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Foundation Report 2010-2012

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    FOUNDATION REPORT2010-2012

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    Torre Citigroup en la Plaza Acrpolis, Piso 23,Ens. Piantini, Santo DomingoDominican Republichttp://www.fundacionaesdominicana.org.do

    Prepared by the Vice-presidency ofCommunications at AES Dominicana.

    Vctor Jos Santana Rojas

    Admin istra tive Off ices :

    Layout and design

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    LETTER FROM THE PRESIDENTI

    AES DOMINICANA, COMMITTED TOSOCIAL RESPONSABILITY

    II

    2010-2012SOCIAL INVESTMENTIII

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    TABLE OF CONTENTS

    WORKING AREAS

    Relationships with the community:

    The Importance of Being a Good Neighbor

    Bajos de Haina Community Work

    Los Mina Community Work Andrs - Boca Chica Community Work Collaboration with the Fire Department

    High Impact Projects Education Environment Special Projects Corporate Volunteer Work

    Our Social Face

    IV

    AES DOMINICANA FOUNDATIONSADMINISTRATIVE, ORGANIZATIONALAND CONTROL ESTRUCTURE

    V

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    AES Dominicana Foundation takes great pride in presenting the results for its 2010-2012 three-year period, a term

    during which our organization significantly matured.

    During this time, we focused on the goal of pursuing the sustainability of every project we initiated. Today we showour results with great satisfaction, and we do so with the conviction that we will continue working so that ourcontributions yield the expected impacts on society, with a special bearing on the communities we serve and thecommunities where our power generation plants are located.

    We have come a long way since we first started in 2007. Our programs have been created to address the real needsof the communities we serve, and we have been able to accomplish the successful completion of every project.

    Throughout this document you will be able to confirm the results of a conscientious management; work that reflectsour commitment to our corporate values, respect for the environment, and the rasion dtre of the AES DominicanaPower Group. The 18 projects completed between 2010 and 2012 are the best evidence of this commitment.

    I hope you enjoy it and that through your input and suggestions, you will help us make of the AES DominicanaFoundation a role model in the Dominican Republic.

    LETTER FROM THE PRESIDENT

    Marco De la RosaPresident

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    II

    AES Dominicana, Committedto Social Responsibility

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    Social Responsibility is not one specific program for AES Dominicana. It is an initiative that is closely related to

    the impact the power generation industry has in society by making business safely, respecting the environmentand at competitive prices. AES has five core values that guide its activities: safety, integrity, excellence, enjoymentand commitment. This last value is the framework for the relationship AES has with its groups of interest, such as:suppliers, customers, employees and the community it serves and receives the impact of its operations.

    AES Dominicana Foundation is the Corporate Social Responsibility Branch of the AES Group in the DominicanRepublic. This Foundation evidences our commitment to achieving tangible results. It takes on the great challengeof adding genuine value to our business, with community service spirit, to serve all of our groups of interest.

    At the Foundation we promote work that gives back to the communities where our power plants are located.Growth in the communities we served is more consolidated every day. This growth is perceived through channelslike the economic resources and the voluntary and spontaneous collaboration of every member of the AES family.

    Through the development of educational and environmental programs we try to improve the living conditions ofthe communities and achieve the participation of community members as co-promoters of these initiatives. Theyare, in the end, the true forgers of the nations progress.

    AES Dominicana, Committed to Social Responsibility

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    AES Dominicana, Committedto Social Responsibility II

    During the 2010-2012 three-year term, the AES Dominicana Foundation executed several social responsibilityprojects thanks to the strategic alliances made with other national and international institutions, as a way tobring synergy to the efforts made in pursuit of sustainable development in the Dominican society. Some of theorganizations that have contributed with our projects and programs are:

    Junior Achievement: Since 2010Programs: -Challenges of the Stock Market.

    -Advantages of Staying in School.-Creating a Culture of Efficiency.

    -Entrepreneurs at School Age

    American Chamber of Commerce: Since 2010Program: Elementary Education USAID-AMCHAMDR.

    Technological Institute of Santo Domingo (Intec): Since 2008Program: Pies Scholarships

    Patronato Pro-Desarrol lo de Haina: Since 2011Proyect: Bajos de Haina Community Work

    Strategic Alliances

    Red Interamericana de Fundaciones y Acciones

    Empresariales para el Desarrollo de Base

    In the year 2012, we became part of RED America,a corporate based non-profit institution which

    invests in social areas in 11 countries of Latin America.

