Tax Revenues Directly Developing Local Territories

Works for Taxes (WFT) is a program created by the Colombian government that allows GTE to use up to 50% of its income tax contributions to directly develop and implement local projects that improve livelihoods, support economic development and help stabilize territories most affected by poverty and the previous armed conflict. WFT is also an important component of Colombia’s Territorially Focused Development Programs (PDETs) following the 2016 peace agreement signed between the FARC-EP guerrilla movement and the Colombian government. The PDETs are a vital tool for rural development and lasting territorial peace that empowers local communities to decide how funds should be invested in their territories.

GTE’s participation in Colombia’s Works for Taxes program allows income taxes to be invested directly into priority areas, within the communities in the area of influence of GTE’s operations, that address social inequality—such as food security, health, education, and road enhancements.

Since 2018, Gran Tierra Energy has invested more than $3.6 million USD in the PDET municipalities of Putumayo. In 2023, GTE identified four new Works for Taxes projects that are to be developed over the next two years. The projects, with an aggregate value of $14.2 million USD, were chosen by local communities in consultation with GTE employees, and are awaiting final Government approval. The projects will be implemented in Villagarzón, Mocoa, Puerto Asís, Orito, and Valle del Guamuez municipalities, and are estimated to benefit more than 22,000 people.

One example of a previous Work for Taxes project implemented by Gran Tierra Energy included providing cafeteria upgrades to hundreds of local schools. Through this project GTE provided kitchen equipment including refrigerators, freezers and ovens as well as tables and chairs for 152 school cafeterias through the WFT program. These projects benefitted over 12,000 students and teachers, supporting increased food security for local students, as the participating schools now have the ability to store and prepare nutritious food, keeping students in school longer.

Other projects include improving sanitation infrastructure in multiple communities, and upgrading roads to connect thousands in the rural communities between Campo Alegre and Puerto Vega-Teteyé.

“As a rural community, Works for Taxes is so important to keep the benefits here, and allows us to focus on improving our transportation infrastructure. The project has had a huge impact, and we are looking forward to extending this collaboration to continue changing the lives of our people and helping them envision a different future.”
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