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|     **REGISTRATION STATEMENT PURSUANT TO    SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934** |
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| **OR**                                                                                                                          |
| **  **  **ANNUAL REPORT PURSUANT TO SECTION 13    OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**         |
| **For the fiscal year ended December 31, 2002**                                                                                 |
| **OR**                                                                                                                          |
|     **TRANSITION REPORT PURSUANT TO SECTION    13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**         |
| **For the transition period from __________ to __________**                                                                     |
| **Commission file number 001-12440**                                                                                            |

| **ENERSIS S.A.**                                                                       |
|----------------------------------------------------------------------------------------|
| (Exact name of Registrant as specified in its    charter)                              |
|                                                                                   |
| **ENERSIS S.A.**                                                                       |   | **CHILE** |
| (Translation    of Registrant’s name into English)                                |   | (Jurisdiction    of incorporation or organization) |
|                                                                                   |   |   |
| **Avenida Santa Rosa 76, Santiago**                                                    |
| **Santiago, Chile**                                                                    |
| (Address    of principal executive offices)                                            |
| **Securities registered or to be registered    pursuant to Section 12(b) of the Act:** |

| **Title of Each Class**                                 |   | **Name of each exchange on which    registered** |
|---------------------------------------------------------|--------|--------------------------------------------------|
|                                                         |   |                                                  |
| American    Depositary Shares representing Common Stock |   | New York    Stock Exchange                       |
| Common    Stock, no par value                           |   | New York    Stock Exchange*                      |
| US$    300,000,000 6.90% Notes due December 1, 2006     |   | New York    Stock Exchange                       |
| US$    350,000,000 7.40% Notes due December 1, 2016     |   | New York    Stock Exchange                       |
| US$    150,000,000 6.60% Notes due December 1, 2026     |   | New York    Stock Exchange                       |

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| * | Listed, not for trading,    but only in connection with the registration of American Depositary Shares,    pursuant to the requirements of the Securities and Exchange Commission. |
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|                                                                                                | **Page** |
|-----------------------------------------------------------------------------------------------------|----------|
|                                                                                                |          |
| Introduction                                                                                        | 1        |
| Financial Information                                                                               | 1        |
| Technical Terms                                                                                     | 2        |
| Calculation of Economic Interest                                                                    | 2        |
| Forward-Looking Statements                                                                          | 3        |
|                                                                                                |     |
| PART I                                                                                              |     |
|                                                                                                |     |
| Item 1.  Identity        of Directors, Senior Management and Advisers                     | 4        |
| Item    2.  Offer Statistics and Expected Timetable                                       | 4        |
| Item 3.  Key        Information                                                           | 4        |
| Item    4.  Information on the Company                                                    | 20       |
| Item    5.  Operating and Financial Review and Prospects                                  | 74       |
| Item 6.  Directors,        Senior Management and Employees                                     | 111      |
| Item 7.  Major        Shareholders and Related Party Transactions                              | 116      |
| Item 8.  Financial        Information                                                          | 117      |
| Item 9.  The        Offer and Listing                                                          | 123      |
| Item 10.  Additional Information                                                          | 126      |
| Item 11.  Quantitative        and Qualitative Disclosures About Market Risk               | 140      |
| Item 12.  Description        of Securities Other than Equity Securities                   | 144      |
|                                                                                                |     |
| PART II                                                                                             |     |
|                                                                                                |     |
| Item 13.  Defaults, Dividend Arrearages and Delinquencies                                 | 145      |
| Item 14.  Material Modifications to the Rights of Security    Holders and Use of Proceeds | 145      |
| Item 15.  Controls        and Procedures                                                  | 145      |
| Item 16.  [Reserved]                                                                      | 145      |
|                                                                                                |     |
| PART III                                                                                            |     |
|                                                                                                |     |
| Item 17.  Financial Statements                                                            | 146      |
| Item 18.  Financial        Statements                                                     | 146      |
| Item 19.  Exhibits                                                                        | 147      |

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|   | • | control,    directly or indirectly, more than a 50% voting interest in that company; or                                                                             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                |
|   | • | nominate or    have the power to nominate a majority of the board of directors of that    company if we control 50% or less of the voting interest of that company. |

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|   | • | subtracting    the number of GWh of energy sold from the aggregate GWh of energy purchased    and self-generated within a given twelve-month period; and                         |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                             |
|   | • | calculating    the percentage that the resulting quantity bears to the aggregate number of    GWh of energy purchased and self-generated within the same twelve-month    period. |

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|   | • | our    Financial Strengthening Plan;                                                                                                                                                                                                                                             |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | our capital    investment program and development of new products;                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | our cost    reduction project, the Genesis Project;                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | trends    affecting our financial condition or results of operations;                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | our dividend    policy;                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | the future    impact of competition and regulation;                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | political    and economic conditions in the countries in which we or our related companies    operate or may operate in the future;                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | any    statements preceded by, followed by or that include the words “believes,”    “expects,” “predicts,” “anticipates,” “intends,” “estimates,” “should,” “may”    or similar expressions; and |
|   |   |                                                                                                                                                                                                                                                                             |
|   | • | other    statements contained or incorporated by reference in this annual report    regarding matters that are not historical facts.                                                                                                                                             |

|   | • | our ability    to implement proposed capital expenditures, including our ability to arrange    financing where required;                                       |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                           |
|   | • | the nature    and extent of future competition in our principal markets;                                                                                       |
|   |   |                                                                                                                                                           |
|   | • | political,    economic and demographic developments in the emerging market countries of    Latin America where we conduct a large portion of our business; and |
|   |   |                                                                                                                                                           |
|   | • | the factors    discussed below under “Risk Factors.”                                                                                                 |

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| **Item 1.** | **Identity of Directors, Senior Management and Advisers** |
|-------------|-----------------------------------------------------------|
|        |                                                      |
|        | Not    applicable.                                        |
|        |                                                      |
| **Item 2.** | **Offer Statistics and Expected Timetable**               |
|        |                                                      |
|        | Not    applicable.                                        |
|        |                                                      |
| **Item 3.** | **Key Information**                                       |
|        |                                                      |
| **A.**      | **Selected Financial Data.**                              |

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|                                                                                   |   | **As of    December 31,**                                                                                                   |        |
|----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|-------------|
|                                                                                   |   |                                                                                                                             |        |
|                                                                                   |   | **1998**                                                                                                                    |        | **1999** |   | **2000** |   | **2001** |   | **2002** |   | **2002 (1)** |   |
|                                                                                   |   |                                                                                                                             |             |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                                   |   | **(*Constant Ch$ millions as of December 31, 2002 except ratios, operating data, and    per share/ADS amounts)*** |        | ***(in millions     US$)*** |   |
| **Consolidated Income Statement Data**                                                 |   |                                                                                                                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Chilean GAAP:*                                                                        |   |                                                                                                                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from operations                                                               |   |                                                                                                                        | 1,766,446   |   |   | 2,524,875 |   |   | 2,757,047 |   |   | 3,059,381 |   |   | 2,485,873 |   |   | 3,459.3 |   |
| Cost of operations                                                                     |   |                                                                                                                        | (1,074,913  | ) |   | (1,775,516 | ) |   | (1,895,035 | ) |   | (2,025,312 | ) |   | (1,730,050 | ) |   | (2,407.5 | ) |
| Administrative and selling expenses                                                    |   |                                                                                                                        | (148,134    | ) |   | (272,114 | ) |   | (309,263 | ) |   | (279,525 | ) |   | (223,179 | ) |   | (310.6 | ) |
| Operating income                                                                       |   |                                                                                                                        | **543,399** |   |   | **477,245** |   |   | **552,749** |   |   | **754,544** |   |   | **532,644** |   |   | **741.2** |   |
| Equity in income of related companies                                                  |   |                                                                                                                        | 26,434      |   |   | 1,720 |   |   | 77 |   |   | (10,700 | ) |   | 8,264 |   |   | 11.5 |   |
| Goodwill amortization                                                                  |   |                                                                                                                        | (23,784     | ) |   | (58,302 | ) |   | (71,714 | ) |   | (80,576 | ) |   | (506,344 | ) |   | (704.6 | ) |
| Interest (expense) income, net                                                         |   |                                                                                                                        | (209,554    | ) |   | (378,956 | ) |   | (450,597 | ) |   | (396,208 | ) |   | (354,252 | ) |   | (493.0 | ) |
| Price level restatement                                                                |   |                                                                                                                        | (20,817     | ) |   | (154,409 | ) |   | (16,503 | ) |   | (28,368 | ) |   | (11,145 | ) |   | (15.5 | ) |
| Other non-operating income, net                                                        |   |                                                                                                                        | 16,894      |   |   | 144,935 |   |   | 369,326 |   |   | 10,764 |   |   | 66,947 |   |   | 93.2 |   |
| Income before income taxes, minority interest and amortization of    negative goodwill |   |                                                                                                                        | **332,572** |   |   | **32,233** |   |   | **383,338** |   |   | **249,457** |   |   | **(263,886** | **)** |   | **(367.2** | **)** |
| Income taxes                                                                           |   |                                                                                                                        | (82,703     | ) |   | (94,780 | ) |   | (146,323 | ) |   | (129,850 | ) |   | (66,017 | ) |   | (91.9 | ) |
| Non recurring items                                                                    |   |                                                                                                                        | —      |   |   | — |   |   | — |   |   | — |   |   | (22,376 | ) |   | (31.1 | ) |
| Minority interest                                                                      |   |                                                                                                                        | (183,243    | ) |   | (62,691 | ) |   | (184,000 | ) |   | (125,153 | ) |   | 16,283 |   |   | 22.7 |   |
| Amortization of negative goodwill                                                      |   |                                                                                                                        | 36,149      |   |   | 38,335 |   |   | 42,646 |   |   | 47,700 |   |   | 112,248 |   |   | 156.2 |   |
| Net income (loss)                                                                      |   |                                                                                                                        | **102,775** |   |   | **(86,903** | **)** |   | **95,661** |   |   | **42,154** |   |   | **(223,748** | **)** |   | **(311.4** | **)** |
| Net income (loss) per share                                                            |   |                                                                                                                        | 15.11       |   |   | (12.78 | ) |   | 13.26 |   |   | 5.08 |   |   | (26.99 | ) |   | (0.04 | ) |
| Net income (loss) per ADS (3)                                                     |   |                                                                                                                        | 755.70      |   |   | (638.99 | ) |   | 662.84 |   |   | 254.22 |   |   | (1,349.34 | ) |   | (1.88 | ) |
| Dividends payable per share (7)                                                        |   |                                                                                                                        | 6.20        |   |   | — |   |   | 1.86 |   |   | — |   |   | — |   |   | — |   |
| Dividends payable per ADS in US$ (3) (4) (7)                            |   |                                                                                                                        | 0.58        |   |   | — |   |   | 0.15 |   |   | — |   |   | — |   |   | — |   |
| Weighted average shares outstanding (million)                                          |   |                                                                                                                        | 6,800       |   |   | 6,800 |   |   | 7,216 |   |   | 8,291 |   |   | 8,291 |   |   | 8,291 |   |
| *US GAAP (2):*                                                                    |   |                                                                                                                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                       |   |                                                                                                                        | 557,870     |   |   | 303,261 |   |   | 769,194 |   |   | 805,098 |   |   | (216,055 | ) |   | (300.7 | ) |
| Equity in income of related companies                                                  |   |                                                                                                                        | 31,896      |   |   | (5,387 | ) |   | 77 |   |   | (28,176 | ) |   | 23,294 |   |   | 32.4 |   |
| Income taxes                                                                           |   |                                                                                                                        | (79,141     | ) |   | (60,572 | ) |   | (232,331 | ) |   | (220,247 | ) |   | (2,755 | ) |   | (3.8 | ) |
| Net income (loss) from continuing operations                                           |   |                                                                                                                        | 113,842     |   |   | (96,010 | ) |   | 71,171 |   |   | 2,805 |   |   | (330,076 | ) |   | (459.3 | ) |
| Income (loss) from discontinued operations net of tax and minority    interest         |   |                                                                                                                        | (1,464      | ) |   | 1,111 |   |   | 260 |   |   | 284 |   |   | 166 |   |   | 0.2 |   |
| Net income (loss)                                                                      |   |                                                                                                                        | 112,378     |   |   | (94,899 | ) |   | 74,431 |   |   | 3,089 |   |   | (329,910 | ) |   | (459.1 | ) |
| Net income (loss) on continuing operations per share                                   |   |                                                                                                                        | 16.7        |   |   | (14.1 | ) |   | 10.3 |   |   | 0.3 |   |   | (39.8 | ) |   | (0.1 | ) |

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|                                               |   | **As of    December 31,**                                                                                                         |      |
|----------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                               |   |                                                                                                                                   |      |
|                                               |   | **1998**                                                                                                                          |      | **1999** |   | **2000** |   | **2001** |   | **2002** |   | **2002 (1)** |   |
|                                               |   |                                                                                                                                   |           |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                               |   | **(*Constant Ch$ millions as of December 31, 2002****** except ratios, operating    data, and per share/ADS amounts)*** |      | ***(in millions     US$)*** |   |
| Income (loss) on discontinued operations per share |   |                                                                                                                              | (0.2      | ) |   | 0.1 |   |   | 0.0 |   |   | 0.0 |   |   | 0.0 |   |   | 0.0 |   |
| Net income (loss) per share                        |   |                                                                                                                              | 16.5      |   |   | (14.0 | ) |   | 10.3 |   |   | 0.3 |   |   | (39.8 | ) |   | (0.1 | ) |
| Net income (loss) on continuing operations per ADS |   |                                                                                                                              | 837.1     |   |   | (706.0 | ) |   | 513.9 |   |   | 16.9 |   |   | (1,990.6 | ) |   | (2.8 | ) |
| Income (loss) on discontinued operations per ADS   |   |                                                                                                                              | (10.8     | ) |   | 8.2 |   |   | 1.8 |   |   | 1.7 |   |   | 1.0 |   |   | 0.0 |   |
| Net income (loss) per ADS (3)                 |   |                                                                                                                              | 826.3     |   |   | (697.8 | ) |   | 515.7 |   |   | 18.8 |   |   | (1,989.6 | ) |   | (2.8 | ) |
| **Consolidated Balance Sheet Data**                |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Chilean GAAP:*                                    |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                       |   |                                                                                                                              | 8,489,490 |   |   | 12,367,931 |   |   | 11,755,354 |   |   | 12,759,799 |   |   | 12,621,165 |   |   | 17,563.3 |   |
| Long-term debt                                     |   |                                                                                                                              | 3,825,427 |   |   | 6,170,757 |   |   | 5,224,792 |   |   | 5,832,363 |   |   | 5,413,608 |   |   | 7,533.4 |   |
| Minority interest                                  |   |                                                                                                                              | 3,012,495 |   |   | 4,005,372 |   |   | 3,730,725 |   |   | 4,073,571 |   |   | 4,050,603 |   |   | 5,636.7 |   |
| Shareholders’ equity                          |   |                                                                                                                              | 894,305   |   |   | 776,800 |   |   | 1,168,761 |   |   | 1,214,562 |   |   | 1,005,580 |   |   | 1,399.3 |   |
| *US GAAP* (2):                                |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                       |   |                                                                                                                              | 2,929,409 |   |   | 12,221,812 |   |   | 11,830,179 |   |   | 13,089,810 |   |   | 12,313,073 |   |   | 17,134.6 |   |
| Long-term debt                                     |   |                                                                                                                              | 1,103,830 |   |   | 6,172,364 |   |   | 5,470,918 |   |   | 6,408,876 |   |   | 5,205,849 |   |   | 7,244.3 |   |
| Minority interest                                  |   |                                                                                                                              | 500,725   |   |   | 3,901,091 |   |   | 3,569,739 |   |   | 3,976,904 |   |   | 4,270,494 |   |   | 5,942.7 |   |
| Shareholders’ equity                          |   |                                                                                                                              | 845,920   |   |   | 774,197 |   |   | 1,131,339 |   |   | 1,154,674 |   |   | 852,134 |   |   | 1,185.8 |   |
| **Other Consolidated Financial Data**              |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Chilean GAAP*                                     |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity/Capitalization (%) (5)                 |   |                                                                                                                              | 11.6      | % |   | 7.1 | % |   | 11.5 | % |   | 10.9 | % |   | 10.5 | % |   |   |   |
| Return on equity (%) (6)                      |   |                                                                                                                              | 11.3      | % |   | — |   |   | 9.6 | % |   | 3.5 | % |   | — |   |   |   |   |
| *US GAAP*                                          |   |                                                                                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity/Capitalization (%) (5)                 |   |                                                                                                                              | 34.5      | % |   | 7.1 | % |   | 11.1 | % |   | 10.0 | % |   | 8.2 | % |   |   |   |
| Return on equity (%) (6)                      |   |                                                                                                                              | 13.7      | % |   | — |   |   | 7.6 | % |   | 0.3 | % |   | — |   |   |   |   |

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| (1) | Chilean peso amounts have    been translated into US$at the rate of Ch$718.61 per US$1.00, the Observed    Exchange Rate on December 31, 2002.                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Under US GAAP, which    differs from Chilean GAAP, prior to our acquisition of an additional 34.7%    interest in May 1999, Endesa-Chile was not consolidated for the two    fiscal years ended December 31, 1998.     Endesa-Chile was consolidated under Chilean GAAP for the full year    ended December 31, 1999 and under US GAAP as of June 1, 1999.  See “Item 5.  Operating and Financial Review and Prospects.” |
| (3) | Per ADS amounts in millions    of constant Chilean pesos are determined by multiplying per share amounts by    50 (1 ADS = 50 Shares).  Per    share amounts in millions of US$are determined by dividing per ADS amounts by    50.                                                                                                                                                                                                                    |
| (4) | US dollar amounts are    calculated by applying the US dollar exchange rate on the dividend payment    date to the nominal Chilean peso amount.                                                                                                                                                                                                                                                                                                                       |
| (5) | Shareholders’ equity    divided by total capitalization.     Total capitalization is defined as long-term debt, minority interest    and shareholders’ equity.                                                                                                                                                                                                                                                                                         |
| (6) | Net income for the current    fiscal period divided by the average of shareholders’ equity at the end of    the current fiscal period and shareholders’ equity at the prior fiscal year    end.                                                                                                                                                                                                                                                             |
| (7) | This chart details    dividends payable in any given year, and not necessarily paid that same year.                                                                                                                                                                                                                                                                                                                                                                   |

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|                                 |   | **As of or    for the year ended December 31,** |   |
|--------------------------------------|--------|------------------------------------------------------|--------|
|                                 |   |                                                      |   |
|                                 |   | **1998**                                             |   | **1999** |   | **2000** |   | **2001** |   | **2002** |   |
|                                 |   |                                                      |        |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Operating    Data of Subsidiaries    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Chilectra*                          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh) (1)           |   |                                                 | 8,175  |   |   | 8,425 |   |   | 8,854 |   |   | 9,585 |   |   | 9,952 |   |
| Number of Customers (thousands)      |   |                                                 | 1,212  |   |   | 1,239 |   |   | 1,262 |   |   | 1,289 |   |   | 1,319 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 6.0    |   |   | 5.3 |   |   | 5.2 |   |   | 5.4 |   |   | 5.6 |   |
| *Río Maipo*                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 1,016  |   |   | 1,050 |   |   | 1,191 |   |   | 1,245 |   |   | 1,274 |   |
| Number of Customers (thousands)      |   |                                                 | 267    |   |   | 274 |   |   | 287 |   |   | 294 |   |   | 302 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 6.0    |   |   | 5.8 |   |   | 5.4 |   |   | 6.4 |   |   | 6.2 |   |
| *Edesur*                             |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 11,680 |   |   | 12,325 |   |   | 12,597 |   |   | 12,909 |   |   | 12,138 |   |
| Number of Customers (thousands)      |   |                                                 | 2,094  |   |   | 2,105 |   |   | 2,108 |   |   | 2,097 |   |   | 2,090 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 8.1    |   |   | 9.4 |   |   | 10.3 |   |   | 9.9 |   |   | 11.6 |   |
| *Cerj*                               |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 7,208  |   |   | 7,694 |   |   | 7,656 |   |   | 6,739 |   |   | 7,146 |   |
| Number of Customers (thousands)      |   |                                                 | 1,452  |   |   | 1,559 |   |   | 1,581 |   |   | 1,691 |   |   | 1,778 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 19.1   |   |   | 16.5 |   |   | 19.7 |   |   | 22.7 |   |   | 22.6 |   |
| *Coelce*                             |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 5,377  |   |   | 5,709 |   |   | 5,894 |   |   | 5,352 |   |   | 5,558 |   |
| Number of Customers (thousands)      |   |                                                 | 1,508  |   |   | 1,652 |   |   | 1,796 |   |   | 1,917 |   |   | 2,009 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 13.3   |   |   | 13.0 |   |   | 13.3 |   |   | 13.0 |   |   | 12.9 |   |
| *Codensa*                            |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 8,217  |   |   | 8,502 |   |   | 8,776 |   |   | 8,673 |   |   | 9,015 |   |
| Number of Customers (thousands)      |   |                                                 | 1,628  |   |   | 1,746 |   |   | 1,802 |   |   | 1,850 |   |   | 1,911 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 19.5   |   |   | 13.5 |   |   | 10.5 |   |   | 11.8 |   |   | 10.3 |   |
| *Edelnor*                            |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity Sold (GWh)               |   |                                                 | 3,389  |   |   | 3,423 |   |   | 3,583 |   |   | 3,685 |   |   | 3,872 |   |
| Number of Customers (thousands)      |   |                                                 | 816    |   |   | 838 |   |   | 852 |   |   | 867 |   |   | 871 |   |
| Total Energy Losses (%) (2)     |   |                                                 | 9.7    |   |   | 9.8 |   |   | 9.9 |   |   | 8.9 |   |   | 8.5 |   |
| *Endesa*-*Chile*                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installed capacity in Chile (MW)     |   |                                                 | 3,522  |   |   | 4,130 |   |   | 4,035 |   |   | 3,935 |   |   | 3,935 |   |
| Installed capacity in Argentina (MW) |   |                                                 | 3,622  |   |   | 3,622 |   |   | 3,622 |   |   | 3,622 |   |   | 3,622 |   |
| Installed capacity in Colombia (MW)  |   |                                                 | 3,035  |   |   | 3,035 |   |   | 3,035 |   |   | 3,035 |   |   | 2,732 |   |
| Installed capacity in Brazil (MW)    |   |                                                 | 658    |   |   | 658 |   |   | 658 |   |   | 658 |   |   | 658 |   |
| Installed capacity in Peru (MW)      |   |                                                 | 809    |   |   | 806 |   |   | 997 |   |   | 997 |   |   | 1,003 |   |
| Production in Chile (GWh)            |   |                                                 | 12,188 |   |   | 13,672 |   |   | 15,346 |   |   | 15,741 |   |   | 16,286 |   |
| Production in Argentina (GWh)        |   |                                                 | 7,310  |   |   | 9,150 |   |   | 10,129 |   |   | 9,948 |   |   | 7,168 |   |
| Production in Colombia (GWh)         |   |                                                 | 11,489 |   |   | 10,898 |   |   | 9,618 |   |   | 10,106 |   |   | 10,616 |   |
| Production in Brazil (GWh)           |   |                                                 | 2,941  |   |   | 3,222 |   |   | 3,406 |   |   | 2,256 |   |   | 2,467 |   |
| Production in Peru (GWh)             |   |                                                 | 3,072  |   |   | 2,950 |   |   | 3,623 |   |   | 4,176 |   |   | 4,279 |   |

