Renewable energy projects in Argentina - M&M Bomchil energy project… · Renewable energy projects...

By: Tomás M. Araya, María Inés Corrá, Ximena Daract Laspiur, Laura Zinnerman, Martina Monti and Magdalena Carbó

L E G A L I S S U E S A N D C H A L L E N G E S

Renewable energy projects in Argentina

The authors are members of the Energy and Finance Teams of M. & M. Bomchil. This paper is based on a prior article prepared by the authors for a general report on renewable energy to be published by the American Bar Association.

FOR QUESTIONS RELATED TO THIS MATTER PLEASE CONTACT: renewables@bomchil .com

mailto:renewables%40bomchil.com?subject=

Index 21.Introduction. The Argentine Energy Sector 32. Regulatory Framework 5

Renewable Energy Legislation 53. Renewable Energy - Wind Power, Solar Energy, Small-hydro, Bioenergy and Biomass 6Electricity from Renewable Energy 6

Wind Power 6Solar Energy 7Small hydro 8Bioenergy 9Biomass 9

4. Government Programs for Renewable Energy 11RenovAr Program 11Tax Benefits of the RenovAr Program 14RenovAr’s Contractual Framework 14Secured Lenders’ Rights 15Dispute Resolution 16

5. Financing Renewable Energy Projects 17 Sources of Funding 17

Financial Guarantees 19Guarantee’s Mechanism 19Energy Payment Obligation 19Put Option 22State’s Call Option 27Upcoming Challenges 27

6. Unconventional Resources: Shale gas/Tight gas 297. Public-Private Partnership Contracts 31

Introduction 31Summary of the PPP Law 31

8. Conclusion. Prospects for the Future 34Annex 35

Annex A – Argentina’s Energy Matrix 35Annex B – Argentina’s Economic Indicators 36Annex C – Provincial Laws and Regulations 41

I N D E X

In recent years, the Argentine energy sector has faced several challenges. Due to the lack of incentives to foreign and local investors and the de-dollarization of tariffs, among other measures, a once self-providing mar-ket had to turn to foreign imports in order to satisfy the growing local energy needs. A set of measures undertaken by previous Administrations since the year 2002 led to a deepening of the energy crisis, which conti-nued for more than a decade and only now appears to be coming to an end as a result of the new policies designed by the current Administration in order to promote the ge-neration of new energy sources and proper development of existing ones.

The beginning of the energy crisis was not unforeseen, as it was a result of years of pu-blic emergency in the country. Indeed, after a widespread economic, social and political crisis burst in late 2001, several emergency laws were enacted in order to reorganize the financial system and reactivate the country’s economy. Law 25,561 enacted in January 2002 and Decree 308/ were the first of these emergency regulations aimed at facing the crisis, followed by extensions implemen-ted in the years 2006, 2008, 2009, 2011,

2013 and 2015. The policies adopted by the government in place since 2002 eliminated incentives for foreign and local investment, particularly in the Energy sector. In fact, the end of the convertibility regulations and the so-called “pesification” of the economy dee-ply affected the tariff regime for measured services in force in Argentina and, conse-quently, creditors under such regime.

In January 2007, law 26,190 was passed, which set a renewable portfolio standard to regulate emissions and a target energy generation from renewable sources. Howe-ver, the policies adopted by the law were not successful due to the context in which the law was passed and its ambitious natu-re. It failed mainly due to investors’ lack of confidence in the Administration in place at that time and in the project itself. Although it did not meet its objectives, it entitled the government to launch the Genren program in 2009, the first renewable generation pro-gram aimed at promoting electricity genera-tion from renewable sources. Nonetheless, the program’s success was also halted a few years later, mainly due to the lack of inter-national funding sources and scarcity of national sources2. The only projects which

1 . I N T R O D U C T I O N

The Argentine Energy Sector

2. International Centre for Trade and Sustainable Development. “La promoción de energías renovables en Argentina: el caso Genren.” N.p., 14 July 2014. Web. 30 May. 2017. <http://www.ictsd.org/bridges-news/puentes/news/la-promoci%C3%B3n-de-energ%-C3%ADas-renovables-en-argentina-el-caso-genren>.

Renewable energy projects / 4M. & M. BOMCHIL

were successfully built were those that were able to obtain credit in the national mar-ket or did not require external financing in order to carry out its operations.3

From the year 2010 on, the lack of local generation of energy led to a strong public fiscal imbalance, as Argentina had to import gasoil from Venezuela4, electricity from Brazil5 and liquefied natural gas (“LNG”) from Bolivia6. LNG was widely used during this time and it was transferred to Argen-tina by rented regasification ships, with all these imports causing a major impact on the country’s balance of payments. These imports were all organized and completed by Energía Argentina S.A. (“ENARSA”), a company wholly owned by the government. Energy contributed to approximately 5% of the nation’s GDP, 6% of its export revenue and 17% of its imports7. The high subsidies for the energy sector in place were also a

source of large government spending that proved unsustainable.

After the 2015 elections, with a new Admi-nistration in office led by President Mau-ricio Macri several reforms were adopted in order to relaunch the energy sector and particularly to promote the use of renewable energy sources. For instance, in order to tac-kle law 26,190’s deficiencies, law 27,191 was passed in October 2015. The Macri Admi-nistration went on to develop a regulation for law 27,191, after which Argentina began to accept tenders for new renewable energy projects with a new government program called RenovAr8. At the same time, the new Administration declared the emergency in the electricity sector in order to allow the government to adopt appropriate measures directed to gradually normalize the prices of the wholesale electricity market and the distributors and transporters’ tariffs9. The Secretary of Electric Energy (“SEE”) also ca-lled for proposals of integral projects for the development of the electricity infrastructure which, if accepted, would be subject to a pu-blic bidding process for their construction and operation10.

3. The program’s target was to incorporate 1.000 MW into the wholesale market, and although 895 MW were awarded as a result of the first tender in December 2009, only less than 10% of the awarded projects were duly completed. 4. “Convenio Integral de Cooperación entre la República Argen-tina y la República Bolivariana de Venezuela” signed in Caracas on April 6, 2004. 5. See the Secretary of Energy Resolution 434/2004, which called for CAMMESA to purchase electrical energy from Brazil6. “Bolivia.” The Observatory of Economic Complexity. MIT Media Lab, n.d. Web. 24 Feb. 2017. <http://atlas.media.mit.edu/en/profile/country/bol/>.7. Argentina’s Energy Transition: The Macri Government’s Vision. Rep. N.p.: Institute of the Americas, 2016, p. 1. https://iameri-cas.org/documents/energy/reports/Argentinas_Energy_Transi-tion_2016.pdf.

8. The RenovAr Program, which will be explained in detail in Section 6.1 of this report, is a public tender program that is-sues a series of fiscal benefits and financial support mechanis-ms in order to develop renewable energy projects. 9. See Decree No. 134/3015 and Ministry of Energy and Mining Resolutions No. 6 and 7/2016.10. See Resolution SEE No. 420 E/2016.

2 .

Regulatory Framework

Renewable Energy Legislation

The legal system regarding renewable energy sources is specific and quite recent. It consists of a group of laws issued at a national level that invites the Provinces to join the regime by adopting within their jurisdictions a similar criteria and equivalent fiscal benefits to the ones promoted by national laws11. Presently, most Provinces have passed their own regula-tions regarding the development and promo-tion of renewable energies12.

Law 26,190 (2007) was enacted in order to promote the generation of electricity from re-newable energy sources, as well as all relevant technological developments and manufac-turing aspects. It declares the generation of electrical energy from renewable sources as a priority of national interest13. It goes on to set

a goal of eight percent (8%) energy consump-tion from renewable sources in 10 years. It also promotes investments for projects aimed at the production of electricity from renewa-ble resources throughout Argentina. Hence, it established certain tax benefits for investors of these renewable energy projects, provided certain requirements were met14.

As mentioned, law 26,190 was amended by law 27,191 in late 2015, which aims for re-newable energy sources to reach an eight per-cent (8%) share of the national electricity use by December 31, 2017 and a twenty percent (20%) share by December 31, 2025. It also ex-pands the tax benefits for the promotional re-gime that was originally settled by law 26,190. The new regime has been supplemented by the implementing Decree No. 531/2016.

11. The National Ministry of Energy and Mining is the applica-tion authority of these laws. However, the application authority regarding all tax and fiscal issues is the Ministry of the Treasury.12. See Annex D for a non-exhaustive list and description of provincial laws. 13. Argentina adds new benefits and extends promotional regi-me for utilization of renewable energy sources. Rep. EY, 12 Nov. 2015. Web. 24 Feb. 2017, p.1.<http://www.ey.com/Publication/vwLUAssets/Argentina_adds_new_benefits_and_extends_pro-motional_regime_for_utilization_of_renewable_energy_sour-ces/$FILE/2015G_CM5955_AR%20adds%20new%20bene-fits%20and%20extends%20promo%20regime%20for%20utilization%20of%20renewable%20energy%20sources.pdf>.14. Ibid., These requirements were: 1) “Accelerated depreciation for income tax purposes of capital goods acquired or services performed for renewable energy projects, or alternatively, an early reimbursement of valued-added tax (VAT) related to the purchase of new fixed assets or infrastructure services perfor-med to develop the project” and 2) “Exemption from minimum presumed income tax for the first three years for assets used to develop the promoted activities”.

3 .