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    DIS Foundation: 2009-2011Proyects: 2012-1015 Foundation Strategy

    Patronato Museo Trampoln: Since 2008

    Proyect : Energy Room

    Editora Listn Diario: 2011-2012Proyects: Parque Mirador Sur A Breathing Space for the City

    Plan Lea with Your Habitsand Geography Week Handouts

    Casa de Teatro: 2009-2011Proyects: Canciones de la Casa CD (Songs from Casa)

    Dominican Youth Art. Awarded at the VIII Editionof the 2009 Critics Award, by Asociacinde Crticos de Arte, ADCA and APEC.

    Me lo cont el Ozama (The Ozama Told Me About It),by Bernardo Vega

    Cure Dominicana: Desde el 2006Programa: Iluminamos la vida de los nios

    CEDAF: Desde 2010Proyectos: Concurso de Pintura Infantil sobre el

    Medioambiente.

    Haina Recicla

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    AES Dominicana, Committedto Social Responsibility II

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    2010-2012Social Investment

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    III

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    2010-2012Social Investment III

    From 2010 to 2012, AES Dominicana Foundation has carried out around 18 projects. Several initiatives have beenlaunched with these projects and we have contributed with a series of donations in kind and in cash.

    For the completion of these projects the Foundation moved an aggregate amount of RD$38,583,099.30 of its ownresources and RD$3,192,371.74 of resources cofinanced by national and internation allies, both in kind and in cash.

    2010-2012 Social Investment

    Table of resources used by AES Dominicana Foundation

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    AES Dominicana FoundationWorking Areas

    IV

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    With the purpose of initiating higher impact actions and using itsresources and capabilities, AES Dominicana Foundation focuses on twoareas. One of those areas is called Relationship with the Communityand it focuses on issues related to the communitys culture, healthand sports. Since the very beginning, these issues have been part ofthe first lines of action of the Foundation, but up to now they havefocused more on the communities surrounding the power generation

    plants.

    The second area, called High Impact Projects, focuses onenvironmental and educational issues. These cases have beenadjusted to the line of business and the nature of AES operations in

    the Dominican Republic.

    AES Dominicana Foundation Working Areas

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    One of the core elements of Corporate Social Responsibility is the good management of interest groups, and

    especially, in the communities where the companys day to day business is developed. Therefore, there is an

    ever-growing trend among socially responsible companies to achieve a good relationship with the surroundingcommunities.

    Being a good neighbor and investing in critical aspects in the areas of influence, and the society in general, benefits thecommunity. At the same time, this action helps strengthen the companys competitiveness or the competitivenessof the group of companies that operate in the same community. A company that supports the development ofthe communities where its plants are located, and pursues a competitive environment, contributes both to thebenefit of the community and the benefit of the company.

    In this direction, The Company seeks to focus its philosophy on being a good neighbor that contributes to the development

    of the surrounding communities.

    AES Dominicana Foundation tries to reflect a good corporate neighbor image in the communities whereit develops its business activities.

    AES Dominicana Foundation has given a great deal of importance in its programs to the work done in the areas ofinfluence of the company. Therefore, AES has prioritized its intervention in the most vulnerable areas, focusing itswork in the areas of Bajos de Haina, Boca Chica, La Caleta and Los Mina.

    Relationship with the Community: The Importance of Being a Good Neighbor

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    In 2010 AES Dominicana Foundation and Patronato Pro-Desarrollo de Haina (PADESHA) executed a CollaborationAgreement. The purpose of this agreement is to more directly channel every activity, project and assistance given tothe community located at Bajos de Haina. This agreement seeks to strengthen the business-community relationshipand promote sustainable community programs for growth and development.

    PADESHA is a non-profit institution with the goal of improving the economic, social and cultural conditions of the

    inhabitants of the municipality of Bajos de Haina.

    Through this agreement we have worked on issues related to education, environment, culture and sports. Allaspects covered on these works are detailed below:

    Bajos de Haina Community Work

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    AES Dominicana FoundationWorking Areas IV

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    With the purpose of creating closer ties with the communities surroundingthe Dominican Power Partners (DPP) Power Plant, the Foundation organizedan educational visit to the community leaders. By using clear and

    understandable language, members of DPPs Technical Operation staff gavea speech on how energy is produced from natural gas at the power plant. A

    walk around the plants facilities followed this visit.

