Resolution 200/2012

BOARD RESOLUTION NO. 200/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES THE APPLICATION FOR A CONCESSIONAL EXTRAORDINARY CREDIT TO THE NATIONAL ELECTRIC COMPANY FOR AN AMOUNT OF Bs1,044,000,000 FOR THE "WARNES THERMOELECTRIC GENERATION PROJECT"

HAVING SEEN:
The Political Constitution of the State promulgated on February 7, 2009.
Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
Law No. 211 of December 23, 2011, which approves the General State Budget (PGE) 2012.
Law No. 291 of September 22, 2012, which modifies the PGE 2012.
The Regulation for the Approval of Credit to National Strategic Public Enterprises within the framework of the General State Budget for the fiscal years 2010, 2011, and 2012, approved by BCB Board Resolution No. 23/2011 of February 22, 2011, and its subsequent modifications.
Ministerial Resolution No. 532 of August 16, 2012, from the Ministry of Economy and Public Finance.
The note from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance (MEFP/VTCP/DGAFT/USCFT/N°1616/12) of August 22, 2012.
Supreme Decree No. 29644 of July 16, 2008.
Supreme Decree No. 267 of August 26, 2009.
Supreme Resolution No. 7124 of March 7, 2012.
The Technical Report of the National Electric Company ENDE-IT-GPL-9/3-12 of September 12, 2012.
The Financial Report of the National Electric Company ENDE-IF-DFI-9/3-12 of September 29, 2012.
The Legal Report of the National Electric Company INF.DIR. 12-2012 of October 25, 2012.
Ministerial Resolution No. 336-12 of November 14, 2012 from the Ministry of Hydrocarbons and Energy.

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The credit application note from the National Electric Company ENDE-GGN-11/15-12 of November 19, 2012.
The notes ENDE-GGN-10/15-12, ENDE-GGN-10/13-12, and ENDE-GGN-10/14-12, all dated October 29, 2012, addressed to the Ministry of Economy and Public Finance, the Ministry of Development Planning, and the Ministry of Hydrocarbons and Energy, respectively.
The Report from the Economic Policy Advisory BCB-APEC-SSMF-INF-2012-33 of November 23, 2012.
The Report from the Monetary Operations Management BCB-GOM-SOSP-DCE-INF-2012-20 of November 22, 2012.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-373 of November 26, 2012.

CONSIDERING:
That the Political Constitution of the State (CPE), approved by referendum on January 25, 2009, and promulgated on February 7, 2009, establishes in Article 158, paragraph I, numeral 10, that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

That Article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly shall authorize the contracting of public debt when the capacity to generate income to cover capital and interest is demonstrated, and the most advantageous conditions in rates, terms, amounts, and other circumstances are technically justified. Public debt shall not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

That paragraph II of Articles 20 and 379 of the Political Constitution of the State establish that it is the responsibility of the State, at all levels of government, to guarantee the generation of electricity for internal consumption of the Country.

That Articles 22 and 23 of Law No. 1670 determine that the BCB cannot grant credits to the Public Sector or incur contingent liabilities in its favor, except in favor of the General Treasury of the Nation (TGN) to attend to urgent needs derived from declared public calamities, internal or international commotion by Supreme Decree, and to attend to temporary liquidity needs, within the limits of the monetary program; these operations shall be documented in all cases through negotiable public debt securities issued by the National Treasury.

That Article 27 of Law No. 211 of December 23, 2011, extends during the 2012 Fiscal Year the validity of Article 8 of Law No. 50, modified by Article 13 of Law No. 62, regarding the resources of the credit authorized in favor of the National Electric Company (ENDE), which had not been committed by December 31, 2011.

That Article 12 of Law No. 291 of September 22, 2012, authorizes the BCB to grant an extraordinary credit of up to Bs2,088,000,000 (Two Billion Eighty-Eight Million 00/100 Bolivianos) in favor of the National Electric Company, in addition to what is established in Article 27 of Law No. 211 of December 23, 2011, under concessional conditions, with the objective of financing the San José de Cochabamba Hydroelectric Projects for an amount of Bs1,044,000,000 (One Billion Forty-Four Million 00/100 Bolivianos); and for the Warnes Thermoelectric Plant for Bs1,044,000,000 (One Billion Forty-Four Million 00/100 Bolivianos). For this purpose, the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670.

That paragraph V of Article 12 of the aforementioned Law authorizes the Ministry of Economy and Public Finance (MEFP), through the General Treasury of the Nation (TGN), to issue and grant Non-Negotiable Treasury Bonds in favor of the BCB, to guarantee the amount of the credit granted by said entity in favor of the National Electric Company (ENDE) upon written request of the Ministry of Hydrocarbons and Energy, and jointly with the BCB.

That paragraph VI of Article 12 of the aforementioned Law exempts ENDE from the effects and scope of the application of Articles 33 and 35 of Law No. 2042 of December 21, 1999, on Budgetary Administration.

That the note from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance MEFP/VTCP/DGAFT/USCFT/N°1616/12, refers to the Central Bank of Bolivia Ministerial Resolution No. 532 of August 16, 2012, where the methodology for calculating the concessionality degree of 20% for the 2012 fiscal year is established.

That Supreme Decree No. 29644 of July 16, 2008, has the object of establishing the legal nature of ENDE as a national strategic and corporate public enterprise.

