CORPORATE SOCIAL RESPONSIBILITY

As the leading Filipino energy company, First Gen recognizes the impact of its operations on society and on the environment and diligently pursues its role and responsibilities as a corporate citizen. We strive to ensure that our generation facilities are operated efficiently and in a manner that meets or exceeds Government health, safety and environmental standards. We are also committed to investing in opportunities that allow our host communities to grow with us.

Towards these ends, First Gen has supported community development projects in partnership with local government units and other local stakeholders that address economic, socio-cultural, health, education and environmental concerns of the communities in which it operates. Infrastructure development such as roads, schools and water systems have also been and continue to be financed by the company.

In addition, First Gen's plants have unfailingly and diligently allocated Php0.01 per kilowatt-hour of their total electricity sales as financial benefits to their host communities as mandated by the implementing rules and regulations of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), and Energy Regulations No. 1-94 of the Department of Energy (DOE). Monies from the allocation are devoted to electrification, development and livelihood, or reforestation, watershed management, health and /or environment enhancement projects identified by the relevant local government units that directly benefit the concerned communities.

First Gen's corporate responsibility initiatives extend beyond its surrounding communities. First Gen has partnered with various non-profit institutions to develop and implement projects that have a significant positive impact in the fields of environmental conservation, education, disaster relief, child rights, and protection of animals.

Enabling the Protection and Conservation of Greater Sipit Watershed in the Mt. Makiling Forest Reserve
First Gen partnered with the University of the Philippines-Los Banos' Makiling Center for Mountain Ecosystems (UPLB-MCME) and First Philippine Conservation, Inc. (FPCI) to develop and implement an effective protection and conservation program for the Greater Sipit Watershed in the Mt. Makiling Forest Reserve. The Mt. Makiling Reserve is one of the few remaining forest areas in the country with large areas of intact natural forests and a high diversity of flora and fauna. It also functions as a vital watershed for the two provinces of Laguna and Batangas. First Gen is conducting a rapid assessment of the reserve's flora and fauna. The results of the study, together with inputs from various stakeholders, are now being used to develop a rehabilitation and protection plan that First Gen intends to pursue with UPLB-MCME and other stakeholders in 2005.

Supporting the Philippine Tarsier Conservation Program
First Gen donated Php2 million to the Philippine Tarsier Foundation to help fund the Philippine Tarsier Conservation Program which is focused on preventing the extinction of the indigenous Philippine tarsier. A portion First Gen's donation was used to fund research into the implications for Biodiversity Assessment and Conservation in the provinces of Visayas and Mindanao where tarsiers have been foundt to live. Additional amounts to be disbursed in 2005 and 2006 will be used for organizing communities towards the protection of the tarsier and the promotion of eco-tourism within the sanctuary area in Corella, Bohol.

Adopting 100 hectares for reforestation at the La Mesa Watershed
First Gen adopted 100 hectares within La Mesa Watershed's 2,700 hectares as the First Gen Forest to support the ABS-CBN Foundation, Inc. Bantay Kalikasan project. First Gen's pledge of Php5 million was used to plant seedlings, provide the necessary firebreaks and ensure plant survival for the next three years. First Gen also ensured effective implementation of reforestation efforts by adopting criteria such as survival rate and number of species, among others, which were monitored by First Gen staff during the course of the project.

Jumpstarting the Verde Passage Marine Corridor Integrated Conservation and Development Program
First Gen partnered with Conservation International Philippines and FPCI to develop and implement an ecosystem-based management program that aims to maintain and protect the ecosystem in Verde Passage, an area covering the four provinces of Batangas, Mindoro Oriental, Mindoro Occidental and Marinduque and considered one of the richest in marine biodiversity around the world. First Gen's efforts focused on ensuring that species and ecological processes are sustained and improving the well-being of the people in surrounding communities through livelihood, income, participation, and basic services programs. First Gen invested close to Php3.6 million for the initial phase of the program and has pledged additional funding for succeeding phases to be implemented over the next three years.

Support to Provide Access to Quality Education
First Gen supports and provides financial assistance to Knowledge Channel Foundation, Inc. to enable the latter to install cable/satellite Knowledge Channel televisions to public schools in the Philippines. Due largely to First Gen's support, 30 schools in Batangas and 2 schools in Bauang, La Union were provided with technological infrastructure and supplemental content for education in areas with scarce resources. Donations were also made to different scholarship foundations to support their efforts in providing quality education to less-privileged but deserving candidates.

Providing relief to Typhoon Victims
First Gen and its subsidiaries donated a total of Php6 million to ABS-CBN Foundation, Inc. for relief operations in December 2005. An additional donation of Php0.5 million was made to the Corporate Network for Disaster Response for the creation of an emergency assistance fund for the typhoon victims.

Promoting Employee Volunteerism
First Gen, through an ongoing partnership with Hands On Manila Foundation, Inc., deployed its employees to distribute relief goods in typhoon-hit areas, plant trees for reforestation and repair animal enclosures for injured animals under the care of the Parks and Wildlife Bureau of the Department of Environment and Natural Resources (DENR), and to interact with disadvantaged children.