STATE REFORM

Decree 1105/89

Revise the "Regulation of Law No. 23.696"

Bs. As., 20/10/89

B.O.: 24/10/89

VISTO Law No. 23,696, which declares the state of administrative emergency, and

CONSIDERING:

That the present decree is issued in the use of the emerging powers of article 8, paragraphs 1 and 2 of the National Constitution and article 59 of the Sealing Tax Act (t. o. 1986).

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 -Approve the "Regulation of Law No. 23.696", which as Annex I is an integral part of this decree.

Art. 2o -Failure to comply with the time limits provided for in the regulation adopted by article 1 of the Act, provided that it does not exceed those established by Act No. 23,696, does not affect the validity of acts performed outside them, without prejudice to the liability of officials responsible for delay. Proceedings leading to the detachment of that responsibility would be handled independently.

Art. 3.o -Explain the payment of the Sealing Tax (t. or. 1986) to all acts resulting from Chapters I, II, III, VI and VII of Law No. 23,696 and the corresponding Articles of Regulations.

Art. 4o -Please refer to the Ministers and Secretaries of the NATIONAL PRESIDENCE to delegate, in the immediate lower bodies, the powers to those granted by the regulation approved by this decree.

Art. 5o.-Invite the MUNICIPALITY of the AIRES CITY to adhere to the regulations approved by this decree.

Art. 6o -Default of Decree No. 1768/86.

Art. 7o.-This decree shall enter into force from the date of its publication.

Art. 8th. -Communicate, publish, give to the NATIONAL DIRECTION OF THE OFFICIAL REGISTRATION and archvese. -Look. -José R Dromi. - Nestor Rapanelli. -Italo A. Luder. Antonio F. Salonia. - Domingo F. Cavallo.

Annex I

Law No. 23,696

CHAPTER I

ADMINISTRATIVE EMERGENCY

ARTICLE 1 -During the state of emergency, the guidelines for establishing the value of the rates of services provided by the entities, companies or companies covered by Article 2 of Law No. 23.696, the price of the fuels, and the remuneration of all personnel performing in the National State and the entities, companies or companies covered by the aforementioned rule shall be proposed by the Ministry of ECON.

For this purpose, the corresponding information shall be provided by the respective entity, company or society and elevated to the MINISTERIO DE ECONOMIA through the competent Ministry.

ARTICLE 2 -The interventions decreed from July 8, 1989 and until the date of entry into force of Law No. 23,696, are also declared based on articles 1 and 2 of Law No. 23,696 and governed by articles 3, 4th, 5th and concordants of it.

The time limit referred to in article 2 of the Act shall be computed from the date of entry into force of these rules.

The interventions provided by the NATIONAL EXECUTIVE PODER shift to the governing bodies of the entities, companies or companies whatever their legal type, with the same powers as those.

As long as the intervention lasts, the contracting regimes established by Act No. 23,696 and general or special laws or regulations for the Public Administration shall be applicable to the entity, company or company, without prejudice to the supplementary application of the contracting regimes of each entity. The regulatory rules of contracts of specific nature of the special activity of the entity, company or society involved, and those set for operations financed by international credit agencies, will continue to be directly applicable.

ARTICLE 3o -The provisional reorganization may cover all aspects of the management of the entity, company or society involved.

For the purpose of the reorganization of the entity, company or society by administrative act subject to the prior authorization of the Minister or Secretary of the Presidency of the competent Nation, the Interventor may order the extinction, transformation, excision, merger or creation of organizational units, regardless of their designation or structural location, assigning them even to the subsistents, the missions, functions and areas of competence that it deems appropriate. The so-called reorganization will include the relocation of staff from any hierarchy or, where appropriate, the termination of the employment relationship with the corresponding compensation, or the availability provided for in Act No. 22,140, according to the applicable legal regime. This rule shall not apply to the organizational units established by general or special laws, without prejudice to the provisions of article 61 of Act No. 23,696.

They shall be excluded from the right to compensation:

(a) Those who do not meet at the time of the measure, the requirements for the acquisition of stability.

(b) Those who were in violation of the rules on incompatibility:

(c) Those who are in a position to obtain the maximum percentage of ordinary retirement.

Recognition and payment of compensation is suspended, to staff who are or are subject to administrative summary or to the criminal proceedings of which their termination, exoneration or dismissal may result, pending the completion of the respective proceedings with final resolution or, if any, provisional dismissal. If it turns out that the right to compensation should be discontinued, waived or dismissed. If the suspension penalty has been imposed on him, the amount of the suspension shall be discounted from the compensation, all at constant and homogeneous values.

Staff who have received the compensation may not return to the service of the National State, or of the entities, companies or companies set out in article 1 of Act No. 23,696 during the CINCO (5) years after their descent, either as a permanent agent, transitory or contracted. The NATIONAL EXECUTIVE PODER may provide substantial exceptions, in which case the beneficiary of the exception shall refund, updated, the portion of the compensation received, proportional to the months remaining to meet the period of CINCO (5) years, indicated.

The update will be made by the index of the wages of the industrial pawn in the FEDERAL CHAPTER published by the NATIONAL INSTITUTE OF STATISTICS AND CENSES.

Staff casualties resulting from the application of this article shall be reported to the Secretariat of the Public Service of the Presidency of the Nation in the manner and time frames determined by this Article.

ARTICLE 4o -In the area of PRESIDENCE It is up to the Secretary on which the entity, company or society involved depends, the exercise of the powers and competence conferred by article 4 of Act No. 23,696.

ARTICLE 5°-Without regulation.

ARTICLE 6 -The decision to transform the legal character of the entities, companies and societies shall be adopted within the time limit set forth in Article 1 of Law No. 23.696, without prejudice to the fact that the refinement of such transformation takes place in the term established in the act that decides the transformation.

The decree on the transformation of legal character shall also approve the organic regime or status of the entity, company or society.

ARTICLE 7 - The decree of creation of a new company will also approve its organic status.

The budgetary adjustments that need to be made will be made with the intervention of the MINISTERIO DE ECONOMIA.

CHAPTER II

PRIVATIZATIONS AND PARTICIPATION OF THE PRIVATE CAPITAL

ARTICLE 8 The rules contained in this Chapter shall also apply, as appropriate, to entities, companies and societies included in the annexes to Law No. 23,696.

ARTICLE 9 -The Draft Decree of the Declaration of "subject to privatization" of the entities, companies or companies set forth in Article 8 of Law No. 23.696 shall be initiated by the Minister or Secretary of the Presidency of the Nation in whose jurisdiction the entity, company or society is located to privatize, ex officio or by instruction of the NATIONAL EXECUTIVE PODER.

ARTICLE 10 -The Minister or Secretary of the Presidency of the Nation acting in the drafting of the decree of declaration of "subject to privatization" shall indicate the privileges, monopoly clauses or discriminatory prohibitions whose elimination or modification proposes, including a relation of the existing provisions, expressly establishing those that must be totally or partially excluded or modified. The proposal should also express the origin and foundation that at that time had the privilege, clause or prohibition proposed for exclusion or modification, the difficulties that its maintenance generates in the process of privatization, the benefits derived from its exclusion or modification and the technical and economic feasibility of the activity to privatize, once the privilege, the clause or the prohibition has been eliminated or modified.

Article 10 of Act No. 23,696 shall be deemed to be excluded from any legal or regulatory rule establishing privileges, prohibitions or monopolies that are not expressly ratified by the decree of declaration of "subject to privatization". In all cases where the maintenance of a particular subsidy or privilege is sought, the MINISTERIO DE ECONOMIA, who shall rule on it, shall be intervened.

