Energy and Natural Resources

Decree No. 882/2017

On November 1, 2017 Decree No. 882/2017 was published in the Official Gazette by which the National Government sells some of its participation in certain in assets it has in the energy sector and limits the participation of the State to those works and services that cannot be assumed by the private sector.

Among other matters, the Decree states:
1) The merger by absorption of Energía Argentina Sociedad Anónima ("ENARSA"), as the absorbing company, and Emprendimientos Binacionales Sociedad Anónima (“EBISA”). ENARSA will changed its name to Integración Energética Argentina S.A. (“IEASA”);
2) IESA, as a successor of EBISA, will be responsible for the commercialization of the electric power generated in hte binational exploitations and interconnections and for the participation in Agua y Energía Eléctrica S.E.;
3) IESA will be responsible, as a contracting party for the following projects: (i) Hydroelectric Project of the Santa Cruz River, (ii) Río Turbio Thermal Power Plant, (iii) Regional Gas Pipeline II-Esperanza / Rafael / Sunchales, (iv) Cordillerano / Patagonian System Pipeline, (v) Cordillerano Gas Pipeline, (vi) de la Costa Gaspipeline;
4) IEASA will have the concession for the generation of electrical energy of the Condor Cliff and Barrancosa hydroelectric plants, and the concession contract will provide for the possibility of transferring it to the private sector through a public and competitive procedure;
5) The Ministry of Energy and Mining (the "Ministry") is instructed to make IEASA proceed with the sale of (i) Thermal Power Plant Ensenada de Barragán and Brigadier López, the transfer of its personnel and contracts related to power plants, (ii) Assets of the Manuel Belgrano II Thermoelectric Power Plant Project, (iii) ENARSA’s participation in the Electricity Transmission Company Citelec Sociedad Anónima;
6) Transfer of Class C shares of Diotexitek Sociedad Anónima in favor of the Ministry;
7) The Ministry is instructed to sell or transfer the (i) shareholdings of the State in (a) Central Dique Sociedad Anónima, (b) Güemes Sociedad Anonima Thermal Power Plant, (c) Central Puerto Sociedad Anónima, (d) Patagónicas Sociedad Anónima Thermal Power Plants, (e) Electricity Transportation Company for Trunk Distribution of Patagonia Sociedad Anonima, (f) Dioxitek Sociedad Anónima and (ii) the State’s rights in Manuel Belgrano Thermoelectric Plant, José de San Martin Vuelta de Obligado Thermoelectric Plant , Guillermo Brown Thermoelectric.

For further information on this topic please contact Juan Martín Allende and Marcos Patrón Costas