Renewable Energy Wind Power, Solar Energy, Small-hydro,

Bioenergy and Biomass

Electricity from Renewable Energy

Law 27,191 sets ambitious targets for the future regarding electrical energy produc-tion. It states that the country must source eight percent (8%) of its electricity from re-newables by December 31, 2017, increasing to twenty percent (20%) by December 31, 2025. Quota obligations also include the use of fossil fuel mixed with at least ten percent (10%) of biodiesel or twelve percent (12%) of bioethanol.

In this framework, large consumers, such as those with a demand equal to or larger than 300 kilowatts (“kW”), are required to source a minimum level of their electrical consump-tion from renewable energies, following the targets and dates established above in a sequential manner. Failure to meet the appli-cable targets triggers a penalty calculated on the basis of the variable cost of power gene-rated using imported diesel oil.

In order to meet these targets, large consu-mers may opt to self-generate or purchase power sourced from renewable energies either from generators, marketers, distribu-tors, or the Compañía Administradora del Mercado Mayorista Eléctrico (“CAMMESA”), a private company with a public purpose that administers the Wholesale Electricity Mar-ket (“MEM”, for its acronym in Spanish)15. On the other hand, law 27,191 does not esta-

blish a binding obligation for residential and small consumers, such as those who operate with a demand below 300 kW.

This regime also sets a US$113 per megawa-tt-hour (“MWh”) price-cap, applicable only to Power Purchase Agreements (“PPAs”) entered into by large consumers with power generators. The authority may modify the maximum price previously set forth if, after two years (as of the effective date of the law, i.e. October 21, 2015) and until the end of the second stage of the “Legal Regulations on National Promotion for the Use of Sources of Renewable Energy to Generate Electric Power”, market conditions justify it16.

Wind Power

Argentina has been a pioneer in the region in the use of wind power since the first wind park was installed in 1994. Important national ma-

15. CAMMESA’s governance is handled by the Ministry of Ener-gy and Mining and the companies representing the generators (“AGEERA”), distributors (“ADEERA”), transporters (“ATEERA”) and the large consumers (“AGUEERA”).16. According to Section 9 of Law 27,191: “Agreements signed by users mentioned in the previous paragraph (Major Users) shall not include an average price higher than one hundred and thirteen US dollars or its equivalent amount in national currency, for each megawatt/hour traded between the parties (USD 113/MWh). After two (2) years as of the effective date of the regula-tions set forth in this Act and until the end of the Second Stage of the “Legal Regulations on National Promotion for the Use of Sources of Renewable Energy to Generate Electric Power”, the Enforcement Authority may modify the maximum price previously set forth if the market conditions justify it. Such price shall be applicable to new agreements to be executed”.


nufacturers and developers –including various local companies such as IMPSA and NRG Pa-tagonia, which manufacture high power tur-bines, and Invap, dedicated to manufacturing low-power turbines– are part of the country’s long-standing industrial tradition. Argentina has an important “wind cluster” comprised of around 60 companies that manufacture the elements required for wind energy generation and which have the capacity to build turnkey wind parks.

Argentina’s Patagonia region is one of the three most important wind corridors in the world, and it boasts the most important onshore po-tential worldwide. Global experience indicates that with average winds of 5m/s or higher, returns in wind power generation are feasible. About seventy percent (70%) of Argentina’s territory enjoys winds with an average speed of 6m/s or more, while in Patagonia they can exceed 9m/s. In this way, Argentina has the potential to become a regional leader in the use of this technology.

According to Wind Energy Market Intelligen-ce, Argentina had 23 operational wind farms spread across the country by February 201717. The total wind generation capacity installed in Argentina is 279 megawatt (“MW”)18. Howe-ver, out of the 6,000 MW in proposals received

during the first RenovAr tender, wind projects totaled an impressive amount of 3,468 MW, of which 707 MW were finally awarded. A few months later, the 1.5 RenovAr tender added 765 MW to the awarded capacity19.

Solar Energy

According to United Nations’ database, Ar-gentina’s total solar production in 2014 was of 16 million kilowatt-hour20. Unfortunately, Argentina’s solar capacity has been unexploi-ted as only 10 MW has been installed so far21.Although the installed capacity is not current-ly relevant, solar energy has significant poten-tial for growth.

Photovoltaic (“PV”)22 is the most widely disseminated solar generating technology in Argentina. These projects are generally located in the north-western region of Argentina23.

17. “Argentina wind farms database” The Wind Power. Wind Ener-gy Market Intelligence, 27 Feb. 2017. Web. 7 Mar. 2017. <http://www.thewindpower.net/store_country_en.php?id_zone=48>.

18. America wind farms database.” The Wind Power. Wind Energy Market Intelligence, 03 Mar. 2017. Web. 7 Mar. 2017. <http://www.thewindpower.net/store_continent_en.php?id_zone=1002>.19. Please see Section 5 of this report regarding the RenovAr Program for more information.20. United Nations Data. UN Data: A World of Information. N.p., n.d. Web. 22 Feb. 2017. <http://data.un.org/Data.aspx?d=EDATA&-f=cmID%3aES>.21. Benitez, Laura. “Renewable Energy in Argentina: A New Fo-cus.” The Argentina Independent. Argentina Independent, 20 Feb. 2013. Web. 20 Feb. 2017. <http://www.argentinaindependent.com/currentaffairs/renewable-energy-in-argentina-a-new-focus/>.22. Photovoltaic is a method for generating electric power by using solar cells to convert energy from the sun into a flow of electrons. “Photovoltaic (solar cell) Systems.” Renewable Energy World. Re-newableEnergyWorld.com, n.d. Web. 19 Feb. 2017. <http://www.renewableenergyworld.com/solar-energy/tech/solarpv.html>.23. See Diagram 1 and Diagram 2.

Renewable energy projects / 8 M. & M. BOMCHIL

This region was the proposed location for over 3,736 MW during the RenovAr tenders, ending up with a total award of 916 MW. In the first RenovAr Round, three solar PV plants were awarded, each with a capacity of 100 MW in the Jujuy Province, with an investment projection estimated at US$340 million24. Another PV project awarded during this first round was the 100 MW La Puna project in San Antonio de los Cobres in the Province of Salta25.

Regarding thermal solar energy, there is a wide range of small producers that are not part of the MEM.

Small hydro

Small hydro plants began to surface in Ar-gentina’s neighboring countries in 1970 in order to increase rural electrification rates26. Argentina, on the other hand, has a long-las-ting tradition in this kind of energy, as the first plant, still in operation today, was inau-gurated in 1911 in the city of La Calera in the Province of Córdoba. Today, the Province of Córdoba boasts important water resources,

as it has the largest small-hydro concentra-tion in the country. Hydroelectric facilities are mainly located along the Andes Range owing to its prime conditions for this energy source. Recently, new projects attainted by virtue of RenovAr tenders awarded 11 MW to five small hydro projects presented for the Provinces of Rio Negro and Mendoza27.

Argentina has implemented renewable energy policies that encourage the development of small hydro schemes. However, we must keep in mind that large hydropower accounted for thirty percent (30%) of Argentina’s power mix in 201428 and twenty six point five percent (26,5%) of its energy matrix in 201629.

Only small-hydroelectricity (up to 50 MW installed capacity) is considered, for the pur-poses of policy support under law 27,191, as renewable energy. Although hydroelectricity offers advantages over fossil fuels in terms of environmental impacts, larger hydroelectric plants may cause environmental and social damage. Small-hydro, on the other hand, involves small-scale facilities which, depen-ding on their power capacity, can supply

24. Meyers, Glenn. “Argentina Awards 400 MW Of Solar In 1.1 GW Renewable Energy Auction.” CleanTechnica. Sustainable En-terprises Media, Inc. , 18 Oct. 2016. Web. 07 Mar. 2017. <https://cleantechnica.com/2016/10/18/argentina-awards-400-mw-solar-1-1-gw-renewable-energy-auction/>.25. Ibid.26. World Small Hydropower Development Report 2016. Rep. United Nations Industrial Development Organization and the International Center on Small Hydro Power, 2016. p. 19. Web. 24 Feb. 2017. <http://www.smallhydroworld.org/fileadmin/user_upload/pdf/WSHPDR-2016-ES-FPP-2.pdf>.

27. Argentina. Renewable Energy Sector In Argentina. Ministe-rio de Relaciones Exteriores y Culto, 2012. Web. 24 Feb. 2017. <http://chamb.cancilleria.gov.ar/userfiles/Renewable%20Ener-gy%20Sector%20in%20Argentina%202012.pdf>.28.Renewable Energy Market Analysis. Rep. International Renewable Energy Agency, 2016. Web. 24 Feb. 2017, p. 66. <http://www.irena.org/DocumentDownloads/Publications/IRE-NA_Market_Analysis_Latin_America_2016.pdf>.29. Annex A, op. cit.


energy to both the public grid and small ho-mes or rural establishments located far from the power distribution grid. Generally, sma-ll-hydro works with a “run-of-river” scheme, where electricity production is driven by the natural flow and elevation drop of a river.

To date, there are 35 mini-hydro plants in operation in Argentina with a total operating capacity of 430 MW30. However, seventy five percent (75%) of these stations have a capa-city of less than 20 MW.

Bioenergy

Argentina is one of the world’s top biodie-sel producers, with twelve percent (12%) of global production in 2012 and roughly se-venty percent (70%) of domestic production available for exports to Europe and, most recently, to the United States31.

