Parex signed an agreement with the Tax Works mechanism for the provision of yellow machinery for five municipalities in Arauca.

On November 20, 2023, Parex Resources (Colombia) AG Branch and the National Unit for Disaster Risk Management (UNGRD) formalized the signing of an Agreement under the Tax Works mechanism.

Parex makes advance tax payments amounting to COP $84.640 million intended for the provision of yellow machinery for Arauquita, Fortul, Saravena, and Tame, PDET municipalities, and Arauca capital, belonging to ZOMAC. This individual project is the largest under the Tax Works mechanism.

Parex is the pioneering company in executing projects through the Tax Works mechanism, enabling resources of more than COP $417.000 million translated into initiatives for education, water, basic sanitation, roads, and machinery banks.

Parex Resources (Colombia) AG Branch and the National Unit for Disaster Risk Management (UNGRD) formalized the signing of an Agreement to enable resources of COP $84.640 million, intended for the provision of yellow machinery for the municipalities of Arauca, Arauquita, Fortul, Tame, and Saravena, in the department of Arauca.

The acquisition of machinery banks for each municipality will include three backhoes, three bulldozers, two front loaders, five dump trucks, one low bed, one motor grader, one vibratory compactor, and one truck for fuel transport. This equipment will be used for civil works and maintenance of tertiary roads, in response to one of the agreements established with the communities affected by the winter wave.

Olmedo López, general director of the National Unit for Disaster Risk Management, stated: “This agreement aims to strengthen institutional and territorial capacities for the construction of total peace. We hope that the prompt intervention in the roads contributes to the development of the department of Arauca. We appreciate the immense effort of the actors involved in this project.”.

Raúl Delgado, director of the Agency for Territory Renewal, stated: “I highlight the community management that, in dialogue with the national government, achieved the approval of this project led by Parex, one of the companies that has most engaged with the Tax Works mechanism. I value companies that decide to pay part of their taxes through the realization of projects in the territories.”.

For her part, Sandra Ortiz, presidential advisor for the regions, noted: “We feel great satisfaction for this very important announcement, the result of teamwork between the public and private sectors. When there is will and commitment, important projects for a better country are achieved.”.

Rafael Pinto, vice president of Government Relations at Parex Resources, emphasized the importance of coordination with national government entities, governors, mayors, and representatives of social movements. He also mentioned: “We celebrate that this is the largest individual project granted under Tax Works. Its structuring was done in record time, and we are working to deliver part of the machinery before the end of the year. The complete delivery will depend on import times, but it is estimated that it will not be later than the first half of 2024.”.

Finally, Wilinton Rodríguez, governor of Arauca, stated: “We thank the organized communities that promoted the rapid articulation of national, territorial, and private sector institutions. On behalf of the Departmental Government, I invite our allies to continue seeking solutions for the benefit of our communities, as it is the only way to build the much-needed and longed-for peace in our region.”.

It is important to highlight that Parex is the pioneering company in the execution of projects through the Tax Works mechanism, enabling resources of more than COP $417,000 million. In this way, Parex reaffirms its commitment to building peace through high-impact initiatives in the territories.