Performance Standard 4 – Community Health and Safety – does not apply as the project does not include the construction of a worker camp. Workers will originate or be housed in space available in urban centers such as the town of La Canela and the company will provide daily transport from these population centers and appropriate amenities/facilities during work hours. Management of driver safety issues related to transport of people and materials during construction and operation can be adequately managed through compliance with Chilean driver licensing and road safety requirements; Performance Standard 5 – Land Acquisition and Involuntary Resettlement – does not apply as the easement for land required for project development was negotiated in a mutually agreed manner and as it will not result in economic or physical displacement; Performance Standard 7 – Indigenous Peoples – does not apply as no indigenous peoples are affected by project development; and Performance Standard 8 – Cultural Heritage – does not apply as no cultural heritage resources were identified during the environmental assessment activities.

During the first three months of the construction phase, potable water for day camp services including cafeteria, showers, and sanitary services, will be provided by an authorized potable water supplier via tanker truck and stored in dedicated above-ground water storage tanks. Prior to distribution and use, water from the storage tank will be dosimetrically chlorinated ensuring that water quality, including residual chlorine concentrations, is within the Chilean standards for drinking water. During the rest of the construction period and during the operational phase, drinking water and all potable water needs will be sourced from an on-site groundwater well, treated through a reverse osmosis system, and chlorinated prior to distribution in order to meet Chilean drinking water standards.

During the operational phase, Norvind will hire approximately 12 workers for daily operations and rely on the support of contractors for electro-mechanical maintenance activities. Norvind will develop a human resources policy (based on SN Power’s) which defines company and workers requirements and responsibilities with regards to a wide range of labor issues covered by Chilean law and including: contracting procedures and terms of individual employment contracts; working hours, shifts, and overtime; rest periods and vacation policy; compensation; occupational training; contract termination; grievance mechanism and procedures; and occupational health and safety policy and procedures.

Norvind will develop and implement an occupational health and safety program during the operational phase which includes a set of operating objectives and procedures based on the identification and quantification of workplace risks coupled with applicable legal and other requirements. Norvind’s documented procedures for employees and contractors will address the continuous identification of dangerous conditions, evaluation of associated risks, and implementation of control measures. Norvind will require that contractors train employees in understanding workplace risks and their prevention and control, including the use of personal protective equipment (PPE), hazardous materials handling, and emergency response. Incidents and accidents will be investigated according to a documented procedure so that steps can be taken to prevent reoccurrence.

PS3: Pollution prevention and abatement:

Norvind will require that all construction contractors comply with the EIA findings and Environmental Permit conditions (including associated monitoring requirements), covering such aspects as fugitive dust from earth moving activities; noise and exhaust from construction machinery; sanitary effluents from worker facilities, and non-hazardous and hazardous solids wastes.

- Management of resources including energy, water, hazardous and other materials – The construction and operation of the project will not require the use of significant quantities of energy, water, natural resources, or hazardous materials. Construction activities will require the temporary storage and use of fuel and lubricants for heavy equipment. Fuel consumption for construction equipment operation is estimated at 200 liters / day. Fuel will be delivered by an authorized service company and stored in a portable 5,000 liter aboveground storage tank with secondary containment able to hold 110% of the tank volume. The lead contractor will implement the spill prevention and contingency plan outlined in the Environmental Permit to address potential impacts from storage and handling of fuel, including the construction of secondary containment areas for fuel loading activities.

- Waste management – The main sources of waste generation will occur during the construction phase of the project and will include excavated materials from civil works site preparation (e.g. soil and rock materials); miscellaneous organic and inorganic domestic waste from work campsite food service and offices (e.g. food, paper, and plastics); equipment shipping materials (e.g. wood crates, cardboard, etc); and construction equipment maintenance wastes (e.g. waste lubricants, used oil filters, etc). Additionally, wastewater treatment sludge and other sanitary wastes will be respectively generated from the temporary operation of a sanitary wastewater treatment plant in the construction day camp and the use of portable toilets in field construction areas. All of these wastes will be managed according to a Waste Management Plan prepared as part of the EIA and in according with Environmental Permit conditions. Soil and rock materials will be placed in designated disposal areas and later reinstated with native vegetation. Recyclable portions of domestic and equipment shipping materials will be recycled where feasible based on the availability of local markets while remaining portions will be transported by authorized service provider to the La Canela municipal waste disposal site. Waste lubricants and other potentially hazardous materials will be temporarily stored in closed containers and placed in a specially designed area with impermeable floor and protection against the rain / elements, accessible only to authorized persons. They will be managed by licensed transport contractors and treated or disposed of in licensed facilities. Sanitary wastewater and its treatment sludge will be disposed of at the nearest facilities from the regional sanitary waste management entity, Aguas del Valle. S.A. The environmental permit requires that all waste materials shipments to off-site treatment or disposal be performed following chain-of-custody procedures.

Management of emissions and discharges – The main sources of emissions and discharges identified in the EIA are dust emissions from site construction activities following vegetation clearing including equipment traffic in internal roads and dust emissions from placement of excavated materials in approved excavation fill disposal areas. The project will also generate effluents from the day work camp sanitary wastewater treatment facility. Dust emissions will be minimized by humidifying dirt roads and other exposed materials such as excavated materials and soil / rock accumulation sites as well as by limiting the speed of heavy equipment transit on dirt roads. It is estimated that approximately 24 m3 of sanitary wastewater effluents will be generated daily for a period of 15 months. Sanitary wastewater will be treated via a temporary sanitary water treatment plant to meet Chilean irrigation water quality standards and the treated effluents will be used for dust suppression and to irrigate revegetated areas. During the operational phase, sanitary wastewater from the control room will be disposed of via a septic system.

