DIRECTIVE COMMITTEE REPORT -

CODI

V EXTRAORDINARY MEETING OF MINISTERS

DANIEL CAMERON

CODI Chairman

May 17, 2013

Quito, ECUADOR

OLADE was created on November 2, 1973 with the signing of the Lima Agreement, the constituent instrument of the Organization, ratified by 27 Latin American and the Caribbean countries and 1 Participating Country, Algeria

VISION: OLADE is the political and technical-support organization by means of which its Member States undertake common efforts to achieve regional and sub-regional energy integration. MISION: To promote agreements between its Member Countries and carry out actions to satisfy their energy needs by means of the sustainable development obtained from the different sources of energy.

Political and

technical body

Sub-regionalization

Support to regional initiatives and mechanisms

CODI MEETINGS 2012

CODI MEMBERS CODI Nº 75

ECUADOR (1-2/03/12) CODI Nº 76

ECUADOR (10-11/07/12) CODI Nº 77

PERU (14-15/11/12)

ARGENTINA X X X

BARBADOS - X X

COLOMBIA X - X

CUBA X X X

EL SALVADOR - X X

MEXICO X X X

NICARAGUA X X X

PANAMA X X X

PARAGUAY X - X

DOMINICAN REPUBLIC

X X X

TRINIDAD Y TOBAGO X X X

VENEZUELA X X

OTHER MEMBER COUNTRIES

BRAZIL ECUADOR

BRAZIL, CHILE, ECUADOR

BOLIVIA, BRAZIL, CHILE, COSTA RICA, ECUADOR, GUATEMALA, HAITI,

HONDURAS, JAMAICA, PERU, URUGUAY

CODI MEETINGS 2013

MEMBERS CODI

CODI Nº 78 ON LINE (17/12/12)

CODI No. 79 ECUADOR

(15-16/05/13)

CODI Nº 80 To be defined

LOCATION AND DATE

ARGENTINA X

BARBADOS -

COLOMBIA -

CUBA X

EL SALVADOR X (*)

MEXICO X (**)

NICARAGUA X (*)

PANAMA X

PARAGUAY X

DOMINICAN REPUBLIC

X

TRINIDAD Y TOBAGO X

VENEZUELA X (*)

OTHER MEMBER COUNTRIES

BOLIVIA (*), BRAZIL, CHILE, CUADOR,

PERU AND URUGUAY

(*)Withdrew in the initial phase of the Meeting (**) The National Coordinator of Mexico, for scheduling reasons (mission to Peru) instructed to follow up the meeting with an official of the Secretariat

FOLLOW- UP TO MINISTERIAL DECLARATION AND DECISIONS

MINISTERIAL DECISION SUBJECT

XXXVIII/D/463 OLACDE RATIFICATION OF 19 MC

XLII/D/479: BUDGET 2012 88.66% FUNCTIONAL PROGRAMS AND 73.57% COOPERATION PROGRAMS

XLII/D/480: SELECTION OF AUDIT FIRM THE AUDITORS ISSUED AN UNQUALIFIED AUDIT REPORT

XLII/D/481: REJECTION OF THE ECONOMIC BLOCKADE AGAINST CUBA

COMMUNICATED TO THE UN

XLII/D/482: AMENDMENT TO BYLAWS MADE AND REPORTED

XLII/D/483: SOLIDARITY WITH HAITI INVITATION TO THE MINISTER TO MAKE A PRESENTATION AT THE XLIII MM

SUBJECT

Declaration of Panama Energy Security and Integration

MINISTERIAL DECLARATION

FOLLOW-UP

TRIENNIAL PLAN 2011-2013 COORDINATION WITH INTERNATIONAL

ENTITIES Follw-up and approval ANNUAL WORK PROGRAM

Follow-up participating country (South Korea)

Approval of Official Missions (82)

Caribbean Subregional Office (Installed)

Restructuring of the plant staff of the Permanent Secretariat, HR, Vacancies (1 Sustainable Energy Development and Energy Efficiency Coordinator)

