Sogamoso Hydroelectric Project presentation - Isagen

SOGAMOSOHYDROELECTRICPOWER PLANTISAGEN E.S.P 1

Panoramic view of the worksINSTITUTIONALPRESENTATION14.24%ColombianEmployeesrepresented byPension Funds5.06%Foreignshareholders12.95%EPMour sharehorlders10.09%Minority Shareholders57.66%The GovernmentISAGEN is a Colombian public utilitycompany primarily dedicated to generatingand selling electrical energy.ISAGEN is Colombia’s third largestpower generator. The company’s infrastructurecurrently consists of fivehydroelectric power plants and one thermalpower station. Together, they havean installed capacity of 2,212 megawatts.ISAGEN’s strategy is focused on expandinggeneration capacity to meetColombia’s growing electrical energydemands. To carry out this strategy, itis currently working on the constructionof the Sogamoso Hydroelectric PowerPlant, which will begin operations beforeNovember 2014, the deadline set withthe energy market.CORPORATERESPONSIBILITYAT ISAGENISAGEN truly believes that companies are groups of human beingsthat exist to meet the needs and expectations of other groups ofhuman beings, which together form a society. We assume corporateresponsibility as a commitment to establish harmonious, productiveand responsible relationships with our stakeholders based onethics and transparency.Together with the communities in the areas of influence of our projectsunder construction, we strive to improve economic growth,social development and environmental protection.2 Sogamoso Hydroelectric Power PlantISAGEN E.S.P 3

SogamosoHydroelectricPower PlantDescriptionDam ConstructionThe works that make up the SogamosoHydroelectric Power Plant are located inthe department of Santander, in the canyonwhere the Sogamoso River crosses the LaPaz Mountain Range. The plant is 75 kilometersupstream from the point where the riverSogamoso Riverempties into the Magdalena River, and 62 kilometersdownstream from the confluence of theSuárez and Chicamocha Rivers.The reservoir and dam are under the jurisdictionof the Betulia, Girón, Zapatoca, San Vicente deChucurí, Los Santos and Lebrija municipalities.These towns, together with the downstreammunicipalities of Barrancabermeja, PuertoWilches and Sabana de Torres, make up theproject’s area of influence. This plantuses the waters of the SogamosoRiver to generate energy through aconcrete-faced rock fill dam andthree generators located in anunderground power plant.SantanderLocation820 MWInstalled Capacity5,056 GWh-añoAverage annual energyRoad toBarrancabermejaSOGAMOSOPROJECTSogamoso RiverIt will have an installedcapacity of 820 MW and anaverage annual generationof 5,056 GWh per year. ThePlant has an EnvironmentalLicense granted by what isknown today as the Ministryof the Environment andSustainable Development viaResolution 0476 of 2000 andresolutions that amended it.4.1 trillionInvestment in pesos(Financing Costs Included)Machine RoomConstruction2014Expected StartupDateTechnical SpecificationsConcrete-Faced Rock Fill DamConstruction PeriodAverage Sogamoso River Flow RateTributary Basin AreaReservoir AreaTotal Volume190 m high5 years474.6 m 3 /s2,117,800 ha6,960 ha4,800 Mm 34 Sogamoso Hydroelectric Power PlantISAGEN E.S.P5

WORKS124536ProjectMilestones1960The results of the Project’s firststudy were provided to the NationalWater Institute.2000Environmental License wasobtained.2007 - 2008January 28,2011The Sogamoso River was diverted.2011The Plant’s replacement roadsconstruction began.123ROAD TUNNELSBecause the Bucaramanga-Barrancabermeja Roadintersects the dam area, two tunnels need to be built,one 1 kilometer long and another 250 meters long.RESERVOIRThe reservoir stores the water used to generateelectrical energy. At its normal operating level, thereservoir will occupy an approximate area of 7,000hectares. Its stored water volume will be 4,800 millioncubic meters.DAMThe concrete-faced rock fill dam will be 190 meterstall and 345 meters wide at its highest point.The fill used for the dam’s construction will have avolume of 8.5 million cubic meters. This material willbe extracted from natural stone excavation sources.456DISCHARGE AND RESTORE OUTLETThe discharge and restoration channel will return all of the waterused to generate electrical energy back to the Sogamoso Riverimmediately downstream from the dam.UNDERGROUND POWER PLANT ACCESSA 340-meter long tunnel will provide access to the undergroundpower plant. The three generator units used to produce electricalenergy are stored in the underground plant.SPILLWAYThe spillway is a structure designed to evacuate excess waterdue to overflows when the reservoir’s storage capacity isexceeded. The spillway channel is 72 meters wide and 354meters long. It ends at a flip-bucket deflector. To discharge thewater in a controlled manner, it has four radial gates 15-meterswide and 20-meters tall.1973 - 1998The technical feasibility studywas carried out with the firmsHarza Engineering Company andHidroestudios.1994 - 1998The designs and environmentalimpact studies were carried out byINGETEC, SEDIC, Mejía Villegasand other regional consultants forISAGEN and ESSA.1997Hidrosogamoso S.A. wasestablished, with the assistanceof ESSA, FEN, ISAGEN and otherentities of the department ofSantander, to drive the promotion ofthe Project until 2004.ISAGEN acquired all of theProject’s studies and developed,with the Ingenieros Consultoresfirm, INGETEC, the updating ofthe designs and correspondingenvironmental impact studies.These were provided to the Ministryof the Environment and SustainableDevelopment, the AutonomousCorporations of Santander,and the Monitoring Committee(comprised of the Governance ofSantander and the City Halls of allthe municipalities of the area ofinfluence’s region).2009The construction of works andaccess roads to the main generationworks started.2012The construction of the machinerooms and transformers wascompleted, and generationequipment assembly began.2013We announced the Plant’s progressin areas such as works, and socialand environmental managementthrough our web page and theEncomunidad media outlets. Pleasereview it at www.isagen.com.co6Sogamoso Hydroelectric Power PlantISAGEN E.S.P 7