ARTICLE 11. After the adoption of the declaration of "subject to privatization", or to stop the validity of this regulation in the case of the societies covered by the second paragraph of Article 8 of Law No. 23.696, the Minister or Secretary of the Presidency of the Nation in whose jurisdiction the entity, company or society is located to privatize shall begin, immediately and of office, the procedures "exacting to privatization, The Implementation Authority may constitute specific working commissions with the tasks assigned to them. In cases where a Participated Property Programme is implemented, a representative of the Ministry of Labour and Security SOCIAL shall include such commissions. In the cases provided for in article 11 of Act No. 23,696, the appropriate Government of the Province should be invited to appoint its representative in those working commissions. Recruitment of advisers of the working commissions may be undertaken where necessary

The execution of works in the form of the granting of public works governed by Law No. 17.520 with the reforms introduced by articles 57 and 58 of Law No. 23.696 and its regulation, which will also be applicable for the concessions of works reached by the declaration of subject to privatization. The regime of the granting of public works shall be applied analogous, until the relevant regulatory body is sanctioned, to concessions of use and service that do not have the main purpose of the execution of new works or of maintenance, repair or expansion, in which case the legal regime of the granting of public works shall be governed directly.

ARTICLE 12. - No regulation.

ARTICLE 13.-It shall be the Authority of Implementation for all purposes of Law No. 23,696, the Minister or Secretary of the Presidency of the Nation in whose jurisdiction the entity, company or society is to privatize.

(a) Within the Ninth (90) days, counted from the validity of the approval law of the declaration of "subject to privatization", extended term by the Minister or Secretary of the Presidency of the competent Nation, such bodies shall submit a report to the NATIONAL EXECUTIVE PODER with the specific proposal referring to the procedure and modality most appropriate for its implementation. That report should read:

I- The total or partial nature of the proposed privatization and its foundation.

II.- Those who consider the procedural alternatives set out in article 15 of Law No. 23,696 as appropriate to the case.

III.- The or modalities of those set forth in article 17 of Law No. 23,696 which understands appropriate to materialize privatization.

IV.- E1 selection procedure for those enumerated in article 18 of Act No. 23,696 which is expected to be used and the estimated time frames for each stage of the privatization procedure.

V.- The eventual proposal on the preferences referred to in article 16 of Law No. 23,696 and the applicability, in the case, of a Participated Property Program, specifying in this supposed class of acquiring subjects and share of the share of the share capital included in the program.

(b) In the cases of entities, companies and companies included in the Annexes to the Law which are regulated by this Law and in the cases of companies covered by the second paragraph of Article 8 of Law No. 23.696, the period referred to in subparagraph (a) of this Article shall be computed from the entry into force of these Regulations.

(c) Proceedings of privatizations carried out under the Act No. 23,696 shall enter General Rent.

ARTICLE 14.-Copy of the report required in the previous article will be referred to the BICAMERAL COMMISSION created within the scope of the HONORABLE CONGRESS OF NATION by article 14 of Law No. 23,696.

ARTICLE 15.

Subparagraph 1. No regulation.

Subparagraph 2. Corporations may be established by adopting any of the legal forms provided for by the existing legislation, including common law business societies, regardless of the proportion with which the State agrees to its constitution. The contributions of the State may consist of any kind of property. The contribution in the ownership of an artificial public domain asset will imply its defect in full.

The excision of companies, companies, establishments or productive farms must be based on proven convenience and must contemplate the future technical and economic viability of each unit resulting from it.

Subparagraph 3. Reforms of corporate statutes should include modification or deletion of provisions that restrict or prevent private capital participation.

Subparagraph 4. No regulation.

Subparagraph 5. Negotiating retrogressions and extinction or modification of contracts and concessions will be appropriate to the extent that it is necessary to assist the privatization procedure, and intervention must be given to the MINISTERIO DE ECONOMIA, who, through the dependence of its competent jurisdiction, will determine its exact impact on the resources of the NATIONAL TESORO. The validity of such arrangements shall be subject to the suspensive condition of privatization.

Subparagraph 6. No regulation.

Subparagraph 7.

(a) Permits, licences or concessions for the exploitation of public services that are granted as a result of a privatization procedure should include:

I. The services specifically included, discriminating against those whose exploitation is granted under exclusivity regime, which are granted in a competition regime.

II. The time limit for which it is granted, which will be compatible with efficient exploitation of the service, adequate repayment of the investments that are carried out and reasonable profitability. Its extension may be agreed, as well as the modalities for its implementation.

III. The geographical scope.

IV. The obligations which, according to the case, are imposed on the licensee or concessionaire, both those related to the payment of a canon, the quality and extension of the service or the modernization of the material and technical means affected to the provision of the canon.

V. The rights included in the permit, license or concession, including those provisions that may import the exercise by the assignee, licensee or concessionaire of actions or rights against third parties.

VI. The tariff regime, specifying the concepts that the rate should cover, including the appropriate profitability to the investment made. In the setting of the tariff regime the MINISTERIO DE ECONOMIA should intervene.

VII. The applicable sanction regime.

VIII. For public service concessions where ransom or reversal clauses are established, a fair compensatory regime and the fate of goods affected to the exploitation of the service shall be provided. In such cases rescue and reversal will be exceptional in nature, according to well-founded reasons of public interest.

IX. Technical and economic-financial information that the assignee, licensee or concessionaire shall supply or have at the disposal of the service control authority.

(b) The granting of permits, licences or concessions under the conditions laid down herein may be part of, in whole or in part, the contract under Article 17 of Law No. 23.696, when the ente, company or privatized society has been the holder, at the time of its privatization, of the public service to grant.

(c) The reasons for national defence or security that determine the preference to national capital should be sufficiently established and the NATIONAL EXECUTIVE PODER should be informed prior to the establishment of the preference, with the intervention of the DEFENSA MINISTERIO, which will determine the existence of such reasons in each case covered by this paragraph.

Subparagraph 8. The granting of tax benefits to the company that is deprived should be used in a restrictive manner and only when this is indispensable for the success of the privatization procedure, with the prior intervention being given to the MINISTERIO DE ECONOMIA. Likewise, in each case, the authority granting the benefits shall calculate, together with the SECRETARIAT OF HACIENDA, the fiscal cost arising from the application of the measure proposed for each year in which it has effect, for its imputation to the tax rate to be included in the National General Budget Act. Please refer to the MINISTERY OF ECONOMY to establish the system for the use of tax benefits that are agreed under this regime to determine the tax rate to be included in the General Budget of the Nation.

Subparagraph 9. Prior intervention should be given to the Ministry of Economy, which, through the unit designated, will determine its incidence in the General Budget of the Nation.

Subparagraph 10. Prior intervention should be given to the MINISTERY OF ECONOMY, through the unit designated, when the NATIONAL Budget or TESORO is affected.

Subparagraph 11. Where the provision that is left without effect is statutory, the regulation of article 15 (3) of Act No. 23,696 shall be regulated. In cases where it is conventional, the regulation of subparagraph (5) of the same article of Law No. 23,696 shall be applied.

Subparagraph 12. Prior intervention should be given to the MINISTERY OF ECONOMY

Subparagraph 13. No regulation

Article 16. The preferences referred to in article 16 of Act No. 23,696 shall consist of the prioritization of the award in the case of equivalence of tenders.

In cases involving one or more of the types of acquisitions provided for in article 16 (2), (3) and (4) of Act No. 23,696, through a Participated Property Programme, preferences shall be granted in relation to the share of the share of the share of the share capital covered by that programme.

ARTICLE 17. The modalities regulated in article 17 of Act No. 23,696 may be used in accordance with the circumstances of each case, with the aim of carrying out effective privatization in the shortest term and the best possible conditions.

Subparagraph 1. Business asset sales may be partial or total.

Partial sales may be of each asset, individually considered, or by sets that constitute economically operated units.

Total sales will involve, at the same time, the dissolution and liquidation of the entity, company or company to which the assets sold were affected.

Subparagraph 2. The sale of shares or quotas part of the social capital may be total or partial and one or more acquirers. As a general principle you will prefer the total sale. The partial sale that implies the State's subsistence as a shareholder. shall be of restrictive application and shall be based on reasons of proven convenience, taking into account the activity developed by the entity, company or society.

The sale of productive establishments or haciendas in operation may comprise all those that the entity, company or society has in operation, in which case the dissolution and liquidation of the entity shall be.

Subparagraph 3. The location contract must specify the existence or not of option to purchase at the time of its celebration and, where appropriate, the reasons for the resolution of such an option.

In the event that the purchase option is agreed, the charge may be agreed or not of the paid rents, as payment on the price.

