. 2282 November 2006Environmental License

Pano

rama o

f the Manso Diversion’s Area of Influence


The Manso Diversion is located in Eastern Caldas and aims to direct part of the waters from the Manso River to the Santa Bárbara Stream, a tributary of the Amaní reservoir. The Manso Diversion thus contributes to the Miel I Hydroelectric Power Plant, which has an installed capacity of 396 MW and is located in the municipality of Norcasia, also in Caldas.

The Diversion increases average annual energy generation in the Miel I Power Plant by 104 GWh/Year, equivalent to 7% of the plant’s annual production.


Túnel de 4.015 m de longitud y de 3,9 m de diámetro que pasará excedentesde las aguas del río Manso al Embalse Amaní.1

Sitio de captación del Trasvase en el río Manso con un caudal medio 12,54 m3/s.2

Caudal ecológico definido en la licencia ambiental de 6,0 m3/s para el verano y 7.2 m3/s para invierno. 3

Una compuerta radial que permite el lavado de los sedimentos que se acumulen en la zona de captación.5

Una compuerta plana que impide el trasvase del agua del río Manso.6

Un canal ecológico con dos orificios uno a flujo libre que permite el paso constante de aguay otro controlado con una compuerta que regula el caudal ecológico,definido en la Licencia Ambiental, para garantizar siempre su circulación.4

Alrededor del 65% del personal contratado directa o indirectamente para la construccióndel proyecto es habitante de la zona.8

Destinamos 462 hectáreas a la recuperación de los ecosistemas acuáticos y terrestres en el áreade construcción delTrasvase Manso.7

Reservoirview

1

5

4,015 m long tunnel with a diameter of 3.9, that allows water surpluses

to pass from the Manso River to the Amaní Reservoir.

Radial gate that allows sediment to enter the capture area.

We set aside 462 hectares for the recovery of aquatic and land

ecosystems along the tunnel’s path.

TECHNICAL SPECIFICATIONS


Túnel de 4.015 m de longitud y de 3,9 m de diámetro que pasará excedentesde las aguas del río Manso al Embalse Amaní.1

Sitio de captación del Trasvase en el río Manso con un caudal medio 12,54 m3/s.2

Caudal ecológico definido en la licencia ambiental de 6,0 m3/s para el verano y 7.2 m3/s para invierno. 3

Una compuerta radial que permite el lavado de los sedimentos que se acumulen en la zona de captación.5

Una compuerta plana que impide el trasvase del agua del río Manso.6

Un canal ecológico con dos orificios uno a flujo libre que permite el paso constante de aguay otro controlado con una compuerta que regula el caudal ecológico,definido en la Licencia Ambiental, para garantizar siempre su circulación.4

Alrededor del 65% del personal contratado directa o indirectamente para la construccióndel proyecto es habitante de la zona.8

Destinamos 462 hectáreas a la recuperación de los ecosistemas acuáticos y terrestres en el áreade construcción delTrasvase Manso.7

Reservoirview

7

2

4

36

Diversion’s intake site in the Manso River.

Ecological channel with two entries: one free flow that allows constant entry of water, and another controlled with a gate that regulates the environmental flow, in accordance with the environmental license.

Environmental flow defined in the Environmental License at 6.0 m3/s in the dry season and 7.2 m3/s in the rainy season.

Around 65% of the personnel who worked on construction of the power plant were from the area.

We are aware of the importance of establishing harmonious relations with the communities, and we contribute to environmental stability, which we have comprehensively evaluated based on its biotic, physical and social components.

Biotic and Physical Component

Establishment of 37 hectares (ha) of protective plantations. Emphasis on protective reforestation of 24 ha and floral enrichment in 13 ha.

Execution of a forestry offset plan to plant 35,000 native trees and species in areas surrounding the works, in the Manso River basin and the micro-basins of streams in the Diversion discharge zone.

Renovation of a nursery in the Berlín Educational Institution, where students had active participation in production of seedlings.

Monitoring of fauna and execution of a herding plan to minimize the effect that construction activities may have on the ecosystems located in the area of influence.

Monthly monitoring at seven stations on the Manso River and the El Jagual and Montebello Streams. During construction of the power plant, there were no changes in the physio-chemical and micro-biological characteristics of water resources.

Periodic monitoring of noise and air around the works, finding low or almost zero concentrations of particulates, nitrogen oxides or sulfur oxides.

Cleaning and maintenance of each of the domestic and industrial wastewater treatment systems used during construction of the works

ENVIRONMENTAL MANAGEMENT PLAN (EMP)

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Sloth. Native species in the area of influence.

ENVIRONMENTAL MANAGEMENT PLAN (EMP) - BIOTIC AND PHYSICAL COMPONENT

Delineation of 12 surplus material deposits and usage of only six, which later were closed down and replanted.

Delivery of solid waste generated during the construction for its treatment and final disposal. Carrying out training talks and presentations related to this matter.