    In 2012, community members participated in the fire drill carried out at theDPP plant. These community leaders were part of the group of observers thatassessed and commented on the points for improvement on the emergencyresponse work carried out in the area.

    With regards to the environment, and as a way to embelish the front areaof DPP plant, the second ecological mural was completed, by using the

    award wining drawings from the contest Pinta la Energa sponsored by

    AES Dominicana Foundation and Tinmarn magazine issued by local Hoynewspaper. Dominican artist Jos Pelletier, with the collaboration of 5 youngtalented Dominican paintors, painted the sketches.

    Along that same line, the area where the ecological mural is located was

    completely illuminated as well as the Arcoris Park, located across the street

    from the DPP plant. This has benefited children, youth and adult visitorsthat live in the area by providing them with an outdors leisure area that isnot only recreational but also safe.

    Los Mina Community Work

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    AES Dominicana Foundation, with the collaboration of technical and administrative staff at the AES Andres powerplant, has contributed to important educational and social development issues in the community.

    The work of greater impact for the neighbors of Brisas de Caucedo Sur, in Boca Chica, was the construction of awater pipeline with an extension of 320 meters. The area had historically experienced shortage and insufficiency ofwater supply for decades. This project allowed more than 150 families to have access to this precious liquid. Theseworks were completed with the coordination of the Municipality of Boca Chica and under the supervision of theSanto Domingo Water Company (Corporacin del Acueducto and Alcantarillado de Santo Domingo - CAASD).

    Another project that was very well received by the community was the Foundations donation, jointly with theNeighbors association, of a significant amount of streetlights for Brisas de Caucedo Sur. This donation was madewith the purpose of helping reduce violence and rubbery in this community of Boca Chica. With the installation of

    these streetlights many young people and older people who study or work at night can now come back home withgreater sense of safety.

    AES Dominicana Foundation also made significant contributions in the sports area during 2012. In the specific caseof Boca Chica, children and youngsters were donated baseball uniforms, gloves, balls and kits. The beneficiaries ofthese donations were the athletes that belong to the Ozuna Baseball League. This league operates in the communityof Brisas de Caucedo Sur, neighboring the power plant. A total of 60 children benefitted from these donations.

    Andrs, Boca Chica Community Work

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    Within the framework of the works that are carried out in the communities,AES Dominicana Foundation works hand in hand with the Fire Departmentin the communitities where the facilities of the Group are located. Since

    these are non-profit institutions, which serve the community for free, theyare extremely important for us in terms of safety. For this reason, togetherwith other fire fighting squads, we have completed joint activities such asfire drills and prevention awareness.

    We have also shared with these institutions the procedures we follow at AESfor prevention purposes. Moreover, we have given them consulting serviceson safety, fire prevention, and first aid.

    The fire fighting companies we have been working with are Santo DomingoEste, Boca Chica, La Caleta and Haina. Members of these institutions areready to serve in case of any emergency, and the Foundation supports themthrough donations of fuel for their operations, uniforms, fire fighting rescue

    equipment and assistance for the improvement of the buildings of thosecenters.

    We have also contributed with training provided by TEXAS ENGINEERINGEXTENSION SERVICE, from Texas, United States. This institution offers

    traning programs and technical assistance for public safety. They hold thelargest fire fighting training installation in the United States.

    Collaboration with the Fire Department

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    AES Dominicana FoundationWorking Areas IV

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    AES Dominicana Foundation does not only serve the communities surrounding the companys power plants. Itsactions go above and beyond to cover other issues of a nation-wide nature and its coverage touches on two criticalareas that the Foundation considers highly important: education and environment.

    Why choose education? Through our focus on education we seek to create greater awareness in the populationabout the appropriate use of energy and increase the educational level of both teachers and students. To thisend, we have counted on the technical support and expertise of the American Chamber of Commerce and JuniorAchievement.

    It is worth mentioning that in the beginning AES Dominicana Foundation focused on improving the buildings of theschools it sponsors, because they were extremely worn out and in bad shape. These improvements have helped thestudents of these two centers have the opportunity to receive their education under adequate conditions.

    Why do we care about the environment? By focusing on the environment, AES Dominicana Foundation tries tocreate greater capabilities in the community while encouraging a much better management of natural resources in

    order to guarantee their current and future preservation. This environmental commitment is aligned to the essenceof AES Dominicana, a company that is definitely a pioneer in the natural gas power generation industry.