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| (1) | Energy sold by Chilectra    includes sales to Río Maipo, which have not been eliminated in this    chart.  Río Maipo purchased    substantially all of its energy from Chilectra.                                                                                                                                                                                                                     |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Energy losses are    calculated on a rolling twelve-month basis by (a) subtracting the number    of GWh of energy sold from the aggregate GWh of energy purchased and    self-generated within a twelve-month period and (b) calculating the    percentage that the resulting sum bears to the aggregate number of GWh of    energy purchased and self-generated within the same twelve-month period. |

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|                                |   | **Observed        Exchange Rate (1)****(Ch$ per US$)** |   |
|-------------------------------------|--------|--------------------------------------------------------|--------|
|                                |   |                                                        |   |
| **Year**                            |   | **Low(2)**                                             |   | **High(2)** |   | **Average(3)** |   | **Period-end** |   |
|                                     |   |                                                        |        |   |  |  |   |  |  |   |  |  |   |
| 1998                                |   |                                                   | 439.58 |   |   | 475.41 |   |   | 462.20 |   |   | 472.41 |   |
| 1999                                |   |                                                   | 468.69 |   |   | 550.93 |   |   | 512.85 |   |   | 530.07 |   |
| 2000                                |   |                                                   | 501.04 |   |   | 580.37 |   |   | 542.08 |   |   | 573.65 |   |
| 2001                                |   |                                                   | 557.13 |   |   | 716.62 |   |   | 637.57 |   |   | 654.79 |   |
| 2002                                |   |                                                   | 641.75 |   |   | 756.56 |   |   | 692.32 |   |   | 718.61 |   |
|                                |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| **Last        six months**          |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| 2003                                |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| January                             |   |                                                   | 709.22 |   |   | 738.87 |   |   |   |   |   |   |   |
| February                            |   |                                                   | 733.10 |   |   | 755.26 |   |   |   |   |   |   |   |
| March                               |   |                                                   | 725.79 |   |   | 758.21 |   |   |   |   |   |   |   |
| April                               |   |                                                   | 704.42 |   |   | 729.78 |   |   |   |   |   |   |   |
| May                                 |   |                                                   | 694.22 |   |   | 714.10 |   |   |   |   |   |   |   |
| June        (through June 20, 2003) |   |                                                   | 705.24 |   |   | 717.40 |   |   |   |   |   |   |   |

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| (1) | Reflects Chilean pesos at    historical values rather than in constant Chilean pesos.  |
|-----|----------------------------------------------------------------------------------------|
| (2) | Exchange rates are the    actual high and low, on a day-by-day basis, for each period. |
| (3) | The average of the exchange    rates on the last day of each month during the period.  |

| **B.** | **Capitalization and indebtedness.** |
|--------|--------------------------------------|

|   | Not    applicable. |
|--------|--------------------|

| **C.** | **Reasons for the offer and use of proceeds.** |
|--------|------------------------------------------------|

|   | Not    applicable. |
|--------|--------------------|

| **D.** | **Risk Factors.** |
|--------|-------------------|

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|   | ***Rationing periods may also affect the    profitability of our distribution subsidiaries as a result of a reduction in    available energy levels and an increase in operating expenses among other    things.*** |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Our    generation and distribution businesses may be subject to regulatory fines,    which range from 1 *Unidad Tributaria Mensual* (“UTM”), or    approximately US$44, to 10,000 *Unidades Tributarias Anuales* (“UTA”), or    approximately US$5 million.  Any    company supervised by the Chilean Superintendency of Electricity and Fuels,    or SEF, is subject to these fines, which apply in cases where, in the opinion    of the SEF, there are operational failures that affect the regular energy    supply to the system.  These fines are    subject to appeal by SEF-regulated companies. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | • | If our    Chilean generation subsidiaries are required to buy electricity on the spot    market during a period in which a rationing decree is in effect, they are    required to pay a “failure cost” set by the authorities.                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | • | If any    end-consumer of electricity in Chile fails to receive electricity during any    declared rationing period, that consumer must be paid a “compensation    payment,” which would be equal to a “failure cost” set by regulatory    authorities.  There have been no    compensation payments imposed during the three years ended December 31, 2002.                                                                                                                                                                                                                                                       |

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|   | ***We may not be able to fully implement our    principal strategies.*** |
|--------|--------------------------------------------------------------------------|

|   | • | the    inability to repay or refinance existing debt on more favorable terms and/or    to finance expansion; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                         |
|   | • | the    inability to enhance operating efficiencies for our existing subsidiaries;    and                     |
|   |   |                                                                                                         |
|   | • | the    emergence of more competition in the five countries in which we operate.                              |

|   | ***Construction of new facilities may be    adversely affected by factors commonly associated with new construction    projects.*** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | • | delays in    obtaining regulatory approvals, including environmental permits;                                                                     |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                              |
|   | • | shortages or    changes in the price of equipment, materials or labor;                                                                            |
|   |   |                                                                                                                                              |
|   | • | local    opposition of political and ethnic groups;                                                                                               |
|   |   |                                                                                                                                              |
|   | • | adverse    changes in the political and regulatory environment in the countries where we    and our related companies operate;                    |
|   |   |                                                                                                                                              |
|   | • | adverse    weather conditions, which may delay the completion of power plants, or    natural disasters, accidents or other unforeseen events; and |
|   |   |                                                                                                                                              |
|   | • | inability to    obtain financing at affordable rates.                                                                                             |

|   | ***We may encounter difficulties in fully    implementing our Financial Strengthening Plan and assuring the liquidity    needed to make payments on publicly issued bonds.*** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a)    | a capital    increase in Enersis of up to approximately US$ 2 billion; |
|--------|--------|------------------------------------------------------------------------|
|   |   |                                                                   |
|   | (b)    | the    divestiture of certain assets in 2003, including:               |

|   | • | hydroelectric    plant Empresa Eléctrica Canutillar (“Canutillar”);                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                           |
|   | • | electricity    distribution company Compañía Eléctrica del Río Maipo S.A. (“Río    Maipo”);            |
|   |   |                                                                                                                                           |
|   | • | real estate    company Inmobiliaria Manso de Velasco S.A. (“Manso de Velasco”), if    possible under current market conditions; |
|   |   |                                                                                                                                           |
|   | • | certain    electricity transmission assets (wholly-owned by Endesa-Chile);                                                                     |
|   |   |                                                                                                                                           |
|   | • | toll road    company Infraestructura Dos Mil S.A. (“Infraestructura 2000,”    wholly-owned by Endesa-Chile);          |

|   | (c)    | bank    refinancing of all outstanding syndicated bank credit agreements extended to    Enersis and Endesa-Chile and most of the bilateral credit agreements to both    borrowers, in all cases maturing in 2003 and 2004, for an aggregate total of    US$2.33 billion; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                         |
|   | (d)    | operating    cash flow improvements of approximately US$130 million during the three-year    period ending December 31, 2005.                                                                                                                                           |

|   | ***We are a holding company and depend on    payments from our subsidiaries and related companies to meet our payment    obligations.*** |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | subsidiaries    where dividend distribution is prohibited in the case of default of certain    loans;                                                                                                                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Cerj in    Brazil and Costanera (an Endesa-Chile subsidiary in Argentina) where dividend    distributions, capital reductions, inter-company interest and debt repayment    are prohibited while certain debt is outstanding;                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Betania (an    Endesa-Chile subsidiary in Colombia) where inter-company debt repayment is    prohibited unless Betania raises additional funds from the sale of assets or    capital reductions of its subsidiaries (Emgesa), and inter-company interest    payments are prohibited if any scheduled payment of the syndicated loan is    due and not paid; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Argentina,    which restricted the payment of dividends abroad during 2002 and until    February 2003.                                                                                                                                                                                                                                                          |

|   | ***The current macroeconomic situation in    Argentina and the changes to regulations affecting our Argentine subsidiaries    could affect the ability of our Argentine subsidiaries to meet their    obligations.*** |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ***The Central Bank of Argentina may impose    restrictions on the transfer of funds outside of Argentina that could prevent    our Argentine subsidiaries from distributing dividends and paying principal    on certain of their external debt as it comes due.*** |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ***Argentine authorities have implemented a    number of monetary and currency-exchange control measures that have had, and    may continue to have, an adverse effect on our results of operations and    financial condition in Argentina.*** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **Item 4.** | **Information on the Company** |
|-------------|--------------------------------|

| **A.** | **History and development of the    company.** |
|--------|------------------------------------------------|

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|                            |   | **Year ended    December 31** |    |
|---------------------------------|--------|-------------------------------|---------|
|                            |   |                               |    |
|                            |   | **2000**                      |    | **2001** |   | **2002** |   |
|                            |   |                               |         |   |  |  |   |  |  |   |
| **Installed Capacity (MW) (1)** |   |                          | 4,130.2 |   |   | 4,035.0 |   |   | 3,934.8 |   |
| **Electricity Sales (GWh)**     |   |                          | 20,086  |   |   | 18,673 |   |   | 18,344 |   |

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| (1) | Figures do not take into    account the sale of the Canutillar Plant in April 2003. |
|-----|-------------------------------------------------------------------------------------|

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|                        |   | **Year ended    December 31** |   |
|-----------------------------|--------|-------------------------------|--------|
|                        |   |                               |   |
|                        |   | **2000**                      |   | **2001** |   | **2002** |   |
|                        |   |                               |        |   |  |  |   |  |  |   |
| **Installed Capacity (MW)** |   |                          | 3,622  |   |   | 3,622 |   |   | 3,622 |   |
| **Electricity Sales (GWh)** |   |                          | 15,549 |   |   | 12,988 |   |   | 7,897 |   |

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|                                             |   | **Year ended    December 31** |   |
|--------------------------------------------------|--------|-------------------------------|--------|
|                                             |   |                               |   |
|                                             |   | **2000**                      |   | **2001** |   | **2002** |   |
|                                             |   |                               |        |   |  |  |   |  |  |   |
| **Installed Capacity (MW)-Cachoeira    Dourada** |   |                          | 658    |   |   | 658 |   |   | 658 |   |
| **Electricity Sales (GWh)**                      |   |                          | 3,887  |   |   | 3,743 |   |   | 3,591 |   |

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|                            |   | **Year ended    December 31** |     |
|---------------------------------|--------|-------------------------------|----------|
|                            |   |                               |     |
|                            |   | **2000**                      | **2001** |   | **2002** |   |
|                            |   |                               |          |   |  |  |   |  |  |   |
| **Installed Capacity (MW) (1)** |   |                          | 3,034    |   |   | 3,034 |   |   | 2,732 |   |
| **Electricity Sales (GWh)**     |   |                          | 13,356   |   |   | 14,591 |   |   | 14,722 |   |

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| (1) | On July 2, 2002, EMGESA    closed 302 MW of its installed capacity in Casalaco’s facility. |
|-----|-------------------------------------------------------------------------------------------------|

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|                        |   | **Year ended    December 31** |   |
|-----------------------------|--------|-------------------------------|--------|
|                        |   |                               |   |
|                        |   | **2000**                      |   | **2001** |   | **2002** |   |
|                        |   |                               |        |   |  |  |   |  |  |   |
| **Installed Capacity (MW)** |   |                          | 1,003  |   |   | 1,003 |   |   | 1,003 |   |
| **Electricity Sales (GWh)** |   |                          | 3,604  |   |   | 4,239 |   |   | 4,158 |   |

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|   | (a)    | drastic fall of energy demand by all customer    segments, thereby decreasing revenues;                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                 |
|   | (b)    | the absence of internal and external sources of    financing, which affected its operations and planning of capital    expenditures; |
|   |   |                                                                                                                                 |
|   | (c)    | higher equipment and material costs in dollar terms    due to the devaluation of the Argentine Peso;                                 |
|   |   |                                                                                                                                 |
|   | (d)    | renegotiation and downward adjustments of existing    work, services and supply contracts;                                           |
|   |   |                                                                                                                                 |
|   | (e)    | the highest rate of vandalism and delinquency that    the company has encountered in the past years;                                 |
|   |   |                                                                                                                                 |
|   | (f)    | increase in energy theft in low-income regions    exacerbated by the increased poverty rate;                                         |
|   |   |                                                                                                                                 |
|   | (g)    | increased delinquent payments by government-related    customers; and                                                                |

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|   | (h) | drastically increased debt service as measured in    Argentine Pesos from Ar$ 251 million in 2001 to Ar$ 678 million in 2002,    notwithstanding the fact that Edesur has one of the lowest leverage ratios of    public companies in Argentina. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **B.** | **Business overview.** |
|--------|------------------------|

|   | • | expand our coverage to compete in an increasingly    regional market in which there is a long-term expectation of significant    growth in per capita energy consumption, despite the current regional turmoil; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                            |
|   | • | enhance our operating margins by significantly    reducing the operating costs of our existing businesses;                                                                                                      |
|   |   |                                                                                                                                                                                                            |
|   | • | maximize our return on investment in our    subsidiaries; and                                                                                                                                                   |
|   |   |                                                                                                                                                                                                            |
|   | • | focus on core competencies by disposing of our    interests in non-strategic business lines.                                                                                                                    |

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|   | • | reducing energy losses associated with distribution    businesses over the long term;            |
|--------|--------|--------------------------------------------------------------------------------------------------|
|   |   |                                                                                             |
|   | • | building and operating generation facilities;                                                    |
|   |   |                                                                                             |
|   | • | implementing proprietary billing and accounts    receivable management systems;                  |
|   |   |                                                                                             |
|   | • | increasing work force productivity while maintaining    good labor relations;                    |
|   |   |                                                                                             |
|   | • | streamlining and upgrading information systems; and                                              |
|   |   |                                                                                             |
|   | • | operating under a range of tariff and regulatory    frameworks that reward efficient operations. |

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|   | • | a US$ 200 million Senior Secured Syndicated Term    Loan Facility for Enersis and a US$ 1.388 billion Senior Secured Syndication    Term Loan Facility for Enersis, acting through its Cayman Islands Branch (the    “Enersis Facility”) each for five years; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                        |
|   | • | a US$ 743 million Senior Guaranteed Syndicated Term    Loan Facility for Endesa-Chile, acting through its Cayman Islands Branch (the    “Endesa-Chile Facility”, and together with the Enersis Facility, the    “Facilities”).                          |

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|   | • | electricity distribution company Empresa eléctrica    Río Maipo, sold on April 30, 2003 for US$ 203 million, including US$ 33    million in debt;                                  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                         |
|   | • | real estate company Inmobiliaria Manso de Velasco;                                                                                                                                           |
|   |   |                                                                                                                                                                                         |
|   | • | hydroelectric generation plant Canutillar, sold on    April 30, 2003 for US$ 174 million;                                                                                                    |
|   |   |                                                                                                                                                                                         |
|   | • | a toll road company, Infraestructura 2000, sold on    June 23, 2003 for US$ 55 million.  The    final effect of the sale will be to reduce consolidated debt by US$ 220    million; and |
|   |   |                                                                                                                                                                                         |
|   | • | certain transmission assets located in Chile sold on    May 30, 2003 for US$ 108 million.                                                                                                    |

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|                                                       |   | **Capital    Expenditure**  |   |
|------------------------------------------------------------|--------|-----------------------------|--------|
|                                                       |   |                             |   |
|                                                       |   | **(in    billions of Ch$)** |   |
|                                                       |   | **2002**                    |   | **2003-2007** |   |
|                                                       |   |                             |        |   |  |  |   |
| Electricity    Generation                                  |   |                        |   |   |   |   |   |
| Endesa-Chile (Chile, Argentina, Brazil, Colombia and Peru) |   |                        | 127    |   |   | 535 |   |
| Electricity    Distribution                                |   |                        |   |   |   |   |   |
| Chilectra (Chile)                                          |   |                        | 43     |   |   | 206 |   |
| Río Maipo (Chile) (1)                                 |   |                        | 5      |   |   | 0 |   |
| Edesur (Argentina)                                         |   |                        | 18     |   |   | 232 |   |
| Cerj (Brazil)                                              |   |                        | 47     |   |   | 222 |   |
| Coelce (Brazil)                                            |   |                        | 45     |   |   | 128 |   |
| Codensa (Colombia)                                         |   |                        | 32     |   |   | 153 |   |
| Edelnor (Peru)                                             |   |                        | 26     |   |   | 103 |   |
| Other    Businesses                                        |   |                        | 5      |   |   | 13 |   |
|                                                       |   |                             |        |   |  |  |   |
|     Total                              |   |                        | 348    |   |   | 1,592 |   |
|                                                       |   |                             |        |   |  |  |   |

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| (1) | Río Maipo was sold in March    2003 and no projections were made for the 2003-2007 period. |
|-----|-------------------------------------------------------------------------------------------------|

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|   | • | installing    their own lines directly from a generation company;                                                                    |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                 |
|   | • | arranging a    supply contract with a generation company, which pays a toll to a    transmission company and a distribution company; |
|   |   |                                                                                                                                 |
|   | • | negotiating    a contract with a distribution company; and                                                                           |
|   |   |                                                                                                                                 |
|   | • | generating    their own electricity.                                                                                            |

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|   | • | such year is    one of low hydrology conditions; and                           |
|--------|--------|--------------------------------------------------------------------------------|
|   |   |                                                                           |
|   | • | there will    be average availability of thermal units during such year.  |

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|   | • | final    customers with a connected capacity greater than 2 MW, commonly known as    large customers; |
|--------|--------|------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                       |
|   | • | temporary    customers; and                                                                                |
|   |   |                                                                                                       |
|   | • | customers    with special quality requirements.                                                            |

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|   | • | the    cumulative variation in the consumer price index exceeds 100% within the    four-year period; or                                          |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                             |
|   | • | the annual    internal real rate of return for the electricity distribution industry as a    whole falls below 5%, or increases above 15%.  |

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|   | • | *Fines. *The fines, that could apply to any    electricity company supervised by the NEC and the SEF, including generation,    transmission and distribution companies, range from the equivalent of    approximately US$42 to a maximum of the equivalent of approximately US$5    million.  Companies penalized under    the legislation will have the right to appeal but only after they have made a    prepayment equal to 25% of the fine. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | • | *Compensatory Payments By Generation    Companies*.     If the Ministry of Economy issues a rationing decree, generation    companies may be required to reimburse final customers for non-supplied    energy at failure cost.                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | • | *Failure Cost*.  Chile’s Electricity Law calls for a    “failure cost” to be imposed on generators that cannot meet their contractual    commitments to deliver electricity during periods when a rationing decree is    in effect.  The failure cost is    implemented as an additional amount that must be paid by deficit generators    to the surplus generators from whom deficit generators purchase electricity.           |

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|   | • | *Compensatory Payments By Distribution    Companies*.     Distribution companies may be required to compensate final customers    if there are shortages of electricity that exceed the authorized    standards.  These compensatory    payments shall be at an amount equal to double the non-supplied energy at    failure cost. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a new    methodology concerning compensation to, and expansion of, transmission    systems, which would be financed in equal parts among demand and supply for    this service;                                                      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                 |
|   | • | regulation    on the subject of ancillary services (including frequency regulation, among    others);                                                                                                                                |
|   |   |                                                                                                                                                                                                                                 |
|   | • | adjustment    of the node price in relation to the unregulated price, in such a way that    the current 10% band would be lowered to 5%, so as to permit regulated prices    to be closer to the free market, or unregulated prices; |
|   |   |                                                                                                                                                                                                                                 |
|   | • | regulation    of the distribution toll.  The    electricity distributors are required to provide service to third parties;    and                                                                                               |
|   |   |                                                                                                                                                                                                                                 |
|   | • | a permanent    expertise commission will be established to resolve discrepancies that arise    in each of the tariff and toll setting processes.                                                                                     |

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|   | • | power    traders, who market generation capacity and energy demand by entering into    contracts with generators and large consumers; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                  |
|   | • | provinces    which can sell the energy received under royalty rights; and                                                             |
|   |   |                                                                                                                                  |
|   | • | foreign    companies that are part of import/export energy contracts.                                                            |

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|   | • | a connection    charge that underwrites the costs of operating and maintaining the equipment    that links them to the transmission system; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                        |
|   | • | a capacity    charge that underwrites costs of operating and maintaining lines; and                                                         |
|   |   |                                                                                                                                        |
|   | • | a variable    charge based on the aggregate amount of electricity energy transported to    cover losses that occur during transmission.     |

|   | • | inspect and    verify the functioning of any part of the dams or related structures; and                                                   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                       |
|   | • | require    reports on the design, construction, operation, maintenance, use, repair or modification    of dams and related structures; and |
|   |   |                                                                                                                                       |
|   | • | any    situation which may cause risk to the dam or any death or injury caused by    such dams or related structures.                 |

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|   | • | a fixed    charge applicable to small users who are generally residential customers, and    also small industrial and commercial customers, or a charge per unit of    maximum demand for medium or large users who are generally commercial,    industrial or governmental customers; and                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | • | variable    energy charges, which are recalculated at the beginning of each three-month    period coinciding with the dates on which the average spot prices in the    wholesale electricity market are effective and on which the cost of energy    purchased under the pre-privatization power purchase contracts changes.  |

|   | • | the cost of    capacity in the wholesale market, adjusted at the beginning of the same    three-month period; and                                                                                             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                          |
|   | • | the    distribution component (VAD), which until before the Argentine crisis, was    fixed in US$for each class of users, adjusted semi-annually for changes in    U.S. wholesale and consumer price indices. |

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|   | • | Edesur does    not comply with the quality standards established in the concession agreement    or accumulates penalties in any given year in an amount greater than 20% of    its invoices after taxes and contributions; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                           |
|   | • | Distrilec    transfers its shares of Edesur without authorization or allows another person    to pledge its shares in Edesur.                                                                                             |

