INTERNATIONAL CONVENTIONS

Decree No. 706/1974

Approve a contract for the construction of a nuclear power plant.

Bs. As. 7/3/74

VISTO the contract signed between the National Atomic Energy Commission and the companies Atomic Energy of Canada Limited and Italimpianti Societá Italiana p.a. for the construction of a Nuclear Power Plant in the province of Córdoba, Department Calamuchita, Embalse Río Tercero; the draft contract with Export Development Corporation which adds to these actions and the provisions of Decree-Law 20.498/73 and Decree No. 4917/73;

CONSIDERING:

In due course it was decided to hold a tender for the installation of a Nuclear Power Station in the province of Córdoba, according to the fold of goods and conditions prepared for the purpose by the National Atomic Energy Commission;

That the competition presented companies of proven experience in the construction of nuclear plants and corresponding conventional equipment;

That Decree No. 4.658/72 included the Central Nuclear Cordoba among the major electrical works to be partially funded by the resources provided for in Decree-Laws 19.003/71 and 19.287/71;

That on 14 March 1973, natural uranium was selected as a type of fuel to be used in the reference centre, whereby the National Atomic Energy Commission accepted the offer presented by Atomic Energy of Canada Limited and Italimpianti Societá Italiana p.a. that offered to provide the Nuclear Power Station with a Candu PHV-type reactor to moderate and refrigerated natural uranium with heavy water;

That the National Government, determined to give a definitive impetus to the realization of such a long-claimed energy work entrusted the National Atomic Energy Commission with the conclusion of the respective contract with the aforementioned companies that act together and in solidarity for its implementation;

That the contract signed for that purpose on 20 December 1973, its annexes and the accompanying "Team Contract" project are suitable tools for the full use of national uranifer resources and allow the transfer of advanced technology to make the country more rapidly and advantageously integrate a solid nuclear industry and promote peripheral industries;

That the contract under consideration by the executive branch contemplates a substantial participation of Argentine engineers, technicians and workers, as well as of the national industry, thereby ratifying the irrenunciable policy of maximum use of national human and material resources;

That significant resources have been made available for the financing of external sources of the amounts required for the realization of the work;

That this should be complemented by the resources of available domestic sources in order to ensure that the resources specifically provided for in the above-mentioned governmental acts need to be adjusted and updated for this work;

That, according to the financial report prepared by the National Atomic Energy Commission, it is essential to increase the resources provided for by Decree No. 4658/72 in the amount of one thousand two hundred eighty-five million pesos (weights 1285,000.000.-) to be distributed between 1974 and 1979;

That this increase arises as a result of the inflationary impact that occurred between May 1972 and the same month of 1973, resulting in higher costs of local supplies, either by contractors or by the National Atomic Energy Commission whose values were set at the date of the offer or May 1972;

Taking into account the specific competence of the National Atomic Energy Commission, it is appropriate to leave under its responsibility the entire work of the Nuclear Power Plant to be installed in the province of Córdoba, in order to adopt the necessary forecasts to ensure the normal realization of the work and the inclusion in its presuppose of the corresponding credits;

That the work in question is included in the forecasts of the Triennial Plan and its realization is of positive value for national reconstruction in energy policy;

Therefore, and the provisions of article 11 of Decree-Law 20.498/73.

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - Approve the contract concluded on 20 December 1973, which is part of the present, between the National Atomic Energy Commission and the Atomic Energy of Canada Limited and Italimpianti Societá Italiana Impianti p. a., for the project, construction, installation and delivery, completed and operating in guaranteed commercial exploitation, of a nuclear power plant of a net cooling of six hundred (600) MWita natural

Art. 2o - Approve the draft "Level Contract" agreed between the National Atomic Energy Commission and Export Development Corporation, which is an integral part of the present text, and authorize the Argentine Ambassador accredited to the Government of Canada and the President of the National Atomic Energy Commission in his case to proceed to his appropriate signature.

Art. 3o - Amend the investment plan approved by Article 3 of Decree No. 4.658/72, as follows:

1974: Up to the equivalent in pesos of twenty-eight million four hundred thousand US dollars ($ 28.400,000).

1975: Up to the weight equivalent of US$ twenty-seven million (USD 27,000.000).

1976: Up to the weight equivalent of $30 and $9 million ($39,000.000).

Year 1977: Up to the equivalent in pesos of fifty-six million four hundred US dollars ($ 56.4 million).

Year 1978: Up to the equivalent in pesos of fifty-six million two hundred thousand US dollars ($ 56,200,000).

Year 1979: Up to the weight equivalent of twenty-one million five hundred thousand US dollars ($ 21.500,000).

Art. 4o - The Ministry of Economy shall, with the support of the funds of the National Treasury, ensure the operations of the credit included in the contracts referred to in Articles 1 and 2 of this Decree.

Art. 5o - The National Development Bank will endorse the credit transactions that are signed with contractors under the contract approved by Article 1, including the lease contract referred to in Annex 16 thereof.

Art. 6o - The National Atomic Energy Commission shall take the necessary measures to give consideration to the Executive Power to the incorporation, in its budget, of the necessary provisions to meet the emerging obligations of the contracts approved by this Decree.

Art. 7o - The relevant ministries, secretariats and agencies of the State concerned shall, as a matter of urgency, promptly enter into force the contract approved in article 1 of this Decree.

Art. 8o - Contact, post, give to the National Directorate of the Official Register and archvese.