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FOUNDATION REPORT 2010-2012


Prepared by the Vice-presidency of Communications at AES Dominicana. Administrative Offices: Torre Citigroup en la Plaza Acrópolis, Piso 23, Ens. Piantini, Santo Domingo Dominican Republic http://www.fundacionaesdominicana.org.do

Layout and design Víctor José Santana Rojas


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LETTER FROM THE PRESIDENT

AES DOMINICANA, COMMITTED TO SOCIAL RESPONSABILITY

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2010-2012 SOCIAL INVESTMENT


TABLE OF CONTENTS

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WORKING AREAS Relationships with the community: The Importance of Being a Good Neighbor • • • •

Bajos de Haina Community Work Los Mina Community Work Andrés - Boca Chica Community Work Collaboration with the Fire Department

High Impact Projects • Education • Environment • Special Projects • Corporate Volunteer Work Our Social Face

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AES DOMINICANA FOUNDATION’S ADMINISTRATIVE, ORGANIZATIONAL AND CONTROL ESTRUCTURE


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LETTER FROM THE PRESIDENT 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 show our results with great satisfaction, and we do so with the conviction that we will continue working so that our contributions yield the expected impacts on society, with a special bearing on the communities we serve and the communities 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 needs of 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 reflects our commitment to our corporate values, respect for the environment, and the rasion d’être of the AES Dominicana Power 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 Dominicana Foundation a role model in the Dominican Republic.

Marco De la Rosa President


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AES Dominicana, Committed to Social Responsibility

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AES Dominicana, Committed to Social Responsibility 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 environment and at competitive prices. AES has five core values that guide its activities: safety, integrity, excellence, enjoyment and 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 Dominican Republic. This Foundation evidences our commitment to achieving tangible results. It takes on the great challenge of 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 channels like 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 of the communities and achieve the participation of community members as co-promoters of these initiatives. They are, in the end, the true forgers of the nation’s progress.

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AES Dominicana, Committed to Social Responsibility

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

• 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.

• Junior Achievement: Since 2010 Programs: -Challenges of the Stock Market. -Advantages of Staying in School. -Creating a Culture of Efficiency. -Entrepreneurs at School Age • American Chamber of Commerce: Since 2010 Program: –Elementary Education USAID-AMCHAMDR. • Technological Institute of Santo Domingo (Intec): Since 2008 Program: –Pies Scholarships

• Patronato Pro-Desarrollo de Haina: Since 2011 Proyect: –Bajos de Haina Community Work

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• Cure Dominicana: Desde el 2006 Programa: –Iluminamos la vida de los niños • CEDAF: Desde 2010 Proyectos: –Concurso de Pintura Infantil sobre el Medioambiente. –Haina Recicla

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

• Patronato Museo Trampolín: Since 2008 Proyect : –Energy Room • Editora Listín Diario: 2011-2012 Proyects: –Parque Mirador Sur “A Breathing Space for the City” –Plan Lea with “Your Habits” and “Geography Week” Handouts • Casa de Teatro: 2009-2011 Proyects: –Canciones de la Casa CD (Songs from Casa) –Dominican Youth Art. Awarded at the VIII Edition of the 2009 Critics Award, by Asociación de Críticos de Arte, ADCA and APEC. –Me lo contó el Ozama (The Ozama Told Me About It), by Bernardo Vega

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AES Dominicana, Committed to Social Responsibility

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2010-2012 Social Investment

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2010-2012 Social Investment

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2010-2012 Social Investment From 2010 to 2012, AES Dominicana Foundation has carried out around 18 projects. Several initiatives have been launched 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 own resources and RD$3,192,371.74 of resources cofinanced by national and internation allies, both in kind and in cash.