    Without a doubt, quality education is the corner stone of every nations development. This is why for AES Dominicanait is extremely important to collaborate with the schools located around the power plants at Andrs, Boca Chica,Los Mina and los Bajos de Haina, as well as others that are located alongside the pipeline.

    Therefore, throughout this first fase the Foundations support has been focused on improving the infrastructures of

    the schools to make them suitable for the students. These jobs have been completed while we have also developeda sense of commitment among community members, so they make every effort to keep these schools in goodconditions.

    As part of its educational programs, AES Dominicana Foundation focuses on two programs. One of them focuses onreducing school dropout rates. This frequent situation in the Dominican educational system is more evident in themiddle school students (7th and 8th graders). The second program focuses on providing teaching techniques andlearning tools for both students and teachers.

    High Impact Projects

    Education

    AES D i i F d ti

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    AES Dominicana FoundationWorking Areas IV

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    AES Dominicana Foundations initiatives aim at improving the quality of edacation offered at a national level. Inthis direction, we have created these programs to accompany the schools Ercilia Pepn and Km 17, in the Bajos deHaina section; the Pueblo Nuevo school, located in Los Mina, Santo Domingo Este; Mara Caro, in La Caleta; andBrisas de Caucedo Sur, in Andrs, Boca Chica. These schools are located in areas close to the power plants owned byAES Group and in the areas surrounding the pipeline. In each case, school premises were improved in order to offerstudents a better place to receive their education every day.

    Around eight hundred students from these schools benefit directly from the initiatives of the Foundation. Inaddition to the physical improvements to the school facilities, several educational activities have been included,among which we can proudly mention a values program. These programs and activities are developed throughoutthe school year. This project is carried out with the collaboration of the Parents Associations of each school as well

    as with the participation of the teaching and administrative staff of each selected school.

    This is a five-year program that covers all the schools that make up the Love Your School Program. It includesteacher training, donation of equipment, as well as books and teaching materials which are highly needed forReading Corners. It also provides specialized attention to underachievers and support to the school managementwith workshops, training and follow up.

    Study halls are available for students and teachers. With this program, the Foundation together with the Ministryof Education, donate teaching materials and supplies for the areas of Language Arts, Math, and Science, with the

    purpose of improving the educational performance of every center.

    Love your School Programs

    USAID-AmchanDR Elementary Education Program

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    This program was born in 2010, hand in hand with the Junior Achievement Program. Its purpose is to motivateelementary students to avoid school dropout, and stay in school until they complete their high school education.

    This initiative was triggered by the concerns of the School Principal at Brisas de Caucedo Sur, one of the schoolscovered in the Love Your School program. According to the information provided by this educator, from 100% of

    students enrolled at the beginning of the school, only between 15 and 20% complete their grade level. Among themany reasons that contribute to this elevetated dropout rate we can mention teenage pregnancy and the fact thatmany young children need to go to work every day to help support their families.

    According to a study carried out by several institutions, including the Universidad Central del Este (UCE) andCEPAL, dropout rate is around 34% in the Dominican Republic. These studies state that among the reasons behindschool dropout rates we can mention, the lack of opportunities for some children and adolescents, lack of values,irresponsible parenthood, divorce, unemployement, and the lack of a socioeconomical plan from the governmentand the low salaries many laborers earn. (El Nacional, November 28, 2012, Santo Domingo, Dominican Republic)

    In order to face the situation described above in the schools sponsored by AES Dominicana Foundation, we lookedfor an institution that could develop a program that would help reduce school dropout rates. The allied we found wasJunior Achievement, an NGO that launches educational programs in over 125 countries. These programs completethe traditional educational curriculum by encouraging young boys and girls to own their economic success and by

    teaching them entrepeneruship to respond to the ever-growing needs of our current world.

    Advantages of Staying in School is a program that covers five 60-minute modules to be offered to about 1,280 kidsin grades 7 and 8. This program is now available in three of the schools sponsored by AES Dominicana Foundation,

    and includes 32 volunteers from the AES Dominicana staff which served as role models for the kids and whoexplained to them how important it is to stay in school and get an education.