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|   | • | the    separation of capacity and energy payments such that the capacity payments    are tied to availability and short-term reserves are regulated and tied to    commitment reserves;                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                           |
|   | • | the    modification of energy supply guarantee rights and obligations, supply    priority and demand interruptability, and regulation of short- and medium-term    reserves for service disruption conditions with respect to large customers; |
|   |   |                                                                                                                                                                                                                                           |
|   | • | a new    capacity relief scheme proposed by CAMMESA;                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                           |
|   | • | the    integration of node and adaptation factors for demand without affecting the    calculation of the variable transmission remuneration and energy delivered by    generators and traders;                                                 |
|   |   |                                                                                                                                                                                                                                           |
|   | • | the    acknowledgement of new tax rates that are applied to natural gas, gas oil and    fuel transfers as additional costs;                                                                                                                    |
|   |   |                                                                                                                                                                                                                                           |
|   | • | conditions    of the contract market are eased and expanded; and                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                           |
|   | • | the    adjustment of forced generation regulations.                                                                                                                                                                                            |

|   | • | the quality    services parameters and fines contained in the Concession Law remained the    same, contrary to what the distribution companies have requested;                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | • | the    execution of the administrative duties related with breach of contracts, are    performed by the Control Entity or the Application Authority;                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | • | in the cases    where the distributor reasonably demonstrates that the breach of the contract    is due to the impact of the Emergency Public Law, there will be no further    administrative proceedings.  The    economic sanction will prevail and all demand processes against the concession    holder will be suspended.  There is an    exception for sanctions that implicates customers compensations, which will    continue with their normal course (the latter explain 60% of the total    fines); |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | • | in the cases    where the concession holder does not reasonably demonstrate that the breach    of the contract is due to the impact of the Emergency Public Law, the    authority will continue with its own process and will be exempted from    including such breach in the renegotiation process that the Renegotiation    Commission is undertaking;                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | • | all claims    or presentations that are related to the normal operation of the concession    and that are directly associated with the subjects that are contained in the    renegotiation process will be presented to the Administrative Authority,    which will in turn determine whether to forward to the Renegotiation    Commission.  The Renegotiation    Commission will determine if the claim should be included in the    renegotiation process or if another course of action is to be taken; and      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | • | during the    renegotiation process, the concession holder that presents a demand in court    with respect to the breach of contract will be asked by the Ministry of    Economy to withdraw its demand.  If    the concession holder persists in its actions, it will be excluded from the    renegotiation process.                                                                                                                                                                                                |

|   | • | the    remuneration for generators whose variable costs are higher than the first    failure cost step (120 Ar$/MWh) is incremented; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | a new    reserve service is established to ensure availability in areas where shortage    of natural gas in winter will be foreseen;                                       |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                       |
|   | • | the reserve    service reliability is adjusted to cover the peak time capacity demand;                                                                                     |
|   |   |                                                                                                                                                                       |
|   | • | the    anticipated spot market operation is reestablished for seasonal energy    transactions; and                                                                         |
|   |   |                                                                                                                                                                       |
|   | • | a    transitional process is instituted to identify and manage the high voltage    system and distribution expansions and to improve the availability of energy    supply. |

|   | • | increase the    actual market price transparency to improve the predictability of the    generators remunerations and facilitate their decisions; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
|   | • | gradually    obtain a more stable seasonal price.                                                                                                     |

|   | • | provide more    friendly environment and create incentives to accomplish certain critical    projects; and           |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                 |
|   | • | revise the    operational and design guidelines to meet the safety and operating    requirements enacted in the law. |

|   | • | granting and    supervising concessions on behalf of the União for electricity generation,    transmission, trading and distribution, including approval of applications    for the setting of tariff rates; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                              |
|   | • | supervising    and auditing the concessionaire companies;                                                                                                                                                         |
|   |   |                                                                                                                                                                                                              |
|   | • | issuing regulations    for the electricity sector;                                                                                                                                                                |
|   |   |                                                                                                                                                                                                              |
|   | • | planning,    coordinating, executing studies on water resources and the concession of new    hydroelectric facilities and definition of optimal use of water resources;                                           |

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|   | • | granting    decisions in order to solve, as an administrative matter, the differences    among concessionaires, independent producers, consumers and other industry    participants; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                 |
|   | • | establishing    the criteria to calculate transmission prices;                                                                                                                       |
|   |   |                                                                                                                                                                                 |
|   | • | imposing    contractual and regulatory penalties; or                                                                                                                                 |
|   |   |                                                                                                                                                                                 |
|   | • | terminating    a concession, in those cases contemplated in the law and/or a concession    agreement.                                                                                |

|   | • | the planning    and coordination of the operations and dispatch of electricity in order to    optimize the electricity produced in the interconnected systems; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                           |
|   | • | the    supervision and coordination of the operation centers of the electricity    systems; and                                                                |
|   |   |                                                                                                                                                           |
|   | • | the    definition of rules for the transmission of energy in the interconnected    systems.                                                                    |

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|   | • | contribute    or exchange energy with other self-producers within a consortium;                                                                                                                                |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                           |
|   | • | sell excess    energy to the local distribution concessionaire; or                                                                                                                                             |
|   |   |                                                                                                                                                                                                           |
|   | • | exchange    energy with the local distribution concessionaire to allow for consumption by    industrial plants owned by the self-producer and located somewhere other than    in the area of generation.  |

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|   | • | allowing for    tariff increases related to costs beyond management’s control; and                                                                                                                                             |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                |
|   | • | permitting    the concessionaire to retain any efficiencies achieved, such as energy loss    reductions, for defined periods of time, beyond which such efficiencies are    expected to be transferred to the final consumer.  |

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|   | • | ensure    continuous and efficient service without monopolistic abuse;             |
|--------|--------|------------------------------------------------------------------------------------|
|   |   |                                                                               |
|   | • | facilitate    for low-income users access to subsidies granted by the authorities; |
|   |   |                                                                               |
|   | • | inform users    regarding efficient and safe usage of the services;                |
|   |   |                                                                               |
|   | • | protect the    environment;                                                        |

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|   | • | allow access    and interconnection to other public service companies, or to their large    users; and                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                  |
|   | • | report the    commencement of their activities to the appropriate regulatory commission and    the *Superintendencia    de Servicios Públicos Domiciliarios*, or the SSPD.  |

|   | • | efficiency    (correct allocation and utilization of resources and the supply of    electricity at minimum cost);                            |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                         |
|   | • | quality    (compliance with the technical requirements established in regulations    affecting the sector);                                  |
|   |   |                                                                                                                                         |
|   | • | continuity    (a continuous electricity supply without unjustified interruptions);                                                           |
|   |   |                                                                                                                                         |
|   | • | adaptability    (the incorporation of modern technology and administrative systems to promote    quality and efficiency);                    |
|   |   |                                                                                                                                         |
|   | • | neutrality    (the impartial treatment of all electricity consumers);                                                                        |
|   |   |                                                                                                                                         |
|   | • | solidarity    (the provision of funds by higher-income consumers to subsidize the    subsistence consumption of lower income consumers); and |
|   |   |                                                                                                                                         |
|   | • | equity (an    adequate and non-discriminatory supply of electricity to all regions and    sectors of the country).                      |

|   | • | a generator    may not own more than 25% of the installed generating capacity in Colombia;                                                               |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |
|   | • | a trader may    not account for over 25% of the trading activity in the Colombian National    Interconnected System (the “Colombian NIS”); and |
|   |   |                                                                                                                                                     |
|   | • | a    distributor cannot have more than 25% of the distribution activity in the    Colombian NIS.                                                    |

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|   | • | SSPD, which    is in charge of overseeing and inspecting the companies incorporated as    public services companies;                                                                                                     |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                     |
|   | • | CREG, which    is in charge of regulating the energy and gas sectors; and                                                                                                                                                |
|   |   |                                                                                                                                                                                                                     |
|   | • | the *Unidad de    Planeación Minera y Energética*(Mining and Energy Planning    Agency), which is in charge of planning the expansion of the generation and    transmission network, among other things.  |

|   | • | establish    the conditions for the gradual deregulation of the electricity sector toward    an open and competitive market; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                         |
|   | • | approve    charges for transmission and distribution networks and charges for trading to    regulated customers;             |
|   |   |                                                                                                                         |
|   | • | establish    methodology for calculating and establishing maximum tariffs for supplying    the regulated market;             |
|   |   |                                                                                                                         |
|   | • | establish    the operations’ regulations for the planning and coordination of the    operation of Colombian NIS;        |
|   |   |                                                                                                                         |
|   | • | establish    technical requirements for the quality, reliability and security of supply;    and                              |
|   |   |                                                                                                                         |
|   | • | protect    customers’ rights.                                                                                      |

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|   | • | a connection    charge that underwrites the cost of operating the equipment that links the    user to the transmission system, which is not charged if the generator is the    owner of the connecting equipment; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                  |
|   | • | a usage    charge, applicable only to traders, effective January 1, 2002.                                                                                                                                   |

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|   | • | general cost    formulas given by CREG; and                         |
|--------|--------|---------------------------------------------------------------------|
|   |   |                                                                |
|   | • | individual    trading costs approved by CREG for each trader.  |

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|   | • | a    thermoelectric power plant has an installed capacity in excess of 500 kW; or                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                           |
|   | • | a    hydroelectric or geothermal power plant has an installed capacity between 500    kW and 10 MW.  |

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|   | 1. | Issues to    consolidate the electricity sector reform: |
|--------|----|---------------------------------------------------------|

|   | • | confirmation    that private investment should play a primary role in the development of this    sector and that public investment should play a secondary role on the    electrification of rural and isolated areas; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                   |
|   | • | regulation    of the international interconnected electricity systems;                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                   |
|   | • | scope of    functions of OSINERG in its dual capacity as regulator and prosecutor;                                                                                                                                     |
|   |   |                                                                                                                                                                                                                   |
|   | • | mechanisms    to facilitate the access of independent generators in the utilization of    energy resources and more efficient technologies;                                                                            |
|   |   |                                                                                                                                                                                                                   |
|   | • | utilization    of hydrological resources; and                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                   |
|   | • | institutional    changes to improve the relationship between customers and the system.                                                                                                                                 |

|   | 2. | Issues to    improve economic efficiency: |
|--------|----|-------------------------------------------|

|   | • | setting    basic prices for energy, its future and concurrent factors;                                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                |
|   | • | review of    the qualification of the transmission systems, transmission and sub transmission    fees, and of the methodology to determine the VAD; |
|   |   |                                                                                                                                                |
|   | • | analysis of    the criteria and methodology used to determine current generation costs    versus the adoption of declared costs;                    |
|   |   |                                                                                                                                                |
|   | • | adjustments    on the structure and function of the electricity market to allow access of    new agents and products for improving competition;     |

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|   | • | definition    of the unregulated customer; and    |
|--------|--------|---------------------------------------------------|
|   |   |                                              |
|   | • | improvement    of regulations on public lighting. |

|   | 3. | Specific technical    issues and procedures such as the system for granting concessions, technical    provisions to ensure quality of operations and specific obligations of    operators. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **C.** | **Organizational structure.** |
|--------|-------------------------------|

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| **Principal Subsidiary and Country of Operation** |   | **% Economic    Ownership of Principal Subsidiary by Enersis** |   | **Consolidated    Assets of Each Principal Subsidiary on a Stand-alone Basis** |   | **Operating    Income of Each Principal Subsidiary on a Stand-alone Basis** |   |
|---------------------------------------------------|--------|----------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                   |   |                                                                |   |                                                                                |   |                                                                             |   |
|                                              |   | **(in    billions        of Ch$ except percentages)**          |   |
| *Electricity Generation*                          |   |                                                           |   |                                                                           |   |                                                                        |   |   |   |   |
| Endesa-Chile (Chile)                              |   |                                                           | 60.0   | %                                                                              |   | 6,524.2                                                                     |   |   | 346.2 |   |
| CGTF (Brazil) (1)                                 |   |                                                           | 48.8   | %                                                                              |   |                                                                        |   |   |   |   |
| *Electricity Distribution*                        |   |                                                           |   |                                                                           |   |                                                                        |   |   |   |   |
| Chilectra (Chile)                                 |   |                                                           | 98.2   | %                                                                              |   | 1,136.9                                                                     |   |   | 87.3 |   |
| Río Maipo (Chile)                            |   |                                                           | 98.7   | %                                                                              |   | 66.2                                                                        |   |   | 10.3 |   |
| Edesur (Argentina)                                |   |                                                           | 65.1   | %                                                                              |   | 956.2                                                                       |   |   | -12.7 |   |
| Edelnor (Peru)                                    |   |                                                           | 33.4   | %                                                                              |   | 447.1                                                                       |   |   | 32.9 |   |
| Cerj (Brazil)                                     |   |                                                           | 62.0   | %                                                                              |   | 1,255.0                                                                     |   |   | 20.4 |   |
| Coelce (Brazil)                                   |   |                                                           | 27.4   | %                                                                              |   | 958.6                                                                       |   |   | 24.0 |   |
| Codensa (Colombia)                                |   |                                                           | 21.7   | %                                                                              |   | 1,212.9                                                                     |   |   | 21.4 |   |
| *Other Businesses*                                |   |                                                           |   |                                                                           |   |                                                                        |   |   |   |   |
| Manso de Velasco (Chile)                          |   |                                                           | 100.0  | %                                                                              |   | 85.9                                                                        |   |   | 3.8 |   |
| Synapsis (Chile)                                  |   |                                                           | 100.0  | %                                                                              |   | 25.2                                                                        |   |   | 6.2 |   |
| Cam (Chile)                                       |   |                                                           | 100.0  | %                                                                              |   | 55.1                                                                        |   |   | 12.4 |   |

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| (1) | Under construction. |
|-----|---------------------|

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|  |
|--|

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|   | **D.** | **Property, plants and equipment.** |
|--------|--------|-------------------------------------|

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| **Item 5.** | **Operating and Financial Review and Prospects** |
|-------------|--------------------------------------------------|

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|   | • | in 2002, we    acquired an incremental equity interest in Cerj, raising our economic    interest in Cerj to 62.0% as of December 31, 2002 and by consequence, to    27.4% in Coelce as of December 31, 2002 (on January 23, 2003, we increased    our interest in Cerj to 71.8% and by consequence, to 29.5% in Coelce); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                     |
|   | • | in 2002, we    increased our equity stake in Edelnor, resulting in a new economic interest    of 33.4%;                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                     |
|   | • | in 2000, we    increased our equity stake in Chilectra, a Chilean distribution company,    resulting in our current holding 98.2% in Chilectra; and                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                     |
|   | • | in 2000, we    increased our equity stake in Edesur, raising our economic interest in Edesur    to 65.1%.                                                                                                                                                                                                           |

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|                                                                                  |   | **Year ended    December 31,** |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                  |   |                                     |   |
|                                                                                  |   | **2000**                            |   | **2001** |   | **2002** |   |
|                                                                                  |   |                                     |        |   |  |  |   |  |  |   |
| Inflation    (year to year)                                                           |   |                                | 4.5    |   |   | 2.6 |   |   | 2.8 |   |
| Inflation    (using Chilean CPI “prior month” rule for accounting purposes) |   |                                | 4.7    |   |   | 3.1 |   |   | 3.0 |   |
| Change in    UF (year to year)                                                   |   |                                | 4.7    |   |   | 3.1 |   |   | 3.0 |   |
| Devaluation    of Chilean peso vs.  US dollar                                    |   |                                | 8.2    |   |   | 14.1 |   |   | 9.7 |   |
| Appreciation    (depreciation) of the UF in relation to US dollar                |   |                                | (3.3   | ) |   | (9.7 | ) |   | (6.2 | ) |

|                                   |   | **Year ended    December 31,** |        |
|----------------------------------------|--------|-------------------------------------|-------------|
|                                   |   |                                     |        |
|                                   |   | **2000**                            |        | **2001** |   | **2002** |   |
|                                   |   |                                     |             |   |  |  |   |  |  |   |
|                                   |   | **(in    millions of Ch$)**         |        |
|                                   |   |                                |        |   |   |   |   |   |   |   |
| Shareholders’    equity           |   |                                | (38,425     | ) |   | (34,756 | ) |   | (35,376 | ) |
| Property,    plant and equipment       |   |                                | 102,747     |   |   | 69,607 |   |   | 71,181 |   |
| Other assets                           |   |                                | 87,754      |   |   | 88,653 |   |   | 76,154 |   |
| Current and    long-term liabilities   |   |                                | (179,842    | ) |   | (126,239 | ) |   | (110,992 | ) |
| Minority    interest                   |   |                                | 15,247      |   |   | 6,517 |   |   | 5,418 |   |
| **Total balance sheet    adjustments** |   |                                | **(12,520** | **)** |   | **3,782** |   |   | **6,385** |   |
| Income statement adjustments (1)  |   |                                | (2,732      | ) |   | (1,607 | ) |   | (1,421 | ) |
|                                   |   |                                     |             |   |  |  |   |  |  |   |
| **Price-level    restatement**         |   |                                | **(15,251** | **)** |   | **2,175** |   |   | **4,964** |   |
|                                   |   |                                     |             |   |  |  |   |  |  |   |

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| (1) | These adjustments offset    the effect of restating the income statement in constant Chilean pesos. |
|-----|-----------------------------------------------------------------------------------------------------|

|                                    |   | **Year ended    December 31,** |        |
|-----------------------------------------|--------|-------------------------------------|-------------|
|                                    |   |                                     |        |
|                                    |   | **2000**                            |        | **2001** |   | **2002** |   |
|                                    |   |                                     |             |   |  |  |   |  |  |   |
|                                    |   | **(in    millions of Ch$)**         |        |
|                                    |   |                                |        |   |   |   |   |   |   |   |
| Current    Assets                       |   |                                | 515,496     |   |   | 26,004,447 |   |   | 10,248,930 |   |
| Non-current    assets                   |   |                                | 35,538,063  |   |   | 82,958,716 |   |   | 34,691,108 |   |
| Current    liabilities                  |   |                                | (1,980,018  | ) |   | (15,577,468 | ) |   | (3,694,796 | ) |
| Long-term    liabilities                |   |                                | (35,325,263 | ) |   | (123,928,347 | ) |   | (57,355,489 | ) |
|                                    |   |                                     |             |   |  |  |   |  |  |   |
| **Exchange difference – net loss** |   |                                | (1,251,722  | ) |   | (30,542,652 | ) |   | (16,110,247 | ) |
|                                    |   |                                     |             |   |  |  |   |  |  |   |

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|   | • | the    elimination of revenues from our generation subsidiaries arising from sales    made to our distribution subsidiaries;                                 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                         |
|   | • | the    elimination of expenses from our distribution subsidiaries arising from the    purchases of energy and capacity from our generation subsidiaries; and |
|   |   |                                                                                                                                                         |
|   | • | interest    expense associated with loans between related companies.                                                                                         |

|   | • | significant    underperformance relative to expected historical or projected future    operating results;           |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                |
|   | • | significant    changes in the manner of use of the acquired assets or the strategy for our    overall business; and |
|   |   |                                                                                                                |
|   | • | significant    negative industry or economic trends.                                                                |

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|   | • | As the    methodology used to determine both the Company’s and its subsidiaries    functional currencies differs under SFAS No. 52, it is probable that the    local currency would be considered the functional currency of the Company’s    foreign subsidiaries instead of the US dollar. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | • | Gains or    losses related to foreign currency denominated assets and liabilities may    vary significantly.                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | • | Shareholder    equity may vary significantly.                                                                                                                                                                                                                                                     |

| **A.** | **Operating results.** |
|--------|------------------------|

|   | • | our    operating income amounted to Ch$ 532.7 billion in 2002, which represents    a decrease of Ch$ 221.9 billion, or 29.4%, compared to 2001.  This decline is mainly the result of    continued economic instability in Argentina and the strong depreciation of    the real in Brazil; and                   |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                            |
|   | • | our non-operating    expenses amounted to Ch$ 796.5 billion in 2002, which was Ch$ 291.4    billion higher than non-operating expenses of Ch$ 505.1 billion in 2001,    largely explained by a total amount of US$ 387 million in accounting    adjustments in 2002, which didn’t occur in 2001.  |

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|                                                             |   | **Year ended    December 31,** |          |     |   |
|------------------------------------------------------------------|--------|-------------------------------------|---------------|----------|--------|
|                                                             |   |                                     |          |     |   |
|                                                             |   | **2001**                            |          | **2002** |   | **% Change** |   |
|                                                             |   |                                     |               |     |        |  |   |  |  |   |
|                                                             |   | **(in    millions of Ch$)**         |          |     |   |   |
| Electricity    distribution subsidiaries (Chile)                 |   |                                | 390,265       |     |   | 418,041 |   |   | 7.1 | % |
| Non-electricity    subsidiaries (Chile)                          |   |                                | 97,091        |     |   | 49,086 |   |   | -49.4 | % |
|                                                             |   |                                     |               |     |        |  |   |   |   |   |
| Total    revenues from operations (Chile) excluding Endesa-Chile |   |                                | 487,356       |     |   | 467,127 |   |   | -4.2 | % |
| Edesur    (Argentina)                                            |   |                                | 599,372       |     |   | 199,479 |   |   | -66.7 | % |
| Distrilima/Edelnor    (Peru)                                     |   |                                | 189,080       |     |   | 203,634 |   |   | 7.7 | % |
| Cerj (Brazil)                                                    |   |                                | 376,867       |     |   | 345,161 |   |   | -8.4 | % |
| Investluz/Coelce    (Brazil)                                     |   |                                | 247,524       |     |   | 227,725 |   |   | -8.0 | % |
| Luz de    Bogotá/Codensa (Colombia)                         |   |                                | 316,932       |     |   | 318,038 |   |   | 0.3 | % |
| Enersis    Energía (Colombia)                               |   |                                | 6,104         |     |   | 0 |   |   | -100.0 | % |
|                                                             |   |                                     |               |     |        |  |   |   |   |   |
| Total    revenues from operations (excluding Endesa-Chile)       |   |                                | 2,223,235     |     |   | 1,761,164 |   |   | -20.8 | % |
| Endesa-Chile                                                     |   |                                | 1,045,279     |     |   | 938,099 |   |   | -10.3 | % |
| Less:    intercompany transactions                               |   |                                | (209,134      | )        |   | (213,390 | ) |   | 2.0 | % |
|                                                             |   |                                     |               |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)              |   |                                | 836,145       |     |   | 724,709 |   |   | -13.3 | % |
|                                                             |   |                                     |               |     |        |  |   |   |   |   |
| Total    revenues from operations                                |   |                                | **3,059,380** |     |   | **2,485,873** |   |   | -18.7 | % |
|                                                             |   |                                     |               |     |        |  |   |   |   |   |