Table of resources used by AES Dominicana Foundation

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IV AES Dominicana Foundation Working Areas


AES Dominicana Foundation – Working Areas With the purpose of initiating higher impact actions and using its resources and capabilities, AES Dominicana Foundation focuses on two areas. One of those areas is called “Relationship with the Community” and it focuses on issues related to the community’s culture, health and sports. Since the very beginning, these issues have been part of the first lines of action of the Foundation, but up to now they have focused more on the communities surrounding the power generation plants. The second area, called “High Impact Projects”, focuses on environmental and educational issues. These cases have been adjusted to the line of business and the nature of AES operations in the Dominican Republic.

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Relationship with the Community: The Importance of Being a Good Neighbor One of the core elements of Corporate Social Responsibility is the good management of interest groups, and especially, in the communities where the company’s day to day business is developed. Therefore, there is an ever-growing trend among socially responsible companies to achieve a good relationship with the surrounding communities. Being a good neighbor and investing in critical aspects in the areas of influence, and the society in general, benefits the community. At the same time, this action helps strengthen the company’s competitiveness or the competitiveness of the group of companies that operate in the same community. A company that supports the development of the communities where its plants are located, and pursues a “competitive environment”, contributes both to the benefit 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 where it develops its business activities. AES Dominicana Foundation has given a great deal of importance in its programs to the work done in the areas of influence of the company. Therefore, AES has prioritized its intervention in the most vulnerable areas, focusing its work in the areas of Bajos de Haina, Boca Chica, La Caleta and Los Mina.

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Bajos de Haina Community Work In 2010 AES Dominicana Foundation and Patronato Pro-Desarrollo de Haina (PADESHA) executed a Collaboration Agreement. The purpose of this agreement is to more directly channel every activity, project and assistance given to the community located at Bajos de Haina. This agreement seeks to strengthen the business-community relationship and 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. All aspects covered on these works are detailed below:

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Los Mina Community Work With the purpose of creating closer ties with the communities surrounding the Dominican Power Partners (DPP) Power Plant, the Foundation organized an educational visit to the community leaders. By using clear and understandable language, members of DPP’s Technical Operation staff gave a speech on how energy is produced from natural gas at the power plant. A walk around the plant’s facilities followed this visit. In 2012, community members participated in the fire drill carried out at the DPP plant. These community leaders were part of the group of observers that assessed and commented on the points for improvement on the emergency response work carried out in the area. With regards to the environment, and as a way to embelish the front area of DPP plant, the second ecological mural was completed, by using the award wining drawings from the contest Pinta la Energía sponsored by AES Dominicana Foundation and Tinmarín magazine issued by local Hoy newspaper. Dominican artist José Pelletier, with the collaboration of 5 young talented Dominican paintors, painted the sketches. Along that same line, the area where the ecological mural is located was completely illuminated as well as the Arcoíris Park, located across the street from the DPP plant. This has benefited children, youth and adult visitors that live in the area by providing them with an outdors leisure area that is not only recreational but also safe.

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Andrés, Boca Chica Community Work AES Dominicana Foundation, with the collaboration of technical and administrative staff at the AES Andres power plant, 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 a water pipeline with an extension of 320 meters. The area had historically experienced shortage and insufficiency of water supply for decades. This project allowed more than 150 families to have access to this precious liquid. These works were completed with the coordination of the Municipality of Boca Chica and under the supervision of the Santo Domingo Water Company (Corporación del Acueducto and Alcantarillado de Santo Domingo - CAASD). Another project that was very well received by the community was the Foundation’s donation, jointly with the Neighbor’s association, of a significant amount of streetlights for Brisas de Caucedo Sur. This donation was made with 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 with greater sense of safety. AES Dominicana Foundation also made significant contributions in the sports area during 2012. In the specific case of Boca Chica, children and youngsters were donated baseball uniforms, gloves, balls and kits. The beneficiaries of these donations were the athletes that belong to the Ozuna Baseball League. This league operates in the community of Brisas de Caucedo Sur, neighboring the power plant. A total of 60 children benefitted from these donations.

