PLAN OF ACTION OF EMPRESA WATER AND ELECTRIC ENERGY

DECEMBER 22,857/1956

Buenos Aires, 24 December 1956

VISTO Issue No. 104.778/55 of the Register of the Former Ministry of Industry, requesting approval of the first Plan of Action and Budget of the Company of the State Water and Electrical Energy (ENDE), created by Decree No. 17.371/50, for the year 1956, and

CONSIDERING:

That the above-mentioned Plan of Action and Budget responds to the actual requirements of Electrical Water and Energy (ENDE) for the current year;

That the aforementioned company could not submit the Accounts Plan under Article 6 of the Decree Regulation No. 5.853/55 of Law No. 13.653 (t. o.) for being in full reorganization and demanding its study a period that would delay the approval of its budget by creating serious difficulties in its operation;

In consultation with the General Accounting of the Nation, it provides its conformity, as an exception, so that the Company may be given the financial instrument that allows its normal development;

What general reasons for maintaining the services provided by Electrical Water and Energy with the highest degree of efficiency, since it is a convenient way to maintain and raise the country's electricity potential;

Therefore,

The Interim President of the Argentine Nation,

Decrete:

Article 1 - Approve the Plan of Action of the Company of the State of Water and Electrical Energy (ENDE), for the exercise of 1956, which is annexed as an integral part of this decree.

Art. 2° - Fix the budget of Electrical Water and Energy (ENDE) for the year 1956 in a total of one thousand five hundred forty-two million nine hundred sixty-nine thousand eighty pesos national currency (m$ 1,542,969,180), and stretch out the resources in a thousand four hundred and fifty-seven million six hundred and eight thousand two hundred ninety ninety national currency agreements (ex. The presumptive deficit that imports the sum of eighty-five million three hundred ten thousand eight hundred ninety pesos national currency (m$n. 85.810.890) will be financed with the National Energy Fund.

Art. 3rd - Electrical Water and Energy (ENDE) will document in front of the General Accounts of the Nation, through a duly certified accounting state that will present before 15 March 1957, the resources made and investments made from the budget approved by this decree, in order to determine the actual deficit of the exercise. The resulting difference between advances made on the basis of the presumptive deficit and the actual deficit produced should be repaid at that time to the National Energy Fund.

In the event of non-compliance with the above provision, the National Energy Fund shall provide for the provisional suspension of the delivery of appropriate funds at that time until the omitted is regulated.

Art. 4° - The budget for Electrical Water and Energy (ENDE) for the year 1957 must expressly contain the provisions to cover the financial services of amortization and interest corresponding to the legal rules of application and in accordance with the amounts provided to it subject to such a regime.

Article 5 - This decree shall be endorsed by the Ministers Secretary of State in the Departments of Commerce and Industry and Finance.

Article 6 - Communicate, publish, give to the General Directorate of the Official Gazette and go to the National Account for its purposes.

ARAMBURU. – Rodolfo Martínez. – Eugenio A. Elaneo.

Annex table No. 1

PLAN OF ACTION FOR THE YEAR 1956

1 – SPECIFIC FUNTIONS.

The present plan of action governing the development of Electrical Water and Energy (ENDE) demonstrates the following orientation in each of the activities:

General studies and research in hydraulic and energy matters. Execution of regulatory and irrigation works to increase the area of cultivation and improve existing ones. Water drains and sanitation for the defence of populations and land-strikes in order to make them suitable for the cultivation, Construction of hydropower plants, thermoelectric plants, transmission lines and distribution networks, for the production and supply of electricity throughout the country, the national use of hydraulic resources and the most economical use of fuels through the use of better-performing machines, all productive.

The other fundamental aspect of such enterprise ' s action includes the direct provision of public irrigation and electricity services.

2- OBJECTIVES FOR 1956.

Water and Electrical Energy (ENDE) will address the following programme of action for that year:

1 Enabling new services: Three (3) hydroelectric power plants with a power of 54,500 kw will be operational.

Escaba (Tucumán)	24,000 kw.
Alvarez Condarco (Mendoza)	25,000 kw.
Engineer C. Cipolletti (R. N.)	5,500 kw.

