ELECTRIC ENERGIA

Decree 689/97

Convalidate Acts held between Water and Electrical Energy State Society (in liquidation), the Social Energy Company of Buenos Aires Sociedad Anónima y Central Térmica San Nicolás Sociedad Anónima concerning the transfer of certain goods and personnel affected to the operation of the same and on the delimitation of field fractions.

Bs. As., 24/7/97

B.O: 30/7/97

VISTO Issue No. 15.719/96 of the Register of ELECTRIC WATER AND ENERGY SOCIEDAD OF THE STATE (in liquidation), acting in the area of the MINISTERY of ECONOMY AND ARTWORKS AND PUBLIC SERVICES, and

CONSIDERING:

The process of transforming the National Electrical Sector into harmonic management is in full development with the transformational objectives of the NATIONAL STATE promoted with the sanction of the NRAs. 23.696 and 24.065.

That this also coincides with the objective set out in Act No. 18.586 as it is the will of the NATIONAL GOVERNMENT, TRANSFER without charge to the PROVINCIAL States the national agencies and functions existing in the provincial territories.

That WATER AND ELECTRIC ENERGY SOCIEDAD STATE has been declared "in liquidation" by Resolution of the MINISTERY OF ECONOMY AND PUBLIC SERVICES No. 394 of 13 March 1996, having privatized different business units, and transferred functional units to the different provinces, according to the legal provisions.

That in such a framework ELECTRIC WATER AND ENERGY SOCIEDAD OF THE STATE, today in liquidation, and the SOCIAL ENERGY OF GOOD AIRES SOCIEDAD ANONIMA signed an agreement on January 30, 1996, and a clearing act together with the Prospective Possion Act on February 1, 1996, by which the first one would transfer to the second one on a free basis, the goods and personnel affected to the operation of the same, included by the lines in TREINTA AND DOS KILOVOLTIOS (132 kV) CARMEN DE PATAGONES y la Estación Transformadora VIEDMA, hasta el limit jurisdiccional con la PROVINCIA de RIO NEGRO: y la parte de la Estación Transformadora SAN NICOLASlimitspecific al instalaciones de CIENTO TREINTA y DOS KILOVOLTIOS (132 kV) y de TREINTA y TRES KILOVOLTIOS (33 kV) afectadas al Distribuidor:

That in order to achieve the descriptive agreement, it was previously necessary to normalize the situation of the beautiful properties with the CENTRAL TERMICA SAN NICOLAS, divided according to the fate of the formed units, attentive that a same predio had been assigned to CENTRAL TERMICA SAN NICOLAS SOCIEDAD ANONIMA and to TRANSENER SOCIEDAD ANONIMA. Both units were awarded by Decrees No. 967 of 6 May 1993 and No. 1501 of 16 July 1993 respectively.

That it is necessary to delimit the field fractions assigned to CENTRAL TERMICA SAN NICOLAS SOCIEDAD ANONIMA, TRANSENER SOCIEDAD ANONIMA, and SOCIAL COMPANY OF ENERGIA OF GOOD ANNONIMA SOCIEDAD.

That for this purpose ELECTRIC WATER AND ENERGY SOCIEDAD OF THE STATE, today in liquidation, and CENTRAL TERMICA SAN NICOLAS SOCIEDAD ANONIMA held an agreement on 12 December 1995, delimiting the field fractions assigned to SAN NICOLAS SOCIEDAD ANONIMA TERMICAL CENTRAL, to TRANSENER SOCIEDAD ANONIMA, and to ENERGY SOCIAL COMPANY OF GOOD ANNONIMA.

That ELECTRIC WATER AND ENERGY SOCIEDAD OF THE STATE (in liquidation) and the SOCIAL COMPANY OF ENERGY OF GOOD AIRES SOCIEDAD ANONIMA signed an Act of Transfer and Prospective Possion on 16 July 1996, by which the first transfer to the second one free of charge, the goods covered by the installations of the Low Voltage Distribution Network that supply electrical energy to the housing units composed of the so-called Neoth, SUR and OESTE neighborhoods with the CENTRAL TERMICA SAN NICOLAS.

That the documents mentioned, the Agreement of 30 January 1996 with its Annexes I to IV, the Aclaratory Act and the Prospective Possion Act of 1 February 1996, and the Act of Transfer and Provisory Position of 16 July 1996 with its Annex I, held between ELECTRIC WATER and ENERGY ANONIMA, they are attached to the present by forming part of it in authenticated copy as IA, IB and IC Annexes.

That the General Directorate of Humanitarian Affairs of the MINISTERY of ECONOMY and ARTWS and PUBLIC SERVICES has taken action.

That the present act is given in the exercise of the powers conferred by Laws No. 18.586 and No. 23.696 and Article 99(1) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1Convalidate the Act, together with its CUATRO (4) Annexes, held on 30 January 1996, the Clariclaratory Act held on 1 February 1996 and the Provisory Position Act held on 1 February 1996, between WATER and ENERGIA SOCIEDAD OF THE STATE, today in liquidation, and the SOCIAL ENERGY OF GOOD ANONIMA, by which the first one transfers to the second, the goods to be free and personal affected to the operation of the same ones, understood by the lines in TREINTA AND DOS KILOVOLTIOS (132 kV) between the Transforming Station SAN NICOLAS and the Transforming Station SUR, and between the Transforming Station SAN NICOLAS and the limit CARMEN DE PATAGONES y la Estación Transformadora VIEDMA, hasta el limit jurisdiccional con la PROVINCIA de RIO NEGRO: y la parte de la Estación Transformadora SAN NICOLASlimitspecific al instalaciones de CIENTO TREINTA y DOS KILOVOLTIOS (132 kV) y de TREINTA y TRES KILOVOLTIOS (33 kV) afectadas al Distribuidor: todos Acts that in authenticated copies form part of this act as Annex IA.

Art. 2o-The Act on Transfer and Prospective Position, together with its Annex, held on 16 July 1996 between WATER and ENERGY SOCIEDAD OF THE STATE (in liquidation), and the SOCIAL ENERGY OF GOOD AIRES SOCIEDAD ANONIMA, by which the first transfer to the second one free of charge, the goods covered by the installations of the Low Voltage Distribution Network that supply electrical energy to the housing units composed of the so-called Neoth, SUR and OESTE Neighborhoods with the CENTRAL TERMICA SAN NICOLAS. Acts that in authenticated copy is part of this act as ANEX IB.

Art. 3o-Convalidate the Act, together with its DOS (2) Annexes, held on 12 December 1995, between WATER and ELECTRIC ENERGY SOCIEDAD OF THE STATE, today in liquidation, and TERMIC CENTRAL SAN NlCOLAS SOCIEDAD ANONIMA delimiting the field fractions assigned to CENTRAL TERMICA SAN NICOLAS SOCIEDAD ANONIMA, TRANSENER SOCIEDAD ANONIMA, and SOCIAL COMPANY OF ENERGIA DE BUENOS AIRES SOCIEDAD ANONIMA. Acts that in authenticated copy is part of this act as ANEX IC.

Art. 4o-This Decree shall apply from the date of its dictation.

Art. 5o-Contact, post, give to the National Directorate of the Official Register and archívese.-MENEM.-Jorge A. Rodríguez.Roque B. Fernández.

NOTE: This Decree is issued without annexes. Unpublished documentation can be consulted at the Central Headquarters of this National Directorate (Suipacha 767 - Capital Federal).