Under the terms of contract, it may be established that the prior determination of the value of the sale price shall be provisional in nature and may be adjusted in more or less as a result of the audits and inventories, which, as agreed in the respective contract, are carried out during the period of the location.

Subparagraph 4 The contract of administration with or without option to purchase shall specify the existence or not of option of purchase at the time of its celebration and, where appropriate, the reasons for the resolution of such option.

The administration assumed will be onerous and may be concerned with obtaining positive results in the management of the mandated operation, in accordance with the criteria provided for in the contract.

Under the terms of contract, it may be established that the prior determination of the value of the sale price shall be provisional, and may be adjusted in more or less as a result of the audits and inventories which, as agreed upon in the respective contract, are carried out during the management of the administrator.

Subparagraph 5 The concession, licence or permit granted shall, as appropriate, be in conformity with the provisions of article 15, paragraph 7 of Act No. 23.696 and its regulation and articles 57 and 58 of the above-mentioned rules.

ARTICLE 18 -In each case, the Applicable Authority shall draft the Bases and Conditions Form which shall govern such procedure, giving intervention to the MINISTERY of ECONOMY when the funds of the NATIONAL THIRD are affected or may be affected. The wording should ensure maximum transparency and publicity during the entire privatization procedure and at each stage, which will not preclude the efforts, as well as the increased speed of processing.

The stimulus to the concurrence of the possible May number of stakeholders will not prevent the Bases and Conditions from establishing the requirements to be met by the proponents and the exclusions that, on a general basis and based on appropriately explained reasons, must be applied in each case. The registration of State contractors shall not be required, without prejudice to the fact that the registration of the registered persons must be established.

Subparagraphs (1) and (2) PUBLIC LICITATION OR PUBLIC CONCURSE.

(a) The act of adoption of the procedure should indicate the national or international character of the procedure and whether it is with or without a basis.

(b) The call for tendering or public tendering shall be disseminated at least by inserting the corresponding notices in the Official Gazette of the Argentine Republic and in three newspapers of wide circulation in the country.

Ads will be made during TEN (10) days and with no less than TREINTA (30) days in advance to the date of the respective opening, computed from the immediate next to that of its last publication.

Without prejudice to the specified minimum publications, it will seek to make the call more widely known through other publications or the use of mass media.

In the case of tenders or competitions of an international nature, the dissemination of the call may be made abroad, when it is considered that this will result in a greater number of offenders and does not involve disproportionate exemptions.

The Implementation Authority may also extend invitations to all persons of visible or ideal existence, locals of national or foreign capital, or outside, as it deems appropriate. In any event it deems appropriate, it may require the cooperation of the MINISTENO OF EXTENSION AND CULTO RELATIONS, so that the Embassies of the Argentine Republic abroad collaborate in the dissemination of the call.

(c) The call must detail at least:

I- The name of the tendering agency.

II.- The national or international nature of tendering, the existence or non-substantiation and, where appropriate, the amount of tendering.

III- The object of the call.

IV- The place where the bases and conditions can be consulted and the timetable during which the consultations can be conducted.

V- The price of the Base and Conditions fold.

VI- The place of presentation of the offers.

VII- The day, time and place planned for the opening of the offers.

(d) The Base and Conditions fold should be drafted in clear and precise terms. Efforts will be made to avoid the use of vague or ambiguous concepts and, if this cannot be avoided, the meaning and scope used in the case must be specified in the fold itself. You must state at least:

I- The object of the call, clearly specified, indicating:

A) The modality through which privatization will take place.

B) The bidding unit.

II- General procedural provisions indicate:

A) Timetable and place to take a view of the proceedings and make presentations.

B) Completion of deadlines, procedure and opportunity for extension.

C) Procedure for the formulation of consultations, time for their response and how to extend them to the totality of folds.

D) Ways in which notifications and their effects are to be carried out.

E) Requirements for certifications, translations and legalizations.

F) Characteristics of the official copies of the Base and Conditions fold, the regime and effects of its acquisition.

G) The requirements relating to the denunciation of the actual or legal domicile and the constitution of the special domicile of the persons concerned, as well as those related to the designation of a possessor or skilled representative to receive the notifications and take account of the proceedings.

III- The possible technical and economic-financial information to give or facilitate to the proponents, specifying, where appropriate, the procedure through which each of the stakeholders can carry out, at its expense, the studies and verifications that it deems appropriate for the proper formulation of its proposal.

IV- The requirements to be met by the proponents, taking care not to include demands that may be excessive at the time of the submission of the proposals, and that may be fulfilled after the award by the awarding person.

It will be necessary for the proposal to prove to you, by the way it is established, both its patrimonial solvency and, in particular, its technical suitability and background in the activity that is subject to privatization.

The acquisition of an official copy of the Bases and Conditions will be a prerequisite for making proposals.

V- The requirements for offers, content, form and place of submission. If a double over system is to be chosen, the information to be included in each of them must be precisely discriminated against.

In any event, it shall be indicated:

A) Formalities of offers, and quantity of copies to be submitted.

B) Data, reports and requirements relating to the offerors that these must contain, both those relating to their legal existence and those related to their technical, business background, economic-financial capacity and other information that will enable them to evaluate their conditions.

C) The possible requirements regarding the proposal regarding the plans for the exploitation and expansion of the privatized unit, such as activity programmes; innovations or improvements in the organization, facilities and technologies; future investments; occupational volumes, price offered, payment form and all other data that allows the integral configuration of the unit and its subsequent evaluation.

D) Documentation that must be accompanied to the offer, both concerning the offerer, and the offer itself.

(e) Time and venue for submission of tenders.

(F) Specification of the guarantees to which the offenders shall constitute, as well as those appropriate to constitute the awardee, specifying amount, percentages and forms of constitution.

VI- Determination of the time limit for the maintenance of offers and the effects of their non-compliance.

VII- Determination of the day, place, time and formalities of the opening act.

VIII- Organs, deadlines and procedures for evaluating tenders and their challenge.

IX- Competent organ, term, form and effect of the award.

(e) The panels will also provide for the procedure for processing, in accordance with the principles of equality, publicity and competition, applying the regulations contained in the Accounting Act, the Regulations on State Contracts and the Public Works Act.

(f) There shall be a guarantee of contestation, which shall constitute the person who makes objections, which shall be returned to him in the event of a favourable acceptance of his claim, or which shall lose to the same extent that such claim is rejected.

The Bases and Conditions Platform shall establish the form and mechanism for determining the amount of security, taking into account that it does not constitute an obstacle to the exercise of the right of defence.

(g) It may be included in the Bases and Conditions fold, when deemed appropriate, score or percentage systems referring to different aspects or variables to be taken into account for the purposes of the evaluation, taking into account that such systems are based on general and objective criteria, and do not denaturalize the principle of concurrence. In such cases each of the variables should be specified in consideration, the possible score to obtain in each and the percentage that it reflects in 1st final rating of the offer.

(h) Preadjudication must establish a warrant of merit and must be decided within the maximum period of CUARENTA and CINCO (45) working days counted from the opening, notifying all the offenders.

It may be challenged by complying with 1 respective warranty within the CINCO (5) business days of notification.

(i) The award shall be decided within the QUINCE (15) working days after the expiration of the time limit to challenge and shall resolve the entire challenge.

(j) The challenge to the award, which shall also be guaranteed in the manner provided for in these rules, shall be handled by separate file consisting of the relevant copies, without discontinuing the subsequent processing of the main file, except for the situations provided for in the last paragraph of article 12 of the National Administrative Procedures Act No. 19.549.

(k) The working commissions provided for in article 11 of the present regulation shall be the competent bodies to carry out the entire selection procedure to the draft award, which shall be elevated to the Minister or Secretary of the Presidency of the Nation competent for its resolution or elevation to the NATIONAL EXECUTIVE PODER, as appropriate.

Subparagraph 3. PUBLIC REMATE. The submissions shall provide for the procedure of processing, in accordance with the principles of equality, publicity and competition, applying in what is relevant the regulations contained in the Accounting Act and the Regulations on Contracts of the State, without prejudice to the application of the rules that are relevant to paragraphs (1) and (2) of this article.