Law 26,093 named “Regulation and Promo-tion Régime for the Production and Sus-tainable Use of Biofuel” establishes that all liquid fuels characterized as fuel oil or diesel oil commercialized in Argentina must be mixed with biofuel in the percentages esta-blished in the law. According to the Interna-

tional Renewable Energy Agency, Argentina offers tax incentives for the production and export of biofuels32. For instance, in May 2014 law 26,942 reduced the biodiesel export tax from 20% to 11%. Moreover, various Provinces have enacted tax exemptions for biofuel production facilities33.

Biomass

Argentina’s varied environmental ecosys-tems fuels the growth of diverse crops, including soy, which creates the potential for biomass energy. Studies have shown that the six million tons of annual forestry was-te in Argentina could be used to generate electricity. Unfortunately, Argentina has long overlooked biomass and the concept of waste-to-energy.

The country’s biomass potential is mainly located in the north-east and Mesopotamian regions (Provinces of Formosa, Chaco, Mi-siones, Corrientes, and Entre Rios). Biomass is obtained from sugarcane bagasse, wood chips and other residues from the forest industry (such as sawdust and shaving), especially in the Province of Misiones. Other

30. Argentina. 5. Estudio Para Mejorar El Conocimiento Y La Promoción De Oferta Hidroeléctrica En Pequeños Aprove-chamientos: Informe Final, Tomo I. Ministerio de Energía y Minería, 2006. Web. 24 Feb. 2017. <https://www.minem.gob.ar/www/833/25404/estudios-y-publicaciones.html>.31. Renewable Energy Market Analysis, op. cit.

32. Renewable Energy Policy Brief: Argentina. Rep. International Renewable Energy Agency, June 2015. Web. 20 Feb. 2017.<http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_La-tin_America_Policies_2015_Country_Argentina.pdf>.33. Province of Buenos Aires law 13,719, Province of Córdoba law 9,397, and Province of Misiones law 4,439.


sources of biomass include agro-industrial residues (sunflower seed, rice and peanut skin) used in boilers, the use of landfill gas and biogas from milking barns.

In order to promote the development of biomass, the national government created the PROBIOMASA program. It aims to promote the production, management and sustaina-ble use of biomass for energy purposes in the national, regional and state levels, as well as boosting agroforestry opportunities. The PROBIOMASA program has targeted the conversion of 1,889,153 tons of waste into clean energy in 2016, reaching an aggregate amount of 12,515,637 tons of waste in 203034. Biomass projects were also awarded as part of the RenovAr Program. The tenders conferred almost 15 MW to two projects located in the Provinces of Misiones and Corrientes35.

34.Proyecto para la promoción de la energía derivada de biomasa - PROBIOMASA. Ministerio de Energía y Minería, n.d. Web. 24 Feb. 2017. <6. http://www.probiomasa.gob.ar/es/insti-tucional.php>.35. Datos MINEM. “Adjudicaciones de proyectos de energías renovables - Programa RenovAr - MINEM Argentina.” Minis-terio de Energía y Minería, 21 Dec. 2016. Web. 7 Mar. 2017. <https://public.tableau.com/profile/datosminem#!/vizhome/AdjudicacionesRenovARMINEMArgentina/AdjudicacionesRe-novArArgentina>

RenovAr Program

As a first step to comply with the targets set out in law 27,191, in May 2016 the Argen-tine government launched the first RenovAr round, a public tender program that contem-plates a series of fiscal incentives and financial support mechanisms along with regulatory and contractual enhancements aimed at over-coming some of the investment barriers that resulted in the failure of previous projects.

The PPA’s main features are (i) its long-term duration, for a period of twenty (20) years, and (ii) its denomination in US$ (although payments might be made in AR$)36.

Along with the PPA, project companies can enter into a trust adhesion agreement (“FOD-ER Accession Agreement”) with the Trust Fund for Renewable Energy (“FODER”, for its acronym in Spanish) under which they will become a “beneficiary” of the FODER created by law 27,191. FODER is a trust structured with two main trust accounts: financing and guarantee, whose main objective is to provide energy payment (liquidity) and termination payment (solvency) guarantees. Hence, it has been implemented in order to provide guaran-

tees for investors that enhance the legal frame-work under the Argentine market condition.

The RenovAr Rounds 1 and 1.5 resulted in the award of 59 long term projects. These projects represent 2,400 MW of a new-build renewable generation. In 2016, 500 MW of legacy projects were reconverted to the new legal and contractual framework in order to allow access to the long-term financing needed to materialize them. Additionally, 15 MW were awarded in biomass projects38.

After the success of the RenovAr Rounds 1 and 1.5, the government will continue to boost the installation of renewable genera-tion by implementing successive rounds of the RenovAr Program. The next round is scheduled for the second semester of 2017. The private PPA market, together with self-generation and distributed renewables are set to become important drivers in the pathway to achieve, and perhaps exceed, the government’s targets. Detailed regulation for private PPAs and self-generation projects is expected to be released by the ME&M in the second quarter of 2017.

4 .

Government Programs for Renewable Energy

36. Pursuant to the PPA, payments by CAMMESA for the energy supplied will be made in AR$, by depositing into the SPV’s ac-count the necessary amount of AR$ to (i) acquire the equivalent amount in US$ applying the exchange rate of the business day prior to the payment date, and (ii) pay for the fixed charges that the ME&M may establish for the operation of the power plant.

37. Round 1: USD 59.4/MWh (wind) and 59.7/MWh (solar). Round 1.5: USD 53/MWh (wind) and USD 55/MWh (solar). Datos MINEM. “Adjudicaciones de proyectos de energías reno-vables - Programa RenovAr - MINEM Argentina.” Ministerio de Energía y Minería, 21 Dec. 2016. Web. 7 Mar. 2017. <https://pu-blic.tableau.com/profile/datosminem#!/vizhome/Adjudicaciones-RenovARMINEMArgentina/AdjudicacionesRenovArArgentina>.38. Argentina. Renewable Energy Argentina. Ministerio de Energía y Minería, Dec. 2016. Web. 24 Feb. 2017. <http://scripts.minem.gob.ar/octopus/archivos.php?file=6943>.39. Ibid., p. 19, 21.


Chart 1

The following diagrams showcases the results of RenovAr Rounds 1 and 1.5, re-spectively, together with the location of the awarded projects39:


Chart 2


Tax Benefits of the RenovAR Program

Law 27,191 and its Regulatory Decree No. 531/2016 set forth the tax benefits applica-ble for renewable energy projects. The fol-lowing is a non-exhaustive list of a number of tax credits supporting these projects:

• Early value added tax refund for assets and infrastructure which are part of the project;

• Accelerated amortisation of income tax for assets and infrastructure which are part of the project;

• Extension of income tax loss credit carry-overs for ten (10) years;

• Assets used for the project will be exclud-ed from the tax base for minimum pre-sumed income tax for eight (8) years from the beginning of works;

• Dividends or profits distribution will be exempted from the income tax base as long as they are reinvested in infrastruc-ture projects in Argentina;

• Projects which provide evidence of the use of sixty percent (60%) of national com-ponents in electromechanical equipment –excluding civil works– or a lower per-centage in no case less than thirty percent (30%) provided that no national produc-tion is available, may apply for a tax cer-tificate equivalent to twenty (20%) of the national components of such equipment, which can be offset against national taxes;

• Exemption from import duties over new capital goods, certain supplies and spe-cial equipment, provided that there is no national production of the goods to be imported, until December 31, 2017;

• Interest amounts and the difference of ex-change derived from the project financing may be deducted from the losses of the company, so as to reduce the impact on income tax;

• Exemption from specific taxes, fees or royalties, whether national, provincial, municipal or from the Autonomous City of Buenos Aires in relation to the access and the use of renewable energy until December 31, 2025, in those jurisdictions adhering to the regime; and

• Additional tax advantages through the awarding of tax certificates to projects meeting certain criteria.

RenovAr’s Contractual Framework

RenovAr’s contractual framework is based on two agreements that work in tandem to provide the elements that are commonly introduced in a typical renewable energy project: the PPA with CAMMESA and the adhesion agreement to the FODER trust agreement. Both agreements are governed by Argentine law and are aligned with international standards by providing an extension of jurisdiction to international


arbitration under the UNCITRAL Rules if a dispute arises between the Parties40.

The standard PPA’s template is provided in the Resolution 136/2016 launching the Ren-ovAr program, and includes, among others, the following features:

• Right of the secured lenders to receive notice from the off-taker for any breach occurred by the generator;

• Right of the secured lenders to cure any event of default in order to avoid termi-nation of the PPA in case of breaches;

• Possibility for the special purpose vehicle (“SPV”) to assign the rights under the PPA to the secured lenders in order to obtain financing;

• Right of the equity holders of the SPV to sell its equity interest in the company, with prior consent of the off-taker which would not be required if the assignment is made in favor of the secured lenders as a collateral for the repayment of the financing received; and

• Right to subject any controversy arisen from the PPA to international arbitration.

Those companies which were awarded a PPA would enter into a 20-year PPA with CAMMESA, the company in charge of the dispatch and operations of the national grid,

together with the management of the trans-actions in the wholesale market, who acts as off-take aggregator on behalf of distribution utilities and wholesale market large users. One hundred percent (100%) of the electric-ity generated by renewable resources is paid for at the awarded price which is denomi-nated in USD and adjusted annually.