When these plants are opened, the thermals are currently in operation as reserves of the hydraulic system, originating an annual economy of 49.500 tons of diesel oil, equivalent to $19.5 million.

A thermal group of 75,000 kw will also be operational in San Nicolás (Buenos Aires), which will provide electricity supplies in the area of the river coast between the towns of Rosario and Campana.

20 generators will be installed with a total power of 10,300 kw. to meet needs in the following locations:

River Hondo (Santiago del Estero);

La Rioja (La Rioja);

San Salvador de Jujuy y San Pedro (Jujuy);

Victoria (between Rios);

Casilda, Jobson – Vera. San Jorge, Firmat, San Justo, San Genaro and Peirano (Santa Fe);

Bust Corral (Córdoba);

Goya (Corrientes) and

Gonzalez Chávez, Coronel Pringles, La Madrid, Aleman and Vela (Buenos Aires).

The transmission lines of 66 kw., Escaba to San Miguel de Tucumán (Tucumán) and the Valle de Río Negro (Río Negro), as well as the subfluvial line of 33 kw, from Corrientes to Barranqueras (Chaco), will be put into service.

Network expansions will be carried out in the localities in service, according to the respective supply requests.

The expansion of the irrigation area in Valcheta (Black River) and Santiago del Estero will be seen with a progressive addition of an additional area of 95,000 hectares.

2nd Incorporation of new electrical services: The incorporation of the services of the Rosario Electricity Company (SER) in the city of the same name will be expected, improving them by enabling the existing interconnection line with San Nicolás, of 132 kw. and installation of a substation of 40,000 kw., which will mean an increase of 70% on the existing power in Rosario, and in turn will be carried out the substation of the normal.

3rd Construction of works: The construction of 26 hydroelectric power plants will continue with a total power of approximately 250,000 kw.: of 5 thermoelectric power plants with an approximate power of 12,700 kw.: transmission lines and distribution networks, and initiation of interconnected works of Central San Nicolás with Gran Buenos Aires. Construction of dams and irrigation networks will continue throughout the country to expand and improve 180,000 hectares of crops, and implementation of minor works in the Public Work Plan.

4th Studies and Projects: Studies for the supply of hydraulic energy to the Greater Buenos Aires will begin. The construction of the 600.000 kw Thermoelectric power plant will be tendered for the Gran Buenos Aires. Projects and other documentation will also be prepared for the implementation of numerous irrigation and electricity projects in the coming years.

5th Exploitation services:

WATER: The conservation and management of the networks of canals and drainage, in the jurisdiction of the irrigation zones in the interior of the country, (which register for the year 1956 a total of 152.57 Ha empadronadas), including everything related to the cleaning, desenlame and repair of channels and drains affected by a prolonged operation, comprising 31 complete networks of irrigation and drainage in the jurisdiction of Rioja In the jurisdiction of the Salta and Catamarca provinces, the exploitation of five full water supply networks will continue, according to 3,214 users.

During the year 1956, the conservation of all these systems will be improved which will allow the increase of the number of users by subdivision and the incorporation of preds, etc.

The technical intervention competent for the proper functioning of fourteen reservoirs located in jurisdiction of the provinces of Jujuy, Tucumán, Catamarca, La Rioja, Córdoba San Luis and Mendoza, with a total capacity of 1,550 Hm3.

In the area of current water supply, essential complementation works and network extensions will be carried out in order to expand the number of agreed connections, satisfying repeated requests made by new settlers.

Through the Agriculture Inspectorate, the necessary coordination of tasks will be maintained in all matters related to concessions granted and to be awarded, inherent to such functions entrusted to the Company. There are agreed concessions for a cumulative area of approximately 70,000 Ha.