Subparagraph 4. No regulation.

Subparagraph 5. DIRECT CONTRATATION. The submissions shall provide for the procedure of processing in accordance with the principles of equality, publicity and concurrence, applying as appropriate the regulations contained in the Accounting Act, the Regulations on Contracts of the State or the Public Works Act as appropriate by the nature of the procurement, without prejudice to the application of the relevant rules of subparagraphs (1) and (2) of this article.

ARTICLE 19 -The MINISTERY OF ECONOMY will be consulted on the guidelines to be applied in each valuation. The impossibility referred to in article 19 of Act No. 23,696 may be technical or temporary. It will be considered that there is a temporary impossibility of taxation by national, provincial or municipal public bodies when they are unable to do so within the time-frame required by the objectives of each privatization, which should be explained in the report referred to in article 13 of this regulation.

Recruitment of private fees, as well as of the advice provided for in rule 11 of these rules, may be made directly, upon receipt of a record and fee requirement of up to THREE (3) possible applicants with merits equivalent to the judgement of the Implementation Authority.

ARTICLE 20. - No regulation.

CHAPTER III

PROPERTY PROPERTY

ARTICLE 21 -No regulation.

ARTICLE 22. The decree provided for in article 13 of this regulation shall establish for each privatization process:

(a) The necessary requirements for the accreditation of employee, user or producer status for the purposes of article 22 of Law No. 23.696.

(b) The procedures through which the acquiring parties referred to in article 22 of Law No. 23,696 shall express their commitment to the Individually Participated Property Programme.

(c) The procedures through which the acquirers referred to in article 22 of Law No. 23,696 express their commitment to the Participated Property Programme collectively.

ARTICLE 23. - The act that provides for the structural modifications necessary to adapt the entity to privatize the form of an anonymous society will be expressly subject to the suspensive condition that privatization through a Participated Property Program is actually concrete.

ARTICLE 24.-When the issue of new actions is necessary, such issue will be provided in the same act as the previous article. The emission conditions must also be established. The emission shall be subject to the same suspensive condition established in the previous article. In all cases in which the issuance of new actions is proposed, the Implementation Authority shall notify the MINISTERY of ECONOMY, which shall, through the corresponding body, adopt the relevant decision regarding its emission, conditions and total amount with the Implementation Authority.

ARTICLE 25. - No regulation.

ARTICLE 26. - The conceptual bases and mathematical methods for the formulation of the coefficient of participation defined in Article 27 of Law No. 23.696 shall be elaborated by a Technical Commission, designated by the Authority of Application and composed by one (1) representative of the MINISTERIO DE ARTWORKS AND SERVICES PUBLIC, one (1) representative of the MINISTERIO DE ECONOMIA, one (1) representative of the SECRETARIA DE PLANIFICATION And one (1) representative of the NATIONAL INSTITUTE OF STATISTIC AND CENSES. This Technical Commission will also develop the conceptual bases and mathematical methods for the formulation of the criteria for approval provided for in article 28 of Law No. 23,696.

Such conceptual bases and methods will be approved by the NATIONAL EXECUTIVE PODER.

ARTICLE 27. - The development of the coefficient of participation in article 27 of Law No. 23.696 shall be carried out by the Authority of Implementation for each specific privatization process, according to the bases and methods elaborated by the Technical Commission noted in the previous article. Once elaborated, the coefficient will be approved by express.

ARTICLE 28. - No regulation.

ARTICLE 29. - No regulation.

ARTICLE 30. - No regulation.

ARTICLE 31. - No regulation.

ARTICLE 32. - No regulation.

ARTICLE 33. - No regulation.

ARTICLES 34, 35 AND 36. - For the purposes set forth in articles 34,35 and 36 of Law No. 23,696, the General Agreement on Transfer that implements the main business of purchase - sale of shares through the Participated Property Programme shall contain annexes:

(a) The designation of the FIDEICOMISARY BANCO

(b) The garment contract provided for in article 34 of Act No. 23,696, which shall provide for the manner in which the payment and release mechanism of the actions provided for in article 36.

(c) The trust contract with the bank, which must contemplate the way in which the mechanisms of collection, payment, release of shares of them established in articles 35 and 36 of Law 23.696, and any other contractual provision for the implementation of the Participated Property Programme, will be implemented.

ARTICLE 37. The General Transfer Agreement shall establish the appropriate mechanisms and conditions for each case for the repurchase of acquiring subjects, of actions covered by a Participated Property Programme and, where appropriate, their sale to new acquiring subjects.

ARTICLE 38. - No regulation.

ARTICLE 39. - No regulation.

ARTICLE 40. - The essential decisions referred to in the article may refer to any question of that character concerning the enterprise. Those mentioned in the article are only exemplary.

CHAPTER IV

PROTECTION OF THE WORKER

ARTICLE 41. - No regulation.

ARTICLE 42. - No regulation.

ARTICLE 43. - No regulation.

ARTICLE 44. Under the conditions of privatization, it may be agreed that the National State shall assume full or partial responsibility for those obligations whose causes originate before privatization, even if they are externalized after privatization. In this case, prior intervention should be given to the MINISTERY OF ECONOMY, who shall rule on it.

In all cases the entities that are deprived must provide, in the materialization of the transfer, to each of the workers, a working certificate containing the indications of the time of service delivery, nature of them, record of the salaries received and the contributions and contributions made to the social security and insurance agencies.

In no case shall the entity be responsible for the privatisation of labour or pre-privatisation failures, which shall be carried out by the National State.

ARTICLE 45. - No regulation.

CHAPTER V

EMERGENCY CONTRACTATIONS

ARTICLE 46. It shall be understood by procedure of ongoing procurement, to those in which, at the date of publication of Act No. 23,696, the respective contract has not been perfected.

ARTICLE 47.

Subparagraph (a) It shall be understood by recognized companies, those which, regularly constituted, are not disqualified to hire the State in accordance with the regimes in each existing case and the present regulation.

Recognized companies will also be considered, to those who, not yet registered in the contractors ' registers, prove their technical, moral, economic and financial suitability, with verifiable background in the country or abroad.

Subparagraph (b) The poster publication, and the information to the business cameras must be simultaneous with the request for offers.

The submissions of spontaneous offers shall be made within the same time period, which shall be fixed in each case by the organ or entity, company or contracting company, when requesting the tenders referred to in article 47 (a) of Law No. 23,696.

Subparagraph (c) The maximum amount of recruitment units by which the organ or entity, company or contracting company may dispose of the award and refinement of the contract shall be fixed by the MINISTERY OF ECONOMY.

Subparagraph (d) exceeds the maximum amount of recruitment units established by the MINISTERY OF ECONOMY, the organs and entities, companies or companies listed in article 1 of Law No. 23,696 shall submit to the Minister or Secretary of the Presidency of the competent Nation the proposals for recruitment under this regime when the required requirements and procedures have been completed.

The synthesized announcement shall have the effect of edict, may be grouped and must contain, at least, the recruitment procedure, the object of the procurement, the procuring body, the amount of the contract and the place of submission of spontaneous offers.

Subparagraph (e)

I - The value of each recruitment unit shall be set by the MINISTERY OF ECONOMY within the QUINCE (15) days of publication of this regulation.

II - In the request or invitation made by the Commissioner pursuant to article 47 (a) and (b) of Law No. 23.696, it shall be stated that, in case the contract was not approved, the offender has no right to make a claim of any kind.

III. The most desirable offer will be selected taking into account the criterion and principle set out in the last paragraph of article 18 of Law No. 23.696.

CHAPTER VI

VIGENEY CONTRACTIONS

ARTICLE 48.

(a) Declared by the Minister or Secretary of the Presidency of the Nation the termination of a construction site contract, on the basis of article 48 of Law 23,696, the Commissioner shall notify the contractor and indicate the date and place in which the works and/or works are to be delivered. On the date indicated, the inventory of the goods and elements in the work will be carried out, and the record of the estate will be made, after which the commissioner will receive the work provisionally, and the respective record will be signed.

