1. Delegated powers to the National Executive Power

The Foundations Law awards to the National Executive Power certain powers related to government and emergency matters, according to Section 76 of the National Constitution, for a one (1) year term.

Pursuant to such award, the National Executive Branch has the power to reorganize state-owned companies and the State structure generally.

The National Executive is also empowered to provide, with respect to the State corporations foreseen in section 8 (b) of Law No. 24,156:

    1. the modification or transformation of its legal structure; and
    2. its merger, demerger, reorganization, or transfer to the provinces, according to a prior agreement guaranteeing the adequate allocation of resources.

On the other hand, the National Executive Power is authorized to modify, transform, unify, dissolve, or liquidate public trust funds, and discontinue the program for which it was created, except for the Trust Fund for Subsidies for Residential Gas Consumption, created by Law No. 25,565.

2. Renegotiation of contracts

The National Executive, with the prior intervention of the AG office and the Auditing Office, to renegotiate public works agreements and public works services agreements, with grounds of emergency. Such right shall be limited to agreements entered before the approval of the Foundations Law and that are currently suspended, with the objective of facilitating private investment and the restart and finalization of the works subject to such agreement.

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For additional information, please contact Nicolás Eliaschev and/or Javier Constanzó.