Third parties who provide funding for a certain project can avoid the consequences of a PPAs breach by an SPV through the ex-ercise of the step-in rights which, although not thoroughly regulated, ensure the fulfil-ment of any pending repayment obligations. Under those rights, a default by an SPV can be remedied by a transfer to another SPV of all rights and obligations arising from the operation contracts concluded by the initial SPV with third parties. The maintenance of the regime and of the construction and op-eration of the project are thus safeguarded.

Secured Lenders’ Rights

Pursuant to the PPA, a number of acts under-taken by the SPV will only be valid and effec-tive if the secured lenders grant its previous approval by means of a written consent. In order to obtain this consent, the PPA pro-vides a practical solution by which all secured creditors are comprised within a single notice: the appointment of a secured creditors’ repre-sentative. This representative –named by the SPV and whose information is provided to CAMMESA– will grant the required consent on behalf of all secured creditors.

40. See Section 26.2 of the Binding Terms and Conditions of the RenovAr program, approved by Resolution E 136/2016, and Section 6 of Decree 882/2016.


The following acts require approval by the secured creditors’ representative:

• the SPV’s consent to the assignment of its rights and obligations by CAMMESA under the PPA, in cases where such con-sent is necessary;

• the SPV’s consent to the termination of the agreement by mutual consent;

• the SPV’s consent to amend the PPA;

• modification in the SPV’s bank account;

• the SPV’s waiver to any of its rights; or

• the issuing of a default notice, termination notice, strategic partner change request of contractual terms review request.

In addition, secured creditors are granted a right to cure according to the PPA. In case CAMMESA sends a default notice to the SPV –and after the SPV’s failure to remedy the event of default–, the secured creditors may remedy this non-compliance within 180 days as of the date in which the SPV should have remedied it. For this, the creditors appoint a successor entitled to assume the SPV’s rights and liabilities under the PPA. If the non-compliance is not cured by the time the provided term expires, CAMMESA will be entitled to terminate the PPA.

Dispute Resolution

Both the PPA and the FODER Accession Agreement are governed by Argentine law and share arbitration as the main dispute

resolution method. A two-tier mechanism is set up for the resolution of disputes that may arise between the parties in connection with the performance of the contracts.

Firstly, the parties agree to negotiate in good faith in order to solve any dispute. However, if the parties fail to reach an agreement with-in fifteen (15) days after the date in which one party notifies the other of the existence of a dispute, any of the parties will be able to submit such dispute to arbitration.

Pursuant to the provisions of the PPA, arbitration will be at law and the applicable arbitration rules will be those of the United Nations Commission on International Trade Law (“UNCITRAL Rules”), effective at the moment when the dispute was informed.

Generally, the arbitral tribunal will be com-posed of three (3) members, one appointed by each party and the third appointed by mutual consent of the other two arbitrators. Nevertheless, if the dispute is quantifiable and its value is lower than the equivalent of five million US dollars (US$5,000,000), the arbitral tribunal shall be composed of a sole arbitrator, chosen by a determined appoint-ing authority in accordance with section 6 of the UNCITRAL Rules.

The seat of the arbitration will be chosen by the Arbitral Tribunal.

5 .

Financing Renewable Energy Projects

Sources of Funding

Generally, renewable energy projects can be financed by foreign sources or local sources. Local funding is not as widespread in Argen-tina as it is in other countries of Latin Ame-rica, like Brazil or Chile. In the past, certain companies have been able to obtain financing from capital markets through the issuance of debt securities. However, these options provide limited funding, since the financing capacity through capital markets has traditio-nally been restrained for this type of projects.

First, the FODER operates as a financing tool through loans and capital contributions to companies involved in renewable energy projects. In order for a company to benefit from this financing structure, it must obtain approval for each of its projects from the Ministry of Energy and Mining (“ME&M”) through the tender process structured by the RenovAr Program.

Although official banks also provide national funding, the financing available is clearly insufficient to back the construction of the large projects needed to start generating this type of energy. For instance, for medium and large-sized projects, including small and medium companies, Banco de Inversión y Comercio Exterior (“BICE” or “FODER Trustee”) offers funding for investment projects applied to the generation of renewa-

ble energy41. The sums financed amount to up to US$10,000,000 per project, and US$20,000,000 per corporate group. These credits are granted for a maximum period of 10 years, and finance up to eighty percent (80%) of the project’s value42. In addition to the financing line for renewable energies provided by BICE, official banks also provide funding to developers.

Funding from international sources may be provided by foreign banks or multilateral agencies, which offer private funding gene-rally under the structure of a project finan-ce. Normally, the SPV company that signs the PPA with the Government Agency (in Argentina, CAMMESA), will assign all of its rights and receivables under the transac-tion documents to the lenders or to a trustee appointed by the lenders, as a condition precedent to the relevant disbursements.

In addition, the SPV would conclude seve-ral other finance and operative documents aimed at guaranteeing the obligations under-taken for the construction and operation of renewable energy projects under the transac-tion documents, such as the Balance of Plant/Engineering, Procurement and Construction

41. “PyMEs.” BICE. N.p., n.d. Web. 04 May 2017. <http://www.bice.com.ar/es/category/servicios/pymes42. “BICE.” BICE Banco de Inversión y Comercio Exterior. N.p., n.d. Web. 06 Mar. 2017. http://www.bice.com.ar/; Pendón, op. cit.


43. The BoP/EPC’s main purpose is for a contractor to provide certain services and works to the SPV, necessary for the installation and operation of the project site. It comprises the civil works, initial technical supervision of the equipment and construction of all communication networks.42. The O&M is concluded for subsequent supervision, either with the same contractor or with a different one, in order to control the operation of the project site and the equipment, the delivery of generated electricity to the proper transmission system and the general supervision of the works.

agreement43 (“BoP/EPC”) and the Operation & Maintenance agreement (“O&M”)44.

Among the finance documents, a share pledge agreement is generally concluded so as to secure the obligations undertaken by the SPV vis-à-vis the creditors, by which all the shares owned by the SPV are subject to a lien in favour of such creditors or a trustee appointed by them.

Direct agreements with the constructing company and/or the turbine supplier may also be concluded, in order for the latter to grant an ex ante consent to a certain transfer similar to an assignment of rights, in case the current SPV suffers an event of default and the lenders decide to take control of the pro-ject. The main purpose of these agreements is to ensure the step-in rights of the provi-ders and the continuance of the contractual relationship necessary for the operation of a project, through the replacement of the ori-ginal SPV with a new entity to be appointed by the lenders, which would assume similar rights and obligations as the initial SPV.

Further, the controlling party of the SPV, known as the “sponsor” may assume com-mitments, such as equity contributions up to a certain percentage of the whole financing to set up the project –normally, between 20% and 30%– and commitments not to transfer the control of the SPV’s shares, aimed at en-suring the required financing for the cons-truction and settlement of a project. These commitments would normally be under-taken under a “Sponsor Support Agreement” and/or a “Share Retention Agreement”, which would describe the obligations assu-med by the sponsor until the achievement of a project’s technical completion date.

In order to regulate the funds flow for the transaction between the borrower and the lenders, an accounts agreement would also normally be executed. This agreement structures the organization and terms for the accounts, withdrawals and transfers of funds from the lenders to the project under the construction phase and then to repay the services and other authorized payments, in order to guarantee the performance of all parties’ obligations.

In case multiple creditors are taking part in a transaction, the parties would usually exe-cute an “Intercreditor Agreement”, so as to set forth the general procedure which must be carried out in connection with the credi-tors’ interests in the financing of the project.


Under this agreement, the creditors would coordinate the adoption of certain decisions (as waivers, acceleration upon default, en-forcement of the collateral, etc.) and would also impose subordination rights on certain lenders’ rights. Further, a creditor who indi-vidually activates the enforcement procedure has a duty to inform the others in order for them to be able to exercise their rights under the corresponding contracts.

Finally, the third finance option would be to issue the so-called “project bonds”, which are still uncommon under the Argentine mar-ket. This is structured through the issuance of debt linked to large, long-term infrastruc-ture projects, which allows an SPV to obtain financing for the construction and develop-ment of a specific project, alternative –albeit compatible– to funding from lenders arising from a project finance mechanism, as the funds for the repayment would come exclu-sively from the new project to be built.

Financial Guarantees

Through operations in the MEM, CAMME-SA buys the energy produced and supplied by the SPV for its distribution. As a result, the SPV is entitled –pursuant to the PPA– to varying monthly payments by CAMMESA for the energy supplied. In principle, the PPA ensures compensation to the SPV through this payment mechanism tasked to CAM-

MESA. However, it is possible that CAMME-SA defaults payment of such amounts due to numerous reasons. In the face of this default, the FODER becomes relevant. The FODER, funded by the National Treasury, was created by law 27,191 in order to facilitate the finan-cing of the renewable energy projects.

FODER also provides a twofold guarantee for investors. Firstly, it ensures payment of the purchase price for the energy supplied pursuant to the PPA to project companies. In addition, it sets up a “put option” right, according to which a project facing certain events of default alien to the investor or the early termination of the PPA, has a guaran-teed payment for the purchase price of the put option by FODER. The latter guarantee is further secured by the World Bank, in case of breach by the government of its obliga-tion to pay a project’s purchase price under the put option right, up to an amount of US$500,000,000 guarantee –in two tranches of US$250,000,000 each–45.