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Collaboration with the Fire Department Within the framework of the works that are carried out in the communities, AES Dominicana Foundation works hand in hand with the Fire Department in the communitities where the facilities of the Group are located. Since these are non-profit institutions, which serve the community for free, they are extremely important for us in terms of safety. For this reason, together with other fire fighting squads, we have completed joint activities such as fire drills and prevention awareness. We have also shared with these institutions the procedures we follow at AES for prevention purposes. Moreover, we have given them consulting services on safety, fire prevention, and first aid. The fire fighting companies we have been working with are Santo Domingo Este, Boca Chica, La Caleta and Haina. Members of these institutions are ready to serve in case of any emergency, and the Foundation supports them through donations of fuel for their operations, uniforms, fire fighting rescue equipment and assistance for the improvement of the buildings of those centers. We have also contributed with training provided by TEXAS ENGINEERING EXTENSION SERVICE, from Texas, United States. This institution offers traning programs and technical assistance for public safety. They hold the largest fire fighting training installation in the United States.

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High Impact Projects AES Dominicana Foundation does not only serve the communities surrounding the company’s power plants. Its actions go above and beyond to cover other issues of a nation-wide nature and its coverage touches on two critical areas 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 population about the appropriate use of energy and increase the educational level of both teachers and students. To this end, we have counted on the technical support and expertise of the American Chamber of Commerce and Junior Achievement. It is worth mentioning that in the beginning AES Dominicana Foundation focused on improving the buildings of the schools it sponsors, because they were extremely worn out and in bad shape. These improvements have helped the students 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 to create 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 essence of AES Dominicana, a company that is definitely a pioneer in the natural gas power generation industry.

Education Without a doubt, quality education is the corner stone of every nation’s development. This is why for AES Dominicana it is extremely important to collaborate with the schools located around the power plants at Andrés, 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 Foundation’s 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 developed a sense of commitment among community members, so they make every effort to keep these schools in good conditions. As part of its educational programs, AES Dominicana Foundation focuses on two programs. One of them focuses on reducing school dropout rates. This frequent situation in the Dominican educational system is more evident in the middle school students (7th and 8th graders). The second program focuses on providing teaching techniques and learning tools for both students and teachers.

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Love your School Programs AES Dominicana Foundation’s initiatives aim at improving the quality of edacation offered at a national level. In this direction, we have created these programs to accompany the schools Ercilia Pepín and Km 17, in the Bajos de Haina section; the Pueblo Nuevo school, located in Los Mina, Santo Domingo Este; María Caro, in La Caleta; and Brisas de Caucedo Sur, in Andrés, Boca Chica. These schools are located in areas close to the power plants owned by AES Group and in the areas surrounding the pipeline. In each case, school premises were improved in order to offer students a better place to receive their education every day. Around eight hundred students from these schools benefit directly from the initiatives of the Foundation. In addition 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 throughout the 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.

USAID-AmchanDR Elementary Education Program This is a five-year program that covers all the schools that make up the “Love Your School Program”. It includes teacher training, donation of equipment, as well as books and teaching materials which are highly needed for “Reading Corners”. It also provides specialized attention to underachievers and support to the school management with workshops, training and follow up. Study halls are available for students and teachers. With this program, the Foundation together with the Ministry of 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.

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“Advantages of Staying in School” This program was born in 2010, hand in hand with the Junior Achievement Program. Its purpose is to motivate elementary 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 schools covered 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 the many reasons that contribute to this elevetated dropout rate we can mention teenage pregnancy and the fact that many 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) and CEPAL, dropout rate is around 34% in the Dominican Republic. These studies state that among the reasons behind school 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 government and 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 looked for an institution that could develop a program that would help reduce school dropout rates. The allied we found was Junior Achievement, an NGO that launches educational programs in over 125 countries. These programs complete the 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 kids in 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 who explained to them how important it is to stay in school and get an education.

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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 among children in school age. This way we seek to foster in children a spirit of enterpreneurship that will allow them to become 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 Pepín Schools 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 the importance 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 their lives and to act accordingly to achieve their goals.

