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

achieved in the history of ISAGEN, widely contributing to the commercial resultachievement registered in 2007.Maintenance and modernization plans were achieved at all power plants thuspropitiating that their availability reached 89,76%, representing 2,87% increase abovethe expected value for the year.Two milestones should be highlighted during the year, the completion of the SanCarlos’ power plant generator modernization of units Nos. 1, 2, 3 and 4 and theTermocentro’s power plant No. 1 gas turbine major maintenance.Additionally, and in compliance with ISAGEN’s commitment with sustainabledevelopment, Law 99-transfers were effected to autonomous corporations andmunicipalities of their area of influence for the amount of $31.273,5 million. Moreover,a $4.598,9 million voluntary investment was made for developing the social andbiophysical investment programs directed towards communal participation andformation in the power plants’ area of influence and to the environmental improvementof the contributing basins to their dams. Likewise, the environmental managementplans were executed with a $3.493,8 million investment.Energy generation projectsIn an effort for attending the country’s increasing energy demand and the Company’sgrowth and competitiveness, significant advances were achieved in the Short-TermExpansion Plan execution. The plan comprises the Guarino, Manso and Amoyaprojects.A 28%-progress level was achieved regarding the execution of the Guarino Riverdiversion project to the Amani dam. Such project will enable increasing Miel Ipower plant’s generation in 238 GWh-year by 2010. Likewise, progress has beenaccomplished in the pre-construction activities of the Manso river diversion project.A request for modifying the Environmental Licensed of the project has been filed inorder to improve its efficiency.Regarding the Amoya River hydro electrical project the Company highlights thetransparency and ample participation in the information and concentration processconducted with the communities located on its area of influence, and with theauthorities of the Chaparral Municipality and the Tolima Department. The creation ofthe “Transparency Table” for the human rights surveillance in Chaparral stands outas part of the process. The “Transparency Table” is constituted by representativesof the United Nations, the delegates of the Vice-presidency for Human Rights, theAttorney General, the People’s Defender (Ombudsperson), the Public Prosecutor, theCTI (Technical Body of Investigation), the Army’s Fifth Division for Human Rights, theGovernorship of Tolima, the Secretary’s office for Government and Peace Advisory,the Mayor and the Municipal Controller, five representatives of the community, andthe National Police. Likewise, progress was achieved for contracting of civil works,electromechanical equipment, and delivery in operation.LETTER FROM THE BOARD OF DIRECTORS AND THE GENERALMANAGER TO THE GENERAL ASSEMBLY OF SHAREHOLDERS9