    Advantages of Staying in School

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    These Modules are:

    The road to fulfill your potential Advantages of Staying in School The cost of School Dropout Facing our Problems

    Projecting Ourselves towards the Future

    In the 2011-2012 school year a values program was included; a program that aims at creating solid values amongchildren in school age. This way we seek to foster in children a spirit of enterpreneurship that will allow them tobecome better people in their society.

    These programs are:

    Getting to Know Myself, for 2nd grade students Getting to Know My Family, for 3rd grade students Getting to Know My Community, for 4th grade students Getting to Know My Region, for 5th grade students Getting to Know My Country, for 6th grade students

    At the end of 2012, a total of 1,900 students from the Brisas de Caucedo Sur, Pueblo Nuevo and Ercilia PepnSchools received conferences on the advantages of staying in school and the values program.

    The Advantages of Staying in School program gives students decision-making skills and helps them value theimportance of completing their studies, and therefore, encourages them not to drop out of school. This program

    also works on students self esteem, moral values, and character, and encourages them to set realistic goals in theirlives and to act accordingly to achieve their goals.

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    The Children Museam, Museo Infantil Trampoln, is one of a kind in the Dominican Republic. During its first four

    years or operation it received around 900 students everyday during school hours. Since it first opened in April2004 and up to 2008, at least 70,000 children enjoyed its installations annually. Adding school age students andthe general public, the museum received 450,000 visitors during the first four years. After the Energy Room wasincluded in December 2008, the amount of students per year went up to 90,000. A total of 580,000 people, childrenand adults, have visited the museum over the last four years.

    The Energy Room at the Museo Infantil Trampoln explains the origins of energy to the visiting children. Thestory-telling experience covers from the cavemen age to our technological world today, including explanations onrenewable energy and the more efficient uses of natural gas. AES Dominicana Foundation has continued to make

    significant contributions to the maintenance of visual aids, drawings, and interactive games of the room.

    This magic room shares with visitors the value of saving energy, protecting the environment, and using energyresponsibly.

    Ms. Nancy Handal, General Director of the Museo Trampoln, thanks AES Dominicana Foundation on behalf ofDominican youth for supporting children education across the country through the initiative of donating andsponsoring the Energy Room at the Museo Infantil Trampoln. This room has allowed over 90,000 yearly visitorsenrich their knowledge on the development of energy and how energy production has evolved over time.

    Ms. Handal states that this room is highly educational. Sensory resources are used in such a way that visitorsreceive the information in an instructional, entertaining, interactive and modern way, while focusing on the relevantvalues of safety, self-protection, saving the environment, and the cost of energy and how important it is to pay forit.

    It is important to point out that the Museum is located in one of the most important colonial buildings, the homeof Rodrigo de Bastidas, a XVI century building declared World Heritage by the UNESCO.

    Education is definitely the most important asset any country can rely on for its development. We therefore,need more people to follow your example, said the Museum Director, and join this great effort made by AESDominicana Foundation.

    Energy Room at Museo Infantil Trampoln

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    Working Areas IV

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    AES Dominicana Foundationki IV

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    From 2008 to 2012, twenty-five young men and women have been selected for scholarhip programs sponsored by

    INTEC with its High Achievers PIES Program. This is part of a Cooperation Agreement executed by AES DominicanaFoundation and the Technological Institute of Santo Domingo (INTEC). Out of this group, five outstanding studentshave completed their undergraduate programs with success.

    AES Dominicana Foundation has chosen the INTEC High Achievers Program (PIES) as one of its allies on educationalissues. This program meets the Foundations expectations on educational matters.

    This project, sponsored by AES Dominicana Foundation and AES Itabo, was created for students enrolled at thePolitcnico de Haina and features three basic aspects: a) Visits to Itabo power plant by the students completing theprograms on Electricity and Mechanics, b) Internships for outstanding students, and c) Specific contributions for abetter operation of the school.

    Between 2010 and 2012, 21 students completed their three-month internships each year at AES Itabo. In 2012eight students completed their six-month internships at the power plant. These internships helped them broaden

    their learning experiences and strenghthened their curriculum. It is worth mentioning that these students receivedmonetary compensation. Those same students have participated in the yearly maintenance shutdowns at thepower plant. This proves this project already bears fruits with regards to employment among young people in thecommunity of Los Bajos de Haina.

    The companys social responsibility with the environment is strictly connected to the nature of its business activity.AES Dominicana is recognized as an environmentally responsible corporation since it generates clean energy by

    using natural gas as its source of fuel. Likewise, AES complies with every international standard on coal-based powergeneration.