The care and conservation of the networks of canals desagües of Cañada San Antonio and Arroyo Tortugas, Litin-Tortugas and Acequión Río Tercero will be actively pursued, for whose tasks there is not yet established any cannon that would result – in case of not surrendering such works to the provinces of Córdoba and Santa Fe – of necessary and appropriate applicability.

By means of the new rates established for the collection of irrigation canon and the provision of running water in the interior of the country, the deficit that originates in the services of Water Exploitation (which in fact has a particular differentiation with respect to the other services dependent on the Company) and in which, due to the fact that a more appropriate approach has been observed to the corresponding works of state financing, the canons have not been updated for many years.

ELECTRICITY: In the area of electrical energy exploitation, the mission will be adjusted, with respect to the production, distribution and marketing of energy, and the execution of maintenance, improvement and expansion works that are a direct result of the expansion of the exploitation, as detailed in the annex table and the following summary:

- Production: With existing services, expansions for vegetative growth, partial empowerment of the San Nicolas Central of 320.000 kw. and the incorporation of the services of Rosario, is estimated to be a generation of 1,116 million kwh, which will mean an increase of 65% over the year 1955. This generation will operate in the 136 power plants in operation distributed inside the country.

Production will be distributed as follows:

(a) Hydropower, 340 million kwh, which will exceed 52 per cent in the previous year; and

(b) Thermoelectric, 776 million kwh., which represents an increase of 126 %, of which correspond to steam generation, 580 million kwh., whose incidence of increase will occur in large part by the incorporation of the services of Rosario and the partial empowerment of the Central of San Nicolás that will soon integrate the San Nicolás de kwh system. About the same as the previous year.

- Sales: The kwh. They are to be billed to 940 million, representing an increase of 62 % to the previous year. 420.000 users (of which 120,000 are from Rosario) will be treated, which will mean an increase of 41% compared to the year 1955.

POTENTIALS, PRODUCTION, CENTRE CANTITY AND SALE
Important Provinces or Cities	Central		GENERATION				Quantity of kwh. to sell
	N°	Power kw.	Hydraulic	Vapor	Diesel	Total
Tucumán	13	47.179	50.0	17.0	25.5	92.5	81.0
Catamarca	9	3.614	1.1.	-	3.9	5,0	4.0
Santiago del Estero	5	10.631	-	-	23.5	23.5	18.7
La Rioja	6	4.433	2.6	-	4,5	7.1	6.0
Jujuy	7	5.744	3.4	-	8.9	12.3	10,0
Balance	2	3.368	2.4	-	6.3	8.7	6.8
Entre Ríos (1)	7	14.815	-	15.4	17.0	32.4	45.5
Santa Fe	22	49.765	4,5	106.8	30.8	132.1	95.2
San Nicolás (2)	3	75,000	-	110.0	-	110.0	30.5
Córdoba	20	28.920	115.0	-	11,8	126.3	113.5
Mendoza	5	47.410	120.0	-	18.1	138.1	114.1
San Juan (3)	3	9.298	1.5	-	24,0	25.5	26.3
Current	5	19.254	-	45.6	6.8	52.4	20.8
	Line
Chaco	AT		-	-	-	-	20.8
Black River	4	12.933	38.9	-	6.1	45,0	38.2
Neuquén	2	504	0.8	-	0.01	0.81	0.8
Mar del Plata	2	23,200	-	48.5	2.0	50.5	43.3
Bs. Buenos Aires	17	29.463	-	-	13,3	13,3	12.1
Santa Cruz	1	2,000	-	-	3.6	3.6	3.0
Rosario (4)	3	60,000	-	237,0	0.4	237,4	249,4
Totals	136	448.031	340.2	580.3	196,0	1.116.5	940.0

(1) Between Rios receives energy from Santa Fe 20 million kwh.

(2) San Nicolás includes a single generator of 75,000 KW.

(3) San Juan buys energy from the Cía. Electrometalurgical Andean S.a. For 3,500,000 KWH.

(4) Rosary is INCLUDING UTILIZABLE POTENCE. Receives San Nicolás Energy by 59.5 million kwh.

Annexe Template No. 2

ELECTRIC WATER AND ENERGY (E.N.D.E.)

