PRIVATIZATIONS Decree 307/96 Invite the Ministry of Economy and Public Works and Services on the preparation of the Base and Conditions Platform for the sale of the Pichi Picún Leufú S.A.

Bs. As., 27/3/96

VISTO Issue No. 750-000015/96 of the Register of MINISTERY OF ECONOMY AND PUBLIC SERVICES and Decrees No. 287 of 22 February 1993, No. 2242 of 26 October 1993 and No. 1045 of 7 July 1995, and

CONSIDERING:

That Decree No. 287 of 22 February 1993 provided for the privatization of electricity generation activity linked to HIDRONOR S.A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA and the constitution of HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICUN LEUF).

That Decree No. 1045 of 7 July 1995 provided for the privatization of the electricity generation activity to the linked one, the sale of the shareholder of an ongoing society that, as a continuation of HIDRONOR S. A. - HIDROELECTRICA NORPATAGONICA SOCIEDAD ANONIMA, is the holder of the concession to build the PICHI PICUN LEUFU Hydroelectric Power Supply and 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 without prejudice to the rationalization achieved by the company, its results will be negative once the construction of the PICHI PICUN LEUFU Hydroelectric Complex has been completed, being this, to a large extent, the situation that led to the declaration of desert for lack of offerers the National and International Public Contest held for the sale of the HIDROELECTRICA PICHI PICUN LEUFU S shareholder.

That, depending on this, it is necessary to have new measures that are aimed at ensuring the completion and commissioning of the PICHI PICUN LEUFU Hydroelectric Complex.

That given the importance and convenience of terminating the construction of the aforementioned Hydroelectric Complex and attentive to the circumstance that the company could achieve not to compensate its global costs by means of the necessary income that generates in the activity that is deprived, it is necessary and convenient to have the possibility of granting a subsidy in favor of the company HIDROELECTRICA PICHI PICUN LEUFU S. A. from the time of the commercial authorization of the

That the above-mentioned reasons for the solution adopted here make it unfeasible to adopt in this case the so-called participatory property programme provided for in Chapter III of Law No. 23.696, ratifying the provisions of Decree No. 1045 of 7 July 1995.

The Permanent Legal Service of the MINISTERY OF ECONOMY AND PUBLIC SERVICES has taken action.

That the NATIONAL EXECUTIVE POWER is entitled to the dictation of this act in accordance with the provisions of Act No. 23,696 and the powers conferred in article 99 (1) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 DE Instruct the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICS to include in the preparation of the Pliego of Bases and Conditions and its annexed documentation of the National and International Public Contest for the sale of the shareholders of the company HIDROELECTRICA PICHI PICUN LEUFU SOCIEDAD ANONIMA (HIDROELECTRICA PICHI PICUN LEUFU S. A.) that the most convenient offer is

Art. 2o El The Pliego of Bases and Conditions of the Public Contest mentioned in the previous Article must contemplate in relation to the granting of the minimum grant, the following guidelines:

(a) the annual fixed amount contribution formula.

(b) the number of years during which the NATIONAL STATE will periodically provide the concessionaire with the necessary additional income in the form of a subsidy.

(c) the form and time of payment.

Art. 3o El The subsidy may be granted up to the maximum term of QUINCE (15) years from the commissioning of the first generator unit of the aforementioned Hydroelectric Complex.

Art. 4o . Facultase the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES to provide all necessary measures for the proper implementation of the present decree and the acts resulting from its full implementation. For the purpose of all these functions will be assisted by the SECRETARIAT OF ENERGIA and TRANSPORTE and can delegate in it the corresponding operating powers.

Art. 5o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Eduardo Bauzá. . Domingo F. Cavallo.