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|                                                        |   | **Year ended    December 31,** |          |     |   |
|-------------------------------------------------------------|--------|-------------------------------------|---------------|----------|--------|
|                                                        |   |                                     |          |     |   |
|                                                        |   | **2001**                            |          | **2002** |   | **% Change** |   |
|                                                        |   |                                     |               |     |        |  |   |  |  |   |
|                                                        |   | **(in    millions of Ch$)**         |          |     |   |   |
|                                                        |   |                                |          |     |   |   |   |   |   |   |
| Electricity    distribution subsidiaries (Chile)            |   |                                | 245,301       |     |   | 265,137 |   |   | 8.1 | % |
| Non-electricity    subsidiaries (Chile)                     |   |                                | 106,185       |     |   | 70,788 |   |   | -33.3 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total costs    of operations (Chile) excluding Endesa-Chile |   |                                | 351,486       |     |   | 335,925 |   |   | -4.4 | % |
| Edesur    (Argentina)                                       |   |                                | 391,821       |     |   | 178,351 |   |   | -54.5 | % |
| Distrilima/Edelnor    (Peru)                                |   |                                | 102,850       |     |   | 121,387 |   |   | 18.0 | % |
| Cerj    (Brazil)                                            |   |                                | 274,023       |     |   | 303,347 |   |   | 10.7 | % |
| Investluz/Coelce    (Brazil)                                |   |                                | 158,452       |     |   | 163,320 |   |   | 3.1 | % |
| Luz de    Bogotá/Codensa (Colombia)                    |   |                                | 193,690       |     |   | 197,123 |   |   | 1.8 | % |
| Enersis    Energía (Colombia)                          |   |                                | 3,103         |     |   | 0 |   |   | -100 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total cost    of operations (excluding Endesa-Chile)        |   |                                | 1,475,425     |     |   | 1,299,453 |   |   | -11.9 | % |
| Endesa-Chile                                                |   |                                | 662,608       |     |   | 555,586 |   |   | -16.2 | % |
| Less:    intercompany transactions                          |   |                                | (112,723      | )        |   | (124,989 | ) |   | 10.9 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)         |   |                                | 549,885       |     |   | 430,597 |   |   | -21.7 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total cost    of operations                                 |   |                                | **2,025,310** |     |   | **1,730,050** |   |   | -14.6 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |

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|                                                                  |   | **Year ended    December 31,** |        |     |   |
|-----------------------------------------------------------------------|--------|-------------------------------------|-------------|----------|--------|
|                                                                  |   |                                     |        |     |   |
|                                                                  |   | **2001**                            |        | **2002** |   | **% Change** |   |
|                                                                  |   |                                     |             |     |        |  |   |  |  |   |
|                                                                  |   | **(in    millions of Ch$)**         |        |     |   |   |
|                                                                  |   |                                |        |     |   |   |   |   |   |   |
| Electricity    distribution subsidiaries (Chile)                      |   |                                | 21,040      |     |   | 19,653 |   |   | -6.6 | % |
| Non-electricity    subsidiaries (Chile)                               |   |                                | 31,359      |     |   | 32,452 |   |   | 3.5 | % |
|                                                                  |   |                                     |             |     |        |  |   |   |   |   |
| Administrative    and selling expenses (Chile) excluding Endesa-Chile |   |                                | 52,399      |     |   | 52,105 |   |   | -0.6 | % |
| Edesur    (Argentina)                                                 |   |                                | 71,411      |     |   | 30,585 |   |   | -57.2 | % |
| Distrilima/Edelnor    (Peru)                                          |   |                                | 16,293      |     |   | 14,437 |   |   | -11.4 | % |
| Cerj    (Brazil)                                                      |   |                                | 32,035      |     |   | 21,410 |   |   | -33.2 | % |
| Investluz/Coelce    (Brazil)                                          |   |                                | 44,048      |     |   | 36,848 |   |   | -16.3 | % |
| Luz de    Bogotá/Codensa (Colombia)                              |   |                                | 28,400      |     |   | 32,496 |   |   | 14.4 | % |
| Enersis    Energía (Colombia)                                    |   |                                | 261         |     |   | 15 |   |   | -94.3 | % |
|                                                                  |   |                                     |             |     |        |  |   |   |   |   |
| Total    administrative and selling expenses (excluding Endesa-Chile) |   |                                | 244,847     |     |   | 187,896 |   |   | -23.3 | % |
| Endesa-Chile                                                          |   |                                | 34,696      |     |   | 36,289 |   |   | 4.6 | % |
| Less:    intercompany transactions                                    |   |                                | (18         | )        |   | (1,007 | ) |   | 5494.4 | % |
|                                                                  |   |                                     |             |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)                   |   |                                | 34,678      |     |   | 35,282 |   |   | 1.7 | % |
|                                                                  |   |                                     |             |     |        |  |   |   |   |   |
| Total    administrative and selling expenses                          |   |                                | **279,525** |     |   | **223,178** |   |   | -20.2 | % |
|                                                                  |   |                                     |             |     |        |  |   |   |   |   |

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|                                                |   | **Year ended    December 31,** |        |     |   |
|-----------------------------------------------------|--------|-------------------------------------|-------------|----------|--------|
|                                                |   |                                     |        |     |   |
|                                                |   | **2001**                            |        | **2002** |   | **% Change** |   |
|                                                |   |                                     |             |     |        |  |   |  |  |   |
|                                                |   | **(in    millions of Ch$)**         |        |     |   |   |
| Chile    (excluding Endesa-Chile)                   |   |                                | 83,471      |     |   | 79,097 |   |   | -5.2 | % |
| Argentina                                           |   |                                | 136,140     |     |   | (9,457 | ) |   | -106.9 | % |
| Peru                                                |   |                                | 69,937      |     |   | 67,810 |   |   | -3.0 | % |
| Brazil                                              |   |                                | 115,833     |     |   | 47,961 |   |   | -58.6 | % |
| Colombia                                            |   |                                | 97,582      |     |   | 88,404 |   |   | -9.4 | % |
|                                                |   |                                     |             |     |        |  |   |   |   |   |
| Total    operating income (excluding Endesa-Chile)  |   |                                | 502,963     |     |   | 273,815 |   |   | -45.6 | % |
| Endesa-Chile                                        |   |                                | 347,975     |     |   | 346,224 |   |   | -0.5 | % |
| Less:    intercompany transactions                  |   |                                | (96,393     | )        |   | (87,394 | ) |   | -9.3 | % |
|                                                |   |                                     |             |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations) |   |                                | 251,582     |     |   | 258,830 |   |   | 2.9 | % |
|                                                |   |                                     |             |     |        |  |   |   |   |   |
| Total    operating income                           |   |                                | **754,545** |     |   | **532,645** |   |   | -29.4 | % |
|                                                |   |                                     |             |     |        |  |   |   |   |   |

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|                                                                                             |   | **Year ended    December 31,** |         |     |   |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------------|----------|--------|
|                                                                                             |   |                                     |         |     |   |
|                                                                                             |   | **2001**                            |         | **2002** |   | **% Change** |   |
|                                                                                             |   |                                     |              |     |        |  |   |  |  |   |
|                                                                                             |   | **(in    millions of Ch$)**         |         |     |   |   |
|                                                                                             |   |                                |         |     |   |   |   |   |   |   |
| Interest    income (1)                                                                      |   |                                | 3,202        |     |   | 12,863 |   |   | 301.7 | % |
| Equity in    income of related companies (1)                                                |   |                                | (325         | )        |   | (281 | ) |   | -13.5 | % |
| Goodwill    amortization (1)                                                                |   |                                | (58,724      | )        |   | (182,006 | ) |   | 209.9 | % |
| Interest    expense (1)                                                                     |   |                                | (155,614     | )        |   | (135,472 | ) |   | -12.9 | % |
| Price-level    adjustment (1)                                                               |   |                                | (18,201      | )        |   | (14,700 | ) |   | -19.2 | % |
| Other    non-operating income (expense), net (1)                                                 |   |                                | 43,417       |     |   | 18,300 |   |   | -57.9 | % |
| Non-operating    income (expense) Edesur (Argentina)                                             |   |                                | 9,351        |     |   | (13,220 | ) |   | n/a |   |
| Non-operating    income (expense) Distrilima/Edelnor (Peru)                                      |   |                                | (8,056       | )        |   | (1,197 | ) |   | -85.1 | % |
| Non-operating    income (expense) Cerj (Brazil)                                                  |   |                                | (43,824      | )        |   | 41,556 |   |   | n/a |   |
| Non-operating    income (expense) Investluz/Coelce (Brazil)                                      |   |                                | (37,564      | )        |   | (214,915 | ) |   | 472.1 | % |
| Non-operating    income (expense) Luz de Bogotá/Codensa and Enersis Energía (Colombia) |   |                                | 6,407        |     |   | (2,119 | ) |   | n/a |   |
|                                                                                             |   |                                     |              |     |        |  |   |   |   |   |
| Total    non-operating income (excluding Endesa-Chile)                                           |   |                                | (259,931     | )        |   | (491,191 | ) |   | 89.0 | % |
| Non-operating    income (expense) Endesa-Chile                                                   |   |                                | (247,798     | )        |   | (313,425 | ) |   | 26.5 | % |
| Less:    intercompany transactions                                                               |   |                                | 2,642        |     |   | 8,086 |   |   | 206.1 | % |
|                                                                                             |   |                                     |              |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)                                              |   |                                | (245,156     | )        |   | (305,339 | ) |   | 24.5 | % |
|                                                                                             |   |                                     |              |     |        |  |   |   |   |   |
| Total    non-operating income (expense)                                                          |   |                                | **(505,087** | **)**    |   | **(796,530** | **)** |   | 57.7 | % |
|                                                                                             |   |                                     |              |     |        |  |   |   |   |   |

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| (1) | Includes Enersis’    consolidated non-operating income (expense) except for companies included in    this table. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

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|                                                                                   |   | **Year ended    December 31,** |       |
|----------------------------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                                   |   |                                     |       |
|                                                                                   |   | **2001**                            |       | **2002** |   |
|                                                                                   |   |                                     |            |   |  |  |   |
|                                                                                   |   | **(in    millions of Ch$)**         |       |
|                                                                                   |   |                                |       |   |   |   |   |
| Operating    income                                                                    |   |                                | 754,544    |   |   | 532,644 |   |
| Non-operating    income (expense)                                                      |   |                                | (505,087   | ) |   | (796,530 | ) |
|                                                                                   |   |                                     |            |   |  |  |   |
| Income    before income taxes, minority interest and amortization of negative goodwill |   |                                | 249,457    |   |   | (263,886 | ) |
| Income taxes                                                                           |   |                                | (129,850   | ) |   | (66,017 | ) |
| Minority    interest                                                                   |   |                                | (125,153   | ) |   | 16,283 |   |
| Amortization    of negative goodwill                                                   |   |                                | 47,700     |   |   | 112,248 |   |
|                                                                                   |   |                                     |            |   |  |  |   |
| Extraordinary    items                                                                 |   |                                | —     |   |   | (22,376 | ) |
|                                                                                   |   |                                     |            |   |  |  |   |
| Net income                                                                             |   |                                | **42,154** |   |   | **(223,748** | **)** |
|                                                                                   |   |                                     |            |   |  |  |   |

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|   | • | For our    Brazilian distribution subsidiaries, Cerj and Coelce, there is an additional    tax, the so-called “*Reserva Global de Reversión*,” which is    now being passed through, and therefore both revenues and costs of operations    have increased by those same amounts, Ch$ 3.4 billion for Cerj and    Ch$ 3.3 billion for Coelce.     Therefore, revenues and costs of operations increased by a total of    Ch$ 6.7 billion.                                                                                                                                                                                                                     |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | • | For these    same Brazilian subsidiaries, a fuel expense which was previously reflected in    “Administrative and Selling Expenses” is now being more accurately reflected    in “Costs of Operations” instead.  In    the case of Cerj, this represents a Ch$ 18.3 billion increase in Costs    of Operations and an identical decrease in Administrative and Selling    Expenses.  In the case of Coelce, the    restated amount for the identical concept is Ch$ 6.6 billion.  Therefore, in the aggregate, Costs of    Operations are higher by Ch$ 24.9 billion and Administrative and Selling    Expenses are lower by that same amount. |

|   | • | Our    subsidiaries evidenced a 36.5% increase in operating income, from    Ch$ 552.8 billion in 2000 to Ch$ 754.6 billion in 2001.  This was driven principally by the    recovery of our generation subsidiary, Endesa-Chile, whose operating income    from our consolidated perspective doubled, from Ch$ 125.0 billion in    2000 to Ch$ 251.6 billion in 2001, and that improved performance is    largely explained by the end of the drought and the much better hydrological    conditions, coupled with prudent commercial planning in long-term    contracts.  Our other subsidiaries    with strong operating income growth were our Brazilian, Colombian and Chilean    electricity distribution subsidiaries.     Although some of our companies reflected higher physical losses, most    of the other operating parameters that measure efficiency improved. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Our    non-operating income (expenses), which were Ch$ 335.7 billion lower in    2001, are largely explained by the non-recurrence in 2001 of divestitures    made in 2000 of our important assets in electricity transmission (Transelec)    and in our former water utilities (Esval and Aguas Cordillera).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|                                                             |   | **Year ended    December 31,** |          |     |   |          |
|------------------------------------------------------------------|--------|-------------------------------------|---------------|----------|--------|---------------|
|                                                             |   |                                     |          |     |   |          |
|                                                             |   | **2000**                            |          | **2001** |   | **% Change**  |   |
|                                                             |   |                                     |               |     |        |               |   |  |  |   |
|                                                             |   | **(in    millions of Ch$)**         |          |     |   |          |
| Electricity    distribution subsidiaries (Chile)                 |   |                                | 334,984       |     |   | 390,265       |   |   | 16.5 | % |
| Non-electricity    subsidiaries (Chile)                          |   |                                | 83,236        |     |   | 97,091        |   |   | 16.6 | % |
|                                                             |   |                                     |               |     |        |               |   |   |   |   |
| Total    revenues from operations (Chile) excluding Endesa-Chile |   |                                | 418,220       |     |   | 487,356       |   |   | 16.5 | % |
| Edesur    (Argentina)                                            |   |                                | 547,920       |     |   | 599,372       |   |   | 9.4 | % |
| Distrilima/Edelnor    (Peru)                                     |   |                                | 170,824       |     |   | 189,080       |   |   | 10.7 | % |
| Cerj    (Brazil)                                                 |   |                                | 359,189       |     |   | 376,867       |   |   | 4.9 | % |
| Investluz/Coelce    (Brazil)                                     |   |                                | 231,891       |     |   | 247,524       |   |   | 6.7 | % |
| Luz de    Bogotá/Codensa (Colombia)                         |   |                                | 301,014       |     |   | 316,932       |   |   | 5.3 | % |
| Enersis    Energía (Colombia)                               |   |                                | 26,596        |     |   | 6,104         |   |   | -77.0 | % |
|                                                             |   |                                     |               |     |        |               |   |   |   |   |
| Total    revenues from operations (excluding Endesa-Chile)       |   |                                | 2,055,654     |     |   | 2,223,235     |   |   | 8.2 | % |
| Endesa-Chile                                                     |   |                                | 937,650       |     |   | 1,045,279     |   |   | 11.5 | % |
| Less:    intercompany transactions                               |   |                                | (236,258      | )        |   | (209,134      | ) |   | -11.5 | % |
|                                                             |   |                                     |               |     |        |               |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)              |   |                                | 701,392       |     |   | 836,145       |   |   | 19.2 | % |
|                                                             |   |                                     |               |     |        |               |   |   |   |   |
| Total    revenues from operations                                |   |                                | **2,757,046** |     |   | **3,059,380** |   |   | 11.0 | % |
|                                                             |   |                                     |               |     |        |               |   |   |   |   |

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|                                                        |   | **Year ended    December 31,** |          |     |   |
|-------------------------------------------------------------|--------|-------------------------------------|---------------|----------|--------|
|                                                        |   |                                     |          |     |   |
|                                                        |   | **2000**                            |          | **2001** |   | **% Change** |   |
|                                                        |   |                                     |               |     |        |  |   |  |  |   |
|                                                        |   | **(in    millions of Ch$)**         |          |     |
| Electricity    distribution subsidiaries (Chile)            |   |                                | 210,932       |     |   | 245,301 |   |   | 16.3 | % |
| Non-electricity    subsidiaries (Chile)                     |   |                                | 92,740        |     |   | 106,185 |   |   | 14.5 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total costs    of operations (Chile) excluding Endesa-Chile |   |                                | 303,672       |     |   | 351,486 |   |   | 15.7 | % |
| Edesur    (Argentina)                                       |   |                                | 311,859       |     |   | 391,821 |   |   | 25.6 | % |
| Distrilima/Edelnor    (Peru)                                |   |                                | 83,420        |     |   | 102,850 |   |   | 23.3 | % |
| Cerj    (Brazil)                                            |   |                                | 288,586       |     |   | 274,023 |   |   | -5.0 | % |
| Investluz/Coelce    (Brazil)                                |   |                                | 157,891       |     |   | 158,452 |   |   | 0.4 | % |
| Luz de    Bogotá/Codensa (Colombia)                    |   |                                | 196,185       |     |   | 193,690 |   |   | -1.3 | % |
| Enersis    Energía (Colombia)                          |   |                                | 9,570         |     |   | 3,103 |   |   | -67.6 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total cost    of operations (excluding Endesa-Chile)        |   |                                | 1,351,183     |     |   | 1,475,425 |   |   | 9.2 | % |
| Endesa-Chile                                                |   |                                | 637,296       |     |   | 662,608 |   |   | 4.0 | % |
| Less:    intercompany transactions                          |   |                                | (93,444       | )        |   | (112,723 | ) |   | 20.6 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)         |   |                                | 543,852       |     |   | 549,885 |   |   | 1.1 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |
| Total cost    of operations                                 |   |                                | **1,895,035** |     |   | **2,025,310** |   |   | 6.9 | % |
|                                                        |   |                                     |               |     |        |  |   |   |   |   |

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|                                                                  |   | **Year ended    December 31,** |        |     |   |         |
|-----------------------------------------------------------------------|--------|-------------------------------------|-------------|----------|--------|--------------|
|                                                                  |   |                                     |        |     |   |         |
|                                                                  |   | **2000**                            |        | **2001** |   | **% Change** |   |
|                                                                  |   |                                     |             |     |        |              |   |  |  |   |
|                                                                  |   | **(in    millions of Ch$)**         |        |     |   |         |
| Administrative    and selling expenses (Chile) excluding Endesa-Chile |   |                                | 52,816      |     |   | 52,399       |   |   | -0.8 | % |
| Edesur    (Argentina)                                                 |   |                                | 72,712      |     |   | 71,411       |   |   | -1.8 | % |
| Distrilima/Edelnor    (Peru)                                          |   |                                | 16,203      |     |   | 16,293       |   |   | 0.6 | % |
| Cerj    (Brazil)                                                      |   |                                | 58,478      |     |   | 32,035       |   |   | -45.2 | % |
| Investluz/Coelce    (Brazil)                                          |   |                                | 43,128      |     |   | 44,048       |   |   | 2.1 | % |
| Luz de    Bogotá/Codensa (Colombia)                              |   |                                | 32,785      |     |   | 28,400       |   |   | -13.4 | % |
| Enersis    Energía (Colombia)                                    |   |                                | 657         |     |   | 261          |   |   | -60.3 | % |
|                                                                  |   |                                     |             |     |        |              |   |   |   |   |
| Total    administrative and selling expenses (excluding Endesa-Chile) |   |                                | 276,779     |     |   | 244,847      |   |   | -11.5 | % |
|                                                                  |   |                                     |             |     |        |              |   |   |   |   |
| Endesa-Chile                                                          |   |                                | 33,425      |     |   | 34,696       |   |   | 3.8 | % |
| Less:    intercompany transactions                                    |   |                                | (941        | )        |   | (18          | ) |   | -98.1 | % |
|                                                                  |   |                                     |             |     |        |              |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)                   |   |                                | 32,484      |     |   | 34,678       |   |   | 6.8 | % |
|                                                                  |   |                                     |             |     |        |              |   |   |   |   |
| Total    administrative and selling expenses                          |   |                                | **309,263** |     |   | **279,525**  |   |   | -9.6 | % |
|                                                                  |   |                                     |             |     |        |              |   |   |   |   |

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|                                                |   | **Year ended    December 31,** |        |     |   |         |
|-----------------------------------------------------|--------|-------------------------------------|-------------|----------|--------|--------------|
|                                                |   |                                     |        |     |   |         |
|                                                |   | **2000**                            |        | **2001** |   | **% Change** |   |
|                                                |   |                                     |             |     |        |              |   |  |  |   |
|                                                |   | **(in    millions of Ch$)**         |        |     |   |         |
| Operating    income Chile (excluding Endesa-Chile)  |   |                                | 61,733      |     |   | 83,471       |   |   | 35.2 | % |
| Argentina                                           |   |                                | 163,350     |     |   | 136,140      |   |   | -16.7 | % |
| Peru                                                |   |                                | 71,202      |     |   | 69,937       |   |   | -1.8 | % |
| Brazil                                              |   |                                | 42,997      |     |   | 115,833      |   |   | 169.4 | % |
| Colombia                                            |   |                                | 88,413      |     |   | 97,582       |   |   | 10.4 | % |
|                                                |   |                                     |             |     |        |              |   |   |   |   |
| Total    operating income (excluding Endesa-Chile)  |   |                                | 427,695     |     |   | 502,963      |   |   | 17.6 | % |
| Endesa-Chile                                        |   |                                | 266,929     |     |   | 347,975      |   |   | 30.4 | % |
| Less:    intercompany transactions                  |   |                                | (141,874    | )        |   | (96,393      | ) |   | -32.1 | % |
|                                                |   |                                     |             |     |        |              |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations) |   |                                | 125,055     |     |   | 251,582      |   |   | 101.2 | % |
|                                                |   |                                     |             |     |        |              |   |   |   |   |
| Total    operating income                           |   |                                | **552,750** |     |   | **754,545**  |   |   | 36.5 | % |
|                                                |   |                                     |             |     |        |              |   |   |   |   |