That Supreme Decree No. 267 of August 26, 2009, modifies Article 4 of Supreme Decree No. 29644 and approves the Statutes of ENDE.

That by Supreme Resolution No. 7124 of March 7, 2012, Mr. Hugo Villarroel Senzano was appointed as Acting General Manager of ENDE.

That through note ENDE-GGN-11/15-12 received on November 20, 2012, ENDE presents the application for a concessional credit of Bs1,044,000,000 (One Billion Forty-Four Million 00/100 Bolivianos), for the implementation of the project named "Warnes Thermoelectric Generation," to which effect it sends the corresponding documentation and offers as guarantee Non-Negotiable Bonds of the General Treasury of the Nation.

That Ministerial Resolution No. 336-12 of November 14, 2012 from the Ministry of Hydrocarbons and Energy, justifies before the BCB the following aspects:

1. It determines that according to Law No. 291, the National Development Plan, and the Optimal Expansion Plan of the SIN 2012-2022, the execution of the Warnes Thermoelectric Generation Project is of national priority and will be executed by ENDE ANDINA Mixed Anonymous Society – ENDE ANDINA SAM, through the capital contribution that ENDE will make, for which it will request a credit of Bs1,044,000,000 from the BCB, whose amount will be destined to the referred project and that future flows, expressed in the profits that ENDE receives from its participation in ENDE ANDINA SAM and its other subsidiaries, will be used for the payment of the credit;
2. It confirms the technical feasibility of the execution of the "Warnes Thermoelectric" generation project, as stated in Report MHE-VMEEA-DGE No. 098/2012 issued by the Undersecretariat of Electricity and Alternative Energies – VMMA of the MHE;
3. It determines that according to the economic and financial evaluation of the "Warnes Thermoelectric" project, contained in report DGAA No. 548/2012, issued by the General Directorate of Administrative Affairs, the payment capacity of the credit to be contracted with the BCB is ensured. Without prejudice to the above and additionally, it is determined that the available profits generated by ENDE's subsidiary companies will be used to pay the debt that said company incurs with the BCB for the execution of the referred project;
4. To dispose, within the framework of what is established in this Resolution, that this Ministry will authorize the disbursement requests that ENDE makes to the BCB, based on an evaluation and monitoring report issued for each disbursement. This Ministry commits, through the VMEEA, to carry out the evaluation and monitoring of the execution of the Credit resources. To dispose that ENDE, ENDE ANDINA SAM, and the MHE, prior to the authorization of any disbursement of the credit resources to be contracted with the BCB, will modify the agreement they signed with the aim of establishing the technical, administrative, and financial conditions necessary to operationalize the monitoring that the VMEEA will carry out on the execution of the referred project, that ENDE ANDINA SAM in coordination with ENDE will carry out with the resources of the capital contribution that is made.

That ENDE Board Resolution No. 013/2012 approves the Investment Plan and the Disbursement Schedule of the credit resources to be granted by the BCB, with a breakdown of expenditure in national and foreign currency.

That the Report BCB-APEC-SSMF-INF-2012-33 from the Economic Policy Advisory, establishes with respect to the impact on the 2012 Monetary Program of the credit requested by ENDE for the "Warnes Thermoelectric Generation Project" that, except for extraordinary operations that may imply pronounced increases in Net Internal Credit (CIN), the disbursement of Bs19,473,850 that could be effected in the remainder of the fourth quarter of 2012 will not affect the fulfillment of the targets subject to measurement in said Program, due to the fact that the Non-Financial Public Sector (SPNF) accumulated significant margins throughout the year.

That the Monetary Operations Management in Report BCB-GOM-SOSP-DCE-INF-2012-20 of November 22, 2012, considers the financial conditions for granting the concessional extraordinary credit to ENDE, for the execution of the Warnes Thermoelectric Generation Project.

That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-373 establishes that the request made by ENDE has complied with the presentation of the required documents, corresponding to the BCB Board to consider the approval of the extraordinary credit under concessional conditions to ENDE for the execution of the Warnes Thermoelectric Generation Project.

That by virtue of what is provided in Article 44 of Law No. 1670, the BCB Board is the competent instance to authorize the granting of the extraordinary credit in favor of ENDE in order to comply with what is expressly disposed in the PGE-2010, 2011, and 2012 and applicable legal provisions to the case.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve, within the framework of Article 12 of Law No. 291 of September 22, 2012, the granting of a concessional extraordinary credit to the National Electric Company (ENDE), for the execution of the Warnes Thermoelectric Generation Project under the following terms and conditions:
Currency: Bolivianos.
Total credit amount: Bs1,044,000,000.- (One Billion Forty-Four Million 00/100 Bolivianos).
Term: Twenty (20) years.

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Grace period: Five (5) years on principal with interest payable from the first disbursement.
Annual interest rate: 0.85% (Zero point eighty-five percent) as established by Ministerial Resolution No. 532 of the Ministry of Economy and Public Finance of August 16, 2012.
Disbursement deadline: Until December 30, 2014.
Payment plan: Annual.

Article 2.- Authorize the President of the BCB to sign the contract with the National Electric Company under the terms of this Resolution.

Article 3.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.

La Paz, November 27, 2012

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Marcelo Zabalaga Estrada

_______________________ _______________________ Hugo Dorado Araníbar Rolando Marín Ibáñez

_______________________ _______________________ Gustavo Blacutt Alcalá Abraham Pérez Alandia