    In spite of the abovementioned advantages, AES Dominicana Foundation is constantly developing projects orientedto the protection of the environment. In many cases, AES Dominicana Foundation can count on the support ofnational entitities that work for the protection of natural resources.

    AES Dominicana Foundation-PIES INTEC Scholarships

    Internships for Politcnico The Haina Students

    Environment

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    In 2010, with the participation of 120 volunteers, the AES Dominicana Group carried out two reforestation projectsin the Biodiversity Park (Gran Parque de la Biodiversidad). These projects received the direct support of the Centerfor Livestock and Agriculture Development (Centro para el Desarrollo Agropecuario and Forestal - CEDAF).

    This reforestation project was divided in two stages. At the end of this project more than 1,000 native mahoganyand cedar timber trees were planted. These trees will surely help preserve the Biodiversity Park, a natural reserveof more than 25 thousand hectares containing native fauna and flora. This project was done in the community ofGonzlez, province of Monte Plata, where the Soco River originates.

    In 2012, with the collaboration of 35 volunteers and the coordination of the Ministry of Environment and NaturalResources, another reforestation campaign was completed. This one was done at the Mirador Oeste Park, in Haina,province of San Cristbal, where 800 trees were planted around the riverbank of the Haina River.

    One of the objectives of AES Dominicanas corporate philosophy is to protect the environment. To this end, AESinvolves not only its employees and collaborators, but also the families of the communities it serves.

    Since 2009 AES Dominicana has been executing a reforestation plan. This plan is performed to help reducegreenhouse emissions (CO2), responsible for weather change. Up to December 2012, more than 200 volunteersfrom the company staff and their relatives have planted over 4,800 trees.

    Bring your Hands it is time for Reforestation

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    In Pursuit of a Bluer Sea is an educational program that creates awareness on the importance to preserve the oceans,riverbanks, and beaches. Since 2010, and up to 2012, more than 1,000 community members, AES collaborators,relatives and authorities from the area Los Bajos de Haina - where AES Itabo power plan is located - have joinedthis cause. In 2010, 3,755 pounds of waste were collected. In 2011, this amount went up to 6,245 pounds. In 2012,5,328 pounds of waste were picked up. In total, between 2010 and 2012, the amount of solid waste picked up bythis program was 15,328 pounds. Over 50% of these were made of plastic and foam.

    In pursuit of a Bluer Sea

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    Haina Recycles is a project sponsored by Empresa Generadora de Electricidad Itabo, S. A. and AES DominicanaFoundation. Its goal is to create awareness over the importance of recycling PET (Polyethylene terephtalate) andPEAD (high-density polyethylene) plastic materials throughout educational centers in the municipality of Los Bajosde Haina.

    This project featured two important innovative aspects: the first one was that it integrated 32 educational centersfrom this municipality to work on it. The second aspect was that participants were trained to separate the type

    of PET (Polyethylene terephtalate) plastics from PEAD (high-density polyethylene) plastics. Thereafter, theseplastics were delivered to a company that processes this type of material. This project helped community membersdistinguish the different types of plastics and how they are harmful to the environment; at the same time theyunderstood the importance of picking them up from the streets, and avoiding dumping them in the rivers in themunicipality of Los Bajos de Haina and its surrounding areas.

    Onother one of this projects goals was to implement this separation of waste system at the educational centerscovered by it. Students created awareness in their homes about this positive practice, and they are now cooperatingwith the local governements by not dumping trash in the rivers located in their municipality. They also committed

    themselves to promoting the recycling industry and they took away knowledge on solid waste separation techniques.

    Being able to count on the expertise of the Centro para el Desarrollo Agroforestal (CEDAF) in the completion of theabovementioned project was really relevant. This foundation promotes sustainable development of the agricultureindustry through the implementation of projects, programs and training sessions in order to protect and preservethe environment.

    For the aboventioned project we also had the collaboration and the support of the Patronato Pro-Desarrollo deHaina, the City Hall of the Municipality of Los Bajos de Haina, the Ministery of Environment and Natural Resources,

    and the Ministry of Education, through the participation of School District No. 04-06. Our strategic allied was M&FExport Company, which was the final destination of the material collected. AES Dominicana volunteers covered theinstructional part by giving talks in the different schools included in the program.