Ambient Noise – The project site is located along a mostly uninhabited portion of Chile’s Pan-American Highway, in the central coastal region between Los Vilos and La Serena. Environmental assessment activities indicate that noise generated by the wind turbines will have limited adverse impact to the home of a property caretaker, located within the immediate project area and in the border of predicted 45 dBA noise contour, and to the threatened species of mammals previously identified. Noise predictive models suggest that the caretaker’s house could be potentially affected by night-time noise levels above applicable noise standards. These could be effectively mitigated by sound insulation methods or the relocation of the residence to another location within the property. Potential impacts from noise on sensitive fauna will be monitored during the operating phase to establish the need for additional mitigation measures.

- Greenhouse Gases – By harnessing the energy of the wind and converting it into electric energy, the operation of the project will not generate greenhouse gases which result from the combustion of fossil fuels. Instead, it is estimated that the project will off-set the potential emission of approximately 70,000 tons of CO2-equivalent emissions based on Chile’s current energy mix which includes relying on fossil-based fuels to generate electric power.

PS6: Biodiversity Conservation and Sustainable Natural Resource Management

The project area is characterized as a coastal scrub environment with fairly dry climatic conditions, particularly during the summer months. Natural vegetation has been historically affected by human action, including cattle grazing and the subsequent planting of some invasive plant species designed to prevent and control soil erosion.

The project site is the home to ten plant species that are currently under protected status by Chilean law. Five are classified as “vulnerable,” three are classified as “insufficiently known” (meaning that there is not enough scientific information about their location and prevalence to establish the threat to their biodiversity), and two as legally protected. Based on a detailed survey of plant species in the project’s footprint, four of these will be directly impacted due to construction activities including two legally protected cacti species (Echinopsis skottsbergii and Eulychnia castanea) and two shrub species (Euphorbia portulacoides and Baccharis macraei). Project mitigation measures include relocation of the cacti species and a 1:10 replacement of the affected shrub species to be reproduced in a nursery. Topsoil from site excavations will be segregated and stored for later use in the reinstatement of excavated spoils disposal areas following procedures outlined in the Environmental Permit.

Baseline survey activities conducted as part of the EIA identified the presence of 34 native and two migratory bird species and the potential presence of an additional 27 migratory bird species (22 of which are normally present during the summer, a period not fully covered in the baseline survey). Of the observed native bird species, two have protected status under Chilean law, categorized as “vulnerable”. Baseline survey activities also identified 12 mammalian species in the project area, seven of which have protected status, and 4 reptiles, three with protected status. The most significant threat to birds is potential collision with rotor blades and transmissions lines during the operational phase while the most significant threat to mammals and reptiles is the modification or destruction of their habitat for site preparation during construction and noise emissions during the operational phase. Prior to the initiation of operating activities, Norvind will complement the observations of migratory bird species with a period of observation covering the upcoming summer (2008 - 2009) to verify the presence or absence of the migratory birds in the project area as a complement to the EIA.

Impacts to bird species are being mitigated through a combination of methods identified in the environmental license, including: tower siting modifications during the project planning phase, including the removal of three wind towers from locations adjacent to the shore, where migratory birds were observed; painting of the rotor blades and the use of markers in transmission lines to make these structures more visible to both resident and migratory birds; and monitoring of bird strikes during the operational phase to determine if additional mitigation measures are required. If monitoring activities identify over 3 to 4 bird collisions per year, Norvind will implement additional mitigation measures such as the creation and operation of an on-site rescue facility to assist injured birds.

Monitoring activities during the operational phase will include weekly surveys of the wind park for the presence of injured or diseased birds, maintaining a registry of the findings and issuing quarterly reports for submittal to the regulatory agency. If no evidence of bird collisions is encountered during the first year of operation, the frequency of detailed injured bird surveys will be reduced to once per month.

Impacts to mammalian species and reptiles are being mitigated through a combination of methods identified in the environmental license, including: tower siting modifications during the project planning phase, such as the removal of one tower from the location of a colony of rodents protected under Chilean law (Abrocoma bennetti); inducing the movement of colonies of rodents classified under threat of extinction (Chelemys megalonyx and Spalacopus cyanus) to areas adjacent to the project.

The general area of the project currently includes the Canela wind project with 11 generators in operation since December 2007, located approximately 4 km north of the project site. The Canela project has presented an application for environmental authorization to construct a second phase, with an additional 46 wind generators. Together with the project, this will bring the total number of wind generators in the project area to 84. The project sponsor will be encouraged to consider the potential cumulative impact of its project, together with the Canela project, particularly regarding impacts to bird species, and to work together with the Canela project sponsors during the operational phase by sharing of bird collision monitoring results and sharing experiences on management actions to prevent or reduce collisions. Given the good relation with Endesa, Norvind will do its best to develop a joint bird collision monitoring program. If such program cannot be agreed with Endesa, during the operational phase, Norvind will review the reports of bird collisions issued by the Canela project to the regulatory agency to evaluate cumulative impacts and determine whether additional mitigation measures are warranted.