Guarantee’s Mechanism

FODER guarantees the fulfillment of the obli-gations undertaken by CAMMESA and the Argentine Federal State (“State”) before the SPV. This is structured through the FODER Accession Agreement, to be executed among the SPV, the National State and the FODER.

45. See Section 6.1.2.


45. Argentina. Renewable Energy Argentina. Ministerio de Energía y Minería, Dec. 2016. Web. 24 Feb. 2017, p. 14. <http://scripts.minem.gob.ar/octopus/archivos.php?file=6943>.

Basically, under this structure, the FODER shall secure fulfillment of the following obligations:

• if CAMMESA fails to comply with its obligation to pay for the energy supplied by the SPV pursuant to the PPA, the amounts concerning such payments must be paid by FODER, as explained below in Section 5.2.1.1; and

• in case the SPV exercises its “put option” right upon certain triggering events therein stated, FODER must acquire the project by itself or through the assign-ment to a third party acting as the SPV’s successor.

Finally, in case FODER fails to pay the purchase price upon the exercise of the put option then the SPV (or the lenders, as the case may be) may demand payment from the World Bank, as per the terms of the World Bank guarantee (“WB Guarantee”).

Energy Payment Obligation

The FODER Accession Agreement sets forth the procedure to be followed in order for the SPV to receive payment for the amounts owed by CAMMESA.

In line with this purpose, the FODER Trus-tee (BICE) agrees to transfer the necessary amounts to settle the energy payment with

the SPV, using a separate account of the FO-DER out of which the funds must stem from (“Energy Payment Guarantee Account”).

In certain cases, however, this obligation may not be duly fulfilled either by CAM-MESA or, afterwards, by the FODER. This non-compliance would allow the SPV to send a notice of breach to the FODER Trus-tee, with a copy to the ME&M and, if appli-cable, the World Bank (“Breach Notice”).

Following reception of the Breach Notice, the FODER Trustee will request CAMMESA to comply. The chart below showcases the me-chanics of the Energy Payment Guarantee46:


Chart 3


Put Option

• Procedure to exercise put option

Facing certain specific cases that would qualify as “cause for sale” (described below), the SPV can also exercise a put option of its project by sending a notice to the FODER Trustee, indicating the reques-ted price resulting from the exercise of the put option (“Cause for Sale Notice”). The price for the project ought to be calculated in line with the FODER Accession Agree-ment’s provisions, by adding the following values: (i) the project’s approved book value (represented by the lower amount between (a) the amount of investments made by the SPV in the power plant, or (b) the reference value for capital investments for each technology, corresponding to the power plant, multiplied by capacity) (“Project Book Value”), reduced by a five percent (5%) per passed production year; and (ii) the amounts owed by CAMMESA to the SPV (“Project Put Price”).

It shall be noted that CAMMESA’s non-compliance with the obligation to pay for the energy by itself does not cons-titute enough grounds to send the Cause for Sale Notice. On the contrary, this noti-ce can only be sent in specific cases which qualify as “cause for sale”, as follows47:

1. lack of payment by CAMMESA of either four (4) consecutive sales statements or six (6) non-consecutive sales statements within a twelve-month (12) period;

2. an event which results in an inability of the SPV to obtain US dollars;

3. an event which results in an inability of the SPV to pay or transfer US dollars to individuals or bank accounts outside the Argentine Republic;

4. early termination of the trust set up by the FODER for reasons attributable to the State or execution of an amendment of addendum to this trust; and

5. CAMMESA’s non-compliance with an arbitral award or court judgment re-sulting from a dispute submitted to the dispute resolution procedure of the PPA.

In case the validity of the Cause for Sale Notice is not objected or is objected but an arbitral award confirms it, any of the State through the ME&M, the FODER Trustee, CAMMESA or a legal entity appointed by them may remedy the cause for sale48. After the expiration of these terms without re-

47. If the FODER Trustee or the ME&M consider that none of the causes for sale has taken place, they can object the validity of the Cause for Sale Notice within thirty (30) days, in which case the dispute will be submitted to dispute resolution proceedings in accordance with the provisions of the FODER Accession Agreement.48. The term for doing so varies according to the originating cause: (a) forty five (45) days if the cause for sale is that of items 1. or 5., or (b) one hundred and fifty (150) days, if the cause for sale is included in items 2., 3. or 4..


medy of the cause for sale, the SPV can opt to sell the project to the State through the ME&M or to a third party appointed by it. To carry out the sale, the SPV would send a notice to the FODER Trustee, with a copy to the ME&M, CAMMESA and –if applicable– the World Bank, informing it about its intention to exercise the project’s put option (“Put Option Notice”). Upon reception of such notice, the FODER Trustee must open a subaccount out of which the Project Put Price will be paid (“Put Price Payment Account”) and, mo-reover, the ME&M has to appoint –within fifteen (15) days– the entity that will take control of the power plant’s assets.

In case the validity of the Put Option Notice is not objected within sixty (60) days after reception, or is objected but an arbitral award confirms it, FODER’s lack of compliance will be considered confirmed on the date in which the sixty (60) day period expired or the date of the arbitral award declaring the validity of the Put Option Notice (“Non-Com-pliance Date”). The determination of this Non-Compliance Date is significant, since the FODER Trustee must pay the Project Put Price no later than the latest of (i) sixty (60) business days after this date, and (ii) the date in which the SPV is in the position to transfer the assets of the power plant, after having complied

with the goodwill transfer procedure set forth in the Act on Goodwill Transfer No. 11.867 (“Payment Date”).

Furthermore, once the Non-Compliance Date is determined, the parties have to take the necessary actions to complete the transfer of the power plant’s assets to the entity appointed by the ME&M. All the expenses incurred as a result of the trans-fer will be borne by the FODER Trustee50.

It shall be noted that in no case will the SPV be able to both exercise the pro-ject’s put option and terminate the PPA. Therefore, if the SPV exercises its right to terminate the PPA, it will be irrevoca-bly waiving its right to exercise the put option right.

• Funds to comply with put option

The FODER Trustee must make payment from the Put Price Payment Account to the SPV’s account at the latest on the Pay-ment Date, or the Non-Compliance Date for objected portions of the Project Put Price. The amount transferred must be

50. In case the FODER Trustee and ME&M only object a portion of the Project Put Price amount, that date will be con-sidered the Non-Compliance Date regarding the not objected amount. Therefore, the FODER Trustee will have to pay the por-tion not objected on the Payment Date, jointly with the SPV’s transfer of the assets of the power plant to the entity designed by the ME&M. The remaining amount shall be paid within sixty (60) business days after the Non-Compliance Date.


the necessary to pay the Project Put Price in US$ or the required amount in AR$ which would allow the SPV to obtain the equivalent in US$ to meet the payment obligation. In order to make this calcu-lation, the exchange rate of the business day before the business day when the transfer is made will be applied.

Payment of the Project Put Price to the investor in case of exercise of the put option right is ensured by a twofold me-chanism, supported by (a) the treasury bills issued as guarantee, and (b) the WB guarantee.

a. State contributions

The State, through the ME&M, agrees to provide FODER with the necessary funds to pay for the Project Put Price. To gua-rantee such obligation, on the FODER Accession Agreement’s execution date, the Ministry of Treasury and Public Fi-nance (“MT&PF”) has issued and trans-ferred to the FODER Trustee, on behalf of the ME&M, treasury bills (“Treasury Bills”), which are to be held in custody by the FODER Trustee51.

If there are not sufficient funds in the Put Price Payment Account at the Non-Com-pliance Date to pay the Project Put Pri-ce, the FODER Trustee will request the ME&M the transfer of the necessary amount within fifteen (15) days. ME&M’s obligation to provide funds will be met against delivery of the Treasury Bills issued as guarantee for an equivalent amount.

If such term expires without the State fulfilling its obligation to provide funds, the Treasury Bills become due and paya-ble, and the MT&PF will have to pay them against delivery of the paid off Treasury Bills. To that effect, within five (5) business days after the expiration of the term the FODER Trustee will request the MT&PF to pay the Treasury Bills within the next fifteen (15) business days, by transferring such amounts to the FODER against deli-very of the paid off Treasury Bills.

In case the ME&M does not meet the obligation to provide funds and the MT&PF does not meet the obligation to pay the Treasury Bills, the SPV may su-brogate on the right of the FODER Trus-tee to request the ME&M and MT&PF compliance with its obligations52. Failure

51. The Treasury Bills will be reduced in case the SPV receives financing or a financial guarantee from the FODER, in an equi-valent amount to such guarantee.

52. After reception of the corresponding requirement, each ministry is given thirty (30) days to comply with the relevant obligations.


to fulfill these obligations will entitle the SPV to exercise the payment requirement to the World Bank pursuant to the WB guarantee, as explained below.

b. World Bank Guarantee

FODER implements the WB Guarantee by entering into an agreement to that end with the World Bank, in order to ensure payment of the project’s purchase price under the “put option” right in case of failure by the State to fulfill its payment obligations53.

The WB Guarantee amounts to a total sum of US$500,000,000. Its nominal allocation to projects is based on their contracted capacity, for up to US$500,000 per MW.

Initial and maintenance costs for the WB Guarantee must be borne by the inves-tor, and are determined on the basis of a project’s hired capacity, the percentage of national component integration and the amount and term of the guarantee54.