    Haina Recycles

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    The Haina Recycles Project was able separate and classify more than 36,500 pounds of plastic. Waste materialswere pulled out of peoples houses, streets, and rivers within the municipality of Haina and surrounding areas.

    Ten schools were awarded in the Net Weight and Weight Per Capita categories.

    A significant achievement was that with this new practice, members of the community were able to change theway they see and think about plastic. This material is no longer regarded only as waste, but as a source of incomefor the schools and communities.

    Parque Mirador del Sur, A Breathing Space for the City of Santo Domingo

    At the end of 2011, a project to promote the permanent care, use and safety of the Parque Mirador del Sur waslaunched under the slogan The park is yours: visit, enjoy and take care of it! This park is highly recreational and aplace where Santo Domingo inhabitants usually go to excercise.

    This project was completed thanks to the strategic alliance of AES Dominicana Foundation, the National DistrictCity Hall, Listn Diario Newspaper, as well as Pinturas Popular and The Coca-Cola Company. Several areas in the

    park were upgraded and restored. For this purpose several cleaning days were completed and many native plantswere planted in the different areas. The LISTN DIARIO newspaper developed an educational campaign.

    In 2012, as part of the project, a long walk was organized so that people could appreciate and enjoy the beauty ofthe famous native flamboyant trees. Five full kilometers of this park are full of these colorful trees, which embellishthe so-called breathing space of the city of Santo Domingo.

    Goals Achieved by the Haina Recycles Project

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    Contributing to the preservation and enhancement of culture and the artistic spirit is part of the interest that drivesAES Dominicana Foundation to participate in activities that promote the communitys cultural identity.

    In 2011 AES Dominicana Foundation sponsored for the fourth time the Santo Domingo Music Festival (FMSD). Witheight editions, held in the month of March every year, the FMSD has achieved unprecedented success. The saidversions have been able to mix international artists presentations with programs of great variety and good taste,a very appropriate artistic direction and massive public attendance.

    The First and Second Chess Cups were held in 2010 and 2012 respectively. Both cups were dedicated to our AESDominicana Foundation. This cup hosted many international and domestic chess players, both Dominican andforeigners.

    Participating in this initiative has been very rewarding for AES Dominicana Foundation. While proving to be a greatcommon effort, this now permanent event will motivate a more active practice of this sport-science in the countryand eventually make the Dominican Republic a World Chess Competition Destrination.

    The tournament had the endorsement of the International Federetion of Chess (FIDE). The two tournaments heldin the country had the participation of athletes from Russia, United States, Cuba, Macedonia, Puerto Rico, Mexico,and Venezuela. Ramn Mateo, the only Dominican chess player that is a FIDE Master, represented the DominicanRepublic.

    Culture

    Special Projects

    Spor ts and Educati on a t H and

    Working Areas

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    In 2010, on the occasion of the Christmas celebrations, the book entitled Roco and el Cucuyito, was published.Paula Disla, a Dominican writer who has been working for children for many years, wrote this short story. This booktells a very entertaining story that teaches on the importance of saving energy. Moreoever, this literary work showshow we can contribute a grain of sand to make our world a better place. Illustrations of this book were picked fromthe best paintings of the children that participated in the Pinta la energa contest sponsored by AES Dominicana

    Foundation and Tinmarn, the childrens magazine issued by the prestigious HOY newspaper.

    In 2011 AES Dominicana Foundation sponsored the literary work Me lo cont el Ozama (The Ozama Told me AboutIt), by Bernardo Vega, a renowned economist, intelectual and writer. The book was published under the coordinationof the Casa de Teatro Foundation. The book includes a description of the many changes that have taken place at themouth of the Ozama River from colonial times, at which the City of Santo Domingo was first established, up to themidst of the XX century. More than one hundred and fifty photos and antique engravings accompany the contentof the book. This literary work shall be a reference, both for current and future generations, on the mystic enclosedin this river and the events that have taken place around this river from colonial times to the dictatorship of Trujillo.

    Other actions in favor of Dominican Culture

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    On January 12, 2010, an earthquake of great magnitude that impacted an important part of its capital city andsurrounding towns surprised Haiti. AES Dominicana Foundation sent them medications, equipment, water, cannedfoods, tarpaulins, and an emergency power generator needed to give assistance to a great number of peopleimpacted by the earthquake. Aid was sent to them through the organization Cure International, which distributeddonations among the hospitals where they operate in Haiti.