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Energy Room at Museo Infantil Trampolín The Children Museam, Museo Infantil Trampolín, 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 April 2004 and up to 2008, at least 70,000 children enjoyed its installations annually. Adding school age students and the general public, the museum received 450,000 visitors during the first four years. After the Energy Room was included in December 2008, the amount of students per year went up to 90,000. A total of 580,000 people, children and adults, have visited the museum over the last four years. The Energy Room at the Museo Infantil Trampolín explains the origins of energy to the visiting children. The story-telling experience covers from the cavemen age to our technological world today, including explanations on renewable 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 energy responsibly. Ms. Nancy Handal, General Director of the Museo Trampolín, thanks AES Dominicana Foundation on behalf of Dominican youth for supporting children education across the country through the initiative of donating and sponsoring the Energy Room at the Museo Infantil Trampolín. This room has allowed over 90,000 yearly visitors enrich 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 visitors receive the information in an instructional, entertaining, interactive and modern way, while focusing on the relevant values of safety, self-protection, saving the environment, and the cost of energy and how important it is to pay for it. It is important to point out that the Museum is located in one of the most important colonial buildings, the home of 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 AES Dominicana Foundation.”

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AES Dominicana Foundation-PIES INTEC Scholarships 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 Dominicana Foundation and the Technological Institute of Santo Domingo (INTEC). Out of this group, five outstanding students have completed their undergraduate programs with success. AES Dominicana Foundation has chosen the INTEC High Achievers Program (PIES) as one of its allies on educational issues. This program meets the Foundation’s expectations on educational matters.

Internships for Politécnico The Haina Students This project, sponsored by AES Dominicana Foundation and AES Itabo, was created for students enrolled at the Politécnico de Haina and features three basic aspects: a) Visits to Itabo power plant by the students completing the programs on Electricity and Mechanics, b) Internships for outstanding students, and c) Specific contributions for a better operation of the school. Between 2010 and 2012, 21 students completed their three-month internships each year at AES Itabo. In 2012 eight 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 received monetary compensation. Those same students have participated in the yearly maintenance shutdowns at the power plant. This proves this project already bears fruits with regards to employment among young people in the community of Los Bajos de Haina. Environment The company’s 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 power generation. In spite of the abovementioned advantages, AES Dominicana Foundation is constantly developing projects oriented to the protection of the environment. In many cases, AES Dominicana Foundation can count on the support of national entitities that work for the protection of natural resources.

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Bring your Hands … it is time for Reforestation In 2010, with the participation of 120 volunteers, the AES Dominicana Group carried out two reforestation projects in the Biodiversity Park (Gran Parque de la Biodiversidad). These projects received the direct support of the Center for 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 mahogany and cedar timber trees were planted. These trees will surely help preserve the Biodiversity Park, a natural reserve of more than 25 thousand hectares containing native fauna and flora. This project was done in the community of González, 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 Natural Resources, another reforestation campaign was completed. This one was done at the Mirador Oeste Park, in Haina, province of San Cristóbal, where 800 trees were planted around the riverbank of the Haina River. One of the objectives of AES Dominicana’s corporate philosophy is to protect the environment. To this end, AES involves 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 reduce greenhouse emissions (CO2), responsible for weather change. Up to December 2012, more than 200 volunteers from the company staff and their relatives have planted over 4,800 trees.

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In pursuit of a Bluer Sea 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 joined this 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 by this program was 15,328 pounds. Over 50% of these were made of plastic and foam.

