CONTRACTS

Decree No. 1.337/1980

A number of contracts signed between the National Atomic Energy Commission and a foreign company were approved.

Bs. As., 8/7/80

VISTO contracts signed on 9 May 1980 between the National Atomic Energy Commission and the Kraftwerk Union Aktiengesellschaft Company, and

CONSIDERING:

That by Decree No. 302/79 the National Atomic Energy Commission was authorized to enter into final negotiations for the construction of the Atucha Nuclear Power Plant.

That in due course the National Atomic Energy Commission held an international competition with the objective of selecting the offerors for the construction of the aforementioned Central.

That carried out the technical, economic, financial and political analysis of the offers, was resolved to accept that presented by Kraftwerk Union Aktiengesellschaft of the Federal Republic of Germany, which includes the creation of an engineering company in the form of an anonymous company with majority state participation, with the aforementioned company.

By Decree No. 2.441/79 was empowered by the National Atomic Energy Commission to continue the negotiations for the signing of the necessary contracts, which were subject to final approval by the National Executive.

That the National Atomic Energy Commission has held with Kraftwerk Union Aktiengesellschaft the contracts of "Supplies", "Services" and "Garantías" for the Nuclear Central of Atucha II, the "Technical Cooperation Agreement on Nuclear Fuel Technology" and the "Action of Shareholders" for the creation of a joint engineering company in the form of an anomalous society.

It is also appropriate to approve foreign investment in the capital of the aforementioned Society, in accordance with articles 4(1) of Law No. 21.382 amended by Law No. 22,208 and 16 of Decree No. 283/77.

That by Law No. 22,179 the construction and other activities related to the Nueclear Atucha II Central were declared to be of national interest.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - Appropriate the following contracts signed, on 9 May 1980, between the National Atomic Energy Commission and Kraftwerk Union Aktiengesellschaft, and which integrate the present decree as Annexes: "Supplies for the Nuclear Power Plant Atucha II" (Annex I), "Services for the Nuclear Power Plant II" (Annex II), "Garantships for Nuclear Power Plant II).

Art. 2o - Approve the "Agreement of Shareholders", added as Annex V to the present decree, signed on 9 May 1980 by the National Atomic Energy Commission and Kraftwerk Union Aktiengesellschaft for the creation of a joint engineering company.

Art. 3o - Appropriate the Statutes of the "Argentine Nuclear Company of Electrical Powers Anonymous Society with Majority State Participation" (ENACE S.A.).

Art. 4o - Approve foreign investment in German frameworks for the equivalent of four hundred million pesos ($ 400,000.000) to be carried out by the Kraftwerk Union Aktiengesellschaft of the Federal Republic of Germany, for the acquisition of representative actions of the 20 percent (25%) of the Social Capital of the "Argentine Nuclear Company of Eléctricas Sociedad Anónima with a majority State Participation. (ENACE S.A.)

Art. 5o - The Ministry of Economy shall grant appropriate guarantees for the obligations of the National Atomic Energy Commission in contracts approved in this decree.

Art. 6o - Please refer to the National Atomic Energy Commission to make in the course of the execution of the work the modifications that will be necessary to the contracts for their best implementation insofar as they do not exceed ten percent (10 percent) of the basic price indicated in Article 18.1, updated according to Article 19 of the "Supplies for Nuclear Power Supply II".

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