IDB, CAF, CARICOM, CELAC, ECLAC, CIDA, IEF, IRENA,

UNIDO, SICA, UNASUR, UNEP, REGIONAL UNIVERSITIES,

OTHER

TRAINING

Training ro Member Countries 13 courses, 2.070 participants (26 MC + Algeria) 2012

EXECUTIVE DEVELOPMENT PROGRAM IN ENERGY PLANNING AND ENERGY DEVELOPMENT AND SOCIAL INCLUSION 428 participants from MC-2012

Budget 2013

Events scheduled for the XLIII Meeting of Ministers Ministerial Debate Keynote Speaker - Secretary General of UNASUR

Agendas developed for the XLII Council of Experts and XLIII Meeting of Ministers

Energy Integration (initial study identifying barriers and solution recommendations).

OTHER

FOLLOW-UP

Sub-regional Office in Central America

Caribbean Subregional Office UNASUR. OLADE's position was consolidated as an active element in regard to works with the South American Energy Balance developed together with the Group of Experts on Energy. It was defined a roadmap to move forward with new studies: analysis of

indicators and prospective South American Energy Council. OLADE takes part in the III Meeting of the Council (May 2012).

Memorandum of Understanding was signed between OLADE and the Government of Jamaica (Ministry of Science, Technology, Energy and Mines), in the city of Kingston, Jamaica, on 8/14/12 to host the headquarters of the Caribbean Sub-regional Office. A consultant was hired who acts as a Sub-regional Coordinator. He presented the 2012 work plan for the Office. Activities udnertaken:

• Caribbean Sub-regional Workshop on Capacity Building in Programmatic CDM and NAMAs (09/25-27/12)

• Inter-Agency Meeting on Cooperation for the Caribbean (09/28/12)

• First proposal of the Energy Agenda for the Caribbean.

CARIBBEAN SUB-REGIONAL OFFICE

2008

2012

STRENTHENING OLADE's SPACES

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

Sustainable

Energy Access for

Latin America and

the Caribbean

03/30/12 Cooperation Agreement $ 9,200,000 Canadian dollars to implement 12 sub-projects, with the unprecedented administration by OLADE (Activities to conclude the 12/31/17).

Social and Environmental Aspect •Promoting CSR •Implementation of CSR in rural energy systems in isolated areas. •Development of Gender Equality in Decision Making in the Energy Sector and the Energy Access. •Diploma on Energy and Social Issues

Energy Planning, Integration and Governance: •Capacity Building in Energy Planning •Strengthening Subregional Energy Integration and Improvement of Access to Energy Markets. • Energy Governance: Mechanisms of Assistance to Small Country for Regulation and Policy Development (oil and electricity). •Improved Access to Electricity for the Web •Programmatic CDM - MDLP - and Nationally Appropriate Mitigation Actions - NAMAs - (Renewable Energy and Energy Efficiency). •Mitigation and Adaptation to Climate Change in the Energy Sector. •CAPEV Virtual Training Program and technical networks. •Executive Development Programme in Energy Planning

12 sub-projects incorporated into the Annual Work Plans of OLADE

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

In response to the request

of the CODI Chairman, the

Inter-American

Development Bank (IDB)

and the Development Bank

of Latin America (CAF)

have provided funding

supported to OLADE's

events with $ 80,000.00

this year

Support to events

OLADE 2012

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

Facilitates planning

It promotes cooperation

Supports decision making

Promotes processes of

integration with a view toward

regional energy policy

Energy and

Climate

Change

Vulnerability Project of

Hydropower production systems

in Central America

to Climate

Change and adaptation

options

Contribute to the development of

energy efficiency by facilitating

exchange and dissemination of

technical, legal and regulatory

information, between institutions

and professionals from Latin

America

and the Caribbean. Energy Efficiency Network

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

Project:

PALCEE

Demonstration projects

(Nicaragua and El Salvador).

