Central Piedra Buena

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Central Piedra Buena was created from the two generating facilities that Servicios Electricos del Gran Buenos Aires (Segba) had in the province of Buenos Aires. The total installed capacity of Central Piedra Buena was 620-MW in 1996. The company was privatized in mid-1997 when the government sold it for $30.3 million to a consortium led by Camuzzi Gazometri SpA and integrated by Pacific Enterprises through a competitive bidding. The consortium was the only bidder for Central Piedra Buena. The low price paid for the company reflected the limited value of old and inefficient generating facilities in the increasing competitive Argentine market. Pacific Enterprises subsequently exited the partnership and was replaced by CIESA, a wholly-owned subsidiary of the British firm Independent Power Corp., which held 49% of Piedra Buena. In Jun. 2000, CIESA acquired Camuzzi's shares in Central Piedra Buena. CIESA plans to construct an additional 800-MW unit adjacent to Central Piedra Buena (Central San Antonio Libertador). This new gas-fired combined cycle power plant is expected to be brought into service by the end of 2002 (investment: US$ 240 million). On July 26, 2007 Pampa executed a stock purchase agreement with Albanesi S.A. and with certain subsidiaries controlled by MatlinPatterson by virtue of which the Company would be indirectly acquiring 100% of Central Piedra Buena S.A. (“CPB”) for a price of US$ 85 million. The aggregate price paid involves an enterprise value per installed MW of US$ 137 thousand.