PRIVATIZATIONS

Decree No. 1045/95

Disposed the sale of the Pichi Picún Leufú Anonymous Hydroelectric Power Package.

Bs. As. 7/7/95

VISTO the provisions of Decrees No. 287 of 22 February 1993 and No. 2242 of 26 October 1993 and

CONSIDERING:

That Decree No. 287/93 had the purpose of reorganizing and privatizing the power generation activity linked to HIDRONOR S.A. HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA, the constitution of HIDROELECTRICA ALICURA S.A., HIDROELECTRIC THE ANONIMA SOCIEDAD

That Decree No. 2242/93 postponed the privatization of hydroelectric generation activity linked to HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) and provided the continuity of the work carried out by that society.

That the privatization of the remaining business units in which HIDRONOR S.A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA was divided, as well as that of the units of such a generation that were formed from WATER and ENERGIA SOCIEDAD DEL ESTADO, and given the degree of progress of the works of the PULECTICH

That because of the characteristics of the above-mentioned business unit it is advisable to adopt, as a modality of privatization of the electrical energy generation activity to this linked the sale of the shareholder of a society in progress that, as a HIDRONOR S.A continuator. - HIDROELECTRIC NORPATAGONICA SOCIEDAD ANONIMA, is the holder of the concession to build the PICHI PICUN LEUFU Hydroelectric Power Supply and will be granted a concession to generate electricity, similar to those that were granted in due course during the process of privatization of the ALICURA Hydroelectric Powers, THE CHOCON - ARROYITO, COLORADOS CERROS - PLANICIE BANDERITA and PIEDRA DEL AGUILA.

That, for this purpose, it is necessary to restructure HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) reintegrating HIDRONOR S. A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA those goods that by their nature or condition to privatize.

That in response to the consultation of the Ministry of Labour and Security With regard to the relevance of the formulation of a Participated Property Programme, that State Portfolio, considering the background of the case, argues that the basic conditions provided for in Act No. 23.696 are not set up to include it in this privatization process.

Constituting this modality of privatization a business reorganization that operates within the heritage of the NATIONAL STATE, which does not have profits, it is necessary to implement measures such as the remission of the tax credits that affect it, as well as to exempt the instruments that it is necessary to elaborate for that purpose the provisions of Article 2 of the Decree No. 114 of 29 January 1993, with the aim of avoiding any fiscal impact on this process.

That by reason of not having exercised the Province of Río Negro the option to acquire the class actions "B", representative of the TREINTA and NUEVE by CIENTO (39 %) of the share capital of HIDROELECTRICA PIEDRA del AGUILA SOCIEDAD ANONIMA (HIDROELECTRICA PIEDRA DEL AGUILA S. A.)

That for reasons of opportunity, merit and convenience based on the need to complete the process of privatization of HIDRONOR S.A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA, it is necessary to amend Article 8 (e) of Decree 287/93 in order to include in it the actions described in the precedent and also to empower the MINISTER OF ECONOMY AND ARTWS AND SERVICES PUBLICS to proceed to sale jointly or separately from HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.).

That the NATIONAL EXECUTIVE POWER is empowered to issue the present act under the provisions of Act No. 23,696, by Article 59 of the Sealing Tax Act (t. 1986), by Article 11 of Act No. 15,336, by Articles 91 and 97 of Act No. 24,065 and by the powers conferred by Article 99 (1) of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

ARTICLE 1. In order to privatize the electricity generation activity linked to the PICHI PICUN LEUFU Hydroelectric Power Plant, the sale of the HIDROELECTRICA PICHI PICUN LEUEDAD SOCIEDAD ANONIMA (HIDROELECTRIC PICHI PICUN PICHI PICULA)

ARTICLE 2. Amend Article 8 (e) of Decree No. 287/93 of 22 February 1993 to read as follows:

"ARTICULO 8o.- Determin...e) PICHI PICUN LEUFU hydroelectric exploitation with more the class actions "B" representative of the TREINTA and NUEVE BY CIENTO (39 %) of the share capital of HIDROELECTRICA PIEDRA DEL AGUILA SOCIEDRA ANONIMA (HIDROELECTRICA PIEDRA).

ARTICLE 3o.- No percentage of the social capital of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) will be affected to the Participated Property Programme.

