Annual Report 2009 - Isagen

More documents

Recommendations

Info

ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.10improvement of the river basins feedingISAGEN’s reservoirs, as well as strengtheningof the Development and Peace Programsaided by the Corporation.In the environmental management efforts,the following must be highlighted: (i) Decisionof the National Operation Council concerningthe generation reduction ramp of Miel Iplant to reduce fish trapping downstream; (ii)design and startup of the Fishing OrderingPlan in the reservoirs of Punchina in SanCarlos and San Lorenzo in Jaguas, anddownstream of Miel I, and (iii) assessment ofthe Corporation’s carbon footprint, with definitionof actions to mitigate it, and contributeto the fight against climate change.Financial managementHonoring the commitment to its Shareholders,ISAGEN recorded creation of value amountingto $51,695 million along the year 2009,thanks to consolidation of the value managementsystem it has been developing forover 7 years.Also, risk rating agency Fitch Ratings ratedISAGEN’s corporate national and internationalobligations the AA+ and BB+, respectivelyAccording to this firm, “obligations rated intothis category have very high credit quality.Protection factors are very strong. Risk ismodest, though it can vary slightly because ofeconomic conditions”.According to the firm, the fact that these ratingsare lower than in 2008 is explained by twofactors: ISAGEN’s aggressive growth strategy,with which leverage, historically low, is expectedto significantly increase along the constructionphase of the Sogamoso Project, and onthe other hand, the expectations regardingsale of the State’s majority stake. Likewise, theagency rated AA+ the issue of public debtbonds the Corporation would underwrite.In September, the Financial Superintendencyauthorized issuance of bonds in the localmarket worth $850 thousand million. OnSeptember 15, the first tranche, worth $350thousand million was offered, with the possibilityto increase it up to $450 thousand millionin case of over demand of the bonds.Demand of ISAGEN’s bonds was approximately$650 thousand million, or 1.8 timesthe value of the initial offer, which made itpossible to allot $450 thousand million atmarket rates, and competitive terms. On theother hand, approval was obtained fromCAF for a loan of USD$140 million, and anagreement was reached with a group of localbanks for a loan totaling $1,500,000 million;the process of approval of these loans by theMinistry of Finance and Public Credit was underwayat closing of fiscal 2009. All these operationsrepresent an important advance forthe smooth development of the SogamosoProject, given that altogether, they representover 90% financing of its debt, showing theContents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management
ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.11Corporation’s solidness, and the excellentcredit image it has reached in both nationaland international capital and credit markets.International businessThe international financial crisis and the hugedemand of resources for construction of theSogamoso Project caused activities relatedto the internationalization of the Corporationalong 2009 to center on study and researchof Latin American markets, and on identificationand selection of projects to be developedin other countries. This allowed definition of asystemic model for the continued study ofsuch markets, as well as selection of two hydroelectricprojects in Peru with a total capacityof 75 MW, whose respective prefeasibilitystudies have already started.Management of theOrganizationSince its inception, ISAGEN has been conceivedas a systemic organization that ensuresits competitiveness through the integral developmentof its workers, availability of an informationplatform that will back decision-making,and incorporation of practices designed tocontribute to sustainable development.With respect to the integral development ofworkers, in 2009 the concept of the IntegratedModel of Human Management was updated,aligning its elements and emphasizing theworker’s recognition as an integral person,in order to turn work into a true space for thedevelopment of the individual and theCorporation. Additionally, a diagnosis of thecurrent corporate culture was conducted,defining the target culture and a corporatetransformation plan for development andadoption of the new model.Information is a fundamental asset forISAGEN; therefore, last year, saw advancementof implementation of the informationsystem for strategy management and riskassessment of energy and gas commercialization,as well as implementation of new informationsystem for electronic managementof mail and correspondence.As to management practices, ISAGEN obtainedrenewal of certifications of Safety andOccupational Health Systems andEnvironmental Systems, as well as QualitySystem under ISO 9001:2008 standard, andinclusion of Calderas plant in every certifiedManagement SystemSo as to strengthen relations and deepen dialoguewith its stakeholders, ISAGEN invitedpersons representative of each group to evaluatethe Corporate Responsibility practicesand report; important evaluations and recommendationswere received from them. Wehighlight here the perception they showed ofthe conviction and integrated focus with whichISAGEN assumes its Corporate Responsibilitypractices, and their invitation to keep onstrengthening communication with the stakeholdersto facilitate their knowledge and understandingof the Corporation’s practices.Along 2009 the Development of Suppliersproject also started, seeking to promote andfacilitate the development of the suppliers’ administrativepractices and improve ISAGENsrelations with this stakeholder.Lastly, and as proof of its strengthening ofGood Governance practices in 2009,ISAGEN: (i) was granted First Place in thesurvey conducted by Transparencia porColombia for utilities in recognition to itsstandards in Transparency and Ethical Self-Regulation Policies; and (ii) it was votedFirst Real Sector and Utility in GoodGovernance Practices, according to the surveyof Colombia’s Financial Superintendency.Legal issuesIn accordance with its principles, ISAGENstrictly abides by regulation. In compliancewith Article 47 of Law 222 of 1995, amendedby Law 603 of 2000, all software availablefor ISAGEN’s operation is licensed accordingto the provisions of the IntellectualProperty and Copyright Law.The challenges of 2010Messrs. Shareholders, at last year’s Meeting,we pointed out that 2009 would be a crucialyear for ISAGEN’s future, a year to definitelyContents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management
Page 2 and 3: ANNUAL REPORT 2009 / ISAGEN S.A. E.
Page 16 and 17: PROGRESS IN THEIMPLEMENTATION OFREC
Page 60 and 61:
ANNUAL REPORT 2009 / ISAGEN S.A. E.
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
(%) Variation versus last yearANNUA
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
STATUTORY AUDITOR’S REPORTTo the
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
show all

Annual Report 2009 - Isagen

Create successful ePaper yourself

Delete template?

Save as template?