Nevertheless# at year’s end there was practically no considerable reserve available to continue the expansion program, specially as the second share of US$ 3OOOOOO of Series C Debentures, – which was foreseen to be issued in 1962, – was irlaced already in 1961, to replace the US$ 4t000?

NECESSITIES FOR 1962 AND FINANCING PROGRAM a) A v a i 1 a b 1 e F u n ds _#————————- For the current year, an investment of Soles 480’000*000 includ- ing capitalized interests, has been foreseen for expansion works, financing, i

jq4,eou The balance of the funds required for 1961 was corered by an inter- mediary financing put at disposal by associated cokpanies. II. e.: Huinco 286’O’tooot Marca I 56tIQQ*QIQ Marca II 6t000’ooo Turbo-gas unit IV 2310001000 Distribution system 7 0tOOO1OOO 44110001000 Capitalized interests 39f00O000 480T0001000 (approx. Self-financing Re-investment of the Companyts own funds for an amount of approx- imately Soles 4510002000 ( UsS 116671000 ). This self-financing may be considered as already secured, because a resolution by the National Tariff Commission authorizimgan electric- ity rate increase of about 20 % is expected by the end of April. -4

World Bank Loan According to the building programm, the proceedings from this loan during 1962 for payments of electromechanical equipment, construct- tion material, services in foreign currency etc. Hidrandinats contribution Pursuant to Loan Agreement IB 260 PE, the Company may count with Hidrandinals cash surplus, which in 1962 will amount to about Soles 1510001000, i. In order to solve this problem, the Company is presently negotiating with a group of Swiss banks; at the same time, close con- tacts are maintained with the First Boston Corporation,’New York, for a possible placement of debentures in the United States, As these two financing operations – described below -, depend from the balancing of the Company’s economic situation by the impending eleo.