In the event of the contractor ' s incompetence, the Commissioner may take the work directly, perform the measures he deems relevant and perform the Receipt Act, which shall record the same precautions mentioned in the preceding paragraph. This Act shall be accepted and recognized by the contractor who has not appeared.

(b) Bails, guarantees and/or relief funds shall be returned to the contractor, if appropriate, after the expiration of the warranty period and the final receipt provided for in the contract.

(c) For the purposes of the application of article 54 (a) of Act No. 13,064, referred to in article 48 of Act No. 23,696, equipment, tools, facilities, supplies and other parts of the contractor shall not be considered as necessary for the work.

By a well-founded decision of the Minister or Secretary of the Presidency of the Nation that is competent, exceptions may be made to the provisions of the preceding paragraph.

In such a case, if within the time limit of NOVENTA (90) days from the date of the termination notice, the contractor and the claimant do not enter into an agreement regarding the value of such assets, the latter may ex officio liquidate the amounts it deems appropriate to the contractor for such concepts, following the criterion determined by article 54 of the Act. 13.064 in subparagraph (a), subject to judicial or arbitral decision the matter by the intended remnant.

The procedure set forth above shall apply, as appropriate, to the other public sector contracts referred to in the last paragraph of article 48 of Act No. 23,696, the object and particularities of the contract in question, as well as:

I.- In no case may the contractor claim the loss of profits, profits or profits left to be paid for termination.

II. - In cases where the Commissioner has delivered materials or elements to the contractor, they must be returned to the Commissioner within the time limit set by the contractor.

III.-For the purposes of liquidation and payment of the contractor ' s credits prior to termination of the contract, such as unpaid invoices or certificates, mora updates or unpaid interest, the contractor shall credit them in earnest, and present a detailed detail of them, making the liquidations of the case.

ARTICLE 49. - The need to continue the execution of the contract, upon agreement of parties on the basis laid down in article 49 of Law No. 23.696, shall be decided in each case by the Minister or Secretary of the Presidency of the competent Nation, according to the following procedure, without prejudice to declaring its termination pursuant to article 48 of Law No. 23.696 where its continuation was, in any case, affected by the emergency situation envisaged in the aforementioned rule.

(a) The procedure shall be initiated on its own or at the request of the administered person.

In the first case, the contractor shall be notified of the new conditions of performance of the contract, pursuant to article 49 (a) and (d) of Act No. 23,696, further proposing the conditions of payment of arrears that may exist, as set out in subparagraph (c) of the same article.

The contractor shall accept or reject the proposal within the end of TEN (10) business days of notification, proposing, where appropriate, the application of the remaining conditions as provided for in Article 49.

If the amendments were accepted by the contractor, the relevant agreement would be formalized in the terms of article 49 of Law No. 23,696.

If the proposal is rejected or there is no reply in full, it shall be decided on the termination of the contract with the regime and effect set out in articles 48 of Law 23.696 and of this regulation.

With regard to entities, companies and societies, the Minister or Secretary of the Presidency of the competent Nation shall establish the procedure for the approval of the recomposition agreements or the termination of contracts.

If the proposal is accepted with variant and/or with the requirement of the application of the remaining conditions of Article 49 of Law No. 23,696 and its regulation, it shall, as appropriate, proceed as set out in the following paragraph.

(b) The contractor may require the recomposition of the contract, proposing the conditions in accordance with article 49 of Law No. 23.696 and of this regulation which it deems to correspond, conditioning its proposal to the knowledge of the correction factor established in subparagraph (b) of that rule, if it has not been published and if it is necessary to apply it.

Introducing the proposal, the Minister or Secretary of the Presidency of the competent Nation may reject it, deciding on the termination of the contract under article 48 of Law No. 23.696 if the contractor does not accept its continuation under the original conditions, or if its continuation, in the opinion of the Minister or Secretary of the Presidency of the Nation and in any case, is affected by the emergency situation declared by Law No. 23.696.

The Minister or Secretary of the Presidency of the Nation may, in his case, propose to the contractor modifications to his recommendation request, applying the procedure provided for in the preceding paragraph, although limited to the contractor ' s acceptance or rejection of the new proposal, without prejudice to its acceptance of the correction factor when it was published, having made the reservation in that regard previously authorized. Upon termination of the agreement, the agreement shall be formalized in accordance with article 49 of Act No. 23.696. In all cases, in which the sums to be paid should be in full or in part by the NATIONAL TESORO, a representative of the MINISTERIO DE ECONOMIA should be integrated into the negotiations.

(c) The agreement to recommend the contract shall be approved by the Minister or Secretary of the Presidency of the competent Nation and shall contain at least the following elements:

I.-Comitent.

II.-Contratist.

III.- Office of both parties.

IV.-Instruments that credit the legitimization of those who sign on behalf of the contractor.

V.-Portrait you mean.

VI. Amount recognized to the contractor under the concepts of article 49 (b) and (c) of Law No. 23,696, period and form of payment or, where appropriate, receipt of public debt securities.

VII. Conformity expressed by the contractor with the liquidations that are applied, the value of the correction factors and reduction indices, the time frames and payment conditions and the calculation bases and application methodology taken into account by the MINISTERY OF ARTS and PUBLIC SERVICES in establishing the correction factors.

VIII.-Individualization of the titles received by the contractor.

IX-In its case, the adequacy of the construction project and, in all cases, the new period of work and the relevant work plan and the waiver of fine that would have been due to delay.

X. - The waiver of full right, to make any kind of administrative or judicial claim originated in the cost-changing regime for the work certifications carried out since March 1989 to the date of approval of the agreement provided herein, being extended to the values of the correctional factors and the reduction rates, set by the decision of the Minister of Public Works and Services referred to in article 49 (b) of Law No. 23.696,

XI. - The waiver of claiming unproductive expenses, increased indirect general expenses, or any other compensation or compensation resulting from the lower rate or total or partial deletion of execution of the work, generated in the period indicated, as well as the restitution of the damages due to the arrears in the payment, mechanisms of updating, periods and conditions for the same concept, on the basis of the obligations under Article 49.6(c).

XII.-In its case, the record that the parties sign the Act "ad referendum" of the Minister or Secretary of the Presidency of the Nation competent in the matter.

XIII.-Number of contributions and amount of each.

XIV.-Date of maturity of the first quota.

XV.-Clausula de mora.

(d) The decision of the Minister of Public Works and Services referred to in article 49 (b) of Law No. 23.696 shall be published in the Official Gazette of the Argentine Republic for three (3) consecutive days.

Prior to the agreement provided for in the last paragraph of article 49 of Law No. 23,696 and for cases where the contractor has requested the application of the above correction factor, the incidence of the correction factor and its reduction will be liquidated, on the certificates of variation of costs actually issued and corresponding to work carried out between March 1989 and the last one issued at the date of this liquidation. Significant distortion will only be considered when the total amount of such incidence amounts to the amount of money equal to or greater than the percentage set by the MINISTERY OF ARTWS and PUBLIC SERVICES at the time of issuing the resolution referred to in subparagraph X above, on the total amount of the variation certification, of costs for the period hereunder.

The reduction rate will not be less than the percentage set by the MINISTERY OF ARTS AND PUBLIC SERVICES at the same time, applying on the correction factor established.

The eventual modification of the contractual adjustment system for the periods of certification following the agreement herein shall be governed by the provisions of Decree No. 2875/75 ratified by Act No. 21.250 and Decree No. 2348/76, and may be reserved in the agreement, if it is not completed. This processing may not interrupt the relative agreement here regulated. Lack of reserve shall not prejudice its future application in accordance with the rules governing the matter.

(e) For the purposes of the implementation of article 49 (e) of Act No. 23,696, it shall be understood that they are causes of direct incidence of the emergency situation any of the following:

I. Significant distortion in the terms set out in the preceding paragraph. For the sole purpose of the extension of the period, liquidation shall be carried out taking into account the work plan in force as at March 1989, even if it has not been effectively implemented.

