Argentine Railways Approve Restructuring - Full Text Of The Norm

Original Language Title: FERROCARRILES ARGENTINOS APRUEBAN REESTRUCTURACION - Texto completo de la norma

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image inicio sitio infoleg MInisterio de Justicia y Derechos Humanos
FERROCARRILES ARGENTIN Decree 2.740/90 Approve the Memorandum of Understanding for Ferroviary Restructuring and its Annex Programme.

Bs.As., 28/12/90

VISTO Expediente N°442/90 of the registration of the FERROCARRILES ARGENTINOS Company and the process of transformation in development in it, and


That the Intervention in that Company proposes the approval of the Memorandum of Understanding for the Ferroviary Restructuring and Program Annex signed by FERROCARRILES ARGENTINOS, the SUBSECRETARIA DE EMPRESASS PUBLICS of the MINISTERY OF ECONOMY, the SUBSECRETARIA DE SERVRAS PUBLICAS OF MINISTERIAL

That the agreements summarized in that document were achieved on the basis of the mutual understanding of the objectives to be achieved and the actions to be developed, under the conviction of all the sectors involved that the transformation of the Railway Company is indispensable for the Railway to recover in the country its notable comparative advantages over other modes of transport and instead of being a permanent source of serious financial imbalance again constitute a solid pillar of national development.

That the overall scheme of the program to develop is essentially the transfer to private companies, through concessions as prescribed by Law No. 23.696, of the exploitation of a considerable part of the operational functions of FERROCARRILES ARGENTINOS, keeping the State Company only the portion of the network necessary for the fulfillment of services that are defined as essential but not commercially viable. At the same time the railway transport of passengers in the Metropolitan Region of BUENOS AIRES will be the responsibility of a new company, designed to take part in it the three jurisdictions interested in the efficient provision of the public service in question, that is, the NATIONAL STATE, the Province of BUENOS AIRES and the City of Buenos Aires.

That under such conditions the current State Railway Company will be significantly reduced in its functions and size, but not so the Argentine railway system as a whole, whose possibilities of expansion will be commensurate with those of the productive reactivation and the economic growth that the Government and the Argentine people pursue.

In addition, on the basis of the programme in question, the Mission of the World Bank participating in the understanding in which it is understood has ensured the technical and financial support of that Entity for the process of railway restructuring.

That, therefore, in merit of the manifest importance of the agreement reached for the necessary transformational action of FERROCARRILES ARGENTINOS, it is considered appropriate to proceed to the approval of the Memorandum of Understanding and Programme Annex to which reference has been made.

That it is necessary to implement measures that will ensure the proper and timely implementation of the guidelines set out in the Memorandum, and therefore the MINISTERIO DE ECONOMIA is empowered to take all measures leading to the persecuted end.

That, on the other hand, as the implementation of the pre-cited Programme is encouraged, it is necessary to keep the company in operation and avoid its further deterioration so that it does not detract from the interest of the private sector when it comes to providing more services and facilities.

That, to this end, the greatest resources that can be obtained through restrictions and savings in the various sectors of the company's budget, should be allocated, if not to improve, to maintain the operation of the company at its current levels.

In addition, it is essential to ensure the timely forecasts set out in Decree No. 666/89, insofar as the transition process lasts, the NATIONAL STATE will provide the funds to meet the total staff costs of the FERROCARRILES ARGENTINOS Company, within a context of rationalization of its number. In the same way, it is considered appropriate to empower the MINISTERIO DE ECONOMIA so that in this process of transition of FERROCARRILES ARTINGENOS, it provides the company with the necessary instruments for its exploitation and operation, in the sectors that will be granted, until its transfer and to its support and consolidation in the sectors that will remain in FERROCARRILES ARGENTINOS, understood by such the supply of the supply of energy acceptable

That the NATIONAL EXECUTIVE POWER is empowered to issue this Decree under the powers conferred by Act No. 23,696 and Article 86, paragraph 1 of the NATIONAL CONSTITUTION.




Article 1 Approved the Memorandum of Understanding for Ferroviary Restructuring and Annex Program signed by the intervention in the FERROCARRILES ARGENTINOS Company, the SUBSECRETARIA DE EMPRESAS PUBLICS of the MINISTERIO DE ECONOMIA, the SUBSECRETARIA DE ARTWS Art. 2°.. Please refer to the MINISTERY OF ECONOMY to execute the actions, to dictate the rules of procedure and to have the sources of financing to ensure strict compliance with the Program approved by Article 1 within the established time frames. Art. 3rd . Please enable the MINISTERIO DE ECONOMIA to dictate the rules of procedure, to have the sources of financing and to execute the actions leading to ensuring the provision of the Public Transport Service by the FERROCARRILES ARGENTINOS Company, ensuring the supply of its basic inputs and contractings that are essential for its operation, avoiding in such a way that it decays even more the program Art. 4° Contact, post, give to the National Directorate of the Official Register and archvese. MENEM - José R. Dromi . Antonio E. González.

Note: This Decree is issued without Annex I.