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|                                                                                             |   | **Year ended    December 31,** |         |     |   |         |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------------|----------|--------|--------------|
|                                                                                             |   |                                     |         |     |   |         |
|                                                                                             |   | **2000**                            |         | **2001** |   | **% Change** |   |
|                                                                                             |   |                                     |              |     |        |              |   |  |  |   |
|                                                                                             |   | **(in    millions of Ch$)**         |         |     |   |         |
| Interest    income (1)                                                                      |   |                                | 4,706        |     |   | 3,202        |   |   | -32.0 | % |
| Equity in    income of related companies (1)                                                |   |                                | (342         | )        |   | (325         | ) |   | -5.3 | % |
| Goodwill    amortization (1)                                                                |   |                                | (52,018      | )        |   | (58,724      | ) |   | 12.9 | % |
| Interest    expense (1)                                                                     |   |                                | (187,279     | )        |   | (155,614     | ) |   | -16.9 | % |
| Price-level    adjustment (1)                                                               |   |                                | (20,081      | )        |   | (18,201      | ) |   | -9.4 | % |
| Other    non-operating income (expense), net (1)                                                 |   |                                | 111,948      |     |   | 43,417       |   |   | -61.2 | % |
| Non-operating    income (expense) Edesur (Argentina)                                             |   |                                | (3,336       | )        |   | 9,351        |   |   | n/a |   |
| Non-operating    income (expense) Distrilima/Edelnor (Peru)                                      |   |                                | (8,375       | )        |   | (8,056       | ) |   | -3.8 | % |
| Non-operating    income (expense) Cerj (Brazil)                                                  |   |                                | 5,314        |     |   | (43,824      | ) |   | n/a |   |
| Non-operating    income (expense) Investluz/Coelce (Brazil)                                      |   |                                | (21,571      | )        |   | (37,564      | ) |   | 74.1 | % |
| Non-operating    income (expense) Luz de Bogotá/Codensa and Enersis Energía (Colombia) |   |                                | 26,062       |     |   | 6,407        |   |   | -75.4 | % |
|                                                                                             |   |                                     |              |     |        |              |   |   |   |   |
| Total    non-operating income (excluding Endesa-Chile)                                           |   |                                | (144,974     | )        |   | (259,931     | ) |   | 79.3 | % |
| Non-operating    income (expense) Endesa-Chile                                                   |   |                                | (36,076      | )        |   | (247,798     | ) |   | 586.9 | % |
| Less:    intercompany transactions                                                               |   |                                | 11,637       |     |   | 2,642        |   |   | -77.3 | % |
|                                                                                             |   |                                     |              |     |        |              |   |   |   |   |
| Endesa-Chile    (net of consolidating eliminations)                                              |   |                                | (24,439      | )        |   | (245,156     | ) |   | 874.1 | % |
|                                                                                             |   |                                     |              |     |        |              |   |   |   |   |
| Total    non-operating income (expense)                                                          |   |                                | **(169,411** | **)**    |   | **(505,087** | **)** |   | 198.1 | % |
|                                                                                             |   |                                     |              |     |        |              |   |   |   |   |

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| (1) | Includes Enersis’    consolidated non-operating income (expense) except for companies included in    this table. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

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|                                                                                   |   | **Year ended    December 31,** |       |
|----------------------------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                                   |   |                                     |       |
|                                                                                   |   | **2000**                            |       | **2001** |   |
|                                                                                   |   |                                     |            |   |  |  |   |
|                                                                                   |   | **(in    millions of Ch$)**         |       |
| Operating    income                                                                    |   |                                | 552,750    |   |   | 754,544 |   |
| Non-operating    income (expense)                                                      |   |                                | (169,410   | ) |   | (505,087 | ) |
|                                                                                   |   |                                     |            |   |  |  |   |
| Income    before income taxes, minority interest and amortization of negative goodwill |   |                                | 383,340    |   |   | 249,457 |   |
| Income taxes                                                                           |   |                                | (146,323   | ) |   | (129,850 | ) |
| Minority    interest                                                                   |   |                                | (184,000   | ) |   | (125,153 | ) |
| Amortization    of negative goodwill                                                   |   |                                | 42,647     |   |   | 47,700 |   |
|                                                                                   |   |                                     |            |   |  |  |   |
| Net income                                                                             |   |                                | **95,664** |   |   | **42,154** |   |
|                                                                                   |   |                                     |            |   |  |  |   |

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|                                |   | **Year ended    December 31,**                                                          |      |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------|-----------|
|                                |   |                                                                                         |      |
|                                |   | **2001**                                                                                |      | **2002** |   |   | **% Change** |   |
|                                |   |                                                                                         |           |   |  |  |   |  |  |   |
|                                |   | ***(in millions of constant Ch$ as of    December 31, 2002, except volume data)*** |      |
| Sales of    electricity (Chile)     |   |                                                                                    | 386,082   |   |   | 403,886 |   |   | 4.6 |   |
| Sales of    electricity (Argentina) |   |                                                                                    | 227,739   |   |   | 98,156 |   |   | (56.9 | ) |
| Sales of    electricity (Colombia)  |   |                                                                                    | 220,309   |   |   | 226,093 |   |   | 2.6 |   |
| Sales of    electricity (Brazil)    |   |                                                                                    | 66,323    |   |   | 51,403 |   |   | (22.5 | ) |
| Sales of    electricity (Peru)      |   |                                                                                    | 108,212   |   |   | 116,863 |   |   | 8.0 |   |
| Other                               |   |                                                                                    | 36,613    |   |   | 41,699 |   |   | 13.9 |   |
|                                |   |                                                                                         |           |   |  |  |   |   |   |   |
| Total                               |   |                                                                                    | 1,045,279 |   |   | 938,099 |   |   | (10.3 | ) |
|                                |   |                                                                                         |           |   |  |  |   |   |   |   |
| Energy Sales    (GWh) (Chile)       |   |                                                                                    | 18,673    |   |   | 18,344 |   |   | (1.8 | ) |
| Energy Sales    (GWh) (Argentina)   |   |                                                                                    | 12,988    |   |   | 7,897 |   |   | (39.2 | ) |
| Energy Sales    (GWh) (Colombia)    |   |                                                                                    | 14,591    |   |   | 14,639 |   |   | 0.3 |   |
| Energy Sales    (GWh) (Brazil)      |   |                                                                                    | 3,743     |   |   | 3,591 |   |   | (4.1 | ) |
| Energy Sales    (GWh) (Peru)        |   |                                                                                    | 4,239     |   |   | 4,158 |   |   | (1.9 | ) |

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|                           |   | **Year ended    December 31,**                                                          |    |
|--------------------------------|--------|-----------------------------------------------------------------------------------------|---------|
|                           |   |                                                                                         |    |
|                           |   | **2001**                                                                                |    | **2002** |   | **%Change** |   |
|                           |   |                                                                                         |         |   |  |  |   |  |  |   |
|                           |   | ***(in millions of constant Ch$ as of December 31, 2002,******except    percentages)*** |    |
| Cost of operations (Chile)     |   |                                                                                    | 268,287 |   |   | 255,198 |   |   | (4.9 | ) |
| Cost of operations (Argentina) |   |                                                                                    | 180,094 |   |   | 84,106 |   |   | (53.3 | ) |
| Cost of operations (Colombia)  |   |                                                                                    | 141,773 |   |   | 144,655 |   |   | 2.0 |   |
| Cost of operations (Brazil)    |   |                                                                                    | 37,402  |   |   | 32,576 |   |   | (12.9 | ) |
| Cost of operations (Peru)      |   |                                                                                    | 35,052  |   |   | 39,051 |   |   | 11.4 |   |
|                           |   |                                                                                         |         |   |  |  |   |   |   |   |
| Total                          |   |                                                                                    | 662,608 |   |   | 555,586 |   |   | (16.2 | ) |
|                           |   |                                                                                         |         |   |  |  |   |   |   |   |

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|                                            |   | **Year ended    December 31,**                                                          |     |
|-------------------------------------------------|--------|-----------------------------------------------------------------------------------------|----------|
|                                            |   |                                                                                         |     |
|                                            |   | **2001**                                                                                |     | **2002** |   | **%Change** |   |
|                                            |   |                                                                                         |          |   |  |  |   |  |  |   |
|                                            |   | ***(in millions of constant Ch$ as of December 31, 2002,******except    percentages)*** |     |
| Non-operating income:                           |   |                                                                                    |     |   |   |   |   |   |   |   |
| Interest earned                                 |   |                                                                                    | 19,151   |   |   | 15,247 |   |   | (20.4 | ) |
| Equity in income of non-consolidated affiliates |   |                                                                                    | (9,948   | ) |   | 8,570 |   |   | (186.2 | ) |
| Other non-operating income                      |   |                                                                                    | 55,817   |   |   | 102,484 |   |   | 83.6 |   |
| Non-operating expenses:                         |   |                                                                                    |     |   |   |   |   |   |   |   |
| Interest expense                                |   |                                                                                    | (235,883 | ) |   | (212,800 | ) |   | (9.8 | ) |
| Goodwill amortization                           |   |                                                                                    | (8,269   | ) |   | (108,562 | ) |   | 1,213.0 |   |
| Other non-operating expenses                    |   |                                                                                    | (58,501  | ) |   | (121,920 | ) |   | 108.4 |   |
| Monetary correction:                            |   |                                                                                    |     |   |   |   |   |   |   |   |
| Price level restatement                         |   |                                                                                    | 4,338    |   |   | 3,996 |   |   | (7.9 | ) |
| Foreign Exchange    translation                 |   |                                                                                    | (14,505  | ) |   | (441 | ) |   | (97.0 | ) |
|                                            |   |                                                                                         |          |   |  |  |   |  |  |   |
| Non-operating results                           |   |                                                                                    | (247,798 | ) |   | (313,425 | ) |   | 26.5 |   |
|                                            |   |                                                                                         |          |   |  |  |   |  |  |   |

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|   | • | a 25.4% increase in operating results in Chile due    mainly to better hydrological conditions;                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                      |
|   | • | a Ch$ 18.5 billion improvement in the net results on    investments in related companies due fundamentally to the improved results of    CIEN, which exports energy from Argentina to Brazil and in which Endesa-Chile    has a participation of 45%; and |
|   |   |                                                                                                                                                                                                                                                      |
|   | • | a reduction of Ch$ 23.1 billion, or a decrease    of 8.8% in net financial expenses.                                                                                                                                                                 |

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|                             |   | **Year ended    December 31,**                                                     |    |
|----------------------------------|--------|------------------------------------------------------------------------------------|---------|
|                             |   |                                                                                    |    |
|                             |   | **2000**                                                                           |    | **2001** |   | **%Change** |   |
|                             |   |                                                                                    |         |   |  |  |   |  |  |   |
|                             |   | ***(in millions of constant Ch$ as of December 31, 2002, except volume    data)*** |    |
| Sales of electricity (Chile)     |   |                                                                               | 307,921 |   |   | 386,082 |   |   | 25.4 |   |
| Sales of electricity (Argentina) |   |                                                                               | 282,461 |   |   | 227,739 |   |   | (19.4 | ) |
| Sales of electricity (Colombia)  |   |                                                                               | 173,231 |   |   | 220,310 |   |   | 27.2 |   |
| Sales of electricity (Brazil)    |   |                                                                               | 57,435  |   |   | 66,323 |   |   | 15.5 |   |
| Sales of electricity (Peru)      |   |                                                                               | 83,560  |   |   | 108,212 |   |   | 29.5 |   |
| Other                            |   |                                                                               | 33,043  |   |   | 36,613 |   |   | 10.8 |   |
|                             |   |                                                                                    |         |   |  |  |   |  |  |   |
| Total                            |   | $                                                                                  | 937,650 |   | $ | 1,045,279 |   |   | 11.5 |   |
|                             |   |                                                                                    |         |   |  |  |   |  |  |   |
| Energy Sales (GWh) (Chile)       |   |                                                                               | 20,086  |   |   | 18,673 |   |   | (7.0 | ) |
| Energy Sales (GWh) (Argentina)   |   |                                                                               | 15,549  |   |   | 12,988 |   |   | (16.5 | ) |
| Energy Sales (GWh) (Colombia)    |   |                                                                               | 13,356  |   |   | 14,591 |   |   | 9.2 |   |
| Energy Sales (GWh) (Brazil)      |   |                                                                               | 3,887   |   |   | 3,743 |   |   | (3.7 | ) |
| Energy Sales (GWh) (Peru)        |   |                                                                               | 3,604   |   |   | 4,239 |   |   | 17.6 |   |

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|                           |   | **Year ended    December 31,**                                                     |    |
|--------------------------------|--------|------------------------------------------------------------------------------------|---------|
|                           |   |                                                                                    |    |
|                           |   | **2000**                                                                           |    | **2001** |   | **%Change** |   |
|                           |   |                                                                                    |         |   |  |  |   |  |  |   |
|                           |   | ***(in millions of constant Ch$ as of December 31, 2002, except    percentages)*** |    |
| Cost of operations (Chile)     |   |                                                                               | 255,556 |   |   | 268,287 |   |   | 5.0 |   |
| Cost of operations (Argentina) |   |                                                                               | 229,099 |   |   | 180,093 |   |   | (21.4 | ) |
| Cost of operations (Colombia)  |   |                                                                               | 103,127 |   |   | 141,773 |   |   | 37.5 |   |
| Cost of operations (Brazil)    |   |                                                                               | 24,435  |   |   | 37,402 |   |   | 53.1 |   |
| Cost of operations (Peru)      |   |                                                                               | 25,079  |   |   | 35,052 |   |   | 39.8 |   |
|                           |   |                                                                                    |         |   |  |  |   |  |  |   |
| Total                          |   | $                                                                                  | 637,296 |   | $ | 662,608 |   |   | 4.0 |   |
|                           |   |                                                                                    |         |   |  |  |   |  |  |   |

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|                                            |   | **Year ended    December 31,**                                                     |     |
|-------------------------------------------------|--------|------------------------------------------------------------------------------------|----------|
|                                            |   |                                                                                    |     |
|                                            |   | **2000**                                                                           |     | **2001** |   | **%Change** |   |
|                                            |   |                                                                                    |          |   |  |  |   |  |  |   |
|                                            |   | ***(in millions of constant Ch$ as of December 31, 2002, except    percentages)*** |     |
| Non-operating income:                           |   |                                                                               |     |   |   |   |   |   |   |   |
| Interest earned                                 |   |                                                                               | 33,850   |   |   | 19,151 |   |   | (43.4 | ) |
| Equity in income of non-consolidated affiliates |   |                                                                               | 678      |   |   | (9,948 | ) |   | (1,567.1 | ) |
| Other non-operating income                      |   |                                                                               | 272,788  |   |   | 55,817 |   |   | (79.5 | ) |
| Non-operating expenses:                         |   |                                                                               |     |   |   |   |   |   |   |   |
| Interest expense                                |   |                                                                               | (271,334 | ) |   | (235,883 | ) |   | (13.1 | ) |
| Goodwill amortization                           |   |                                                                               | (7,245   | ) |   | (8,269 | ) |   | 14.1 |   |
| Other non-operating expenses                    |   |                                                                               | (61,082  | ) |   | (58,501 | ) |   | (4.2 | ) |
| Monetary correction:                            |   |                                                                               |     |   |   |   |   |   |   |   |
| Price level restatement                         |   |                                                                               | 916      |   |   | 4,338 |   |   | 373.6 |   |
| Foreign Exchange    translation                 |   |                                                                               | (4,646   | ) |   | (14,505 | ) |   | 212.2 |   |
|                                            |   |                                                                                    |          |   |  |  |   |  |  |   |
| Non-operating results                           |   |                                                                               | (36,076  | ) |   | (247,798 | ) |   | 586.9 |   |
|                                            |   |                                                                                    |          |   |  |  |   |  |  |   |

|   | • | non-recurring profits from the sale of Transelec and    other transmission assets booked in 2000, of Ch$ 183.6 billion;                               |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
|   | • | Ch$ 10.6 billion decrease in equity income from    related companies;                                                                                 |
|   |   |                                                                                                                                                  |
|   | • | a higher loss of Ch$ 9.9 billion in foreign exchange    translation; and                                                                              |
|   |   |                                                                                                                                                  |
|   | • | higher other non-operating expenses due to the    impact of the Argentine devaluation on the results of the Company’s Argentine    subsidiaries. |

|   | • | a decrease in interest expenses of Ch$ 35.5 billion;    and                                                                                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |
|   | • | an increase in other non-operating income by Ch$    18.6 billion, due to profits attributable to the Yankee bond buyback in the    last quarter of 2001. |

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|   | • | the decrease in other non-operating income of Ch$    217.0 billion, mainly due to profits from the sale of Transelec recorded    during fiscal year 2000; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                      |
|   | • | a Ch$ 19.2 billion loss produced by the devaluation    of the Argentine Peso on the Company’s consolidated results; and                              |
|   |   |                                                                                                                                                      |
|   | • | the impact of foreign exchange translation of Ch$    9.9 billion in losses.                                                                               |

|   | • | the 30.4% increase (or Ch$ 81.0 billion), in the    Company’s operating performance; |
|--------|--------|-------------------------------------------------------------------------------------------|

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|   | • | a decrease in interest expense of Ch$ 35.5 billion    or 13.1%, explained by a lower debt level of approximately US$ 308 million in    dollar terms, and lower international interest rates; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                             |
|   | • | a Ch$ 48.6 billion decrease in income taxes and a    Ch$ 34.6 billion reduction in minority interest expense.                                                                                    |

| **B.** | **Liquidity and Capital Resources.** |
|--------|--------------------------------------|

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| **As of December 31, 2002:**   |   | **Jan 2003 -        Dec 2003** |   | **Jan 2004 -        Dec 2004** |   | **Jan 2005 -        Dec 2005** |   | **Jan 2006 -        Dec 2006** |   | **After    Dec 2006** |   | **TOTAL** |   |
|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|-----------------------|--------|-----------|--------|
|                                |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |
| **Contractual    Obligations** |   |                           |   |                           |   |                           |   |                           |   |                  |   |      |   |   |   |   |   |   |   |
| Bank Debt                      |   |                           | 1,247  |                           |   | 1,811                          |   |                           | 83     |                  |   | 45        |   |   | 88 |   |   | 3,273 |   |
| Yankee bonds                   |   |                           | 329    |                           |   | 5                              |   |                           | 55     |                  |   | 450       |   |   | 1,541 |   |   | 2,380 |   |
| Chilean bonds                  |   |                           | 25     |                           |   | 42                             |   |                           | 37     |                  |   | 296       |   |   | 433 |   |   | 833 |   |
| EMTN bonds                     |   |                           | 381    |                           |   | —                         |   |                           | — |                  |   | —    |   |   | — |   |   | 381 |   |
| Elesur debt*                   |   |                           | — |                           |   | 1,374                          |   |                           | — |                  |   | —    |   |   | — |   |   | 1,374 |   |
| Other debt                     |   |                           | 212    |                           |   | 80                             |   |                           | 76     |                  |   | 71        |   |   | 295 |   |   | 739 |   |
|                           |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |
| **Total**                      |   |                           | 2,194  |                           |   | 3,312                          |   |                           | 251    |                  |   | 861       |   |   | 2,357 |   |   | 8,980 |   |
|                           |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |

----

| * | Elesur debt was our    inter-company loan with a Chilean subsidiary of our holding company, ENDESA,    S.A. (Endesa-Spain).  This was the    portion of the original loan that had not yet been paid off as of December    31, 2002.  The proceeds of the original    loan were used, in their entirety, for our purchase of a 34.7% stake in Endesa-Chile.  In June 2003, this debt was capitalized in    the context of Enersis’ capital increase. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **As of May 31, 2003 (1):**    |   | **Jan 2003 -        Dec 2003** |   | **Jan 2004 -        Dec 2004** |   | **Jan 2005 -        Dec 2005** |   | **Jan 2006 -        Dec 2006** |   | **After    Dec 2006** |   | **TOTAL** |   |
|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|-----------------------|--------|-----------|--------|
|                                |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |
| **Contractual    Obligations** |   |                           |   |                           |   |                           |   |                           |   |                  |   |      |   |   |   |   |   |   |   |
| Bank Debt                      |   |                           | 428    |                           |   | 351                            |   |                           | 480    |                  |   | 834       |   |   | 1,263 |   |   | 3,355 |   |
| Yankee bonds                   |   |                           | 536    |                           |   | 5                              |   |                           | 55     |                  |   | 450       |   |   | 1,541 |   |   | 2,587 |   |
| Chilean bonds                  |   |                           | 26     |                           |   | 46                             |   |                           | 41     |                  |   | 319       |   |   | 512 |   |   | 943 |   |
| EMTN bonds                     |   |                           | — |                           |   | —                         |   |                           | — |                  |   | —    |   |   | — |   |   | — |   |
| Elesur debt*                   |   |                           | — |                           |   | 1,398                          |   |                           | — |                  |   | —    |   |   | — |   |   | 1,398 |   |
| Other debt                     |   |                           | 218    |                           |   | 92                             |   |                           | 96     |                  |   | 86        |   |   | 318 |   |   | 810 |   |
|                           |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |
| **Total**                      |   |                           | 1,207  |                           |   | 1,892                          |   |                           | 672    |                  |   | 1,689     |   |   | 3,633 |   |   | 9,093 |   |
|                           |   |                                |        |                           |        |                                |   |                                |        |                  |        |           |   |  |  |   |  |  |   |

----

| (1)    | The pro forma table above    has been prepared for illustrative purposes only in order to reflect our    contractual obligations on a consolidated basis, giving effect to our    refinancings through May 31, 2003.                                                                                                                                                                                                                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *      | Elesur debt was our    inter-company loan with a Chilean subsidiary of our holding company, ENDESA,    S.A. (Endesa-Spain).  This was the    portion of the original loan that had not yet been paid off as of May 31,    2003.  The proceeds of the original    loan were used, in their entirety, for our purchase of a 34.7% stake in    Endesa-Chile.  In June 2003, this debt    was capitalized in the context of Enersis’ capital increase. |

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| **C.** | **Research and development, patents    and licenses, etc.** |
|--------|-------------------------------------------------------------|

| **D.** | **Trend information.** |
|--------|------------------------|

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| **E.**      | **[Reserved]**                                    |
|-------------|---------------------------------------------------|
|        |                                              |
| **F.**      | **[Reserved]**                                    |
|        |                                              |
| **G.**      | **[Reserved]**                                    |
|        |                                              |
| **Item 6.** | **Directors, Senior Management and    Employees** |
|        |                                              |
| **A.**      | **Directors and senior management.**              |

|                       |   | **Age** |   | **Position**  |   | **Current Position Held Since** |
|----------------------------|--------|---------|--------|---------------|--------|---------------------------------|
|                       |   |         |   |               |   |                                 |
| Pablo Yrarrázaval (1) |   | 51      |   | Chairman      |   | 2002 (Chairman July    2002)    |
| Rafael Miranda             |   | 54      |   | Vice Chairman |   | 1999                            |
| Alfonso Arias              |   | 51      |   | Director      |   | 2003                            |
| José Luis Palomo      |   | 49      |   | Director      |   | 2002                            |
| Ernesto Silva (1)          |   | 55      |   | Director      |   | 1997                            |
| Hernán Somerville (1) |   | 62      |   | Director      |   | 1999                            |
| Eugenio Tironi             |   | 51      |   | Director      |   | 2000                            |

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| (1) | Member of the Directors’    Committee. |
|-----|---------------------------------------------|

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|                        |   | **Age** |   | **Position**                                 |   | **Current Position Held Since** |   | **Years with Enersis and Subsidiaries** |
|-----------------------------|--------|---------|--------|----------------------------------------------|--------|---------------------------------|--------|-----------------------------------------|
|                        |   |         |   |                                              |   |                                 |   |                                         |
| Enrique García         |   | 58      |   | Chief Executive Officer                      |   | 1999                            |   | 4                                       |
| Rafael López           |   | 46      |   | Corporate Chief Planning and Control Officer |   | 2002                            |   | 4                                       |
| Mario Valcarce              |   | 53      |   | Corporate Chief Financial Officer            |   | 2002                            |   | 12                                      |
| Domingo Valdés         |   | 39      |   | General Counsel                              |   | 1999                            |   | 10                                      |
| Marcelo Silva               |   | 56      |   | Corporate Distribution and Services Officer  |   | 2002                            |   | 21                                      |
| Fernando Nadal              |   | 45      |   | Corporate Communications Officer             |   | 1999                            |   | 4                                       |
| José M. Raventós* |   | 39      |   | Corporate Auditor                            |   | 2001                            |   | 2                                       |