Permanent covering of construction materials in order to avoid emitting particulate matter.

Control of dust emissions on the Norcasia - Berlin road, especially in the sectors of the public road where there are houses.

Certification of gases from contractors’ vehicles and of engines used during construction of the power plant.

Monitoring and Protection of Natural Resources Along the Tunnel Path

Acquisition of around 445 hectares located along the tunnel’s path, which will be set aside for ecological restoration to support preservation of biodiversity in the region.

Periodic monitoring of flora, fauna and water life, which demonstrated the absence of species diversity.

Monitoring the flows and gages in water sources located along the tunnel’s path, including district aqueduct intakes.

Rescue of around 400 fish from 4 species in the Bolloliso Stream.

Implementation of technical measures inside the tunnel (concrete coating on some stretches and consolidation injections).

Acquisition of lots along the tunnel’s path from each of the land owners, as a compensation measure. Follow-up with families shows that they now enjoy better living conditions.


ENVIRONMENTAL MANAGEMENT PLAN (EMP) - SOCIAL COMPONENT

Activities with children from the area to strengthen their knowledge of environmental protection.

Social Component

Location of three Community Service Centers, a mechanism which was able to handle requests, complaints and claims received during construction of the power plant related to the donation of materials, community support and infrastructure damage.

Providing the community with information through distribution of 7,547 different informational pieces such as brochures, newsboards, newsletters and radio programs.

Holding 167 meetings with the communities, in which 4,694 people participated.

Holding 2,095 training sessions and talks with site workers regarding healthcare, disease prevention, personal growth, environmental matters such as protecting flora and fauna, global warming and the greenhouse effect.


Teamwork

JOBS

We created a total of 1,397 jobs during the plant’s construction with a monthly average between 2008 and 2012 of 34 people, exceeding our estimate. On average, 70% of personnel contracted came from the Diversion’s area of influence. Additionally, we boosted the local economy of municipalities such as Samaná and Norcasia by COP 140 million per month through goods and services contracts.

We facilitated conditions to start a Jobs Committee to regulate local contracting through transparent and democratic channels. Each community chose their representative for the 10-person Committee.

OVERSIGHT COMMITTEE

We facilitated the formation of an Oversight Committee of 22 people, chosen to represent the districts in the power plant’s area of influence. They held meetings and took trips to periodically assess the execution of the Environmental Management Plan.

Through an arrangement with the Caldas Departmental Office of the Comptroller, we held a training seminar with members of the citizen oversight committee and community leaders from the districts in the area of influence regarding citizen participation mechanisms, environmental legislation and the power plant’s Environmental Management Plan.


COMMUNICATION AND DIALOG

Before beginning construction of the Manso Diversion, we defined communication channels to deliver clear and timely information regarding power plant activities. We also provided spaces for dialog to listen to the residents in the region. This is all part of the Community Participation and Information Program (PIPC in its Spanish acronym).

“Coming together is a beginning; keeping together is progress; working together is success.”

Members of the community expressed their concerns in the meetings.Henry Ford



In Memory, We Find the Source of Wisdom

We conducted an archaeological dig, assessment, monitoring and rescue program, which was granted an archaeological license by the Colombian Institute of Anthropology and History (ICANH in its Spanish abbreviation). We identified 26 archaeological deposits, excavated two, and found ceramic fragments and carvings dating from 320 B.C. and 830 A.D. This valuable material was delivered to the University of Caldas Museum and the Archaeological and Ethnographic Museum of Pereira to be preserved. From the area, 566 people attended the presentation of the findings.

Material found while during the Archeology Program.

Investment in social and environmental management was COP 21 billion, representing

18% of the power plant’s total cost.

INVESTMENT PROGRAM FOR THE USE OF WATER

As part of the 1% investment for water usage, we invested COP 668,341 million in the contributing basin in the following programs:

Basic sanitation program in the San Diego and Berlín townships.

Preservation and conservation program for the Manso River Civil Reserve.

Program to improve biological connectivity between the Selva de Florencia National Park and the Manso River Reserve.

Preservation and conservation program of the Selva de Florencia National Park.



PLAN DE MANEJO AMBIENTAL (PMA)

COMPLEMENTARY MANAGEMENT

Delivery of school kits to children in the schools in the area of influence, and rain gear and uniforms to the mens’ and womens’ soccer teams in the Berlín township.

Modifications to the Manso River tourism area with the construction of five leisure huts including provisions.

Delivery of trash cans, plastic, gravel, stone, cylinders and other materials to several families to improve housing and modify slopes.

Implementation, with support from the Caldas Coffee Growers Committee, of a program to improve housing on the Norcasia - Berlín road that was identified as vulnerable in property status reports. The community participated

Students benefited from delivery of school kits.


actively making a valuable contribution where possible in labor, food and materials.