Internships (Jamaica, Grenada, El

Salvador, Nicaragua + Bolivia) in

FIDE (Mexico)

Integración

Energy

Integration -

Barriers and

recommendati

ons to the

solution

Identification of alternatives to

resolve barriers to energy

integration in Latin America and

the Caribbean

Brazil - Venezuela - Member Countries

LAC Programme of

Energy Efficiency

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

It simulates the evolution of

Energy Balance and analyzes the

energy matrix for policy decisions. Situation and

Analysis of the

energy mix New software development

SUPER-OLADE model is available

in version 6.0, compatible with the

latest versions of Windows OS, of

32 and 64 bits. It includes

significant enhancements to its

platform.

Update IT

MAJOR ACHIEVEMENTS 2012 - INSTITUTIONAL STRENGTHENING

EVENTS 2012

Co-organizers: National Energy Directorate (DNE), Ministry of Industry, Energy and Mining (MIEM) of the Oriental Republic of Uruguay and the State-owned company: National Administration of Fuels, Alcohol and Portland (ANCAP).

http://www.olade.org/II-seminario-petroleo-y-gas

•131 participants. •17 Member Countries •4 Member Countries

• Satisfaction: 90%

•183 participants. •15 Member Countries • 5 Member Countries

• Satisfaction: 87.43%

Co-organizers: Mexico's Energy Secretariat - SENER, Food and Agriculture Organization of the United Nations (FAO), the Inter-American Institute for Cooperation on Agriculture (IICA). Support of the Inter-American Development Bank (IDB).

http://www.olade.org/seminarios/VI-seminario-la-ca-biocomustibles

EVENTS 2012

•220 participants. •Delegates from 15 Member Countries •Professional from 6 Non-Members Countries • Satisfaction: 89.21%

Objective : To present and promote the exchange of experiences in various sectors (academia, government, business) of the Member Countries on subjects requested by the Directive Committee 76. These subjects were:

• Generating electricity with renewable energy. • Electrical interconnections. • Stability and Quality of Electricity. • Distributed Generation. • Smart Grids. • Electricity Mobility. • Outlook for the application of new technologies and methodologies for optimizing the power

supply nationwide.

http://www.olade.org/seminarios/II-seminario-la-ca-electricidad

EVENTS 2012

Objective: Promote the exchange of experiences, reflection and technical discussion of policies, regulatory frameworks and incentives for the advancement of energy integration in Latin America and the Caribbean.

http://www.olade.org/seminarios/VII-fier-2012

XLII COUNCIL OF EXPERTS November 15, 2012 - Lima, Peru Delegates from 22 Member Countries

XLIII MEETING OF MINISTERS (PREPARATORY SESSION) November 16, 2012 - Lima, Peru

• 94 participants • Delegates from 21 Member Countries

EVENTS 2012

By joint decision with the government of the host country (Ecuador) it was held on May 8 and 9, 2013). Note: Workshop on Energy Efficiency for Industry (Quito, Ecuador 09/28/12). Over 100 participants

By joint decision of the Organisers (United Nations Environment Program- UNEP, UNEP Risoe Centre, OLADE, International Emissions Trading Association - IETA, Inter-American Development Bank and the Secretariat of United Nations Framework Convention on Climate Change - UNFCCC) This event will be held in 2013 .

COMPARATIVE FINANCIAL MANAGEMENT (2010-2012)

16

INCOME AND EXPENSES OLADE'S FUNDS

COOPERATION PROGRAMS

• Expenses were reduced in the Functional Programs

• OLADE's own income significantly increased in 2012. • Income from external resources (2012/2011)

increased by 131%. • Investments in projects increased by 140%

(2012/2010)

MINISTERIAL DRAFT PROPOSAL AND MINISTERIAL DECISIONS

MINISTERIAL MINISTERIAL

SUBJECT

SUBJECT

MINISTERIAL DECLARATION ENERGY INTEGRATION AND SUSTAINABLE DEVELOPMENT

V REM/D/484: SELECTION OF AUDIT FIRM

V REM/D/485: TO END ECONOMIC BLOCKADE AGAINST CUBA

V REM/D/487: REGIONAL ENERGY INTEGRATION

MINISTERIAL MINISTERIAL

INSTRUCTION TO CODI

Alternative solutions to the deficits evaluated as possible for the years 2013 - 2016, by "preferably" obtaining resources from services supplied to third parties and / or defining a benefit for the

organization from the events that take throughout the year. The Secretariat will request and agree on collaboration of at least three Member Countries of the Organization.