II. Moorish situation of the Commissioner: the extension will be made for the period the delay has been maintained.

(f) E1 body or entity, company or company that concluded the agreement, through the Ministry or Secretariat of the Presidency of the competent Nation, shall refer to the MINISTERY OF ECONOMY, within the QUINCE (15) days of approval, copy of the relevant Acta Acuerdo that it subscribes.

(g) Agreements amending the regime of the variation of contractual costs, concluded since June 1989 by any of the organs, entities, companies and companies specified in article 1 of Law No. 23,696, in which, if the methodology set out in subparagraph (d) of this article is applied, the significant distortion there shall not be revised and may be terminated.

In cases where the significant distortion is checked in accordance with that methodology, for the period specified in article 49 (b) of Law No. 23.696, the correction factor is applied therein, or the agreed methodology, according to which a lower amount is charged by the Commissioner. The resulting differences in favour of the committee and which had been paid to the contractor shall be deducted from the first payment made to the contractor, with the application of the Act No. 21.392.

(h) The provisions of article 49 (b) and (c) of Act No. 23,696 may be applied to the provisions of article 55 (i) of this regulation.

CHAPTER VII

OF THE SITUATION OF EMERGENCY IN THE EXCLUDING OBLIGATIONS

ARTICLE 50. - The suspension of judgements and arbitral awards extends to the enforcement proceedings, regardless of the status of the date of effect of Law No. 23,696, including enforcement embargoes and other enforcement measures. The suspension shall meet any legal requirements for payment of sums of money to be satisfied with funds of the NATIONAL TESORO or of the entities, companies and companies listed in article 1 of Law No. 23,696. The proceedings shall be resumed once the time limit set forth in article 50 of the Act, according to the procedure of article 52.

ARTICLE 51. - The suspension provided for in articles 50 and 51 of Law No. 23,696 reaches the coast and other accessories that are the subject of conviction

ARTICLE 52. - Officials and professionals who exercise the representation or defence of the National State or of the other entities, companies and companies referred to in article 1 of Law No. 23,696 shall submit a note to the MINISTERIO DE ECONOMIA by stating the requirement of payment, with a copy of the resolution in which it is founded and of the one that establishes the criterion in which the obligation must be liquidated in the future, requesting the delay

The MINISTERY OF ECONOMY shall proceed with the creation of a register of payment obligations which shall be informed in the terms of this article and shall undertake the necessary studies to determine the probable date of cancellation of each of them, which shall be informed to officials or professionals exercising the representation or defence of the interests of the public sector, in the process in question in each case, before 23 June 1991.

For the purpose of setting the time limit for payment, it will be especially taken into account that it may not be greater than SEIS (6) months, from 23 August 1991.

ARTICLE 53. - No regulation.

ARTICLE 54. - The exceptions will include:

(a) The total of the judgement by the capital, its adjustments and interests, the fees and other procedural costs of the trials included in article 54 of Law No. 23,696, which integrate the coastal conviction against the subjects listed in article 50 of the same law.

(b) The provisions set forth in article 54 of Act No. 23,696, which arise from a judgement or award that includes other provisions not provided for in the list referred to, for which the respective discrimination shall be effected.

(c) Retirements, pensions and retirement assets, which shall be governed by the regime applicable to them in each case.

ARTICLE 55. For the purposes of the application of article 55 of Law No. 23,696, the following rules of procedure shall be observed:

(a) In each of the entities, companies and societies referred to in article 1 of Act No. 23,696, their interventors or senior authorities, shall constitute within the QUINCE (15) days of publication of the present regulation, an Advisory Commission in order to analyse the proposals that individuals make, pondering their legitimacy, opportunity, merit or convenience, and to advise the conduct to be adopted.

In the area of the Chief of Staff of the Armed Forces, this Commission shall be appointed by the Minister of Defence.

The Commission shall consist of CINCO (5) members selected from senior officials with knowledge that makes them suitable for the treatment of the issues involved. The head of the permanent legal service shall be, obligatoryly, one of the members, and may be assisted by the or the professionals of the service who so designate.

The commission, in turn, will have CINCO (5) alternate members, one of whom must be in professional legal counsel of the permanent legal service.

In all cases in which the amounts to be paid must be fully or partially paid by the NATIONAL TESORO, the UN Commission (1) representative of the MINISTERIO DE ECONOMIA should be integrated.

(b) In the arbitral or judicial administrative proceedings to which the national State is a party, the Advisory Commission shall be appointed by the Minister or Secretary of the Presidency of the competent Nation, in accordance with the scope of the proceedings in question. This Commission shall have the integration indicated in subparagraph (a) above. In this case, the concept of senior officials shall be considered to include the level of Secretary, Assistant Secretary and Adviser to the Ministerial Cabinet or Secretariats of the Presidency of the Nation. The head of the permanent legal service shall be mandatory one of the members and may be assisted by the or the professionals of the service that he designates.

(c) I. Received the transactional proposal, from which the proceedings shall be classified as secrets under article 38 of the rules of procedure adopted by Decree No. 1759/72 and its amendments, the Advisory Commission shall be issued in this regard within the time limit of TREINTA (30) administrative working days and shall submit its report to the Minister, Secretary of the Presidency of the Nation or higher organ of the decentralized entity, as appropriate. The Advisory Committee is empowered to require improvements to the proposal, without any acceptance of any law, or in accordance with the proposals.

II. In the centralized administration, elevated the report of the Advisory Commission, the Minister or Secretary of the Presidency of the Nation shall decide within a period of TREINTA (30) administrative working days, for the sole and equal purpose, on the acceptance or rejection of the proposal and its eventual improvements. The notification of the act of acceptance of the proposal forms and gives effect to the transactional agreement, which will be brought to the attention of the court that may be intervening in the case.

III. In the entities, companies or companies and in the field of the Chiefs of General Staff of the Armed Forces, the above procedure will be followed in cases where the sum of money committed in the eventual transaction does not exceed, at the date of the expiry of the Commission, the triple amount authorized for the proceeding of the ordinary appeal to the COURT SUPREMA OF JUSTICE OF THE NATION provided for in article 254 of the Code of Civil and Commercial Procedures of the Nation. If this amount is exceeded, the superior body of the entity, company or society and the Chief of the General Staff shall bring the proceedings to the Minister or Secretary of the Presidency of the competent Nation, with the report prepared by the respective Advisory Commission and without further processing. The organs of the Centralized Administration mentioned above shall decide within the time limit specified in paragraph II above, and shall return the proceedings to the entity, company, company or head of the General Staff for the immediate issuance of the approval act of the proposal according to the instructions given to it, or for its archive in case of rejection of the transactional proposal.

IV. In any case, the body competent to decide definitively on the proposal may require an improvement from the counterpart.

V. The intervention of the NATIONAL THIRD PROCURATION may be required when the importance or complexity of the issue so advises and will be mandatory when the amount of the transaction exceeds the sum of a MIL MILLONES of AUSTRALES (A 1,000,000.000), updated quarterly according to the general wholesale price index developed by the NATIONAL STATISTIC AND CENSES INSTITUTE.

VI. In cases of significant or relevant legal, economic, social or political significance, the superior body of the entity, company or society, the Head of the General Staff or the Minister or Secretary of the Presidency of the Nation shall bring the proceedings directly to the Transaction Advisory Commission established in the following paragraph.

(d) The Transactions Advisory Commission, which will aim to consider the proposals made in matters that are significant or relevant to legal, economic, social or political significance, should be considered in the jurisdiction of the NATIONAL PROCURATION.

The Commission shall be integrated within the period of QUINCE (15) days of the validity of these rules and shall receive the necessary technical and administrative support from the PROCURATION OF THE TESORO OF NATION.

I. The Commission shall be composed of Mr. Procurator of the Treasury, who shall serve as its Chair, and by one (1) representative of the LEGAL SECRETARIAT AND TECHNICAL OF THE NATIONAL PRESIDENCE and one (1) representative of the MINISTERIO DE ECONOMIA, all of them permanent members of that

It will also be integrated, in each case, with UN (1) representative of or of the Ministries or Secretariats of the Presidency of the Nation in whose jurisdiction the organs, entities, companies or companies are party to the proceedings.

Representatives of the above-mentioned agencies may not have a lower rank than that of Assistant Secretary.