Development of a program with the Fundación Mundial to improve the appearance of housing (exterior and interior) located on the Norcasia - Berlín road. This activity included training, and delivery of a kit with tools and paint.

Improvement of aqueducts in the La Reforma and Piedras districts, with the participation of Berlín’s Community Action Board and members of the community, and an intake for three families in the Berlín township.

Through an agreement with the San Diego Young Farmers Home, we developed a productive egg-laying chicken project to contribute to the economic sustainability of the home through the production of eggs for self-consumption and sale, as well as using chicken droppings as a fertilizer.

Delivery of material to fix critical sections of the Manso River - San Diego road, access to the Berlín school and the Montebello district school, as well as modification of the Berlín township children’s playground and the La Reforma district community center.

Delivery of 277.92 m2 of porcelain tiles, via an agreement with the Planning Secretary of the municipality of Norcasia (Caldas), to support the renovation and repairs of the Sagrado Corazón Hospital.


Productive project for egg-laying hens in the San Diego Young Farmers Home.


Beneficiaries of the health brigades.


Delivery of cylinders to improve a path in the La Sonrisa district, construction of a FURECOM ecological path in Norcasia and modification of the path from the Berlín township field. Lighting were delivered for the latter.

Support for traditional festivities such as Farmers’ Day and cultural festivals in the Berlín and San Diego townships.

Delivery of daily wages to fix the Lagunilla district path.

Participation in celebration of Childrens’ day and Christmas.

Training sessions for workers, contractors and community leaders regarding the risks of anti-personnel mines, unexploded ordnance and improvised explosive devices, with support from Corporación Paz y Democracia.

Support for Fundación Alas para la Gente, the Norcasia Municipal Administration and the Sagrado Corazón Hospital in which 1,677 residents were assisted with 1,770 procedures that included medical and dental appointments, surgical procedures and attention in specialized services.

COMFAMA-certified workshop held with 25 people, including community mothers in charge of school restaurants, owners of restaurants and people working in food preparation.


Manso Diversion’s Area of Influence.


Support for workshops aimed at 35 families in the community regarding management of solid waste and preparation of vermicompost. This activity was carried out by a group of students from the Berlín School and was supervised by teachers.

An environmental campaign “Mi Ciudad Sin Suciedad, Cuida El Agua” (My clean city, caring for water) was carried out in schools in the area of influence, with support from the Corporación Social, to stimulate the culture of efficient use of water, suitable management of solid waste and sharing of knowledge.

Epidemiological risk evaluation of Leishmaniasis and Dengue infection with support from the Tropical Illnesses Control and Study Program (PECET in its Spanish acronym) at the University of Antioquia.

In an agreement with the Development for Peace in Central Magdalena Program (PDPMC in its Spanish acronym) we carried out a community strengthening program through a participatory and learning process to organize and prioritize problems, and prepare and execute productive, social and environmental projects.

“I think that this program has a positive impact because it is long-term and is based on the people’s will, and its aim is to develop skills, abilities and potential in the residents here through communicative, participatory and training processes. Since the beginning, the goal has been to empower residents and communities to identify and take up their rights, duties and requirements as options for development and peace.”

Viviana Bedoya Coordinator of the PDPMC Sub-Regional Round-Tables


LEGAL TRANSFERS

They are monies that power generation companies give to municipalities and regional environmental authorities, in accordance with article 222 of Law 1450 of 2011, which amended Article 45 of Law 99 of 1993.

These economic resources will be given to the municipalities in the Diversion’s area of influence and to the Caldas Environmental Authority (CORPOCALDAS in its Spanish acronym) to be invested in works in the municipal development plan. Priority will be given to projects for drinking water, both rural and urban basic sanitation and environmental improvement of the watersheds through the control of erosion points, reforestation and conservation, among other activities.

Every person has the right to be informed about the amount transferred and how those funds are used. Therefore, the communities may request information from the Municipalities and the Environmental Authority about how the funds are allocated. Likewise, the communities may present projects to the respective City Hall or the Municipal Council related to the use of the transfers that are in line with the uses established by the Law.

Each year we will transfer resources to the municipalities in the Diversion’s area of influence due to Legal Transfers.


Planning and Assesment of Management

Environmental Policy

Social, Environmental

and Complementary

Management

Interinstitutional Coordination

Management of Permits,

Licences and Environmental Management

Plans

Environmental Investment

Payment of

Borrowings

Environmental Management

Plan

Social Investment

Biophysical Investment

Social Programs

Biophysical Programs

Our environmental policy is a guide that directs the development of our productive activities from different components:

Having concluded the Manso Diversion construction phase, and following its integration in the Miel I Hydroelectric Power Plant, we continue our presence in the community and joint work with institutions to strengthen relations and define joint work to contribute to the region’s progress.

A COMMITMENT THAT REMAINS STRONG


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manso diversion: a work we built together · its generation capacity to meet colombia’s ... power...

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