ARGENTINA Law and Practice Contributed by: Héctor Pozo Gowland, Esteban de Vedia, Carlos Ernesto Miná and Francisco Pozo Gowland, Pozo Gowland Abogados
two clearly differentiated stages: (i) the construc- tion of the line until it is commercially able to begin transmitting power; and (ii) the stage of the operation and maintenance of the constructed facilities, during which the investment for the construction of the line is recovered. This stage is referred to as the “amortisation period” and cannot exceed 15 years. Financial Terms In the classic scheme of the COM contract, the constructor fully finances the works, which are remunerated in the second stage through the payment of a “canon” that covers the value of the construction of the power transmission facili- ties and the cost of operation and maintenance of the facilities during the amortisation period. However, it is worth noting that the authori- ties may determine other financing modalities for the execution of the project in the bidding documents. These may include the possibility for the constructor to receive advance payments of the canon during the execution period of the works. Once the line is commercially enabled, the constructor concludes its participation in the COM contract, and the concessionaire of the transmission system or a third party can be contracted for the operation and maintenance of the constructed facilities. Technical Licence Additionally, the constructor must sign a techni- cal licence with the concessionaire carrier of the transmission system to which the line is con- nected. The technical licence is a contractual document that contains the technical conditions for construction, operation and maintenance, as well as the technical requirements necessary to ensure the required service quality in the electric system. The concessionaire carrier has the duty to supervise the constructor during the differ-
ent stages of the COM contract and can impose sanctions if the quality parameters established in the licence are not respected. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Argentine legislation introduced the concept of “Administrative Easement of Power Line” ( Servidumbre Administrativa de Línea Eléctrica , or AEPL) as a right granted by a competent authority to a company or entity responsible for the transmission of electrical energy, to use and access certain private or public properties for the purpose of constructing, operating and maintaining electrical transmission lines. The AEPL is established through a legal and regu- latory process that involves obtaining permits and authorisations from the relevant authorities. Additionally, conditions and economic compen- sations are established for the owners of the lands affected by the installation of the trans- mission lines. The AEPL is regulated by Law No 19,552, which states in Section 1 that an AEPL will be granted to the concessionaire of electrical substations, power transmission lines and electricity dis- tributors. This servitude grants the legal right to occupy and use lands where electrical transmis- sion system facilities are installed. The AEPL affects the land and includes restric- tions and limitations on the landowner so that the concessionaire can construct, maintain, repair, supervise and dispose of all the system installa- tions required for energy transmission. Law No 19,552 provides that ENRE, by issuing the cor- responding resolution, approves the project and plans of the work to be executed, declares the land affected by the AEPL, and authorises its
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