The Treasury Procurator may be replaced - in case of absence or impediment - by the Treasury Procurator.

In a similar situation, the remaining members of the Commission may be replaced by Senior Cabinet Advisers or Directors General or National.

II. The Commission shall have the following functions and powers:

A) Send on the proposals by pondering their legitimacy, opportunity, merit or convenience and advising the conduct to be adopted.

(B) The knowledge of transactions that had not been submitted to their consideration and that they reviewed the above-mentioned significance.

C) To request, directly, the heads of all branches and departments of the administration, and the superior or intervening authorities of the entities, companies or companies listed in article 1 of Law No. 23,696 and, through it, the other employees, the reports that it creates convenient, those that are obliged to give them.

D) Propose the NATIONAL EXECUTIVE PODER through the relevant channel, the general guidelines to be observed in the conduct of transactions.

E) Hire advisers or conduct specialized professional consultations, when circumstances so warrant, paying the fees that are agreed in each case.

F) Dictate its rules of procedure.

III. The proposals for the transaction shall be forwarded to the Commission ' s consideration with the prior pronouncement of the Delegation of the State Bar Corps (Act No. 12,954) of the area in which the proceedings in question or of the National Directorate of Judicial Affairs and Prosecutors of the Treasury Procuration, if any.

The Commission ' s Views should take place within the maximum period of TREINTA (30) administrative working days, counted from the receipt of the respective proceedings. Such a period shall be automatically extended for the time when it takes the response of those reports that the Commission requires, on the basis of which it pronounces.

The Commission is empowered to require improvements to the proposals, without any acceptance of law or conformity with those proposals.

The opinion shall be addressed directly to the Minister or Secretary of the Presidency of the Nation, competent, who shall decide as provided for in subparagraph (c) item II.

(e) In the event that a particular person who has more than one issue with the National State and the other entities, companies or companies referred to in article 1 of Law No. 23.696 has formulated their transactional proposal for part or all of them, they shall be given comprehensive treatment by ensuring that each agreement to be concluded is provided for all those that refer to the same legal link, in these cases the Advisory Commission shall be established in the respective ministries.

(f) The transactional agreement and, if any, its submission to the judge of the case, pursuant to article 838 of the Civil Code, shall contain the waiver or withdrawal of the parties to any claim or action, administrative, arbitral or judicial, filed or instituted and to the right in which such claims are founded or may be founded, with respect to the object contained in the transaction held.

(g) As long as the procedures originated in the transactional proposals that individuals may eventually formulate, all judicial, arbitral and administrative deadlines shall be suspended, for which the Minister or Secretary of the Presidency of the Nation, Chief of the General Staff, Interventor or Senior Authority of the entity, company or society concerned, shall issue the instructions to their agents and/or representatives, in order to request and/or agree on the relevant rules.

(h) In all cases and prior to the subscription of the transactional agreement, a copy of the transactional agreement - together with the actions that are relevant - will be turned to the MINISTERIO DE ECONOMIA so that, within the term of VEINTE (20) business days, it is issued on the form and modalities of payment planned.

After the time period previously established without issuance, no objection shall be considered to the draft referred.

(i) The transactional agreements may include partial or total reinvestment of the debt recognized in the transaction. For this purpose and in the cases of contracts, the contracting person may be empowered to issue orders for payment on behalf of the agency, under the terms of the agreement to which he or she is finally arrived, which shall have the character of assignments of credit and whose early acceptance shall appear in the same agreement, conditioned on them to be issued with the following modalities:

I. Acquisition of inputs or services required for the same or other public work of the same or other state commissioner, or a concession of work in the same case.

II. Guarantee of credit operations identical to that indicated in the previous paragraph.

(j) In all cases, a copy of the proposal will be immediately turned to the MINISTERIO DE ECONOMIA, also sending a copy of all the actions carried out.

The MINISTERIO DE ECONOMIA, through the unit of its competent jurisdiction, may propose comprehensive agreements or compensatory mechanisms that involve the general state of the relation of credits and debts of the proposal with the public sector, as authorized by the legislation in force. For this purpose, a representative may be appointed in the advisory commissions and may cite the membership of representatives of bodies or entities, companies or public sector societies that may be involved in the global agreement. This decision may be made until the time of issuance of the report of the advisory commissions, opening in this case a new stage of negotiations by SESENTA (60) maximum administrative working days. The adoption of the transactional proposal involving organs or entities, companies or societies of different jurisdiction shall be decided by joint resolution of the Ministers or Secretaries of the Presidency of the competent Nation and the Ministry of Economy, and in the event of a lack of agreement, by the NATIONAL EXECUTIVE PODER.

ARTICLE 56. The regulation of this chapter shall apply, as appropriate, to the cases provided for in article 56 of Act No. 23,696.

CHAPTER VIII

CONCESIONS

ARTICLE 57.-To award a concessional work under any of its modalities, its financial economic structure must be taken into account as a basic element of the contract. For the purpose of assessing the relationship between investment and profitability, the financial-economic structure should express the return rate of the investment to be carried out.

ARTICLE 58.

(a) For the purposes of the law, maintenance shall be considered to those singular works that access the integrality of the conservation, understood as a means and to this as a result.

(b) The fate of the funds obtained by the concession granted for the construction or conservation of other works does not necessarily entail the concession system for the latter.

(c) The economic-financial structure of the concession will define the scope of the previous investments to be made by the concessionaire, whose entity will be taken into account in all cases, as a parameter of transcendence in the selection, comparing it with the incidence that its financial cost will have on the value of the rate or toll by the user, constituting the overall objective of the system the discounting of the rate or tollage. The solicitation of particular conditions for awarding tender concessions may establish minimum or maximum volumes of prior investment.

(d) In the national order, the Authority of Application for the Granting and Enforcement of Public Works, the Minister of Public Works and Services, will approve the procedure to be followed for this purpose.

(e) The rating of public interest, and the exercise of the option between the public tender and the contest of integral projects, will be solved in one act by the MINISTERY OF ARTWS and PUBLIC SERVICES.

(f) Any initiative of individuals shall include a maintenance guarantee in the form provided for by Law No. 17.804 or bank bond, which shall not be less than DOS per SCIENTO (2 %) of the amount of the work, which shall be subsequently disclosed in the offer, in the selection procedure that is called. This guarantee will be enforceable in case of non-submission of the offer. If the guarantee is subsequently made less than the previous percentage, with a tolerance of a TREINTA BY CIENTO (30 %), the offerer shall not be considered the author of the initiative.

The guarantee of maintenance of the initiative may become a guarantee of supply in the event of tendering or competition.

(g) All proceedings relating to the granting of public works in the course of approval in any instance, both those carried out under Decree No. 1842/87 and the previous text of article 4 (c) of Law No. 17.520, and those carried out prior to the validity of this regulation, shall be ratified before the MINISTERIO DE ARTES and SERVICES PUBLICOS within the TREINTA (30)

(h) The "general guidelines" that must contain the initiative carried out in the terms of Article 4 (c) of Law No. 17.520 shall contain, at a minimum, the identification of the work and its nature, the basis of its economic and technical feasibility, the full history of the offeror and, in the case of Argentine companies, its recorded capacity to hire.

(i) Once summoned to the competition for integral projects, the offerers must propose all the contractual, technical and economic conditions, including the financial economic structure and the constructive projects that will be carried out in the contract grant you and that will govern the construction of the work and its exploitation.

The mere presentation of the offer involves the subjection of the offerer to Law No. 17.520, its amendment and its regulations.

(j) In any event that the tenders presented were of equivalent convenience, it would be preferred that of which the initiative was presented.

(k) It may be called for the presentation of private initiatives for a public work determined by the commissioner, to be built by concession.

I. The publication shall be made in a manner and by the deadlines set out in article 4 (c) of Act No. 17.520, as amended by Act No. 23.696, for the submission of tenders.

II. The initiatives presented by this procedure, together with the guarantee referred to in subparagraph (f) above, shall be considered of public interest in the work determined by the assignor. Alternatives will be admitted that include the work that terminates the call.