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| * | Mr. Raventós left Enersis    on January 31, 2003. |
|---|--------------------------------------------------------|

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| **B.** | **Compensation.** |
|--------|-------------------|

|                        |   | **Year ended    December 31, 2002** |    |
|-----------------------------|--------|------------------------------------------|---------|
|                        |   |                                          |         |   |
|                        |   | **(in    thousands of Ch$)**             |    |
|                        |   |                                          |         |   |
| Alfredo Llorente            |   |                                     | 29,586  |   |
| Pablo Yrarrázaval      |   |                                     | 25,225  |   |
| Rafael Miranda              |   |                                     | 37,524  |   |
| José María Fesser |   |                                     | 24,406  |   |
| Luis Rivera                 |   |                                     | 13,019  |   |
| José Luis Palomo       |   |                                     | 11,407  |   |
| Ernesto Silva               |   |                                     | 28,606  |   |
| Hernán Somerville      |   |                                     | 28,606  |   |
| Eugenio Tironi              |   |                                     | 24,413  |   |
|                        |   |                                          |         |   |
| Total                       |   |                                     | 222,792 |   |
|                        |   |                                          |         |   |

| **C.** | **Board practices.** |
|--------|----------------------|

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| **D.** | **Employees.** |
|--------|----------------|

|                   |   | **Years    ended December 31,** |   |
|------------------------|--------|---------------------------------|--------|
|                   |   |                                 |   |
|                   |   | **1998**                        |   | **1999** |   | **2000** |   | **2001** |   | **2002** |   |
|                   |   |                                 |        |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Enersis (Chile)        |   |                            | 196    |   |   | 212 |   |   | 267 |   |   | 235 |   |   | 242 |   |
| Endesa-Chile(1)        |   |                            | 3,158  |   |   | 2,526 |   |   | 1,764 |   |   | 1,752 |   |   | 1,937 |   |
| Chilectra (Chile)      |   |                            | 1,674  |   |   | 1,383 |   |   | 868 |   |   | 722 |   |   | 720 |   |
| Río Maipo (Chile) |   |                            | 215    |   |   | 181 |   |   | 92 |   |   | 78 |   |   | 76 |   |
| Edesur (Argentina)     |   |                            | 2,999  |   |   | 2,630 |   |   | 2,379 |   |   | 2,267 |   |   | 2,251 |   |
| Edelnor (Peru)         |   |                            | 765    |   |   | 724 |   |   | 618 |   |   | 557 |   |   | 565 |   |
| Cerj (Brazil)          |   |                            | 1,897  |   |   | 1,782 |   |   | 1,402 |   |   | 1,354 |   |   | 1,451 |   |
| Codensa (Colombia)     |   |                            | 1,904  |   |   | 1,213 |   |   | 969 |   |   | 813 |   |   | 802 |   |
| Coelce (Brazil)        |   |                            | 1,835  |   |   | 1,958 |   |   | 1,592 |   |   | 1,464 |   |   | 1,401 |   |
| Other Business         |   |                            | 1,137  |   |   | 1,909 |   |   | 1,006 |   |   | 1,169 |   |   | 1,549 |   |
|                   |   |                                 |        |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                  |   |                            | 15,780 |   |   | 14,518 |   |   | 10,957 |   |   | 10,411 |   |   | 10,994 |   |
|                   |   |                                 |        |   |  |  |   |  |  |   |  |  |   |  |  |   |

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| (1) | Includes Chilean operations    and subsidiaries abroad. |
|-----|---------------------------------------------------------|

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| **E.** | **Share ownership** |
|--------|---------------------|

| **Item 7.** | **Major Shareholders and Related    Party Transactions** |
|-------------|----------------------------------------------------------|

| **A.** | **Major shareholders.** |
|--------|-------------------------|

|             |   | **No. of    Shares Owned** |          | **Percentage    of Total Shares Outstanding** |   |
|------------------|--------|----------------------------|---------------|-----------------------------------------------|--------|
|             |   |                            |               |                                          |        |  |   |
| Endesa-Spain (1) |   |                       | 5,389,163,065 |                                          |   | 65.00 | % |

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| (1) | Endesa-Spain’s 65.0%    beneficial interest is held through *Elesur S.A.*(35.15%), *Compañía de    Inversiones Chispa Uno S.A. (21.47%) and Endesa Internacional S.A.*    (8.38%). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **B.** | **Related party transactions.** |
|--------|---------------------------------|

| **C.**      | **Interests of experts and counsel.**                           |
|-------------|-----------------------------------------------------------------|
|        |                                                            |
|        | Not applicable.                                                 |
|        |                                                            |
| **Item 8.** | **Financial Information**                                       |
|        |                                                            |
| **A.**      | **Consolidated Statements and Other    Financial Information.** |
|        |                                                            |
|        | See Item 18 for our consolidated financial    statements.       |

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|   | • | whether, in    the then current structure of the SIC, there was a vertical and/or horizontal    integration of companies participating in generation, transmission and distribution    activities that had a restrictive effect on electricity markets; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                        |
|   | • | whether    divestiture of one or more of the businesses was advisable.                                                                                                                                                                                      |

|   | • | that the    government issue rules under the Chilean Electricity Law to enhance    competition and to decrease ambiguity of the rules governing the electricity    sector;                                                                                                                                                                                                                   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • | that    Transelec be transformed into a *sociedad anónima abierta*, or a publicly    held limited liability stock company subject to public reporting requirements    under the supervision of the SVS, that the stockholder base of Transelec be    broadened to include other parties, and that Transelec become the owner,    rather than the lessee, of the assets it operates; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • | that    distribution companies submit their power and energy contracts to public    bidding.                                                                                                                                                                                                                                                                                                 |

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|   | • | the shares    of Endesa-Chile sold in excess of our then current 25.3% could be acquired    solely and exclusively by Enersis and could only be registered in our name;                                                                                                                                     |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                        |
|   | • | we are    prohibited from transferring, pledging, disposing or agreeing to accept any    type of action that could restrict the disposition of, in any manner, any    shares of Endesa-Chile acquired in excess of our then current 25.3% stake    unless authorized by the *Comisión Resolutiva*; and |
|   |   |                                                                                                                                                                                                                                                                                                        |
|   | • | Enersis and    Endesa-Chile were prohibited from having common members on their respective    boards of directors and not only from having common or related independent    auditing firms, but also from having common or related accounting    supervisors.                                               |

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|   | • | recognize    its alleged right to nominate both a director and an alternate director in    addition to the directors whom it already has the right to nominate in    Distrilec Inversora; or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                         |
|   | • | state that    PECOM and the Enersis Group should each have an equal number of directors in    Distrilec Inversora.                                                                           |

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| **Year** |   | **Nominal    Ch$** |   | **Constant    Pesos(1)** |   | **US$    per ADS(2)** |   |
|----------|--------|--------------------|--------|--------------------------|--------|-----------------------|--------|
|          |   |                    |        |                     |        |                       |   |  |  |   |
| 1998     |   |               | 6.90   |                     |   | 8.02                  |   |   | 0.56 |   |
| 1999     |   |               | 4.00   |                     |   | 4.51                  |   |   | 0.31 |   |
| 2000     |   |               | 0.00   |                     |   | 0.00                  |   |   | 0.00 |   |
| 2001     |   |               | 1.81   |                     |   | 1.90                  |   |   | 0.13 |   |
| 2002     |   |               | 0.00   |                     |   | 0.00                  |   |   | 0.00 |   |

----

| (1) | Restated in constant    Chilean pesos as of December 31, 2002.                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The US dollar per ADS    amount has been calculated by applying the exchange rate of    Ch$718.61 = US$1.00, the Observed Exchange Rate prevailing on    December 31, 2002, to the constant Chilean peso amount. |

| **B.** | **Significant Changes.** |
|--------|--------------------------|

|   | None. |
|--------|-------|

| **Item 9.** | **The Offer and Listing** |
|-------------|---------------------------|

| **A.** | **Offer and listing details.** |
|--------|--------------------------------|

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|                       |   |                |        |     | **Chilean    Pesos Per Share(1)** |    | **US$ per    ADS(2)** |     |
|----------------------------|--------|---------------------|-------------|----------|-----------------------------------|---------|-----------------------|----------|
|                       |   |                |        |     |                                   |    |                       |     |
|                       |   | **Share    Volume** |        | **High** |                              | **Low** |                  | **High** |   | **Low** |   |
|                       |   |                     |             |     |                                   |         |                  |          |  |   |  |  |   |  |  |   |
| **Most Recent Six Months** |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| *2003*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| June (through June 20)     |   |                | 794,686,111 |     |                              | 68.70   |                  |     | 61.12 |   |   | 4 2/5 |   |   | 4 15/16 |   |
| May                        |   |                | 452,692,199 |     |                              | 73.00   |                  |     | 61.50 |   |   | 5 1/8 |   |   | 4 1/2 |   |
| April                      |   |                | 96,666,405  |     |                              | 62.50   |                  |     | 56.50 |   |   | 4 5/9 |   |   | 3 7/8 |   |
| March                      |   |                | 61,843,215  |     |                              | 60.00   |                  |     | 55.00 |   |   | 4       |   |   | 3 2/3 |   |
| February                   |   |                | 132,965,617 |     |                              | 61.50   |                  |     | 56.25 |   |   | 4 1/5 |   |   | 3 5/7 |   |
| January                    |   |                | 240,831,006 |     |                              | 66.50   |                  |     | 57.10 |   |   | 4 2/3 |   |   | 3 6/7 |   |
| *2002*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| 4th quarter                |   |                | 684,639,252 |     |                              | 77.00   |                  |     | 52.00 |   |   | 5 1/7 |   |   | 3 5/7 |   |
| 3rd quarter                |   |                | 692,521,240 |     |                              | 92.80   |                  |     | 65.01 |   |   | 6 3/4 |   |   | 4 3/7 |   |
| 2nd quarter                |   |                | 474,079,058 |     |                              | 127.02  |                  |     | 79.49 |   |   | 9 7/8 |   |   | 5 4/7 |   |
| 1st quarter                |   |                | 512,037,133 |     |                              | 176.00  |                  |     | 117.50 |   |   | 13 1/2 |   |   | 8 3/5 |   |
| *2001*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| 4th quarter                |   |                | 393,051,601 |     |                              | 202.00  |                  |     | 163.76 |   |   | 14 6/7 |   |   | 11 1/3 |   |
| 3rd quarter                |   |                | 226,195,786 |     |                              | 200.00  |                  |     | 171.00 |   |   | 15 1/8 |   |   | 12 1/4 |   |
| 2nd quarter                |   |                | 292,388,256 |     |                              | 207.75  |                  |     | 185.00 |   |   | 17 1/5 |   |   | 14 2/3 |   |
| 1st quarter                |   |                | 217,618,425 |     |                              | 222.00  |                  |     | 188.00 |   |   | 19 8/9 |   |   | 16       |   |
| *2000*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| 4th quarter                |   |                | 198,483,727 |     |                              | 218.00  |                  |     | 166.99 |   |   | 19       |   |   | 14 1/2 |   |
| 3rd quarter                |   |                | 88,658,193  |     |                              | 226.00  |                  |     | 191.00 |   |   | 21 1/4 |   |   | 16 5/16 |   |
| 2nd quarter                |   |                | 110,101,006 |     |                              | 234.00  |                  |     | 192.00 |   |   | 22 5/16 |   |   | 18 3/8 |   |
| 1st quarter                |   |                | 190,988,287 |     |                              | 252.00  |                  |     | 190.00 |   |   | 24 1/8 |   |   | 18 3/8 |   |
| *1999*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| 4th quarter                |   |                | 151,276,179 |     |                              | 255.00  |                  |     | 205.50 |   |   | 24 3/8 |   |   | 18 5/8 |   |
| 3rd quarter                |   |                | 151,227,476 |     |                              | 257.00  |                  |     | 219.00 |   |   | 25 1/16 |   |   | 20 3/4 |   |
| 2nd quarter                |   |                | 245,149,949 |     |                              | 257.00  |                  |     | 177.00 |   |   | 28 1/8 |   |   | 17 5/16 |   |
| 1st quarter                |   |                | 141,861,828 |     |                              | 273.00  |                  |     | 215.00 |   |   | 28 3/4 |   |   | 22 3/8 |   |
| *1998*                     |   |                |        |     |                              |    |                  |     |   |   |   |   |   |   |   |   |
| 4th quarter                |   |                | 181,768,169 |     |                              | 240.00  |                  |     | 171.00 |   |   | 25 7/8 |   |   | 18 5/16 |   |
| 3rd quarter                |   |                | 339,681,114 |     |                              | 263.00  |                  |     | 150.00 |   |   | 28 3/8 |   |   | 15 7/8 |   |
| 2nd quarter                |   |                | 187,476,191 |     |                              | 281.00  |                  |     | 212.00 |   |   | 31 7/8 |   |   | 18 3/8 |   |
| 1st quarter                |   |                | 362,647,847 |     |                              | 283.00  |                  |     | 204.00 |   |   | 32 1/8 |   |   | 22 9/16 |   |

----

| (1) | As reported by the Santiago    Stock Exchange.  Chilean pesos per    share reflect the nominal price as of the trade date; the price has not been    restated in constant Chilean pesos. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | As reported by the    NYSE.  One ADS = 50 Shares.                                                                                                                              |

|             |   | **Chilean    Pesos Per Share(1)** |   | **US$ per    ADS(2)** |   |
|------------------|--------|-----------------------------------|--------|-----------------------|--------|
|             |   |                                   |        |                  |        |  |   |
| May 23, 2003     |   |                              | 71.55  |                  |   | 5.00 |   |
| June 20,    2003 |   |                              | 65.99  |                  |   | 4.75 |   |

----

| (1) | As reported by the Santiago    Stock Exchange.                   |
|-----|------------------------------------------------------------------|
| (2) | As reported by the    NYSE.  One ADS = 50 Shares. |

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| **B.** | **Plan of distribution.**                                                                             |
|--------|-------------------------------------------------------------------------------------------------------|
|   |                                                                                                  |
|   | Not    applicable.                                                                                    |
|   |                                                                                                  |
| **C.** | **Markets.**                                                                                          |
|   |                                                                                                  |
|   | See “—A.    Offer and listing details—Market Price and Volume Information” above. |
|   |                                                                                                  |
| **D.** | **Selling shareholders.**                                                                             |
|   |                                                                                                  |
|   | Not    applicable.                                                                                    |
|   |                                                                                                  |
| **E.** | **Dilution.**                                                                                         |
|   |                                                                                                  |
|   | Not    applicable.                                                                                    |

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| **F.** | **Expense of the issue.** |
|--------|---------------------------|
|   |                      |
|   | Not    applicable.        |

| **Item 10.** | **Additional Information** |
|--------------|----------------------------|

| **A.** | **Share capital.**                         |
|--------|--------------------------------------------|
|   |                                       |
|   | Not    applicable.                         |
|   |                                       |
| **B.** | **Memorandum and articles of association** |

|   | • | any direct    or indirect acquisition or sale of shares or options to buy or sell shares    that results in the holder’s acquiring or disposing, directly or indirectly,    of 10% or more of a publicly held limited liability stock company’s    subscribed capital; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                 |
|   | • | any direct    or indirect acquisition or sale of shares or options to buy or sell shares,    in any amount, if made by a holder of 10% or more of a publicly held limited    liability stock company’s subscribed capital.                                                      |

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|   | • | borrowing    powers exercisable by the directors and how such borrowing powers can be    varied; or |
|--------|--------|-----------------------------------------------------------------------------------------------------|
|   |   |                                                                                                |
|   | • | retirement    or non-retirement of directors under an age limit requirement.                        |

|   | • | redemption    provisions;                             |
|--------|--------|-------------------------------------------------------|
|   |   |                                                  |
|   | • | sinking    funds; or                                  |
|   |   |                                                  |
|   | • | liability to    further capital calls by the company. |

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|   | • | a    transformation of the company into a form other than a *sociedad anónima abierta*    (a publicly held, limited liability stock company) under the Chilean    Companies’ Act, a merger or division of the company;                            |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                        |
|   | • | an amendment    to the term of duration or early dissolution;                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | a change in    the corporation’s domicile;                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | a decrease    of corporate capital;                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | approval of    capital contributions in kind and assessment of such assets;                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | modification    of the authority reserved to shareholders or limitations on the board of    directors;                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | reduction in    the number of members of the board of directors;                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | disposition    of 50% or more of the assets of the corporation, whether it includes    disposition of liabilities or not, as well as the approval or the amendment    of the business plan which contemplates the disposition of assets for such    amount; |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | the form of    distributing corporate benefits;                                                                                                                                                                                                             |

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|   | • | issue of    guarantees for third parties’ liabilities which exceed 50% of the assets, but    if the third party is a subsidiary of the company, the approval of the board    of directors is sufficient; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                          |
|   | • | the purchase    of the corporation’s own shares; or                                                                                                                                                      |
|   |   |                                                                                                                                                                                                          |
|   | • | certain    remedies for the nullification of the corporate by-laws,                                                                                                                                           |

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|   | • | the    transformation of the company into an entity which is not *sociedad    anónima abierta* governed by the Chilean Companies Act; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                       |
|   | • | the merger    of the company with another company;                                                                                         |

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|   | • | disposition    of 50% or more of the assets of the corporation, whether it includes    disposition of liabilities or not, as well as the approval or the amendment    of the business plan which contemplates the disposition of assets for such    amount; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                        |
|   | • | issue of    guarantees for third parties’ liabilities which exceed 50% of the assets, but    if the third party is a subsidiary of the company, the approval of the board    of directors is sufficient;                                               |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | the creation    of preferential rights for a class of shares or an amendment to the existing    ones.  In this case the right to    withdraw only accrues to the dissenting shareholders of the class or classes    of shares adversely affected;      |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | certain    remedies for the nullification of the corporate by-laws; and                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                        |
|   | • | such other    causes as may be established by a company’s by-laws.                                                                                                                                                                                     |

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|   | • | cash    dividends;                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | • | proceeds    from the sale in Chile of Withdrawn Shares subject to receipt by the Central    Bank of a certificate from the holder of the Withdrawn Shares (or from an    institution authorized by the Central Bank) that such holder’s residence and    domicile are outside Chile and a certificate from a Chilean stock exchange    (or from a brokerage or securities firm established in Chile) that such    Withdrawn Shares were sold on a Chilean stock exchange; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | • | proceeds    from the sale in Chile of rights to subscribe for additional shares of Common    Stock;                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | • | proceeds    from the liquidation, merger or consolidation of our company; and                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | • | other    distributions, including without limitation those resulting from any    recapitalization, as a result of holding shares of Common Stock represented    by ADSs or Withdrawn Shares.                                                                                                                                                                                                                                                                                   |

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| **C.** | **Material contracts.**                                                                                          |
|--------|------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                             |
|   | None.                                                                                                            |
|   |                                                                                                             |
| **D.** | **Exchange controls.**                                                                                           |
|   |                                                                                                             |
|   | The Central    Bank is responsible for, among other things, monetary policies and exchange    controls in Chile. |

|   | This new    Compendium enhances the information gathered by the Central Bank and the    quality of such information.  In    addition, this new Compendium includes the main rules that modified the    Compendium of Foreign Exchange Regulations in April 1991.  In other words, new cross-border investing    and financing decisions will no longer be subject to the restrictions set    forth in Article 49 of the Central Bank Law and the following restrictions do    not apply: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the prior    Central Bank authorization requirement for the entry of capital associated    with foreign loans, investments, capital contributions, bonds and ADRs;                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                   |
|   | • | the prior    Central Bank authorization for capital remittances associated with returns of    capital, dividends, and other benefits related to capital contributions,    investments and prepayment of foreign loans; |

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|   | • | the prior    Central Bank authorization for the return of capital, profits and other    benefits associated with investments made by Chilean residents abroad; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                           |
|   | • | the    limitations to the special prepayment and acceleration clauses contained in    foreign loans;                                                           |
|   |   |                                                                                                                                                           |
|   | • | the    restrictions of minimum risk classification and the weighted duration for the    issuance of bonds;                                                     |
|   |   |                                                                                                                                                           |
|   | • | the    limitations with respect to the currencies in which external debt can be    issued or contracted;                                                       |
|   |   |                                                                                                                                                           |
|   | • | the    restrictions to the issue of ADRs; and                                                                                                                  |
|   |   |                                                                                                                                                           |
|   | • | the reserve    requirement on funds coming from abroad (which was already 0%).                                                                                 |

| **E.** | **Taxation.** |
|--------|---------------|

|   | • | in the case    of an individual, a person who is not a resident in Chile; for purposes of    Chilean taxation, an individual holder is resident in Chile if he or she has    resided in Chile for more than six months in one calendar year, or a total of    more than six months in two consecutive fiscal years; or |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                   |
|   | • | in the case    of a legal entity that is not organized under the laws of Chile, unless the    shares, ADSs or Notes are assigned to a branch, agent, representative or    permanent establishment of such entity in Chile.                                                                                             |

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| Company    taxable income                                             |   |   | 100.0 |   |
|-----------------------------------------------------------------------|--------|--------|-------|--------|
| Chilean    corporate income tax (16.5% of Ch$100)                     |   |   | (16.5 | )      |
| Net    distributable income                                           |   |   | 83.5  |   |
| Dividend    distributed (50% of net distributable income)             |   |   | 41.7  | 5      |
| Withholding    tax (35% of the sum of Ch$41.75 dividend plus Ch$8.25) |   |   | (17.5 | )      |
| Credit for    50% of Chilean corporate income tax                     |   |   | 8.2   | 5      |
| Net    withholding tax                                                |   |   | (9.2  | 5)     |
| Net dividend    received                                              |   |   | 32.5  |   |
| Effective    dividend withholding rate                                |   |   | 22.1  | 6%     |

| Effective Dividend   | =                                                     | (Withholding tax rate) – (Chilean corporate income tax rate) |
|----------------------|-------------------------------------------------------|-------------------------------------------------------------------|
| Withholding Tax Rate | 1  – (Chilean corporate income    tax rate) |

|   | • | has held the    shares for less than one year since exchanging ADSs for the shares; or                               |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                 |
|   | • | acquired and    disposed of the shares in the ordinary course of its business or as an    habitual trader of shares. |