ARTICLE 4o.- SECRETARIAT OF ENERGY OF THE MINISTERY OF ECONOMY AND SERVICES PUBLICOS will amend the Corporate Statute of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) for the purpose of making the provisions of this act applicable to that society.

ARTICLE 5o.- For the purpose of the privatization set forth in this act, the reorganization of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) and HIDRONOR S. A. HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA.

For the purposes of the preceding paragraph, the SECRETARIAT OF ENERGY of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICS shall transfer to HIDRONOR S. A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA those assets and liabilities of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) that result in the privatization of the business

ARTICLE 6o.- The SECRETARIAT OF ENERGY of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES will be able to agree with the Provinces entitled to the collection of hydroelectric royalty originated by the PICHI PICUN PICUN LEUFUFU as a form of advance payment of such concept the perception of a percentage of HIDROELECTR.

ARTICLE 7o.- Please refer to the MINISTERY OF ECONOMY AND PUBLIC ARTWS AND SERVICES to exercise the powers defined in Article 15 of Law No. 23,696, and 12, for the purpose of a better execution of the mode of privatization provided for in this Decree.

ARTICLE 8o. Complete the documentary, legal and accounting requirements set out in the Resolution of the General INSPECTION OF JUSTICE No. 6 of 24 December 1980 in relation to HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S.A.) and HIDRONOR S.A. - NORPATAGONICA SOCIEDAD ANONIMA resulting from Article 10 of Decree No. 287 of 22 February 1993, Article 2 of Decree No. 2242 of 26 October 1993 and the provisions of this act.

9th Article. - The MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, by adopting the Bases and Conditions to apply in the process of privatization that is carried out by the present act in the terms of Article 16 of Decree No. 287 of 22 February 1993, shall determine the scope of temporary application of Articles 6 and 7 of Decree No. 2242 of 26 October 1993.

ARTICLE 10. MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS shall determine in the Pliego of Bases and Conditions for the sale of the shareholder of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) what will be the company holder of the faculty of expropriation as well as the area and lots that are of utility in the declaration of the

ARTICLE 11. See that the surface to expropriate corresponding to the "a" and "d" of the 181 lot and "a" and "d" of the 9th lot of the Colonia EL CUY, Department THE CUY of the NEGRO PROVINCIA identified in section 1 of Annex I to Decree No. 2335 of November 6, 1991 corresponding to the PROVITRONCIA of RIO NEGRO.

ARTICLE 12. Leave without effect, from the date of completion of the work PICHI PICUN LEUFU Hydroelectric Leverage, the concession granted to HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRIICA PICHI PICUN LEUFU SID. A.) as a HIDRONICAOR S.

ARTICLE 13. Explain the Seal Tax established by Article 2 of Decree No. 114 of 29 January 1993 to all acts or contracts for which the domain of property is transferred on the basis of the privatization provided for by this act.

ARTICLE 14. Please note that the corporate reorganization that is approved by this act lacks fiscal interest and provides for the referral of tax credits of any origin or nature of which national official agencies are headlines against the company HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU SRON A.) and HIDOR

S. A. - HIDROELECTRIC NORPATAGONICA SOCIEDAD ANONIMA, originated in acts, acts or operations that occurred on the basis of compliance with the provisions of this decree.

ARTICLE 15. Please fill in the documentary, information, property and accountancy requirements set out in Act No. 19,836, its amendments and supplements, and by the General INSPECTION OF JUSTICE, for the registration of the constitutional record and statutes of the Foundation which are authorized to constitute by Article 31 of Decree No. 287 of 22 February 1993 and for the granting of its authorization to function.

Please also submit to the General INSPECTION OF JUSTICE the registration of the constitution and the Statutes of the Foundation referred to in the preceding paragraph that were approved by Resolution of the SECRETARIAT OF ENERGIA No. 121 of 29 April 1994, as amended by its similar No. 225 of 9 May 1995.

ARTICLE 16. Contact the Bicameral Commission established by Article 14 of Law No. 23.696.

ARTICLE 17. This decree shall apply from the date of its dictation.

ARTICLE 18. Contact, post, give to the National Directorate of the Official Register and archvese.MENEM - Domingo F. Cavallo.