III. The proposal to be taken as a basis for the selection procedure to be followed shall be considered as initiating, in accordance with the provisions of Act No. 17.520 and its amended Act No. 23.696.

CHAPTER IX

EMERGENCY PLAN

ARTICLE 59. - The Minister of Public Works and Services will be the Implementing Authority of the "Employment Emergency Plan".

The agreement by which the PROVINCIES accede to Law No. 23,696 and the determination and distribution of funds among them shall be approved by decree of the NATIONAL EXECUTIVE PODER following the intervention of the MINISTERIES OF INTERIOR, ECONOMY AND WORKING AND SECURITY SOCIAL, pursuant to the following guidelines:

(a) The selection of projects, for inclusion in the Programme, will correspond to PROVINCIA, according to the criteria and guidelines established by the Implementation Authority. PROVINCIA should provide technical assistance for the development of the projects and folds of the works.

(b) Postulants with priority for the job must reside within a radius not superior to the TREINTA (30) Km. of the place of effective performance of the tasks. Such circumstances shall be credited with a certificate from the police authority of the place of residence.

(c) The Minister of Public Works and Services, in the resolution to adopt the draft, shall have the funds for the official bank of PROVINCIA (or municipal, if any), in whose jurisdiction the work will be carried out.

(d) The work will be tendered, awarded, controlled, measured and received by MUNICIPALITY owner of the project.

MUNICIPALITY-holder of the project will be responsible to the NATIONAL GOVERNMENT, the execution of the work and the administration of the agreed funds.

(e) The measurements of the work and the corresponding certifications will be performed fortnightly. Financial advances may be granted for the payment of fortnights to the occupied staff.

The certificate issued in accordance with the relevant legal and regulatory provisions shall constitute a working title for the contractor to obtain the amount of the same from the bank institution receiving the funds.

(f) The delays in MUNICIPALITY in the approval of the certificates that do not merit observations, as well as the non-delivery of the certificates within the agreed time frame, will make the contracting MUNICIPALITY unique responsible for the interests and damages that originate, expenses that will be in its exclusive position, in no case can request its refund to the NATIONAL GOVERNMENT.

(g) The price variation index to be used in the contract will be that of Construction Cost published by the NATIONAL INSTITUTE OF STATISTICA AND CENSOS (Costo de la Construcción en la Capital Federal), corresponding to the month of execution of the works. To date of publication, the last published index will be used provisionally. As an exception and through a strong resolution, the use of another price variation index may be authorized

(h) Within the CINCO (5) days of signing the contract, the municipalities shall refer the following data to the MINISTERY OF ARTWORKS AND SERVICES:

I.- Photocopy authenticated from the corresponding contract.

II.- Number of unstable contractor personnel who will require the work.

III.- Time of execution of the work and date of its initiation.

IV.- Recruitment development schedule.

(i) The work has been completed and the act of provisional reception has to be reported to the MINISTERY OF ARTWORKS and PUBLIC SERVICES of that circumstance.

(j) The MINISTERY OF ARTWORKS AND PUBLIC SERVICES may request reports that it deems appropriate or necessary for the better implementation of the objectives of the plan.

CHAPTER X

GENERAL PROVISIONS

ARTICLE 60. - No regulation.

ARTICLE 61. - Within the Ninth (90) days of the validity of these regulations and annually, on the occasion of the formulation of the draft Budget, each Ministry and Secretariat of the Presidency of the Nation shall report the number of commissions; distributions, entities, companies, companies or agencies created by special laws that are projected to Delete, transform, reduce limit or resolve.

ARTICLE 62. - Companies under the control of the General SINDICATURA OF PUBLIC COMPANY COMPANIES, shall submit to the counter-lor agency, within the TREINTA (30) days after the validity of this regulation, the respective information according to the guidelines and modalities that it determines in each case. The General SINDICATURA of PUBLIC COMPANIES, will issue its opinion in each case and will raise all business documentation with the particular analysis to the MINISTERY of ECONOMY, and sufficiently in advance to make the reference to the HONORABLE CONGRESS of NATION in the term of law.

ARTICLE 63.

(a) The entities, companies or companies that by the nature of their activity must comply with the provisions of article 63 are those described in article 1 of the Act, with the exception of the Centralized Public Administration. As a result, all of the farms of production and erogation are reached regardless of their legal nature.

(b) The technical and professional standards for the making of balance sheets or accounting states and the registration of operations shall be those issued by the General SINDICATURA OF PUBLIC COMPANY COMPANY COMPANIES, in accordance with the rules of the Professional Council of Economics of the jurisdiction where the entity, company or society has its legal domicile. It will also be applied by analogy as determined by the Trade Code in its First Book, Title 1, Chapter 3.

(c) Each entity, company or society shall develop an Accounts Plan that must be systematic, ensuring a homogeneous treatment of the accounting of facts, operations or contingencies, so that useful information is obtained on the management of the entity, company or society and its most relevant sectors, contributing to the decision-making and control of its heritage.

The Accounts Plan will be approved after the intervention of the General SINDICATURA of PUBLIC COMPANIES, by superior authority of each entity, giving notice of the same to the Minister of the respective branch.

(d) The budgets to be made should be structured in the same headings and headings of the Accounts Plan of the entity, company or society. They should make it possible to compare the budgeted to what was done and facilitate the analysis of variations.

(e) The entities that by their legal nature differ from the societies, adopt and adapt their Plans of Accounts and Patrimonial States, State of Income and Egresses to those used by the Commercial Societies legislated by Law No. 19.550 (t. 1984).

(f) Accounting will be organized through separate records for the different sections or divisions of the entity, company or society or with a centralized system aimed at evaluating the management of the different operating units.

Both in one case and in the other the determination of the operating units or the divisions or sections will be proposed by each entity to the minister of the branch within the time of TREINTA (30) days for its resolution.

(g) The entities, companies or companies shall make quarterly and annual accounting states which shall be deposited at the social headquarters and to the administrative authority that corresponds within the SETENTA and CINCO (75) days after the closing date of the quarterly period or, if any, within the DIEZ SCIENT (110) days after the closing date of the year, which shall be of public consultation whenever required.

They will be published, like the report, Annexes and Complementary States, in a synthetic manner in the Official Gazette of the Argentine Republic, without prejudice to any other means that it deems relevant.

The balance sheets and other states of accounting information to be carried out by companies under the control of the General SINDICATURA OF PUBLIC COMPANIES referred to in article 1 of Act No. 23,696 shall be issued by the professionals of that entity, company or society covered by article 4 (b) "in fine" of Law No. 21,801 (t.a.)

Any administrator may request copies of the balance sheets and quarterly or annual statements referred to in this article, subject to payment of the cost of them.

Without prejudice to the compliance of the other rules of this decree, the publicity of the balances for those entities, companies, companies or agencies whose operations should remain secret for reasons of defence or security shall not be applicable, when expressly provided by the NATIONAL EXECUTIVE PODER.

(h) The financial period will be annual and its closure will take place on 31 December of each year, except in the case of entities, companies or companies that by law have set a different date.

ARTICLE 64. - No regulation.

ARTICLE 65. - No regulation.

ARTICLE 66. - No regulation.

ARTICLE 67. - No regulation.

ARTICLE 68. - No regulation.

ARTICLE 69. - No regulation.

Law No. 23,696

CONTENTS

 CHAPTER I. ADMINISTRATIVE EMERGENCY Articles 1 to 7th CHAPTER II. PRIVATIZATIONS AND PARTICIPATION OF THE PRIVATE CAPITAL Articles 8 to 20 CHAPTER III. PROPERTY PROPERTY Articles 21 to 40 CHAPTER IV. PROTECTION OF THE WORKER Articles 41 to 45 CHAPTER V. EMERGENCY CONTRACTATIONS Articles 46 and 47 Chapter VI. Articles 48 and 49 Chapter VII. OF THE SITUATION OF EMERGENCY IN THE EXCLUDING OBLIGATIONS Articles 50 to 56 CHAPTER VIII. Articles 57 and 58 Chapter IX. EMERGENCY PLAN Article 59 Chapter X. GENERAL PROVISIONS Articles 60 to 69