At the request of the Argentine Energy Bureau, TGS invited to submit bids in the Open Season carried out within the Financial Trust Program, established by the Ministry of Federal Planning, Public Investment and Utilities in accordance with the terms of Resolution MPFIP yS N° 185/2004 ("Gas Financial Trusts"), Resolution MPFIPyS N° 663/2004 ("Regulations for the Contracting of Works included in the Gas Financial Trust ") and the terms of the "Purchase Argentine Work" Regime -Law 25.551; its regulations and exceptions as applicable to the Gas Financial Trusts Program. In its capacity as Project Manager of the Gas Financial Trust Program, TGS assists the Energy Bureau in connection with the expansion of the San Martín pipeline owned by TGS, carried out with the aim to meet the natural gas demand increase recorded in Argentina.
To meet such local market needs, the Energy Bureau has specifically requested Transportadora de Gas del Sur S.A to summon to this bidding, with the objective to carry out the San Martín pipeline expansion works, which will be conducted and financed within the framework of the Gas Financial Trusts Program established by the Ministry of Federal Planning, Public Investment and Utilities in accordance with the terms of Resolution MPFIP yS N° 185/2004 ("Gas Financial Trusts"). Once the procedures are complied with and the agreements are entered, Transportadora de Gas del Sur S.A. will assume, in its capacity as trustor and not as a stakeholder, the role of Project Manager of the Firm Transportation Capacity Expansion (Open Season N° 03/2004).
Once the Gas Financial Trust is set and the funds are deposited; TGS will assume these responsibilities as from the effectivenes of the MASTER AGREEMENT, entered into by and among the Energy Bureau, Nación Financial Trust and TGS. In this capacity, TGS will award, on behalf of the Trustee and with specific charge to the Gas Financial Trust, the contracts to Contractors and/or Suppliers, that submit their bid in a timely and proper fashion.