• Increase of cuotas as of 2013 from U.S. $ 1,794 to US$ 15,590 per Member Country, values which are related to the level of fees currently paid by Member Countries. Duly substantiated special cases were addressed and submitted to the Permanent Secretariat in the first quarter of 2013.

• The CODI will evaluate alternative solutions in case the difference between the budgeted income for contributions of Member Countries of 2013 and cash payments for income contribution for that year, as a result of the exceptions mentioned in the previous paragraph, would put at risk the normal implementation of the planned activities. Surplus cases will also be considered.

• Management of Surplus: Maintain a fund correponding to 3 (three) times the average monthly expenditure of OLADE's functional programs, thus guaranteeing payment of obligations at the beginning of each year.

BUDGET APPROVAL PROCEDURE 2013

Directive Committee Meeting No. 78: approves supplementary extraordinary procedure and written consultation and direct to Ministers, applied by the Permanent Secretary.

Within defined term: The favorable response to the approval of the Budget 2013 was submitted by 18 out of 23 member countries surveyed (78.26%), which is a much higher percentage established by the Regulations for decision making by vote (2/3 of votes ).

No approval of the consultation procedure: Bolivia, Colombia, Chile, Costa Rica and Mexico

With these results, the Budget 2013 was approved, with increasing contributions of Member Countries and the Implementation Act signed by the highest authorities of OLADE's bodies ( Meeting of Ministers, Directive Committee and Permanent Secretariat), which was notified to all Member Countries.

The Minister of Bolivia, after receiving further explanation, sent letter of approval for the Budget 2013.

The procedure followed the provisions of the Regulations. In addition, OLADE's jurisprudence contemplates similar procedures for cases involving administrative aspects: Process of direct consultation with Ministers and the manifestation of their will (OR VOTE) in writing was established for a case of an administrative - financial matter by the II Meeting of Ministers of OLADE (Lima, 6 and 7 March 1981), by REM/D/082 decision, which approved the "Regulations for receipt of gifts, bequests, contributions to OLADE and its use."

EVENTS 2013

EVENT LOCATION DATE

Inter Secretariat Meeting (International Energy Agency - IEA, International Energy

Forum - IEF, OLADE) Quito, Ecuador 29/04/13

Technical Meeting for the Assessment and Monitoring of Oil and Gas Data Initiative

JODI Meeting Quito, Ecuador 30/04/13 – 01/05/13

V LAC Energy Efficiency Seminar Quito, Ecuador 8-9/05/13

CODI No. 79 Quito, Ecuador 15-16/05/13

V EXTRAORDINARY MEETING OF MINISTERS Quito, Ecuador 17/05/13

III Oil and Gas LAC Seminar Tegucigalpa,

Honduras 16-17/07/13

Latin American Carbon Forum Rio de Janeiro,

Brazil 26-30/08/13

III Electricity LAC Seminar Santiago, Chile 25-26/09/13

EVENTS 2013

EVENT LOCATION DATE

CODI Nº 80 To be defined End of October or November

XLIII COUNCIL OF EXPERTS To be defined End of October or November

XLIII Meeting of Ministers To be defined End of October or November

VIII Regional Energy Integration Forum - FIER

To be defined Venue of the XLIII

Meeting of Ministers

End of October or November

South America Central America and Mexico The Caribbean Participating Country

Argentina Brazil Bolivia Chile Colombia Ecuador Paraguay Peru Uruguay Venezuela

Belize Costa Rica El Salvador Guatemala Honduras Nicaragua Panama Mexico

Barbados Cuba Grenada Guyana Haiti Jamaica Trinidad & Tobago Dominican Republic Suriname

Algeria