Under the FODER Accession Agreement, in order to enforce the WB Guarantee, the FODER Trustee is entitled to demand payment to the World Bank through a no-tice of a demand for payment, to be sent within thirty (30) days as of the Payment Date55. In addition, the FODER Trustee assigns in favor of the SPV the right to demand payment to the World Bank, but this right can only be exercised in case the FODER Trustee does not request pay-ment during the stipulated terms.

Once the FODER Trustee receives pay-ment from the World Bank, the amounts must be transferred to the Put Price Pay-ment Account within five (5) days, in order to make payment of the Project Put Price.

In practice, the World Bank Guaran-tee has finally been taken by 27 (1,033 MW) of the 59 projects (2,423 MW) that have been awarded under RenovAr. The following diagram showcases the gua-rantees offered by the agreement reached with the World Bank56:

53. This guarantee is optional for investors and is only available to those which: (a) are private entities; (b) are able to handle en-vironmental and social aspects of the project in accordance with the World Bank’s requirements; and (c) have not been sanctioned for violations to anti-corruption policies of the World Bank.54. If the SPV fails to duly pay the premium, the FODER Trustee will send a request for payment for fifteen (15) days. Lacking payment after such term, the FODER Trustee will become entit-led to (a) compensate any payment to be made by the FODER Trustee or the FODER in favor of the SPV with the amounts owed by the SPV as premium, and/or (b) start any relevant legal proceedings aimed at collecting the premium, and/or (c) terminate and render null and void the WB Guarantee in favor of the SPV, at the latter’s sole fault.

55. The date in which the FODER Trustee must pay the Project Put Price, this is, (i) sixty (60) business days after the non-com-pliance date, and (ii) the date in which the SPV is in the position to transfer the assets of the power plant.56. Ibid., p. 15.


Chart 4


State’s Call Option

In case a cause for termination of the PPA occurs as set forth in the provisions therein –and provided that such cause is not duly remedied by either the SPV or the secured lenders–, CAMMESA has the right to exerci-se the project’s call option by sending a cause for termination notice. This entitles the State to opt to purchase the project from the SPV.

The purchase price pursuant to the call option is comprised by the amount in USD equal to the addition of: (i) seventy five percent (75%) of the Project Book Value, reduced by a five percent (5%) per passed production year; and (ii) the amounts owed by CAMMESA to the SPV.

Furthermore, the price offer will be based in the net value of the project once all debts owed to creditors pursuant to any existing guarantees are released.

Upcoming Challenges

Through the implementation of the Re-novAr program, notable improvements have been advanced for the promotion of investment in sources of renewable energy. Nonetheless, the prospect still poses certain challenges which would require overcoming in the near future.

Firstly, the legal framework lacks a thorough

regulation of step-in rights and direct agree-ments. Direct agreements are not usual in the Argentina legal markets and, therefore, still remain untested by the courts. In addition, step-in rights are indirectly addressed by means of the subrogation rights in the FO-DER Accession Agreement. However, the ter-ms are incomplete and insufficient to properly govern the step-in procedure that follows an event of default and leads to the replacement of the original SPV by a new one.

In this regard, it would be advisable to incorporate into the legal framework a complete regulation of the step-in rights, as the one set forth in the private-public part-nership law57 and, furthermore, an express recognition of direct agreements.

Also, the twofold financial guarantee devi-sed by lawmakers intends to work as a com-prehensive insurance for investors regarding the repayment of CAMMESA’s obligations under a PPA. Even if FODER fails to comply with CAMMESA’s contractual duties, an in-vestor would eventually have recourse to the World Bank for compensation. Nonetheless, this option does not provide for unlimited return. In fact, the WB Guarantee is, as mentioned, capped both individually in an amount of US$500,000 per MW, and globa-lly, backing a sum of up to US$500,000,000.

57. The PPP law Nº 27,328 is described below in point 7.


Even more so, an SPV’s exercise of its put option right may be effectively hindered by the State pursuant to the procedure set forth in the FODER Accession Agreement. After an SPV declares its intention to exercise the put option, both the FODER Trustee (BICE) and/or the ME&M may object this exercise. In this case, in light of the dispute resolution provisions of the FODER Ac-cession Agreement, the resolution of said objections will be submitted to arbitration, thus preventing the SPV from resorting to the WB Guarantee, at least until an award is rendered on the matter. While arbitration proceedings tend to be shorter than court proceedings –and the choice of arbitration as dispute resolution method represents, indeed, a step forward for the regime–, they are still time-consuming, delaying the SPV’s possibility to exit the project.

Lastly, since the FODER Trustee is a sta-te-owned entity, the FODER structure is ultimately dependent –albeit indirectly– on the State’s policy guidelines. Therefore, it is likely that the financial guarantees’ regime –and the FODER guarantee in particular– is conditioned upon directives by the State in light of its intention to enforce more or less strongly the regulatory framework’s provi-sions on financing and repayment of CAM-MESA’s obligations.

6 .

Unconventional Resources: Shale gas/Tight gas

The new business-friendly environment is also a key factor for the development of unconventional resources discovered in the country recently. According to the US Energy Information Administration, Ar-gentina possesses the world’s second largest deposits of risked, recoverable shale gas and the fourth largest of technically recoverable shale oil, which is estimated at 27 billion barrels, in its formations. In the spotlight is the Vaca Muerta formation, which has reco-verable shale gas of 308 trillion cubic feet and 16 billion barrels of oil. This formation spans across four Provinces: Neuquén, La Pampa, Mendoza and Rio Negro, and is almost dou-ble the size of the Eagle Ford shale basin.

As analysts have remarked, one major source of savings stemmed from the discovery of a sand deposit in Chubut enabling Yacimien-tos Petrolíferos Fiscales (“YPF”), the largest Oil & Gas argentine company, to eliminate the use of imported sand. Sand is the main ingredient in hydraulic fracturing treat-ments, which are essential in the completion process in shale oil and gas wells.

In the current environment of low oil prices, Argentina –with its regulated crude prices combined with 27 billion barrels of recove-rable oil and 802 trillion cubic feet of gas– is one of the most attractive ventures for oil companies.

The exploration of shale faces several cha-llenges. First, there are technical issues to consider, such as the need to import costly machinery, as well as periodic actualizations in order to keep up to date on the fast-pace technological improvements in the industry. This adds a significant cost to the overall process. The need of a substantial expansion of supporting infrastructure assets and the water treatment facilities also represents additional costs. Second, there are also environmental challenges, especially those related the fracking process, such as the use and disposal of water and the potential for groundwater contamination. Third, the de-velopment of the unconventional gas needs legal certainty and predictability.

To such purpose, the new Administration promoted and reached an agreement among companies, unions, the Neuquén Province and the National State in order to accelerate investments for around US$ 10,000 million per year, by reducing labor and tax costs and developing logistical infrastructure.

In order to encourage production and in-vestment, the ME&M issued Resolution 46 E/2017, created the “Investment Promotion Program for the Development of Natural Gas Production from Unconventional Reserves (Shale Gas or Tight Gas)”, in force as of its publication in the Official Gazette (March


6, 2017) and until December 31, 2021. The program consists in a series of compensa-tions for the unconventional gas production calculated by subtracting the Minimum Price –set forth by the Resolution–58 from the effective price –calculated according to the average volume weighted price of the conventional and unconventional natural gas aggregate sales for the domestic market–. The compensation shall proceed only when the difference is greater than zero59.

At present, various international energy companies have undertaken these projects with Neuquén’s provincial energy company, although so far most are carried out by the State-controlled energy company YPF. YPF is currently working in several areas of Vaca Muerta through partnerships with Chevron, Petrobras, Pan American Energy, Dow and American Energy Partners. Moreover, the French and German firms Total and Winter-shall, are also participating in the unconven-tional gas exploration. The expectations in the continuous development of the uncon-ventional gas are, therefore, high..

58. Which amounts to 7,50 USD/MMBTU for 2018, 7,00 USD/MMBTU for 2019, 6,50 USD/MMBTU for 2020 and 6,00 USD/MMBTU for 2021.59. See Resolution MEyM No. E 46/2017 (only available in Spanish) at http://servicios.infoleg.gob.ar/infolegInternet/ane-xos/270000-274999/272266/norma.htm. For more information see our newsletter, available in http://www.bomchil2.com.ar/en/publicaciones.

7 .

Public-Private Partnership Contracts

Introduction

On November 30, 2016, Argentina’s Con-gress passed law 27,328 (the “PPP Law”). Re-cently (February 20, 2017), Decree 118/2017 was published to regulate public-private partnership contracts (“PPPs”)60. The pur-pose of this regime is to stimulate private investment in key sectors of the economy such as infrastructure, housing, services, production, applied research and technolo-gical innovation. Much like prior regimes, the provincial states and the City of Buenos Aires have been invited to join the regime by issuing similar laws in their jurisdictions.

PPPs are deemed as a viable alternative for the State to perform public works or to develop public services, different from the administrative regime set forth in law 13,064 on Public Works, law 17,520 on Concession of Public Works and Decree 1023/2001 on General Public Procurement, all of which are not applicable to PPPs. The Executive Branch shall decide in each case which is the most suitable system to satisfy the public interest61

and needs.

The PPP Law has been adopted as a general framework. Among other relevant projects promoted by the National State, this regime could aid in the development of a partner-ship for the exploration and exploitation of conventional and non-conventional hydro-carbons, especially in the Vaca Muerta shale basin, located in the Province of Neuquén.

As for the future prospects, the horizon is hopeful as the new political environment provides reasonable expectations for further opportunities to access capital markets and to take advantage of the PPP tool for the development of infrastructure projects in several strategic areas of public interest.