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|   | • | certain    financial institutions;                                                                                                                                   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                 |
|   | • | a dealer in    securities or foreign currencies;                                                                                                                     |
|   |   |                                                                                                                                                                 |
|   | • | a trader in    securities that elects to use a mark-to-market method of accounting for your    securities holdings;                                                  |
|   |   |                                                                                                                                                                 |
|   | • | an insurance    company;                                                                                                                                             |
|   |   |                                                                                                                                                                 |
|   | • | a tax-exempt    entity;                                                                                                                                              |
|   |   |                                                                                                                                                                 |
|   | • | a person    subject to the alternative minimum tax;                                                                                                                  |
|   |   |                                                                                                                                                                 |
|   | • | a person who    will hold our ADSs or shares as part of a straddle, hedging transaction or    conversion transaction;                                                |
|   |   |                                                                                                                                                                 |
|   | • | a person    that has a principal place of business or “tax home” outside the United States,    or a person whose functional currency is not the US dollar; |

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|   | • | a person who    acquired our ADSs or shares pursuant to the exercise of an employee stock    option or otherwise as compensation; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                  |
|   | • | a person    owning directly, indirectly or by attribution 10% or more of our capital    stock.                                        |

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| **F.** | **Dividends and paying agents.** |
|--------|----------------------------------|
|   |                             |
|   | Not    applicable.               |
|   |                             |
| **G.** | **Statement by experts.**        |
|   |                             |
|   | Not    applicable.               |

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| **H.** | **Documents on display.** |
|--------|---------------------------|

| **I.** | **Subsidiary Information.** |
|--------|-----------------------------|
|   |                        |
|   | Not    applicable.          |

| **Item 11.** | **Quantitative and Qualitative Disclosures About Market Risk** |
|--------------|----------------------------------------------------------------|

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|                              |   | **As of December    31,**            |      |
|-----------------------------------|--------|--------------------------------------|-----------|
|                              |   |                                      |      |
|                              |   | **2003**                             |      | **2004** |   | **2005** |   | **2006** |   | **2007** |   | **Thereafter** |   | **Total** |   | **Fair    Value (1)** |   |
|                              |   |                                      |           |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                              |   | **(in    millions of constant Ch$)** |      |
| Long-term    Debt                 |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate:                       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ch$- and    UF -denominated  |   |                                 | 11,566    |   |   | 11,986 |   |   | 13,587 |   |   | 58,181 |   |   | 17,305 |   |   | 169,558 |   |   | 282,184 |   |   | 273,204 |   |
| Weighted    average interest rate |   |                                 | 6.0       | % |   | 6.0 | % |   | 6.0 | % |   | 5.9 | % |   | 5.9 | % |   | 5.9 | % |   | 5.9 | % |   |   |   |
| US$-denominated                   |   |                                 | 264,715   |   |   | 20,134 |   |   | 88,583 |   |   | 441,179 |   |   | 93,664 |   |   | 1,167,357 |   |   | 2,075,633 |   |   | 2,028,498 |   |
| Weighted    average interest rate |   |                                 | 7.4       | % |   | 7.5 | % |   | 7.5 | % |   | 7.5 | % |   | 7.8 | % |   | 7.8 | % |   | 7.6 | % |   |   |   |
| Other    currencies (2)      |   |                                 | 25,615    |   |   | 29,374 |   |   | 14,486 |   |   | 68,500 |   |   | 9,093 |   |   | 20,660 |   |   | 167,727 |   |   | 174,506 |   |
| Weighted    average interest rate |   |                                 | 8.2       | % |   | 8.0 | % |   | 8.1 | % |   | 7.8 | % |   | 8.6 | % |   | 9.7 | % |   | 8.2 | % |   |   |   |
| Variable    rate:                 |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ch$- and    UF -denominated  |   |                                 | 59,812    |   |   | 1,034,123 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 1,093,935 |   |   | 963,997 |   |
| Weighted    average interest rate |   |                                 | 5.1       | % |   | 4.0 | % |   | — |   |   | — |   |   | — |   |   | — |   |   | 4.1 | % |   |   |   |
| US$-denominated                   |   |                                 | 549,352   |   |   | 1,231,841 |   |   | 28,675 |   |   | 10,793 |   |   | 10,488 |   |   | 22,833 |   |   | 1,853,981 |   |   | 1,811,630 |   |
| Weighted    average interest rate |   |                                 | 2.8       | % |   | 3.6 | % |   | 5.1 | % |   | 5.7 | % |   | 6.1 | % |   | 6.5 | % |   | 3.4 | % |   |   |   |
| Other    currencies (2)      |   |                                 | 647,319   |   |   | 27,912 |   |   | 32,613 |   |   | 33,035 |   |   | 25,400 |   |   | 137,655 |   |   | 903,933 |   |   | 887,482 |   |
| Weighted    average interest rate |   |                                 | 12.0      | % |   | 11.5 | % |   | 11.5 | % |   | 11.5 | % |   | 11.4 | % |   | 11.3 | % |   | 11.9 | % |   |   |   |
|                              |   |                                      |           |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                             |   |                                 | 1,558,378 |   |   | 2,355,369 |   |   | 177,943 |   |   | 611,689 |   |   | 155,950 |   |   | 1,518,063 |   |   | 6,377,393 |   |   | 6,139,317 |   |
|                              |   |                                      |           |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

----

| (1) | As of December 31,    2002.  Fair values were calculated    based on the discounted value of future cash flows expected to be paid  (or received), considering current    discount rates that reflect the different risks involved. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Other currencies” includes    €, the Brazilian real, the Colombian peso and the Peruvian sol, among others.                                                                                                                        |

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|                              |   | **As of    December 31,**            |    |
|-----------------------------------|--------|--------------------------------------|---------|
|                              |   |                                      |    |
|                              |   | **2002**                             |    | **2003** |   | **2004** |   | **2005** |   | **2006** |   | **Thereafter** |   | **Total** |   | **Fair    Value (1)** |   |
|                              |   |                                      |         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                              |   | **(in    millions of constant Ch$)** |    |
| Long-term    Debt                 |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate:                       |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ch$- and    UF -denominated  |   |                                 | 9,440   |   |   | 9,829 |   |   | 10,239 |   |   | 10,673 |   |   | 108,586 |   |   | 110,160 |   |   | 258,927 |   |   | 256,124 |   |
| Weighted    average interest rate |   |                                 | 6.01    | % |   | 6.02 | % |   | 6.03 | % |   | 6.04 | % |   | 6.05 | % |   | 6.16 | % |   |   |   |   |   |   |
| US$-denominated                   |   |                                 | 122,769 |   |   | 261,494 |   |   | 53,287 |   |   | 86,934 |   |   | 358,226 |   |   | 1,195,839 |   |   | 2,078,549 |   |   | 2,034,076 |   |
| Weighted    average interest rate |   |                                 | 8.89    | % |   | 7.35 | % |   | 6.45 | % |   | 7.13 | % |   | 7.56 | % |   | 7.72 | % |   |   |   |   |   |   |
| Other    currencies (2)      |   |                                 | 116,636 |   |   | 6,853 |   |   | — |   |   | — |   |   | — |   |   | 5,667 |   |   | 129,156 |   |   | 130,288 |   |
| Weighted    average interest rate |   |                                 | 13.26   | % |   | 11.50 | % |   | — |   |   | — |   |   | — |   |   | 6.00 | % |   |   |   |   |   |   |
|                              |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable    rate:                 |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ch$- and    UF -denominated  |   |                                 | 54,569  |   |   | 983,286 |   |   | 46,769 |   |   | — |   |   | — |   |   | — |   |   | 1,084,624 |   |   | 1,089,630 |   |
| Weighted    average interest rate |   |                                 | 5.68    | % |   | 4.81 | % |   | 5.31 | % |   | — |   |   | — |   |   | — |   |   |   |   |   |   |   |
| US$-denominated                   |   |                                 | 207,186 |   |   | 578,013 |   |   | 969,188 |   |   | 80,711 |   |   | 1,557 |   |   | 62,037 |   |   | 1,898,692 |   |   | 1,898,693 |   |
| Weighted    average interest rate |   |                                 | 3.00    | % |   | 4.50 | % |   | 5.37 | % |   | 6.27 | % |   | 6.14 | % |   | 6.07 | % |   |   |   |   |   |   |
| Other    currencies (2)      |   |                                 | 188,581 |   |   | 327,644 |   |   | 28,822 |   |   | 1,953 |   |   | 109,371 |   |   | 126,205 |   |   | 782,576 |   |   | 782,574 |   |
| Weighted    average interest rate |   |                                 | 3.91    | % |   | 5.43 | % |   | 7.35 | % |   | 5.67 | % |   | 11.86 | % |   | 12.30 | % |   |   |   |   |   |   |
|                              |   |                                      |         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                             |   |                                 | 699,181 |   |   | 2,167,119 |   |   | 1,108,305 |   |   | 180,271 |   |   | 577,740 |   |   | 1,499,908 |   |   | 6,232,524 |   |   | 6,191,385 |   |
|                              |   |                                      |         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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| (1) | As of December 31,    2001.  Fair values were calculated    based on the discounted value of future cash flows expected to be paid  (or received), considering current    discount rates that reflect the different risks involved. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Other currencies” includes    €, the Brazilian real, the Colombian peso and the Peruvian sol, among others.                                                                                                                        |

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|                                   |   | **As of    December 31,**            |    |
|----------------------------------------|--------|--------------------------------------|---------|
|                                   |   |                                      |    |
|                                   |   | **2003**                             |    | **2004** |   | **2005** |   | **2006** |   | **2007** |   | **Thereafter** |   | **Total** |   | **Fair Value    (1)** |   |
|                                   |   |                                      |         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                   |   | **(in    millions of constant Ch$)** |    |
| Long-term Debt                         |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate:                            |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated                        |   |                                 | 264,715 |   |   | 20,134 |   |   | 88,583 |   |   | 441,179 |   |   | 93,664 |   |   | 1,167,357 |   |   | 2,075,633 |   |   | 2,028,498 |   |
| Other currencies (2)                   |   |                                 | 25,615  |   |   | 29,374 |   |   | 14,486 |   |   | 68,500 |   |   | 9,093 |   |   | 20,660 |   |   | 167,727 |   |   | 174,506 |   |
| Variable rate                          |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated                        |   |                                 | 549,352 |   |   | 1,231,841 |   |   | 28,675 |   |   | 10,793 |   |   | 10,488 |   |   | 22,833 |   |   | 1,853,981 |   |   | 1,811,630 |   |
| Other currencies (2)                   |   |                                 | 647,319 |   |   | 27,912 |   |   | 32,613 |   |   | 33,035 |   |   | 25,400 |   |   | 137,655 |   |   | 903,933 |   |   | 887,482 |   |
|                                   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other instruments (3)                  |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated assets                 |   |                                 | 274,016 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 274,016 |   |   | 274,016 |   |
| Assets in other currencies (2)         |   |                                 | 510,133 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 510,133 |   |   | 510,133 |   |
|                                   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward contracts                      |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (receive US$/Pay Ch$) (1)              |   |                                 | 271,635 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 271,635 |   |   | (1,116 | ) |
|                                   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other foreign currency derivatives (2) |   |                                 | 786,105 |   |   | 537,726 |   |   | 60,107 |   |   | 966,171 |   |   | 0 |   |   | 58,854 |   |   | 2,408,962 |   |   | 13,194 |   |

----

| (1) | Calculated based on the    Observed Exchange Rate as of December 31, 2002, which was Ch$718.61 =    US$1.00.  Fair values were calculated    based on the discounted value of future cash flows expected to paid (or    received), considering current discount rates that reflect the different    risks involved. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Other currencies” includes    the €, Brazilian real, the Colombian pesos and Peruvian soles among others.                                                                                                                                                                                                     |
| (3) | “Other instruments” include    cash, time deposits and short-term accounts receivables (see Note 29 to    financial statements.)                                                                                                                                                                                    |

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|                                     |   | **As of    December 31,**            |    |
|------------------------------------------|--------|--------------------------------------|---------|
|                                     |   |                                      |    |
|                                     |   | **2002**                             |    | **2003** |   | **2004** |   | **2005** |   | **2006** |   | **Thereafter** |   | **Total** |   | **Fair Value    (1)** |   |
|                                     |   |                                      |         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                     |   | **(in    millions of constant Ch$)** |    |
| Long-term    Debt                        |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate:                              |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated                          |   |                                 | 122,769 |   |   | 261,494 |   |   | 53,287 |   |   | 86,934 |   |   | 358,226 |   |   | 1,195,839 |   |   | 2,078,549 |   |   | 2,034,076 |   |
| Other currencies(2)                      |   |                                 | 116,636 |   |   | 6,853 |   |   | — |   |   | — |   |   | — |   |   | 5,667 |   |   | 129,156 |   |   | 130,288 |   |
| Variable    rate                         |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated                          |   |                                 | 213,431 |   |   | 595,438 |   |   | 998,404 |   |   | 83,144 |   |   | 1,604 |   |   | 63,906 |   |   | 1,955,927 |   |   | 1,898,693 |   |
| Other currencies(2)                      |   |                                 | 188,581 |   |   | 327,644 |   |   | 28,822 |   |   | 1,953 |   |   | 109,371 |   |   | 126,205 |   |   | 782,575 |   |   | 782,574 |   |
| Other    instruments(3)                  |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$-denominated assets                   |   |                                 | 145,856 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 145,856 |   |   | 145,856 |   |
| Assets in other currencies(2)            |   |                                 | 584,404 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 584,404 |   |   | 584,404 |   |
| Forward    contracts                     |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (receive US$/Pay Ch$-UF)(1)              |   |                                 | (8,826  | ) |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | (8,826 | ) |   | (8,404 | ) |
| Other    foreign currency derivatives(2) |   |                                 | (37,635 | ) |   | (33,373 | ) |   | (4,225 | ) |   | (436 | ) |   | (48 | ) |   | (4,561 | ) |   | (80,278 | ) |   | (98,569 | ) |

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| (1) | Calculated based on the    Observed Exchange Rate as of December 31, 2001, which was Ch$654.79 =    US$1.00.  Fair values were calculated    based on the discounted value of future cash flows expected to paid (or    received), considering current discount rates that reflect the different    risks involved. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Other currencies” includes    the €, Brazilian real, the Colombian pesos and Peruvian soles among others.                                                                                                                                                                                                     |
| (3) | “Other instruments” include    cash, time deposits and short-term accounts receivables (see Note 29 to    financial statements.)                                                                                                                                                                                    |

| **Item 12.** | **Description of Securities Other than Equity Securities** |
|--------------|------------------------------------------------------------|

| **A.** | **Debt Securities.**            |
|--------|---------------------------------|
|   |                            |
|   | Not    applicable.              |
|   |                            |
| **B.** | **Warrants and Rights.**        |
|   |                            |
|   | Not    applicable.              |
|   |                            |
| **C.** | **Other Securities.**           |
|   |                            |
|   | Not    applicable.              |
|   |                            |
| **D.** | **American Depositary Shares.** |
|   |                            |
|   | Not    applicable.              |

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| **Item 13.** | **Defaults, Dividend Arrearages and Delinquencies** |
|--------------|-----------------------------------------------------|

| **Item 14.** | **Material Modifications to the Rights of Security Holders and Use of    Proceeds** |
|--------------|-------------------------------------------------------------------------------------|

| **E.** | **Use of proceeds.** |
|--------|----------------------|
|   |                 |
|   | Not    applicable.   |

| **Item 15.** | **Controls and Procedures** |
|--------------|-----------------------------|

| **Item 16.** | **[Reserved]** |
|--------------|----------------|

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| **Item 17.** | **Financial Statements** |
|--------------|--------------------------|

| **Item 18.** | **Financial Statements** |
|--------------|--------------------------|

|  Index        to Financial Statements                                                                                            | **Page**        |
|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
| ENERSIS S.A.        and Subsidiaries—Audited Consolidated Financial Statements                                                   |            |
|                                                                                                                                       |            |
| Report        of Independent Accountants                                                                                                   |                 |
| Audit        Report of Deloitte & Touche – Enersis 2002                                                                           | F-2   |
| Audit        Report of Ernst & Young Ltda. – Endesa-Chile 2002                                                                    | F-4   |
| Audit        Report of Deloitte & Touche – Endesa Colombia S.A. 2002                                                              | F-6   |
| Audit        Report of Deloitte & Touche – Endesa Argentina S.A.  2002                                                       | F-7   |
| Audit        Report of Pistrelli, Henry Martin y Asociados S.R.L. (Member Firm of Ernst        & Young Global) – Edesur S.A. 2002 | F-9   |
| Audit        Report of Deloitte & Touche – Cachoeira Dourada 2002                                                                 | F-10            |
| Audit        Report of Deloitte & Touche – CIEN 2002                                                                              | F-12            |
|                                                                                                                                       |            |
| Audit        Report of Deloitte & Touche – Endesa – Chile 2001                                                               | F-14            |
| Audit        Report of Arthur Andersen Langton Clarke – Enersis S.A. 2001                                                             | F-16            |
| Audit        Report of Arthur Andersen – Endesa Argentina S.A. 2001                                                                   | F-18            |
| Audit        Report of Arthur Andersen – Endesa Colombia S.A. 2001                                                                    | F-20            |
|                                                                                                                                       |            |
| Consolidated        Balance Sheets as of December 31, 2001 and 2002                                                                        | F-21            |
| Consolidated        Statements of Income for the years ended December 31, 2000, 2001 and 2002                                              | F-23            |
| Consolidated        Statements of Changes in Shareholders’ Equity for the years ended        December 31, 2000, 2001 and 2002    | F-24            |
| Consolidated        Statements of Cash Flows for the years ended December 31, 2000, 2001 and        2002                                   | F-25            |
| Notes        to the Consolidated Financial Statements                                                                                      | F-27            |

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|                                                                                                                            | **Page** |
|---------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                            |          |
| **Report of Independent Accountants:**                                                                                          |     |
| Audit Report of Deloitte & Touche –    Enersis 2002                                                                    | F-2      |
| Audit Report of Ernst & Young Ltda. -    Endesa-Chile 2002                                                                  | F-4      |
| Audit Report of Deloitte & Touche -    Endesa Colombia S.A. 2002                                                            | F-6      |
| Audit Report of Deloitte & Touche -    Endesa Argentina S.A. 2002                                                           | F-7      |
| Audit Report of Pistrelli, Henry Martin y    Asociados S.R.L. (Member Firm of Ernst & Young Global) – Edesur S.A. 2002 | F-9      |
| Audit Report of Deloitte & Touche –    Cachoeira Dourada 2002                                                          | F-10     |
| Audit Report of Deloitte & Touche –    CIEN 2002                                                                       | F-12     |
|                                                                                                                            |     |
| Audit Report of Deloitte & Touche –    Endesa Chile 2001                                                               | F-14     |
| Audit Report of Arthur Andersen Langton    Clarke – Enersis S.A. 2001                                                      | F-16     |
| Audit Report of Arthur Andersen  - Endesa Argentina S.A. 2001                                                              | F-18     |
| Audit Report of Arthur Andersen – Endesa    Colombia  2001                                                            | F-20     |
|                                                                                                                            |     |
| **Consolidated Financial    Statements:**                                                                                       |     |
| Consolidated Balance Sheets as of December    31, 2001 and 2002                                                                 | F-21     |
| Consolidated Statements of Income for the    years ended December 31, 2000, 2001 and 2002                                       | F-23     |
| Consolidated Statements of Changes in    Shareholders’ Equity for the years ended December 31, 2000, 2001 and    2002 | F-24     |
| Consolidated Statements of Cash Flows for    the years ended December 31, 2000, 2001 and 2002                                   | F-25     |
| Notes to the Consolidated Financial    Statements                                                                               | F-27     |

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| Deloitte & Touche    Sociedad de Auditores y Consultores Limitada    Av. Providencia 1760, Pisos 6°, 7°, 8° y 9° |   |                         |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
| Santiago    Chile                                                                                                                        |   |                         |
| Tel : (56-2) 270 3000    Fax: (56-2) 374 9177    www.deloitte.cl                                                                    |   | **Deloitte    & Touche** |

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| Deloitte    & Touche                                                      |   |
|-------------------------------------------------------------------------------|--------|
| Santiago,    Chile                                                            |   |
| January 31,    2003                                                           |   |
| (except for    Notes 2(a), 2(c) and 34 for which the dates are June 16, 2003) |   |

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| **[LOGO OF ERNST & YOUNG]** | Huérfanos     | Teléfono :                                       | (56-2) 676    1000 |
|---------------------------------|--------------------|------------------------------------------------------------|--------------------|
|                            | Santiago,    Chile | Fax         : | (56-2) 676    1010 |
|                            |               | Casilla    :                           | 2823               |

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| **[LOGO OF ERNST & YOUNG]** |
|---------------------------------|

| ERNST &    YOUNG LTDA.                                           |   |
|----------------------------------------------------------------------|--------|
|                                                                 |   |
| /s/  Ernst & Young LTDA.                                    |   |
| Santiago,    Chile                                                   |   |
| January 24,    2003                                                  |   |
| (except for    Notes 32 and 34 for which the dates are June 12,2003) |   |

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| Colombia                                                    |   |                         |
|-------------------------------------------------------------|--------|------------------------------|
| Tel  : 57 1 546 1810    Fax  : 57 1 217 2088 |   |                         |
| www.deloitte.com.co                                         |   | **Deloitte    & Touche** |

| Carlos    Eduardo Tovar                    |                       |
|--------------------------------------------|----------------------------|
| /s/ Carlos    Eduardo Tovar                | /s/ Deloitte Colombia LTDA |
| January 17,    2003, Bogotá, Colombia | DELOITTE    COLOMBIA LTDA. |

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| Florida 231 Piso 5    Buenos Aires-Argentina |   |                         |
|----------------------------------------------|--------|------------------------------|
| www.deloitte.com.ar                          |   | **Deloitte    & Touche** |

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| **DELOITTE & Co. S.R.L.**                    |   |
|--------------------------------------------------|--------|
|                                             |   |
| /s/    Carlos    A. Lloveras |   |
| **CARLOS A. LLOVERAS**                           |   |
| **(Partner)**                                    |   |

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| **[LOGO OF ERNST & YOUNG]** | Pistrell,    Henry Martin Asociados SRL | Tel:    (5411)4318-1600/4311-6644 |
|---------------------------------|-----------------------------------------|-----------------------------------|
|                            | 25 de Mayo    487 -C 1002ABI            | Fax:    (5411)4312-8647/4318-1777 |
|                            | Buenos    Aires, Argentina              | www.????                          |

| Buenos    Aires, Argentina | PISTRELLI HENRY MARTIN Y ASOCIADOS S.R.L  |
|----------------------------|-------------------------------------------|
| February 7, 2003           | (Member Firm of Ernst & Young Global) |
|                       | /s/   Enrique    C. Grotz  |
|                       | ENRIQUE C. GROTZ                          |
|                       | Partner                                   |

