STATUS

Decree No. 1.139/1979

Italo Argentina Electricity Company.

Electrical Services of Gran Buenos Aires Sociedad Anónima. Fusion.

Bs. As. 21/05/1979

VISTO the Reserved Records Number 55.035/79, of the Registry of State of Energy, and

CONSIDERING:

That Law No. 21.984 approved the contract signed with the Italo Argentina Electricity Company, Sociedad Anónima, under which the National State acquires the facilities and other physical assets owned by the company and assumes, within (30) days of the approval of the agreement, the direct provision of the public electricity service served by it in the Federal Capital and in the Partídos de Avellaneda, Lanús, Lomas de Buenos Aires,

That it is the purpose of the authorities to achieve the integration of the aforementioned Electrical Services of the Gran Buenos Aires, Sociedad Anónima, in order to achieve their unification in the area defined by Article 1 of Law 14.772, so that conditions of progressive efficiency can be obtained together with the maximum investment economies;

That such integration should be carried out in a phased and orderly manner in order to achieve a rational unification, in view of the background differences of both services in technology, engineering conceptions, personnel administration and, in general, business management. On the other hand, this graduality agrees to the necessary continuity and consolidation of the current development rationalization plans;

That in the absence of the expiry of the contract period referred to above, it is necessary to adopt the forecasts leading to the fact that, until the integration of services mentioned above is materialized, the exploitation by the Italo Argentina Electricity Company, Sociedad Anónima, is assumed directly by the National State;

To this end it is appropriate to provide for the designation by the National Executive Branch of a Delegate Administrator, under whose immediate responsibility the exploitation of the said public service will be carried out;

The establishment of a commission should also be made available to consider the modalities for the integration of services;

That, finally, it is appropriate to determine forecasts for the best compliance of the parties to the contract mentioned in the first considering;

Therefore;

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - The goods of the Italo Argentina Electricity Company, Sociedad Anónima, acquired by the National State, according to the contract signed on October 31, 1978 and approved by Law No. 21.984, will be incorporated into the social heritage of Electrical Services of the Gran Buenos Aires, Sociedad Anónima, which simultaneously must take charge of the public electricity service today provided by that company. Such incorporation and assumption of the service shall take place once the corresponding increase in capital of the second of these companies - for an amount equivalent to the net value of the contribution of the aforementioned goods v completed the execution of the process provided for in Article 4o-.

Art. 2o - Transitorimente, y hasta que se effectúe ese incorpora, la explotación del servicio público de energía, a cargo de la Compañía Italo Argentina de Electricidad, Sociedad Anónima, y que el Estado nacional to assume el día de la toma de propiedad, conforme al artículo 3o del contratante del contract del 31 de octubre de 1978, operará Funcionamente - con la estructura organizacióntiva del servicio existing- bajo depende directa de un Delegado Administrator por el poder Ejecutivo Nacional a

Art. 3o - The service assumed by the National State shall be governed by the same rules of delivery applied to the day prior to the inauguration, and in the same way, the provision of staff services incorporated into the National State under article 6 of the contract of 31 October 1978 shall continue to be governed by the rules in force at the time indicated in the preceding paragraph.

Art. 4o - Within the fifteen (15) days of the inauguration of the Secretariat of State of Energy will constitute a Commission to examine -in the areas of generation, transmission and distribution, administration and finance and human relations- the procedures, modalities and stages necessary or suitable for the integration of the services currently provided by Electrical Services of the Gran Buenos Aires, Sociedad Anónima, and Compañía Italo Argentina de Electricidad, Sociedad Anónima, in such a way that they can be fulfilled the quality of demands. The Commission will be chaired by the official designated by the Secretary of State for Energy and will include, among others, two representatives of Electrical Services of Gran Buenos Aires, Sociedad Anónima, and two representatives of the service to be assumed by the National State. It shall have a period of one hundred and eighty (180) days to be issued, the conclusions of its study must be raised to the National Executive, in order to adopt the decisions corresponding to its implementation within the period of eighteen (18) months, from the date of inauguration. The Commission may require the advice and collaboration of the various agencies of the National Administration.

Art. 5o - The Secretariat of State of Energy will provide that the realization of the annual accounting verification that is practiced in the Italo Argentina Electricity Company, Sociedad Anónima, is extended, for this case, until the day of the inauguration.

Art. 6o - The Delegate Administrator shall assume on behalf of the National State, the rights and obligations which, at the time of possession, correspond to the Italo Argentina Electricity Company, Anonymous Society, as provided for in article 7 of the contract of 31 October 1978, approved by Law No. 21.984.

Art. 7o - Contact, post, give to the National Directorate of the Official Register and archvese.