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Haina Recycles Haina Recycles is a project sponsored by Empresa Generadora de Electricidad Itabo, S. A. and AES Dominicana Foundation. Its goal is to create awareness over the importance of recycling PET (Polyethylene terephtalate) and PEAD (high-density polyethylene) plastic materials throughout educational centers in the municipality of Los Bajos de Haina. This project featured two important innovative aspects: the first one was that it integrated 32 educational centers from 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, these plastics were delivered to a company that processes this type of material. This project helped community members distinguish the different types of plastics and how they are harmful to the environment; at the same time they understood the importance of picking them up from the streets, and avoiding dumping them in the rivers in the municipality of Los Bajos de Haina and its surrounding areas. Onother one of this project’s goals was to implement this separation of waste system at the educational centers covered by it. Students created awareness in their homes about this positive practice, and they are now cooperating with 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 the abovementioned project was really relevant. This foundation promotes sustainable development of the agriculture industry through the implementation of projects, programs and training sessions in order to protect and preserve the environment. For the aboventioned project we also had the collaboration and the support of the Patronato Pro-Desarrollo de Haina, 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&F Export Company, which was the final destination of the material collected. AES Dominicana volunteers covered the instructional part by giving talks in the different schools included in the program.

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Goals Achieved by the Haina Recycles Project The Haina Recycles Project was able separate and classify more than 36,500 pounds of plastic. Waste materials were pulled out of people’s 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 the way they see and think about plastic. This material is no longer regarded only as waste, but as a source of income for 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 was launched under the slogan “The park is yours: visit, enjoy and take care of it! This park is highly recreational and a place where Santo Domingo inhabitants usually go to excercise. This project was completed thanks to the strategic alliance of AES Dominicana Foundation, the National District City Hall, Listín 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 plants were planted in the different areas. The LISTÍN 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 of the famous native flamboyant trees. Five full kilometers of this park are full of these colorful trees, which embellish the so-called “breathing space” of the city of Santo Domingo.

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Special Projects Sports and Education at Hand The First and Second Chess Cups were held in 2010 and 2012 respectively. Both cups were dedicated to our AES Dominicana Foundation. This cup hosted many international and domestic chess players, both Dominican and foreigners. Participating in this initiative has been very rewarding for AES Dominicana Foundation. While proving to be a great common effort, this now permanent event will motivate a more active practice of this sport-science in the country and 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 held in the country had the participation of athletes from Russia, United States, Cuba, Macedonia, Puerto Rico, Mexico, and Venezuela. Ramón Mateo, the only Dominican chess player that is a FIDE Master, represented the Dominican Republic. Culture Contributing to the preservation and enhancement of culture and the artistic spirit is part of the interest that drives AES Dominicana Foundation to participate in activities that promote the community’s cultural identity. In 2011 AES Dominicana Foundation sponsored for the fourth time the Santo Domingo Music Festival (FMSD). With eight editions, held in the month of March every year, the FMSD has achieved unprecedented success. The said versions 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.

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Other actions in favor of Dominican Culture • In 2010, on the occasion of the Christmas celebrations, the book entitled “Rocío and el Cucuyito”, was published. Paula Disla, a Dominican writer who has been working for children for many years, wrote this short story. This book tells a very entertaining story that teaches on the importance of saving energy. Moreoever, this literary work shows how we can contribute a grain of sand to make our world a better place. Illustrations of this book were picked from the best paintings of the children that participated in the Pinta la energía contest sponsored by AES Dominicana Foundation and Tinmarín, the children’s magazine issued by the prestigious HOY newspaper. • In 2011 AES Dominicana Foundation sponsored the literary work Me lo contó el Ozama (The Ozama Told me About It), by Bernardo Vega, a renowned economist, intelectual and writer. The book was published under the coordination of the Casa de Teatro Foundation. The book includes a description of the many changes that have taken place at the mouth of the Ozama River from colonial times, at which the City of Santo Domingo was first established, up to the midst of the XX century. More than one hundred and fifty photos and antique engravings accompany the content of the book. This literary work shall be a reference, both for current and future generations, on the mystic enclosed in this river and the events that have taken place around this river from colonial times to the dictatorship of Trujillo.