Summary of the PPP Law

Section 1 of the PPP Law states that PPPs shall be designed taking into account the special features of each project and its financial needs. Under this flexible criteria, Section 7 states that the PPPs in charge of the execution and performance of the PPP contract may be organized as a SPV, a trust fund, or any other vehicle or associative or-ganization. The SPVs shall be incorporated as corporations, while trust funds shall be organized as financial trust funds pursuant the Argentine Civil and Commercial Code. Furthermore, PPPs may be constituted and

60. As for the most recent PPP experience, we remark the already mentioned Renewable Energy Program launched by the Federal Government during 2016 under a tailored-made PPP regime set up by law 27,191 and by Decree 882/2016. 61. See Section 1 of the PPP regime, which states that PPPs can pursue the following public works or: (1) design, (2) cons-truction, (3) expansion, (4) improvement, (5) maintenance, (6) exploitation, (7) operation, (8) financing of projects and (9) the supply of equipment of other goods.


organised in order to allow them to issue securities under the provisions of the Capi-tal Market law 26,831. Section 8 explicitly allows the State to create new corporations or trust funds to perform PPP projects.

Law 27,328 states that PPP contracts shall regulate, at a minimum, the items described in the law62. Some of those items are:

• Contractual terms and potential exten-sions, which cannot exceed a total of 35 years and which must ensure recovery of investments, repayment of financing and a reasonable profit;

• Parties’ duties and obligations and a fair and efficient distribution of the con-tract contributions and risks between the parties, ensuring the best conditions to prevent, assume or mitigate them, in order to minimize the cost of the project and facilitate the financing conditions;

• Minimum technical requirements appli-cable to the infrastructure involved in the project;

• Procedures for the revision of the contract price so as to preserve its economic-finan-cial equation;

• The State’s power to unilaterally intro-duce modifications should be restricted

only to the project performance and un-der no circumstance may exceed twenty percent (20%) above or below the total contract amount. Any such modification shall be compensated so as to keep the original economic-financial balance;

• The guarantee of minimum income if such a provision is agreed upon;

• Events and procedure applicable to the contract termination and applicable compensations. If termination operates based upon public interest grounds, no limitation on State liability may apply, neither directly nor supplementary or analogically;

• The assignment of the PPP contract rights or receivables arising thereof as collateral, as well as the right to securitize cash flows;

• The right to temporarily suspend per-formance of obligations in case of State default;

• Contractor’s right to totally or partially assign the PPP contract to the extent the assignee meets the proper conditions to be a contractor and at least either twenty percent (20%) of the contractual term has expired, or twenty percent 20% of the committed investment has been made. Contract assignment shall be subject to

62. Sections 4 and 9 of the PPP Law.


the State contracting party, tenders and guarantors’ approval. Under these condi-tions, the assignment releases the origi-nal contractor of all duties and changes;

• The assets regime; and

• Procedures and mechanisms for settling contractual disputes. Arbitral agreements setting forth foreign venues shall be expressly approved by the Executive and communicated to the Congress.

• In case of termination of the contract for reasons of public interest, no rule that limits the responsibility of the State will apply. Likewise, in case of early termi-nation of the PPP by the State party, the latter shall pay the due compensation prior to taking possession of the assets, which cannot be less than the not amor-tized investments and must guarantee the repayment of the financing related to the project63.

63. Section 10 of the PPP Law.

64. Renewable energy in Latin America, op. cit.

8 . C O N C L U S I O N

Prospects for the Future

Latin America as a whole is transitioning towards renewable energy and, over the last few years, has experienced an unpreceden-ted growth in this sector. Argentina’s main potential lays in the exploitation of wind, so-lar and biomass energy sources. Particularly, it has the ability to become a regional leader in the use of wind energy, due to its average winds of 6m/s and higher64.

Due to Argentina’s long history of unequi-table treatment with foreign investments, the new Administration has adopted several measures in order to attract foreign inves-tors, which include lifting capital restric-tions and export duties and policies oriented to control inflation.

The wide interest shown by domestic and foreign investors in the first rounds of the RenovAr Program allow to be optimistic in the development of renewable energies under the regime of Law 27,191. Needless to say, the goal to reach twenty percent (20%) renewable energy by 2025 and a thirty per-cent (30%) reduction of GHG emissions by 2030 will require huge amounts of funding from international sources.

Through the implementation of the Reno-vAr program, notable improvements have been advanced for the promotion of invest-ment in sources of renewable energy. None-theless, the prospect still poses certain cha-llenges which would require overcoming in the near future, in order to make as easy as possible the step-in rights in case of breach of the developer and also to assure the inves-tor’s exit in case of significant breach of the Government-controlled entity.

All in all, we are confident that if the new go-vernment policies are maintained Argentina should be able to fulfill its renewable energy goals for 2025.

A N N E X A

Argentina’s Energy Matrix

65. Argentina. 1. Síntesis Del Mercado Eléctrico Mayorista De La República Argentina. Comisión Nacional de Energía Atómica, Nov. 2016. Web. 24 Feb. 2017. <http://www.cnea.gov.ar/Sinte-sis-mercado-electrico-mayorista>.

2016 Energy Matrix - NET Generation 201665

A N N E X B

Argentina’s EconomicIndicators


All financial information in U.S. Dollars (US$):

• Population: 43,416,755 (2015)66

• Population growth: 1.011% annual (2015)67

• Political system: Argentina consists of twenty-three states

and an autonomous federal district. The country stands as a federal presiden-tial representative democratic republic, where the president is head of state and commander in chief of the armed forces, elected for a four-year term, and can be re-elected for one consecutive term. The president appoints a cabinet and a chief of cabinet. The current president is Mauricio Macri standing as representative of a new coalition called Cambiemos, formed by a new party (PRO leaded by Macri), UCR, a traditional party and the Civic Coalition. Cambiemos succeded in presenting itself as a republican alternative opposed to the prior Administration, which led the coun-try until December 2015 under a populist government. The governmental system is divided in three powers: legislative, judiciary and executive, which control and limit each other according to the attribu-tions and prohibitions provided by Argen-tina’s National Constitution.

• Legal system: Argentina’s National Congress is a

bicameral congress with a 257-member Chamber of Deputies (lower house), and a 72-member Senate (upper house) presided by the Vice-President. Depu-ties are directly elected for a four-year term, while one-half of the lower houses stand for re-election every two years. Senators are directly elected for a six-year term; three senators per state, two from the leading party and one from the runner-up; one-third of the upper house stands for re election every two years. Ar-gentina uses the D’ Hondt voting system.

In the judiciary sector, Federal judges are appointed by a Council of the Magistra-cy; there is a Supreme Court system both nationally and in the Provinces; national Supreme Court members require the endorsement of two-thirds of the upper house.

• Official language: Spanish

• Date of independence/achievement of statehood68: 9 July 1816

• Total GDP69:

66. “Argentina – Population.” World Bank Database. World Bank, n.d. Web. 25 Jan. 2017. <http://data.worldbank.org/indicator/SP.POP.TOTL?locations=AR>.67. Ibid.

68. Not relevant to advanced developed countries.69. GDP measures the monetary value of goods and services that are bought by the final user and produced in a country in a given period of time. It counts all of the output generated within the borders of a country. GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by a government. See (www.imf.org/external/pubs/ft/fandd/basics/gdp.htm)


Nominal GDP:US$ 545.124 billion (2016)US$ 628.935 billion (projection for 2017)70

Real GDP:AR$ 704.330 billion (2016) AR$ 719.654 billion (projection for 2017)71

• GDP per capita: US$ 13,431.9 (2015)72

• GDP growth: Percentage change 2016–20172.6% (2015)73

-2.3% (2016)74

2.2% (projection for 2017)75

• GDP world ranking 2015: 21st with US$ 583,169 million76

• Debt ratio: Gross Public Debt as a per-centage of GDP 52.131% of GDP (2015)77

• External debt (public sector and private sector): US$ 188,778 million (Gross Ex-ternal Debt Position 2016 3rd Quarter)78 79

• Domestic debt (public sector and private sector): AR$ 4,039,018 million (Central Government Debt 2016 3rd Quarter)80

• Special debt relief or other programs with IMF/World Bank or others:

The litigation involving Argentina and New York stated a pari passu provision which was interpreted by the New York courts as requiring ratable or pro rata payment to all creditors. Therefore, Ar-gentina—as well as the bond trustee and other parties in the payment chain—were prevented from making any payments to those bondholders who had agreed to restructure their debt unless it also made payment in full to the holdout creditors. The concern—and this is a concern shared by many, not just by the IMF—is that this case may have systemic impli-cations. It could enhance the holdout strategy in future cases81.

