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Privatizations in the Province of Córdoba

Córdoba is the most industrialized and populous Argentine province after Buenos Aires and has recently launched the privatization of its most important assets, including the Provincial bank, the generation, transportation, distribution and commercialization of energy and the exploitation of the Provincial casinos, lottery and other games.
July 31, 2001
Privatizations in the Province of Córdoba

Energy

Offer of a 35 year exclusive concession for the exploitation of the transportation, distribution and commercialization of energy. Additionally, an offer of a 35 year exclusive concession for the exploitation of 14 generation plants is to be launched within the next 30 days.

EPEC, currently exploiting those businesses, has annual revenues of $400,000,000 and 600,000 customers, approximately.

Offers for the transportation, distribution and commercialization of energy business can contemplate a full or partial advance payment of the 35 year canon. The possibility to pay up to 60% of the canon with Provincial debt held by banks opens broad financing opportunities.

Bidding terms are on sale as from May 14 at $10,000 and offers must be submitted by July 18.

Lottery Games

Offer of a 35 year exclusive concession for the exploitation of casinos, bingo and slots in hotels. Also, offer of a 35 year exclusive concession for the exploitation of the Provincial lottery (which can be commercialized outside the Province) and other lottery games.

The bidding terms include exclusivity for the setting up and management of casino hotels in the principal cities of the Province and freedom for the development of new games. Offerors for the casino business must hold a casino exploitation license in the US or the EU.

These businesses generate an annual aggregate income of approximately $ 450,000,000.

Bidding terms will be on sale as from May 21.

Bank

Sale of 87% of the capital stock of the Provincial Bank, which will continue to be the financial agent for the Province for at least 10 years.

Additionally, an offer for the collection of an aggregate of approximately $1,200,000,000 due debt is to be launched shortly.

The bank currently operates 180 branches, manages low risk credits for $ 244,000,000 and deposits in an aggregate amount of approximately $1,700,000,000, representing 44.54% of total bank deposits in the Province of Córdoba.

Bidding terms are on sale as from May 7 and until June 21 at $25,000. Offers must be submitted on June 28.

This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.