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.

Through WFT, Gran Tierra Energy has developed four projects targeting improvements of road infrastructure, education and housing in the Putumayo municipalities which experience high rates of poverty and food insecurity. Total investment for GTE’s first four WFT projects were over COP $14.1 billion and 10 more are in development. GTE has provided kitchen equipment including refrigerators, freezers and ovens as well as tables and chairs for 152 school cafeterias through the WFT program. These projects have benefitted over 12,000 students and teachers, supporting increased food security for local students, as the participating schools will now have the ability to store and prepare nutritious food, keeping students in school longer.

Ten new Works for Taxes projects have been identified and will be further developed over the next two years. The projects have been chosen by local communities and in order to seek final approval from the Federal Government, Gran Tierra Energy will invest COP$5,300 million to undertake the technical studies required to make the projects viable. For example, the rural road improvement projects require preliminary base line studies focused on soil, pavement, and will undergo hydraulic testing. For the projects that will see improvements to local school infrastructure, Gran Tierra will fund the development of architectural and structural analyses. Once the projects are approved by the National Government, they will be implemented in the municipalities of Villagarzón, Mocoa, Puerto Asís, Orito and Valle del Guamuez, benefiting more than 22,000 people with a total cost of COP$63,000 million, also to be contributed by Gran Tierra Energy.

“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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