70. World Economic Outlook Database. Rep. N.p.: International Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weoselgr.aspx>.71. Ibid.72. “Argentina – GDP per capita.” World Development Indi-cators. World Bank Database, GDP per capita. 1975-2015. Available at: (http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2015&locations=AR&name_desc=true&start=1971&-view=chart ) Accessed 31/01/2017.73. World Economic Outlook Database. Rep. N.p.: International Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weoselgr.aspx>.74. Ibíd.75. Ibíd.76. “Argentina – GDP ranking.” World Bank Database. Available online: http://data.worldbank.org/data-catalog/GDP-ranking-table Accessed 31/01/2017.77. World Economic Outlook Database. Rep. N.p.: In-ternational Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2016/02/weodata/weorept.aspx?sy=2014&ey=2021&ssm=1&scs-m=1&ssd=1&sort=country&ds=.&br=1&pr1.x=48&pr1.y=13&c=213&s=NGDP_R%2CNGDP_RPCH%2CNG-DP%2CNGDPD%2CNGDPRPC%2CNGDPPC%2CNGDPDP-

C%2CPCPI%2CPCPIPCH%2CPCPIE%2CPCPIEPCH%2CG-GXWDG%2CGGXWDG_NGDP%2CNGDP_FY&grp=0&a=#sG-GXWDG_NGDP>.78. “Gross External Debt Position” World Bank Database. World Bank, n.d. Web. 25 Jan. 2017. <http://databank.worldbank.org/data/views/reports/ReportWidgetCustom.aspx?Report_Name=-Table-1-SDDS-new&Id=4f2f0c86>.79. Argentina. Ministry of Economics. Economic and Finan-cial Data for Argentina. N.p., 26 Jan. 2017. Web. 31 Jan. 2017. <http://www.mecon.gov.ar/progeco/dsbb.htm>.80. Ibid.


• Economy: Argentina has a mixed economic system

which includes a variety of private free-dom —hence deregulation—, combined with centralized economic planning and government regulation. Not only is Argentina Latin America’s third-largest economy, but it is also a relevant mem-ber of the Common Market of the South (“MERCOSUR”). The economy is based on: agriculture: 11.4%, industry: 30.2% and services: 58.4%82. Its main interna-tional commercial partners are Brazil, United States and China.

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector and a diversified industrial base. Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary fertile lands. It is a leading food producer with large-scale agricultural and live-stock industries. In addition, Argentina has significant opportunities in various manufacturing subsectors and innovative services in high tech industries. The econ-omy enjoyed significant growth over the past decade. Argentina invested heavily in

health and education, areas which ac-count for 7% and 6% of GDP, respectively. Argentina was the top performer in the region in reducing poverty and boosting shared prosperity between 2004 and 2008. However, the country suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt and capital flight.

The country prioritized social spending through various programs, including the Universal Child Allowance, which reaches approximately 3.7 million children and adolescents up to age 18, which is 9.3% of the population. Presidential elections at the end of 2015 led to a significant change in Argentine economic policy. The new administration has moved with significant speed to implement core reforms such as the unification of the exchange rate, the agreement with international cred-itors, the modernization of the import regime, reduction of inflation and reform of national statistics system. The current government plans a gradual convergence to a primary fiscal balance by 2019 83.

• Inflation: Annual rate 40% (approx. 2016)84

81. IMF Survey: IMF Supports Reforms for More Orderly Sove-reign Debt Restructurings. Rep. International Monetary Fund, 6 Oct. 2014. Web. 31 Jan. 2017. <http://www.imf.org/external/pubs/ft/survey/so/2014/new100614a.htm>.82. “The World Factbook - Argentina.” Library. Central Intelligen-ce Agency, n.d. Web. 22 May 2017. <https://www.cia.gov/library/publications/the-world-factbook/geos/ar.html>.

83. “Argentina - Overview.” World Bank Database. World Bank, n.d. Web. 25 Jan. 2017. <http://www.worldbank.org/en/country/argentina/overview>.


21% - 25% (projection for 2017)85

Monthly rate 1.1% (2016 3rd Quarter)86

Consumer Price Index169.222(2016)212.531 (projection for 2017)87

• Investment (domestic and foreign):FDI 11.979 billion (2015)88

Total investment 17.263% of GDP (2014)89

Net international investment position (stock, end of period) 55,380.6 US$ Mil-lion (2015)90

84. Informe de Resultados IPCBA - Diciembre 2016. Rep. CABA: Dirección General de Estadística y Censos, 2017. Web. 4 May 2017. <https://www.estadisticaciudad.gob.ar/eyc/wp-content/uploads/2017/01/ir_2017_1101.pdf>.85. World Economic Outlook Database. Rep. N.p.: International Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weoselgr.aspx>;.Global Economy Watch - Projections April 2017. Rep. N.p.: PwC Global, 2017. Web. 4 May 2017. <http://www.pwc.com/gx/en/issues/eco-nomy/global-economy-watch/projections.html>.86. Monetary Policy Report - October 2016. Rep. N.p.: Banco Cen-tral de la República Argentina, 2016. Web. 4 May 2017. <http://www.bcra.gob.ar/Pdfs/PoliticaMonetaria/IPOM_Octubre_2016_i.pdf>.87. World Economic Outlook Database. Rep. N.p.: International Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weoselgr.aspx>.88. “Argentina - Foreign direct investment, net inflows.” World Bank Database. World Bank, n.d. Web. 22 May 2017. <http://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=AR>.89. World Economic Outlook Database. Rep. N.p.: International Monetary Fund, n.d. Web. 4 May 2017. <http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weoselgr.aspx>.90. Ibid.Ministry of Economics of Argentina. Economic and Financial Data for Argentina. Dissemination Standards Bulletin Board (DSBB). Updated to 26th January 2017; Available online: http://www.mecon.gov.ar/progeco/dsbb.htm Accessed 31/01/2017.91. Argentina. Banco Central de la República Argentina. Principa-les Variables. N.p., n.d. Web. 31 Jan. 2017. <http://www.bcra.gov.ar/PublicacionesEstadisticas/Principales_variables.asp>.

• Currency: Argentine Peso

• Exchange rate: US$ 1.00 = AR$ 15,9312 91

A N N E X C

Provincial Laws and Regulations

Province Renewable Energy Law Description

Jujuy

Law 5904 (2016) Promotion and development of solar energy.

Law 5919 (2016)

Creation of the provincial government’s right over a public or private electrical conduit of an immova-ble property if it is necessary for the public supply of electricity, including those that are sourced from renewable energy.

Salta Law 7823 (2014)

Declares of provincial interest the development of re-newable energies in Salta. Establishes a promotional regime for the construction of new projects involving the production of energy from renewable sources. Adheres to law 26,190.

Formosa Law 1060 (1993)Aims towards the protection of the environment and for an access to renewable energies.

Chaco Law 7843 (2016)Declares of provincial interest the use of renewable energies. Adheres to the national law 27,191.

Catamar-ca

Law 5490 (2016) Adheres to national law 27.191. Awards fiscal benefits.

Tucuman Law 6253 (2012)The protection of the environment is declared a provincial interest. Does not specifically regulate renewable energies.

La Pampa Law 2918 (2016)Adheres to law 27.191. Declares of provincial interest the use of renewable energies for the generation of electrical energy.

Tierra del Fuego

Law 295 (1996)Declares of provincial interest the development of wind energy. Tax exemptions for 10 years.


Santa Cruz

Law 2796 (2005)Declares of provincial interest the generation of energy from renewable sources. Awards fiscal benefits.

Law 2178 (1990)Declares of provincial interest the exploitation of wind energy.

Chubut

Decree 9/2017 (2017) Declares 2017 the “Year of Renewable Energies”

Law 95

Promote the development of renewable energies. Establishes a system of concessions for the genera-tion and exploitation of renewable electrical energy. Awards tax benefits.

Law 107 (2013)Regulates the production of electrical energy for non-commercial use.

Law 4389 (1998)Declares of provincial interest the development of wind energy. Awards tax benefits.

Decree 1114/2011 (2011)

Regulates law 26,190.

Rio Negro

Decree 1139/2007 (2007)

Regulates a wind energy plant in the Patagonian re-gion. Available at http://www.rionegro.gov.ar/down-load/boletin/4570.pdf p. 16.

Decree 948/2005 (2005)

Creates the “Unidad Ejecutora Provincial del Proyecto de Energias Renovables en Mercados Rurales”, which implements and supervises, among other things, the renewable energy projects in the Province. Is involved with PERMER. Available at http://www.rionegro.gov.ar/download/boletin/4336.pdf, p. 2.

Province of Buenos Aires

Resolution 827/2009 (2009)

Promotes investments related to the energetic sector and prioritizes those involving the use of renewable energies.

M. & M. BOMCHILRenewable energy project / 43

Mendoza

Law 7822 (2007)

Declares of provincial interest the generation of elec-trical energy through the use of renewable sources. Its goal is to reach a 15% generation of electricity of renewable energy in the next 15 years. Adopts the policies of law 26,190.

Law 7983 (2008)

Ratifies Decree 116/2007 (2007) that approves the “Convenio General de Cooperación para el Desarrollo de Acciones de Eficiencia Energética y de uso de Re-cursos Energéticos Renovables”, a cooperative institu-tional agreement for the development of renewable energies between the Secretary of Energy and the Ministry of the Environment of Mendoza.

Neuquén

Law 3006 (2016)Regulates the distribution grid of electrical energy and its relationship with the installation of renewable energy for personal consumption.

Law 2596 (2008)Declares of provincial interest the generation of elec-trical energy from renewable sources. Adheres to law 26,190.

Law 2494 (2005)Approves the Provinces agreement with PERMER. San Juan

Law 7565 (2004) Approves PERMER.

Santa Fe Law 12,503 (2005) States that renewable energies are those that are pro-duced naturally, sustainably and without creating an environmental damage.

Renewable energy projects in Argentina - M&M Bomchil energy project… · Renewable energy projects...

Documents

Transcript of Renewable energy projects in Argentina - M&M Bomchil energy project… · Renewable energy projects...