Social andEnvironmentalManagementSocial ComponentBiotic ComponentPhysical componentWater use during the construction phaseutilized 1% of the civil works value, and the lotspurchased for the plant are estimated at COP17 billion. The funds will be allocated for theplanning, preservation and conservation of theSogamoso river watershed, basic rural sanitationand the conservation of the Serranía de losYariguíes National Park.Legal Transfers from gross energy sales overthe useful life of the power plant around COP20 billion will be paid to the municipalities andRegional Autonomous Corporations within thearea of the reservoir and tributary basin. Thesefunds are exclusively used for the protectionof the environment, defense of the watershedand Project’s area of influence, as well as themunicipalities’ development works, focusing onbasic sanitation and environmental improvement.Community Participation andInformation Program.Restoration of the livingconditions of the populationto be relocated.Regional and LocalWorkforce Contracting.Institutional strengthening.Environmental education.Public Safety Support.Archaeological prospectingand assessment.Management of communityperceptions regarding themicro-climactic conditionsaround the reservoir.Uses and users of the lowerSogamoso River.Reestablishment ofinfrastructure affected by theProject.Leveraging fishing aroundthe dam.Management to protectSogamoso river fishresources and fishingdownstream of the dam andits floodplain.Management of vegetation,fauna and soils.Protection and conservationof the land and forestryoffset.Modification of the reservoirbasin.Management for theoperation of the reservoir.Management of material leftoverfrom works.Water quality management.Domestic and industrial solidwaste management.Air quality and noise levelmanagement.Protection of the Sogamosoriver flow downstream of thedam.Investments to carry out the managementmeasures necessary to prevent, mitigate andcompensate potential environmental impactscaused by the construction and operation ofthe Sogamoso Hydroelectric Power Plant.Management measures include the following:Sogamoso RiverUnder the criteria of the United Nations Framework Convention on Climate Change(UNFCC), the Sogamoso Power Plant could be a Clean Development Mechanism(CDM) candidate, therefore:Restablecimiento de condiciones devida de la población a trasladarIT IS A CLEAN GENERATION PROJECT8Sogamoso Hydroelectric Power Plant ISAGEN E.S.P 9

Infrastructureto restoreBarrancaRoadLa PazBridgeDam SiteGirónCapitancitosBucaramangaRoadLisboaLa RentaSan Vicentede ChucuríRoadQ. PujamanCapitancitos - La Paz Bridge Section.11.5 KmConstruction of two road tunnels of1,100 m and 250 m and six bridges onthe section Capitancitos - La Paz Bridgewith a total length of 793 meters. TheMata de Cacao and Caño Seco bridgesbeing most important.Lisboa - La Cananá Section. 24.3 kmConstruction of five bridges on theLisboa - La Cananá road, with atotal length of 1,150 meters. ThePujamanes, El Tablazo and El Ramosbridges being the most important.BetuliaChucurí RiverQ. El RamoLa CananáSan Vicentede ChucuríRoadTablazoBridgeSogamoso RiverCONVENTIONSTo San VicenteTo BucaramangaTo MontebelloActual RoadTo construct and start-up the SogamosoHydroelectric Plant, and in particular its reservoir,it will be necessary to restore someexisting infrastructure below 330 m.a.s.l.Túnel Vial IMontebello and PeñamoradaConnection 12.2 km. Construction oftwo bridges on the road that connectsMontebello, including the bridge overthe Chucurí river.Replacing the Gómez Ortíz Bridge (510m long) over the Sogamoso River alongthe main roadway between Girón andZapatoca. Access roads (1,430 m)Replacement of the Geo - Von LengerkeBridge (391 m long) over the Sogamosoriver.Sustitución del Puente Geo - VonLengerke (longitud de 391 m) sobre elrío Sogamoso.Relocation of six schools, after reachingan agreement with the communities.Relocation of 14 km of the energy transmissionlines between the La Paz Bridgeand La Renta.Relocation of the oil pipeline betweenChimitá - Galán, in the section thatcrosses the Project’s works.Commitment to the regionISAGEN carries out comprehensive social andenvironmental management so that the plantis installed in the region considering the future.The plant is a real opportunity for the area ofinfluence through interactions that contribute toenvironmental protection, social developmentand economic growth:• Employment Management Mechanism- Employment Roundtable, MonitoringCommittee and Employment ManagementOffice.• Job Creation: close to 60% comes from theregion.• Involvement of companies from Santander.• Environmental Education for Employees,Communities and Schools.• Sogamoso River Basin Planning andManagement Plan.• Reforestation and ecological restoration ofover 8,000 hectares.• Recovery of 2,000 hectares of water sources -biological corridors.• Conservation of the Serranía de los YariguíesNational Park.• Recovery of the lower Sogamoso river banks.• Stocking of 5 million fry a year for 5 years.• Creation of a Fishing Management Plan - POP(in its Spanish acronym).• Sogamoso river - El Llanito swampconnection• Relocation of 160 families to areas with betterconditions.• Basic rural sanitation for 700 families andschools in the region.• Social infrastructure at construction sites andimprovement of road infrastructure.• Responsible handling of impacts caused byconstruction.• Development of tourism in the region.• Community infrastructure in the La Putanadistrict of the Betulia municipality: Medicalfacility, Community Center, Police Station,Library, Water and Sewage lines.10 Sogamoso Hydroelectric Power PlantISAGEN E.S.P11

www.isagen.com.coAbril 2013Contact us:proyectosogamoso@isagen.com.co12Sogamoso Hydroelectric Power Plant