Administration of social responsibility at Ecopetrol throughout 2005 was based on respect for communities and the environment. The resulting actions all focused on contributing to the economic, social, and cultural development of the communities in the areas where the company operates.

Ecopetrol directly invested $34.391 billion last year in support of different programs in education, health, community development, basic social infrastructure, environmental preservation, recreation and culture, strengthening democratic institutions, and economic development in different regions of the country.

It also administered nearly $35,109 billion in resources for social investment from local authorities, organized community associations, foundations, public entities, and nongovernmental organizations.

These programs and projects were carried out as part of a joint effort under a three-party-cooperation scheme (Company, community and local authorities), in order to attend to the needs expressed by the communities and participate in the development plans of their local governments.

Thus, in 2005 there were 228 social investment projects undertaken in 390 municipalities throughout the country, in benefit of a population of one million people.

Social investment

Social investment during 2005 focused on support for the growing productive sectors, the generation of competitiveness for small and family companies, and on strengthening labor skills in oil-producing regions.

Economic development

Ecopetrol allocated 30% of its social investment resources to support projects to make 120 metallurgical companies in six cities throughout the country into industrial masters, to certify 1,500 workers in specialties related to the oil industry, and to develop suppliers in four regions of Colombia in order to increase the level of hiring and purchasing.

Infrastructure

The second most important item from an investment perspective was the development of roadways and bridges. That investment funded works such as asphalting the Astillero-Agualasal road in the municipality of El Zulia, and part of the road from Caño León-San Miguel, in the municipality of Tibú, both located in the Department of Norte de Santander.

The Company participated in the execution of water mains and sewage projects, rural electrical power provision and health centers. The most noteworthy was the La Amarilla Township potable water recovery project, to provide drinking water service for 190 families in Cimitarra, in the municipality of Santander.

Education

Ecopetrol promoted the construction, improvement and outfitting of educational centers, libraries and computer rooms, as well as literacy programs, environmental education and the promotion of knowledge through technology. These types of projects allow Ecopetrol to contribute to national and worldwide goals such as the United Nations Millennium Development goals.

Health

Ecopetrol improved the community’s access to health services through the construction, expansion, outfitting and remodeling of hospitals and health centers, and with the creation of health brigades in different municipalities. The most noteworthy is the program for Child development called ICDP, an agreement reached between the government of Huila, Unicef, and Ecopetrol against child abuse in that Department.

Recreation and culture

The Company supported cultural events, the construction and improvement of parks, sports facilities, sport arenas and cultural houses, contributing to the development of identity and local values.

Economic development

Ecopetrol participated in programs to boost regional economies, promoting the creation of family enterprises, small companies, and productive projects in the communities.

The programs included clothes manufacturing programs, the production of cacao, yuca, meat, dairy products, fish farming ponds, and training and support to small-scale entrepreneurs.

Institutional and community strengthening

Plans were made to train municipal administrators and community leaders in public administration, and support was given to strengthen the CREPAD and the CLOPAD for attention to oil spill emergencies.

In ethnic communities

Support projects were implemented for Indigenous and Afro-Colombian community encounters. Educational centers, culture houses, and a community indigenous store at Cabildo Indígena Pilu located in the municipality of Ortega, Tolima were improved and given supplies and equipment.

Environmental conservation

Ecopetrol carried out programs for reforestation, the recovery of micro river basins and bodies of water, educational projects in environmental education, and the classification of solid wastes.

Environmental management

As part of its policy of integral responsibility, and in order to improve its operations, throughout 2005 Ecopetrol strengthened its environmental programs by observing environmental and health legislation, by means of environmental management plans, with cleaner production and improved contingency planning.

The Company optimized the regulatory aspect of its environmental management, obtaining 99% of its environmental licenses, permissions, and authorizations for its installations and projects.

The environmental incident indicator behaved favorably compared to 2004, with the frequency of incidents reduced by 34%, going from 170 incidents in 2004 to 112 in 2005. This was mainly due to the results of a shock program to reposition flow lines in the Magdalena Medio and Sur administrations and to the actions focused on minimizing environmental risks in other areas of the company.

All in all, the Company invested $137.8 billion during 2005 in its operational areas, representing an increase of 18% over the prior year. Of these resources, $42.68 billion correspond to the execution of environmental studies, diagnoses, legal procedures, and other related expenses.

In the formulation and execution of environmental plans, investment projects, and direct company operations, investments reached $34.5 billion.

Investments of $57.26 billion were made in programs for the recovery and protection of natural renewable resources, water, air and soil, equipment for the control and follow-up of water quality, in the optimization of air emission treatments, in managing industrial solid wastes, and in soil recovery programs.

Lastly, resources for environmental investment programs in flora and fauna in the areas where the company operates amounted to $3.35 billion.

Accidents

Accident indicators showed improvement in 2005. As far as direct payroll employees, the frequency index for accidents diminished from 5.7 accidents per million man-hours worked in 2004 to 3.09 in 2005. When counting other workers and contractors, the result was 5.77 at year-end. In 2005 four contractors perished from accidents in places the company operates.