potentially its Barahona I and Sultana del Este plants, would be dispatched less frequently and that the amount of energy dispatched by EGE Haina into the SENI would decrease. The Dominican Government has announced its intention to build two 600 MW coal power generation facilities in the southern part of the country and is currently negotiating the terms of a financing and construction agreement with Sichuan Machinery Equipment Imp. Exp. Co. Ltd. If financing for the facilities is secured and the government's plan is implemented, these facilities would compete with EGE Haina as they would be assigned some of the firm capacity currently assigned to EGE Haina and other Dominican power generation facilities. In addition, these new units would be low cost generation units which could potentially be dispatched before or in the same order of priority as certain of EGE Haina's generation facilities. Employees EGE Haina's generation and other facilities are operated by employees of EGE Haina. The following table shows the number of our employees by category on the dates indicated. As of December 31, 2006 2005 2004
Senior management ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Middle managementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Staff ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
7 17 353
5 17 218
5 17 223
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
377
240
245
The operating and maintenance contract with Wartsila relating to the Sultana del Este plant expired in November 2006 and EGE Haina assumed the operations and maintenance of this plant upon the expiration of this contract. Following the expiration of this contract, EGE Haina hired 86 employees to perform operations and maintenance at the Sultana del Este plant. In addition, EGE Haina hired 47 additional employees at its other plants in 2006 to perform the duties previously performed by independent contractors. All personnel are non-unionized, and there are no collective bargaining agreements. EGE Haina has not experienced any labor strikes since its capitalization in 1999. It is the opinion of EGE Haina's management that it has good relations with its employees. EGE Haina's compensation packages include a cash bonus based on performance, in addition to customary benefits in the Dominican labor market, such as medical and dental plans and other non-cash benefits that are required by Dominican law. The Dominican Republic's profit sharing regulations require EGE Haina to pay its employees an amount up to 10% of its income before taxes. An employee is qualified to receive up to the equivalent of 45 days of his or her daily pay if the employee has been at the company for no more than three years or up to the equivalent of 60 days of his or her daily salary if the employee has been at the company more than three years. Property EGE Haina's principal properties consist of land and improvements located at its generation plants. EGE Haina owns all of the real property on which its generation plants are located. In addition, EGE Haina leases 1,100 square meters of office space for its corporate headquarters in Santo Domingo. The net book value of EGE Haina's property, plant and equipment as of December 31, 2006 was US$273.2 million. EGE Haina's facilities are generally adequate for its present needs and suitable for their intended purposes. Insurance EGE Haina currently has an insurance policy covering physical damage, business interruptions, machine breakdowns and natural catastrophes. The maximum aggregate coverage limit under EGE Haina's policy is 76