The National Secretariat of Energy approved the contractual terms applicable to hydroelectric projects to be carried out within the framework of the National Hydroelectric Power Program.
Under Resolution No. 762/09, published in the Official Gazette of November 11, 2009, which implemented the National Hydroelectric Power Program (hereinafter the "Program"; see " National Hydroelectric Power Projects" published in Marval News # 89 on November 30, 2009), on September 21, 2011 the Secretariat of Energy ("SE") issued Resolution No. 932/2011 by means of which the Program incorporates the following projects:
- Condor Cliff – La Barrancosa (1740 MW) located in the province of Santa Cruz
- Los Blancos I and II (485 MW) located in the province of Mendoza
- Chihuido I (637 MW) located in the province of Neuquén
- Punta Negra (60 MW) located in the province of San Juan
Resolution No. 932 has set the goal of reducing the risks inherent to long-term projects.
With this purpose in mind, Resolution No. 932 has adopted a Model Power Purchase Agreement applicable to hydro power plants approved by the Program whose terms and conditions include:
- Compensation fixed in US dollars that comprises two main components, one related to the energy supplied, taking into account the variable costs of operation and maintenance, and another related to the capacity availability and the recovery of fixed costs and capital from different financing sources in U.S. dollars and set a priority of payment equal to the cost of fuel in the MEM;
- a 15 year contractual period.
Finally, the resolution provides for the establishment of a Contingency Fund ("Foncont") as a guarantee in case of payment default.
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