AMENDMENT7/POTENCY RESERVE & POWER SUPPLY CONTRACT



 



Exhibit 10.16



			
	CE DOCM 256/01
	 	Recife, November 22, 2001.







Dr. Ricardo de Maya Simões

Manager, New Business and Electric Energy

Trikem UCS/AL

São Paulo — SP




	 	 	 
	 
	 	 	Subject: Seventh Addendum to the Contract of Potency Reserve and
Supply of Electric Power





Dear Sir:




We are returning herewith, duly signed, an original copy of Addendum No. 07 to
the Contract of Potency Reserve and Supply of Electric Power, entered by and
between CHESF and TRIKEM UCS/AL.



At this time, we transmit to you our best regards.



Very truly yours,



(signed by)

Teófilo de Holanda Cavalcanti



Manager, Energy Trade Division — DOCM

‘Phone/Fax (0**81) 3229-4103/3229-4087

e-mail: teofiloh@chesf.gov.br.




C.C.: DFTE (ORIGINAL) — DEME (COPY)



 









 








	 	 	 
	 
	 	 	Addendum No. 07 to the Contract of Potency Reserve
and Supply of Electric Power, executed by and
between Companhia Hidro Elétrica do São Francisco
 — CHESF and Trikem S/A, on 06/02/1998.





COMPANHIA HIDRO ELÉTRICA DO SÃO FRANCISCO, operator of electric power public
services, established in the City of Recife, State of Pernambuco, at Rua
Delmiro Gouveia number 333, District of Bongi, enrolled in the Taxpayers’
General Registry of the Ministry of Finance under number 33 541 368/0001-16 and
in the Fiscal Registry of the State of Pernambuco under number 18 1 001
0005584-6, hereinafter referred to as CHESF, and TRIKEM S/A, with its
industrial facilities in the Municipality of Maceió, State of Alagoas, enrolled
in the Taxpayers’ General Registry of the Ministry of Finance under number 13
558 226/0013-98 and in the Fiscal Registry of the State of Alagoas under number
240 07111-5, hereinafter referred to as CONSUMER, the parties being represented
by their Directors who signed “in-fine”, have mutually adjusted this ADDENDUM
TO THE CONTRACT OF POTENCY RESERVE AND SUPPLY OF ELECTRIC POWER.



CONSIDERING:



Considering the present energetic situation in Brazil, and pursuant to
Resolution No. 4, of May 22, 2001, Article 13, item I, of the Board for
Management of the Electric Energy Crisis — GCE, the CONSUMER requested a
revision in the amounts of the contracted demand, which has been accepted by
CHESF according to the following clauses:



	 	 	 
	1st CLAUSE:

	 	The subject matter of this ADDENDUM is to change the contractual
demand established in the Contract of Potency Reserve and Supply of Electric
Power, appended hereby, according to the table below.







	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERIOD OF SUPPLY
	 	PERIOD OF	 	MONTHLY (VALUES IN KW)

	Item
	 	Month/Year
	 	THE YEAR
	 	 	Peak
	 	Out of Peak

	01

	 	September/2001
	 	Dry	 	 	 	127,500	 	 	 	127,500	 







	 	 	 
	2nd CLAUSE

	 	In the event of regularization of the energetic situation in
Brazil, upon the end of the Emergency Program for Reduction of Electric
Energy Consumption, and as directed by the Board for Management of the
Electric Energy Crisis — GCE, CHESF might effect the return of the demand
to the levels of the Contract appended hereby, with previous notification
to the CONSUMER.
	 
	 	 
	3rd CLAUSE

	 	All Clauses in the Contract of Potency Reserve and Supply of
Electric Power, between CHESF and the CONSUMER, with respect to the
provisions that expressly or implicitly are not conflicting hereto, remain
unchanged.







Being thus agreed, the parties sign this instrument on 3 (three) copies of
equal content and configuration, which were read and found conforming, jointly
to the witnesses below.



Recife, September 17, 2001.




COMPANHIA HIDRO ELÉTRICA DO SÃO FRANCISCO — CHESF




	 	 	 
	


	 	

	(Signed by)

	 	(Signed by)
	Mozart de Siqueira Campos Araujo,

	 	Paulo de Tarso da Costa,