ISAGEN S.A. E.S.P. ANNUAL REPORT 2007

Environmental management was targeted on complying with the Project’sEnvironmental License requirements granted by the Ministry of the Environment,Housing and Territorial Development - MAVDT - (for its acronym in Spanish), and tothe application of ISAGEN’s Environmental Policy.In the development of the Communal Information and Participation Program, numerousfollow-up meetings with the communities and authorities of the area of influence wereheld, in order to maintain them aware with first-hand information of the Project status.It is worth highlighting the creation of 180 jobs and the prioritizing given to locallabor, with 55% of the workers coming from the area as compared to the urban andregional participation. Such initiative complies with the Employment Policy, which hasbeen designed and agreed upon with the community representatives for effects ofsummoning, selecting, and hiring labor.Proyecto Trasvase MansoThe Manso River Diversion Project is located in the Caldas Department. The Projectconsists in diverting part of the Manso River waters towards the Amani dam of theMiel I hydroelectric power plant. The Project will increase the Plant’s generation in179 GWh/year.The MAVDT issued Resolution No. 1723 of September 21, 2007, which ratified theecological flows defined in the Environmental License.Because of the latter, it was necessary therefore, to adjust the project scheme in orderto optimize it by taking into account the ecological flow defined in the EnvironmentalLicense. Consequently, the Company requested the MAVDT to modify the EnvironmentalLicense accordingly. Main variations against the original design consist inchanges in the tunnel slope and section to operate it in a free flow, the intake scheme,and discharge works.Amoya River Hydro electrical ProjectThe Amoya River hydro electrical project is located on the southern area of the TolimaDepartment, in the Chaparral municipality jurisdiction, 150 km. from Ibague.62 ISAGEN S.A. E.S.P. ANNUAL REPORT 2007