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Solidarity with Haiti On January 12, 2010, an earthquake of great magnitude that impacted an important part of its capital city and surrounding towns surprised Haiti. AES Dominicana Foundation sent them medications, equipment, water, canned foods, tarpaulins, and an emergency power generator needed to give assistance to a great number of people impacted by the earthquake. Aid was sent to them through the organization Cure International, which distributed donations among the hospitals where they operate in Haiti. Likewise, a team of volunteer technical staff coming from different countries where AES does business did hard work to restablish the substation at Verraux, in Port-au-Prince, the Hatian capital. This station provides energy for the most important industrial and residential region of the country. Around 10,000 clients benefitted from this work. These consummers represent 60% of the power company’s invoicing in Haiti (EDH). When the works at the substation were finished, personal protection equipment were donated for EDH workers and a program for the transfer of best safety practices and operational excellence was started at the site.

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Impacting the Community In 2012 AES Dominicana Foundation started a training program for all contractors working at AES power plants. This program was open to community members that were interested in getting a certification on Argon or TIG welding. Workers trained on this type of process are scarce in the local labor market. Moreover, this process is highly needed and demanded for programmed maintenance at the power plants. The Technical Professional Institute (INFOTEP) conducted workshops at the welding workshops of AES Andrés and Itabo power plants. Thirty-two contractors and members of the communities of Los Bajos de Haina, Nigua, San Cristóbal and San Pedro de Macorís were trained.

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Corporate Volunteers. Our Social Face Encouraged by their companies, corporate volunteers carry out community service activities mostly in their local communitites. These activities are performed through a social organization and under a cooperation agreement between the company and the social entity. *http://www.grupcies.com/BOLETIN/IMAGES/STORIES/.../ARTICULOIII_EDIC_45.PDF Within the context of corporate social responsibility, the concept of corporate volunteers opens a new form of innovative dialogue between the company and its employees. Community members also take part in it through the social 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 company’s 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, AES’s permanent staff and contractors have shown great interest 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 “Día Internacional de Limpieza de Costa” program (International Coastal Cleanup Day), “Bring Your Hands” reforestation program, as well as the “Advantages of Staying in School” and “Haina Recycles” programs. These employees also turn into facilitators and some of them have led some of the talks offered at schools as part of the program “Love Your School”.

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AES Dominicana Foundation Working Areas

IV


V

Administrative Structure


*www.grupcies.com/boletin/images/stories/.../ArticuloIII_Edic_45.pdf Administrative, Organizational and Control Structure of AES Dominicana Foundation Legal Incorporation: Non-profit Association Registration: July 2007. Registration Certificate: No. 109-000000421

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Administrative Structure

V

General Assembly 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 Foundation’s situation and deal with matters that involve decision-making. Board of Directors The Board of Directors is the body responsible for the management of the Foundation and its assets. This board also manages the day-to-day activities. It has a minimum of five (5) members, elected every two (2) years at the Regular General Meeting. These members may be re-elected indefinitely and perform their duties until their succesors are elected. The Board of Directors holds a regular meeting at least every three months. Special meetings may be summoned as often as the Chairman deems them necessary. A meeting may also be summoned by two thirds of the active members, as long as they request it writing and inform the Chairman on the purpose of any such meeting.

Corporate Governance Committee This Committee’s objective is to supervise compliance and development of the provisions established in the Good Corporate Governance Code (CBGC). This committee is also in charge of advising the different Boards of Director at AES Dominicana and the Foundation’s Board of Directors on the best practices of corporate governance.

Fundation’s Control Mechanisms Control mechanisms at AES Dominicana Foundation are clearly identified under Chapter VIII of its Bylaws. These bylaws state that the Foundation’s 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 reflect every movement of the Foundation’s funds. Likewise, all control mechanisms contained in the Good Corporate Governance Code of the AES Dominicana Group will be applied to the Foundation.

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Somos miembro de

Este documento está impreso en papel reciclado. This document is printed on recycled paper.

Informe de Gestión 2010-2012 ®Todos los derechos reservados 2013. 2010-2012 Management Report®All rights reserved 2013.

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