ELECTRIC ENERGIA

Decree 1174/92

Believe the Special Unit Yacyretá Transmission System.

Bs. As., 10/7/92

SECRETARY OF ELECTRIC ENERGY, and

CONSIDERING:

That it is necessary to take the measures to ensure the construction of the First Stage of the Transmission System associated with the YACYRETA Hydroelectric Power Plant, formed by Block I that includes the line of KYLVOLTIOS QUINIENTS (500 kV) between the Transformative Station RINCON - MARIA SYSTEM (YACYRETA Hydroelectric Power Plant) and the Transformation Station.

That, since the activity of Generation and Transport by WATER AND ELECTRIC ENERGY SOCIEDAD The State has been declared to be subject to privatization by Act No. 24,065, and that the NATIONAL EXECUTIVE POWER, through Decree No. 2408 of 12 November 1991, has set the maximum time limit for the transfer to the Private Sector on December 1992, is neither timely nor convenient to recommend The implementation of the Transmission System to the aforementioned company.

Moreover, it is not possible to entrust the task directly to the YACYRETA BINACIONAL ENTITY, since the respective Treaty does not contemplate any mechanism for the execution of the non-common works of the entrepreneurship.

It is necessary to determine an interrelationship between the works of the YACYRETA Hydroelectric Power Plant and the associated Transmission System to ensure their realization in a timely manner.

That, as such, it is appropriate to assign to a transitional entity the responsibility for the execution of the aforementioned work.

That the NATIONAL EXECUTIVE POWER is entitled to the dictation of this act by virtue of the powers conferred by Law No. 23.696 and by Article 86 Subparagraph (1) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 — Consider, within the scope of the SECRETARIAT for ELECTRIC ENERGY, the SPECIAL TRANSMISSION SYSTEM YACYRETA, an autonomous body whose exclusive purpose will be to carry out all those acts that are necessary for the operation of the First Transmission System Tram associated with the Hydroelectric Power Plant YACYRETA.

Art. 2° — The Special Unit created by this act shall be entitled to perform any legal act and operation that is directly or indirectly linked to the object for which it has been created, on its own account, of third parties or associated with third parties.

Art. 3rd - The SPECIAL UNITY will be headed by an Administrator and a deputy minister, who will be appointed by the SECRETARY of ELECTRIC ENERGY, for this purpose selecting officials who are directly or indirectly linked to the Argentine Representation of the YACYRETA BINACIONAL ENTITY. They shall remain in their functions until they are removed by the organ designating them.

The Administrator shall exercise the legal representation of the agency and shall be responsible for the executive and administrative tasks of the Special Unit, having to submit a semi-annual report on the tasks carried out accordingly to the SECRETARIAT OF ENERGIA ELECTRICA. It will be replaced by the Assistant Minister, in case of absence, impediment or resignation.

The Assistant Administrator shall exercise the functions of a General Manager.

Art. 4° — The Administrator, in the exercise of his functions and within the existing legal provisions, may:

(a) The purchase, sale, permute of goods, patents and exploitation rights and any other real right.

(b) Bring to the national authorities all necessary measures for the purpose of the Special Unit and coordinate its activities with those of other companies or agencies.

(c) Operating with Banks and other credit, official and private, national or foreign institutions.

(d) To delegate powers, grant powers, associate with natural or legal persons.

(e) Define the internal organization and issue the corresponding regulations, and may create subcommissions and designate its members.

(f) To have the creation of Managements, up to a maximum of THREE (3), proceeding to designate their responsible, setting the salaries and expenses of representation and refund of expenses.

(g) Designate employees and staff for a given time, assign their remuneration, remove them, accept honorary collaborations, hire specialists, technicians and advisers, including consultants.

(h) To authorize the conduct of transitional commissions abroad to or for other officials or agents of the Special Unit when the circumstances advise it, by providing them with funds of its administration, for which it is exempt from the implementation of the provisions in force.

(i) To carry out all acts and functions that make the object of the Special Unit without any other limitation than those imposed by law and by this decree.

Art. 5° — The SPECIAL UNITY will have a Consultative Council that will be composed of a representative of the SECRETARIAT of ELECTRIC ENERGY and another of the MINISTERY OF ECONOMY AND PUBLIC ARTWS and SERVICES, who shall remain in the exercise of their functions as long as they are not removed by the body designating them.

Art. 6° — The Advisory Council shall have the following functions:

(a) The adoption of the semi-annual report referred to in Article 3 of this act.

(b) To approve the proposed budget of the Special Unit.

(c) To approve all contractions that are linked to the specific object of the Unit.

(d) Demonstrate in all matters before it, at the express request of the Administrator and/or of the National Authorities, and may require, where appropriate, the reports necessary for the fulfilment of its mandate.

(e) Supervision of information concerning monthly executions of the economic and cash budgets, which shall be forwarded by the Administrator to the SECRETARIAT OF HACIENDA, under the terms of Decree No. 1001 of 28 May 1991.

Art. 7° — The Special Unit will operate until SESENTA (160) days after the final reception of the works that make up its object, and the SECRETARIAT OF ELECTRIC ENERGIA will be extended by SESENTA (60) days, in order to terminate its functions and carry out its liquidation. For these purposes, the assets that integrate their assets will be made available to the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES that will determine their final destination.

Art. 8°— The budget of the Special Unit shall be approved by the NATIONAL EXECUTIVE POWER and shall be composed of the following resources:

(a) The items allocated to it in the General Budget of the National Administration.

(b) The funds allocated to it by legal provisions.

(c) Income and contributions of private origin and/or of any kind that it manages to fulfil its role.

Art. 9° — Recruitments made by the Special Unit shall be governed by the provisions of the Accounting Act, as long as they may be subject to the procedures and solicitation documents of public, private or direct contracting that must be carried out and consistent with the rules and customs prevailing in international contracts.

The recognition of the urgency of the work to be carried out by the Special Unit will be taken into account by the counter-lor ' s agencies in order to speed up the contractual dynamics and thereby enable the fulfilment of the object of the Special Unit with the enforceability and efficiency necessary to enable the mandated work in a useful time.

Art. 10. —All submissions or procedures to be made by the Special Unit to the national authorities, public distributions of any nature and private entities, shall be handled with a preferred office.

Art. 11. - The Special Unit is exempted, attentive to the reasons for necessity and urgency that motivate its constitution, of all administrative rules that prevent it from hiring services, personal and non-personal, and the acquisition or hiring of the necessary elements and/or equipment for the fulfilment of its objective.

Art. 12. - The General SINDICATURA OF PUBLIC COMPANY COMPANIES shall be responsible for the external control of legality, management and accounting of the Special Unit established by Article 1 of this act.

Art. 13. - Determined in the declaration of subject to privatization of Article 93 of Law No. 24.065 the transport activity resulting from the work carried out by the Special Unit.

Art. 14. - Instruct the SECRETARIAT OF ELECTRIC ENERGIA to proceed with the privatization of the Transmission System Associated with the YACYRETA Hydroelectric Power Station whose execution is entrusted to the Special Unit that is created by this act.

Art. 15. - Contact, post, give to the National Directorate of the Official Register and archvese. - MENEM. - Domingo F. Cavallo.