BUDGETY YEAR 1956

(Article 5 - Decree No. 5.883/53, Regulation of Law No. 13.653 (T.O.)

			M$n.
I-	Resources		1.457.658.290
	(a) Ordinary		517.658.290
	1- Income from goods and/or goods, provision of services, etc., subject to exploitation	309.796.500
	2- Special Fund	123.631.840
	3- Miscellaneous income	1.229.950
	4- Contributions and/or contributions	83,000.000
	(b) Extraordinary		90,000.
	1- Investment plan for the current year from the provisions of Decrees numbers 10,172/56, 14,991/56 and 17.939/56	890.000.000
	2- Electrical Reserve Fund (National Energy Council resolution No. 28 of 26/7/56)	30,000.000
II-	Expenditure and investment		1,542.969.180
	(a) Expenditure		560.538.280
	1- Staff costs (see annexed table detail No. 3)	345.263.860
	2- Oil, raw materials and other fuels and by-products	110.739.730
	3- Materials	38.410.320
	4- Exploitation and administration costs (see table No. 4)	51.651.870
	5- Subsidies and grants (see annexed table detail No. 5)	9.398,000
	6- Financial services	33,000
	7- Expenditures for prior-period commitments	5,039,500
	(b) Investments		982.430.900
	1- Other acquisitions and investments (see annexed table detail No. 6)	24.563.250
	2- Attachment of materials in general, not covered by annual public work plans, and investments for expansion and/or renewal of current services (see annexed table detail No. 7)	67.867.650
	3- Analytical Public Work Plan – Investment authorized by Decrees numbers 10.172/56, 14.991/56 and 17.939/56	890.000.000
III-	Shortfall		85.310.890

Annex table No. 3

(a) 1- Staff costs			845.265.860
(1) Salaries		288.393.990
(2) Bonus, supplements and other concepts		69.318.820
(1) Supplementary annual allowance	21.791.160
(2) Retributions for extraordinary and shift work	4.501.730
(2) Family Charge Bonus	11.037.700
4) Collective efficiency bonuses	23.089.680
(5) Other remuneration, compensation and/or bonuses	8.898.550
3) Patronal sport		37.553.050

Annex table No. 4

(a) 4- Exploitation and administration costs		51.651.870
(1) Rentals	4.148.70	0
(2) Roads, mobility and transfer	4.162.380
(3) Passages	735.300
4) Freights, transports and other transportation costs	11.083.640
5) Propaganda and advertising	328,000
6) Energy purchase	1.414.950
(7) General maintenance	7.189,000
8) Provincial taxes, fees and royalties	150,500
9) Honorary	211,500
10) Miscellaneous contributions	12.476.010
11) Contribution to E.N.D.E.	1,000,000
12) Miscellaneous expenses	8.751.890

Annex table No. 5

(a) 5- Subsidies and grants		9.398,000
(1) Staff sports entities	252,000
(2) Hospital services and/or social assistance	3.646,000
3) Staff assessment	5,500,000

Annex table No. 6

(b) I- Other acquisitions and investments		24.563.250
1- properties and works	105,000
2- Motors, tractors and ground vehicles of any kind	8.378,000
3- Boating, naval and air vehicles	5,000
4- Machines, engines, tools and instrumental equipment	10.036.500
5- Furniture, artifacts, upholstery and menage	1.145.750
6- Telephone, radio and radio equipment	22,000
7- Accounting, computing and writing machines	4.694,000
8- Houses, tents and other transitory houses	37.500
9- Consultation books	123,500
10- Semoving	16,000

Table N° 7

(b) 2- Attachment of materials in general, not covered by annual work or investment plans for expansion and/or renewal of existing services		67.867.650
(1) Salaries, wages, bonuses, equipment, recruitment, expenses and acquisitions in general for existing service expansion and material coupling, fuels in general for exploitation and renovation	17.867.650
(2) Contracts, expenses and acquisitions for interconnection works Gran Buenos Aires	50,000.