    Likewise, a team of volunteer technical staff coming from different countries where AES does business did hardwork to restablish the substation at Verraux, in Port-au-Prince, the Hatian capital. This station provides energy forthe most important industrial and residential region of the country.

    Around 10,000 clients benefitted from this work. These consummers represent 60% of the power companysinvoicing in Haiti (EDH). When the works at the substation were finished, personal protection equipment weredonated for EDH workers and a program for the transfer of best safety practices and operational excellence wasstarted at the site.

    Solidarity with Haiti

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    In 2012 AES Dominicana Foundation started a training program for allcontractors working at AES power plants. This program was open tocommunity members that were interested in getting a certification

    on Argon or TIG welding. Workers trained on this type of processare scarce in the local labor market. Moreover, this process is highlyneeded and demanded for programmed maintenance at the power

    plants.

    The Technical Professional Institute (INFOTEP) conducted workshopsat the welding workshops of AES Andrs and Itabo power plants.Thirty-two contractors and members of the communities of LosBajos de Haina, Nigua, San Cristbal and San Pedro de Macors weretrained.

    Impacting the Community

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    Encouraged by their companies, corporate volunteers carry out community service activities mostly in their localcommunitites. These activities are performed through a social organization and under a cooperation agreementbetween the company and the social entity.

    *http ://ww w.grup cies. com/B OLETI N/IMAG ES/STO RIES/ .../A RTICU LOIII _EDIC _45.P DF

    Within the context of corporate social responsibility, the concept of corporate volunteers opens a new form ofinnovative dialogue between the company and its employees. Community members also take part in it through thesocial entities they belong to. Therefore, this is about a line of action with a possible strategic alliance between a

    social entity and a company. In these cases the real protagonists are the companys employees since they have the

    opportunity to participate actively in favor of their community through a social entity.

    Since the very beginning of AES Dominicana Foundation, AESs permanent staff and contractors have shown greatinterest in participating as volunteers in every project and program we have initiated.

    Every year a significant number of employees and their relatives participate in the activities of the Da Internacionalde Limpieza de Costa program (International Coastal Cleanup Day), Bring Your Hands reforestation program, aswell as the Advantages of Staying in School and Haina Recycles programs. These employees also turn intofacilitators and some of them have led some of the talks offered at schools as part of the program Love Your

    School.

    Corporate Volunteers. Our Social Face

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    V

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    Administrative Structure

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    Legal Incorporation: Non-profit AssociationRegistration: July 2007.Registration Certificate: No. 109-000000421

    Administrative, Organizational and Control Structure of AES Dominicana Foundation

    *www.grupcies.com/boletin/images/stories/.../ArticuloIII_Edic_45.pdf

    Administrative Structure V

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    The founding members and all active members make up the General Assembly. This assembly meets during the

    first fifteen days of October every year to analyze the Foundations situation and deal with matters that involvedecision-making.

    The Board of Directors is the body responsible for the management of the Foundation and its assets. This board alsomanages the day-to-day activities. It has a minimum of five (5) members, elected every two (2) years at the RegularGeneral Meeting. These members may be re-elected indefinitely and perform their duties until their succesors areelected.

    The Board of Directors holds a regular meeting at least every three months. Special meetings may be summonedas often as the Chairman deems them necessary. A meeting may also be summoned by two thirds of the activemembers, as long as they request it writing and inform the Chairman on the purpose of any such meeting.

    This Committees objective is to supervise compliance and development of the provisions established in the GoodCorporate Governance Code (CBGC). This committee is also in charge of advising the different Boards of Director atAES Dominicana and the Foundations Board of Directors on the best practices of corporate governance.

    Control mechanisms at AES Dominicana Foundation are clearly identified under Chapter VIII of its Bylaws. Thesebylaws state that the Foundations accounting records shall be as clear and precise as possible, and shall be kept

    in accordance with modern methods and generally accepted accounting principles. Banking accounts shall reflectevery movement of the Foundations funds.

    Likewise, all control mechanisms contained in the Good Corporate Governance Code of the AES Dominicana Groupwill be applied to the Foundation.

    General Assembly

    Board of Directors

    Corporate Governance Committee

    Fundations Control Mechanisms

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    Este documento est

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    impre so e n papel recic lado .

    This document is printed on recycled paper.

    2010-2012 Management ReportAll rights reserved 2013.


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