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| Deloitte Touche TohmatsuAv. Presidente Wilson 231Rio De JaneiroBrasilTelefono (21) 3981 - 0500www.deloitte.com.br |   | **DeloitteToucheTohmatsu** |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------|

| 1.     | We have    audited the balance sheets of Centrais Elétricas Cachoeira Dourada S.A. as of    December 31, 2002 and 2001, and the related statements of income and cash    flows for the years then ended, as expressed in United States dollars. These    financial statements are the responsibility of the Company’s management. Our    responsibility is to express an opinion on these financial statements based    on our audits.                                                                                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.     | We conducted    our audits in accordance with generally accepted auditing standards. Those    standards require that we plan and perform the audit to obtain reasonable    assurance about whether the financial statements are free of material    misstatement. An audit includes examining, on a test basis, evidence supporting    the amounts and disclosures in the financial statements. An audit also    includes assessing the accounting principles used and significant estimates    made by management, as well as evaluating the overall financial statement    presentation. We believe that our audits provide a reasonable basis for our    opinion.                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.     | In our    opinion, the financial statements referred to above present fairly, in all    material respects, the financial position of Centrais Elétricas Cachoeira    Dourada S.A. as of December 31, 2002 and 2001, and the results of its    operations and its cash flows for the years then ended, in conformity with    generally accepted accounting principles and rules of Superintendencia de    Valores y Seguros of Chile, according to the information included in the instructions    and requirements of Endesa Chile Group, for purposes of consolidation.                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.     | As of    December 31, 2002, the Company has recorded, as current and non-current    assets, accounts receivable in the amount of US$14,348 thousand and, as    current liabilities, accounts payable in the amount of US$14,921 thousand,    related to energy sale and purchase transactions in the Electric Energy    Wholesale Market – MAE, based on calculations prepared and released by the    MAE and/or based on estimates prepared by the Company’s management. Such    amounts may be subject to changes depending on decisions on judicial lawsuits    in progress, filed by sector companies, relating to interpretations of market    regulations in force. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 5.     | The balance    sheet as of December 31, 2002 and the related statements of income and cash    flows for the year then ended are also presented in Chilean Pesos (CLP$)    translated at year-end exchange rates of R$3.5333 = US$1.00 = CLP$718.61,    solely for information purposes.                                                                                                                                                                                                                                                                                                                                                                                             |

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| 6. | The    accounting practices of the Company used in preparing the accompanying    financial statements conform with accounting practices adopted in Chile,    according to the information included in the instructions and requirements of    EndesaChile Group for purposes of consolidation, which vary in certain    respects from accounting principles generally accepted in the United States    of America (US GAAP). The application of the accounting principles generally    accepted in the United States of America would have affected the results of    operations for the years ended December 31, 2002 and 2001 and the    shareholders’ equity of Centrais Electricas Cachoeira Dourada S.A. as of    December 31, 2002 and 2001, to the extent summarized in Note 22 to the    financial statements. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/    Deloitte    Touche Tohmatsu |   |
|--------------------------------------------------------|--------|
|                                                   |   |
| January 17,    2003                                    |   |

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| Deloitte Touche TohmatsuAv. Presidente Wilson 231Rio De JaneiroBrasilTelefone: 21 3981-0500www.deloitte.com.br |   | **DeloitteToucheTohmatsu** |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------|

| 1.     | We have    audited the balance sheet of CIEN – Companhia de Interconexão Energética as    of December 31, 2002, and the related statements of income and cash flows for    the year then ended, as expressed in United States dollars. These financial    statements are the responsibility of the Company’s management. Our    responsibility is to express an opinion on these financial statements based    on our audit.                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.     | We conducted    our audit in accordance with generally accepted auditing standards. Those    standards require that we plan and perform the audit to obtain reasonable    assurance about whether the financial statements are free of material    misstatement. An audit includes examining, on a test basis, evidence    supporting the amounts and disclosures in the financial statements. An audit    also includes assessing the accounting principles used and significant    estimates made by management, as well as evaluating the overall financial    statement presentation. We believe that our audit provides a reasonable basis    for our opinion. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.     | In our    opinion, the financial statements referred to above present fairly, in all    material respects, the financial position of CIEN – Companhia de Interconexão    Energética as of December 31, 2002, and the results of its operations and its    cash flows for the year then ended, in conformity with generally accepted    accounting principles and rules of Superintendencia de Valores y Seguros of    Chile, according to the information included in the instructions and    requirements of Endesa Chile Group, for purposes of consolidation.                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.     | As of    December 31, 2002, the Company has recorded, as current assets, accounts    receivable in the amount of US$11,928 thousand and, as current liabilities,    accounts payable in the amount of US$15,185 thousand, related to energy sale    and purchase transactions in the Electric Energy Wholesale Market – MAE,    based on calculations prepared and released by the MAE and/or based on    estimates prepared by the Company’s management. Such amounts may be subject    to changes depending on decisions on judicial lawsuits in progress, filed by    sector companies, relating to interpretations of market regulations in force.    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 5.     | The balance    sheet as of December 31, 2002 and the related statements of income and cash    flows for the year then ended are also presented in Chilean Pesos (CLP$)    translated at year-end exchange rates of R$3.5333 = US$1.00 = CLP$718.61,    solely for information purposes.                                                                                                                                                                                                                                                                                                                                                                             |

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| 6. | The    accounting practices of the Company used in preparing the accompanying    financial statements conform with accounting practices adopted in Chile,    according to the information included in the instructions and requirements of    Endesa Chile Group for purposes of consolidation, which vary in certain    respects from accounting principles generally accepted in the United States    of America (US GAAP). The application of the accounting principles generally    accepted in the United States of America would have affected the results of    operations for the year ended December 31, 2002 and the shareholders’ equity    of CIEN – Companhia de Interconexão Energética as of December 31, 2002, to    the extent summarized in Note 24 to the financial statements. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/    Deloitte    Touche Tohmatsu |   |
|--------------------------------------------------------|--------|
|                                                   |   |
| January 17,    2003                                    |   |

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| Av. Providencia 1760, Pisos 6,7,8 y 9    Santiago    Chile    Tel: (56-2) 270 3000    Fax: (56-2) 374 9177    www.deloitte.cl |   | **Deloitte & Touche** |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|

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| /s/    Deloitte    & Touche |   |
|-----------------------------------------------------|--------|
|                                                |   |
| Santiago,    Chile                                  |   |
| February 1,    2002                                 |   |

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| **Langton    Clarke**                                  | Huerfanos    770, Piso 5 | Teléfono      | (56 2) 676    1000 |
|--------------------------------------------------------|--------------------------|--------------------|--------------------|
| Santiago -    Chile                                    | Fax                      | (56 2) 676    1010 |
| Langton    Clarke Auditores y Consultores     Limitada |                     |               |               |
|                                                   |                     |               |               |
| Firma    miembro de                                    |                     |               |               |
| Andersen    Worldwide SC                               |                     |               |               |

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| /s/   Langton    Clarke                                                           |   |
|--------------------------------------------------------------------------------------------------|--------|
|                                                                                             |   |
| **LANGTON CLARKE**                                                                               |   |
|                                                                                             |   |
| Santiago    (Chile)                                                                              |   |
| February 26,    2002                                                                             |   |
| (except for    Notes 2  (a), 2 (c), 27, 31 and 33 for    which the dates are June 25, 2002) |   |

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|   |   | **ANDERSEN**                     |
|--------|--------|----------------------------------|
|   |   |                             |
|   |   | Pistrelli,    Diaz y Asociados   |
|   |   | Firma    Miembro de Andersen     |
|   |   | 25 de Mayo    487                |
|   |   | 1002 Buenos    Aires             |
|   |   | Argentina                        |
|   |   |                             |
|   |   | Tel 54 11    4318 1800 4311 8644 |
|   |   | Fax 5411    4312 8647 4318 1777  |

| 1.     | We have    audited the consolidated balance sheets of ENDESA ARGENTINA S.A. (the    “Company”) and its subsidiaries ENDESA BRASIL PARTICIPAÇOES LTD.,    HIDROELECTRICA EL CHOCON S.A., HIDROINVEST S.A. and CENTRAL COSTANERA S.A. as    of December 31, 2001 and 2000, and the related consolidated statements of    income and cash flows for the years then ended, not presented separately    herein, all expressed in thousands of constant Chilean pesos. Those financial    statements are the responsibility of the Company’s Management. Our    responsibility is to express an opinion on those financial statements based    on our audits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 2.     | We conducted    our audits in accordance with generally accepted auditing standards in the    United States of America.  Those    standards require that we plan and perform the audit to obtain reasonable    assurance about whether the financial statements are free of material    misstatement. An audit includes examining, on a test basis, evidence    supporting the amounts and disclosures in the financial statements. An audit    also includes assessing the accounting principles used and significant    estimates made by the Management, as well as evaluating the overall financial    statement presentation. We believe that our audits provide a reasonable basis    for our opinion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.     | As described    in note 38 to the financial statements referred to above (not presented    separately herein), in the last few months, a deep change has been    implemented in the economic framework of Argentina as well as in the    Convertibility Law that was in place since March 1991. The main consequences    of the set of measures adopted by the Argentine Federal Government, which are    detailed in the above mentioned note, have been (a) the devaluation of the    Argentine peso with respect to the US dollar and de-dollarization of certain    assets and liabilities in foreign currency held in the country; (b)    de-dollarization of utilities rates previously agreed-upon in US dollars and    subsequent renegotiation in each particular case; (c) the implementation of    restrictions on the withdrawal of funds deposited with financial    institutions; (d) the restriction on transfers abroad on account of financial    loan principal service and dividenddistributions without prior authorization    from the Central Bank; and (e) the increase in domestic prices. The future    development of the economic crisis may require further measures from the    Argentine Federal Government. The above mentioned financial statements,    should be read taking into account the issues mentioned above. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.     | In our    opinion, the consolidated financial statements referred to above (not    presented separately herein) present fairly, in all material respects, the    financial position of ENDESA ARGENTINA S.A. and its subsidiaries ENDESA    BRASIL PARTICIPAÇOES LTD., HIDROELECTRICA EL CHOCON S.A., HIDROINVEST S.A.    and CENTRAL COSTANERA S.A. as of December 31, 2001 and 2000, and the results    of their operations and their cash flows for the year then ended, in conformity    with generally accepted accounting principles in Chile.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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| 5.     | As described    in note 15 to the financial statements referred to above (not presented    separately herein), as of the date of issuance thereof, HIDROELECTRICA EL    CHOCON S.A. has been unable to repay yet past-due corporate bonds amounting    to about USD 140 million. In addition, as mentioned in Note 28.2 to the above    mentioned financial statements, as of December 31, 2001, CENTRAL COSTANERA    S.A. does not meet a financial ratio required by the syndicated bank loan    agreement, recorded under current liabilities in the amount of about CLP    62,240 million. Considering that this represents a breach of contractual    provisions for this loan and for other loans with cross-default clauses, the    lenders are entitled to demand accelerated repayment. As of December 31, 2001    HIDROELECTRICA EL CHOCON S.A., HIDROINVEST S.A. and CENTRAL COSTANERA S.A.    have negative working capital, which creates substantial doubt, among others,    on the abilityto pay their obligations. In addition, due to the negative    exchange rate difference derived from devaluation mentioned in note 38 to the    above mentioned financial statements, ENDESA ARGENTINA S.A. and CENTRAL    COSTANERA S.A. could enter into the mandatory dissolution for loss of capital    stock, as provided for by the Business Associations Law No. 19,550, which    creates substantial doubt, among others, on the continuity of the operations    of these Companies. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | The    continuity of the operations of ENDESA ARGENTINA S.A., HIDROELECTRICA EL    CHOCON S.A., HIDROINVEST S.A., and CENTRAL COSTANERA S.A. will depend on    their ability to pay their obligations and the ability of ENDESA ARGENTINA    S.A. and CENTRAL COSTANERA S.A. to restore its capital stock. The financial    statements referred to above have been prepared assuming that ENDESA    ARGENTINA S.A., HIDROELECTRICA EL CHOCON S.A., HIDROINVEST S.A. and CENTRAL    COSTANERA S.A. will continue as going concerns; therefore, the financial    statements referred to above do not include any adjustments that might result    from the outcome of these uncertainties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| Buenos    Aires, | PISTRELLI, DIAZ Y ASOCIADOS                  |
|------------------|----------------------------------------------|
| March 8, 2002    |                                         |
|             | /s/   Ezequiel    A. Calciati |
|             | EZEQUIEL A. CALCIATI                         |
|             | Partner                                      |

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|                                                                                                   |   | **LOGO OF ARTHUR ANDERSEN**            |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                                                                   |   |                                   |
| **Report of independent Accountants**                                                                  |   | **Arthur Andersen y Cía.Ltda**    |
|                                                                                                   |   |                                   |
|                                                                                                   |   | Carrera 7    No. 74. 09                |
|                                                                                                   |   | Apartado    Aéreo 075874          |
| **(Translation of a report originally issued in Spanish**-**(see Note 2 to the Financial Statements)** |   | Bogota D.C.                            |
|                                                                                                   |   | Colombia                               |
|                                                                                                   |   |                                   |
|                                                                                                   |   | Tel 57 1 546    18 10 • ?48 18 15 |
|                                                                                                   |   | Fax 57 1 2    17 80 58 314 56 56       |

| /s/ CÉSAR CHENG                       | /s/  ARTHUR ANDERSEN & CIA LTDA. |
|--------------------------------------------|------------------------------------------------|
| César Cheng                           | ARTHUR    ANDERSEN & CIA LTDA.             |
| January 18,    2002, Bogotá, Colombia |                                           |

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|                                  |   |     |   | **As of December 31,** |           |
|---------------------------------------|--------|----------|--------|------------------------|----------------|
|                                  |   |     |   |                        |           |
|                                  |   | **Note** |   | **2001**               |           | **2002** |   | **2002** |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
|                                  |   |     |   | **ThCh$**              |           | **ThCh$** |   | **ThUS$** |   |
| **ASSETS**                            |   |     |   |                   |           |   |   |   |   | **(Note 2****)** |   |
|                                  |   |     |   |                   |           |   |   |   |   |   |   |   |
| CURRENT    ASSETS:                    |   |     |   |                   |           |   |   |   |   |   |   |   |
| Cash                                  |   |     |   |                   | 37,648,796     |   |   | 48,184,878 |   |   | 67,053 |   |
| Time    deposits                      |   | 4        |   |                   | 178,113,234    |   |   | 145,626,894 |   |   | 202,651 |   |
| Marketable    securities              |   |     |   |                   | 203,072        |   |   | 1,543,290 |   |   | 2,148 |   |
| Accounts    receivable, net           |   | 5        |   |                   | 550,248,992    |   |   | 458,839,724 |   |   | 638,510 |   |
| Notes    receivable, net              |   | 5        |   |                   | 5,683,330      |   |   | 5,131,349 |   |   | 7,141 |   |
| Other    accounts receivable, net     |   | 5        |   |                   | 72,220,719     |   |   | 62,776,096 |   |   | 87,358 |   |
| Amounts due    from related companies |   | 6a       |   |                   | 18,019,578     |   |   | 195,398,835 |   |   | 271,912 |   |
| Inventories                           |   | 7        |   |                   | 77,424,074     |   |   | 60,382,653 |   |   | 84,027 |   |
| Income taxes    recoverable           |   | 8a       |   |                   | 57,510,102     |   |   | 54,435,976 |   |   | 75,752 |   |
| Deferred    income taxes              |   | 8e       |   |                   | 24,162,101     |   |   | 51,955,793 |   |   | 72,300 |   |
| Prepaid    expenses                   |   |     |   |                   | 13,971,567     |   |   | 7,666,018 |   |   | 10,668 |   |
| Other    current assets               |   | 9        |   |                   | 127,241,229    |   |   | 132,021,608 |   |   | 183,718 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
| Total    current assets               |   |     |   |                   | 1,162,446,794  |   |   | 1,223,963,114 |   |   | 1,703,238 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
| PROPERTY,    PLANT AND EQUIPMENT, NET |   | 10       |   |                   | 9,625,049,659  |   |   | 9,879,458,183 |   |   | 13,748,011 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
| OTHER    ASSETS:                      |   |     |   |                   |           |   |   |   |   |   |   |   |
| Investments    in related companies   |   | 11       |   |                   | 167,448,008    |   |   | 194,164,157 |   |   | 270,194 |   |
| Investments    in other companies     |   | 12       |   |                   | 149,560,997    |   |   | 159,466,794 |   |   | 221,910 |   |
| Long-term    receivables              |   | 5        |   |                   | 101,903,562    |   |   | 125,850,513 |   |   | 175,130 |   |
| Goodwill,    net                      |   | 13a      |   |                   | 1,318,832,593  |   |   | 847,513,499 |   |   | 1,179,379 |   |
| Negative    goodwill, net             |   | 13b      |   |                   | (181,194,560   | ) |   | (95,172,950 | ) |   | (132,440 | ) |
| Amounts due    from related companies |   | 6a       |   |                   | 170,667,792    |   |   | 898,167 |   |   | 1,250 |   |
| Intangibles                           |   |     |   |                   | 71,697,080     |   |   | 80,915,893 |   |   | 112,601 |   |
| Accumulated    amortization           |   |     |   |                   | (25,148,069    | ) |   | (34,648,290 | ) |   | (48,216 | ) |
| Other assets                          |   | 14       |   |                   | 198,535,455    |   |   | 238,755,596 |   |   | 332,246 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
| Total other    assets                 |   |     |   |                   | 1,972,302,858  |   |   | 1,517,743,379 |   |   | 2,112,054 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |
| TOTAL ASSETS                          |   |     |   |                   | 12,759,799,311 |   |   | 12,621,164,676 |   |   | 17,563,303 |   |
|                                  |   |     |   |                        |                |   |  |  |   |  |  |   |

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|                                                                         |   |     |   | **As of December 31,** |           |
|------------------------------------------------------------------------------|--------|----------|--------|------------------------|----------------|
|                                                                         |   |     |   |                        |           |
|                                                                         |   | **Note** |   | **2001**               |           | **2002** |   | **2002** |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
|                                                                         |   |     |   | **ThCh$**              |           | **ThCh$** |   | **ThCh$** |   |
| **LIABILITIES AND SHAREHOLDERS’ EQUITY**                                |   |     |   |                   |           |   |   |   |   |   | **(Note 2****)** |   |
| CURRENT    LIABILITIES:                                                      |   |     |   |                   |           |   |   |   |   |   |   |   |
| Short-term    debt due to banks and financial institutions                   |   | 15a      |   |                   | 301,010,064    |   |   | 425,049,260 |   |   | 591,488 |   |
| Current    portion of long-term debt due to banks and financial institutions |   | 15b      |   |                   | 425,536,729    |   |   | 605,261,953 |   |   | 842,268 |   |
| Promissory    notes                                                          |   | 18       |   |                   | 54,630,248     |   |   | 13,189,514 |   |   | 18,354 |   |
| Current    portion of bonds payable                                          |   | 19a      |   |                   | 62,848,322     |   |   | 498,501,344 |   |   | 693,702 |   |
| Current    portion of long-term notes payable                                |   |     |   |                   | 26,580,340     |   |   | 41,628,914 |   |   | 57,930 |   |
| Dividends    payable                                                         |   |     |   |                   | 7,008,951      |   |   | 14,554,203 |   |   | 20,253 |   |
| Accounts    payable                                                          |   |     |   |                   | 258,955,300    |   |   | 222,075,984 |   |   | 309,036 |   |
| Short-term    notes payable                                                  |   |     |   |                   | 45,429,070     |   |   | 4,833,074 |   |   | 6,726 |   |
| Miscellaneous    payables                                                    |   |     |   |                   | 53,324,443     |   |   | 73,417,551 |   |   | 102,166 |   |
| Amounts    payable to related companies                                      |   | 6b       |   |                   | 31,120,649     |   |   | 16,285,712 |   |   | 22,663 |   |
| Accrued    expenses                                                          |   | 20a      |   |                   | 79,920,329     |   |   | 84,930,321 |   |   | 118,187 |   |
| Withholdings                                                                 |   |     |   |                   | 53,957,592     |   |   | 55,485,759 |   |   | 77,213 |   |
| Income taxes    payable                                                      |   | 8a       |   |                   | 77,283,022     |   |   | 27,532,029 |   |   | 38,313 |   |
| Deferred    income                                                           |   |     |   |                   | 11,314,564     |   |   | 9,085,674 |   |   | 12,643 |   |
| Other    current liabilities                                                 |   | 17       |   |                   | 150,383,758    |   |   | 59,541,957 |   |   | 82,857 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| Total    current liabilities                                                 |   |     |   |                   | 1,639,303,381  |   |   | 2,151,373,249 |   |   | 2,993,799 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| LONG-TERM    LIABILITIES:                                                    |   |     |   |                   |           |   |   |   |   |   |   |   |
| Due to banks    and financial institutions                                   |   | 16       |   |                   | 1,971,249,920  |   |   | 1,691,338,670 |   |   | 2,353,625 |   |
| Bonds    payable                                                             |   | 19b      |   |                   | 2,271,468,659  |   |   | 2,097,845,568 |   |   | 2,919,310 |   |
| Long-term    notes payable                                                   |   |     |   |                   | 215,513,230    |   |   | 220,886,690 |   |   | 307,381 |   |
| Accounts    payable                                                          |   |     |   |                   | 34,746,948     |   |   | 22,606,529 |   |   | 31,459 |   |
| Amounts    payable to related companies                                      |   | 6b       |   |                   | 1,001,707,159  |   |   | 988,291,605 |   |   | 1,375,282 |   |
| Accrued    expenses                                                          |   | 20b      |   |                   | 234,388,938    |   |   | 226,922,617 |   |   | 315,780 |   |
| Deferred    income taxes                                                     |   | 8e       |   |                   | 36,059,964     |   |   | 61,740,871 |   |   | 85,917 |   |
| Other    long-term liabilities                                               |   |     |   |                   | 67,228,005     |   |   | 103,975,862 |   |   | 144,690 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| Total    long-term liabilities                                               |   |     |   |                   | 5,832,362,823  |   |   | 5,413,608,412 |   |   | 7,533,444 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| MINORITY    INTEREST                                                         |   | 21a      |   |                   | 4,073,571,128  |   |   | 4,050,602,721 |   |   | 5,636,719 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| COMMITMENTS    AND CONTINGENCIES                                             |   | 28       |   |                   |           |   |   |   |   |   |   |   |
| SHAREHOLDERS’    EQUITY:                                                |   |     |   |                   |           |   |   |   |   |   |   |   |
| Paid-in    capital, no par value                                             |   |     |   |                   | 751,208,197    |   |   | 751,208,197 |   |   | 1,045,363 |   |
| Additional    paid-in capital – share premium                           |   |     |   |                   | 33,370,057     |   |   | 33,370,057 |   |   | 46,437 |   |
| Other    reserves                                                            |   |     |   |                   | 27,176,075     |   |   | 41,942,477 |   |   | 58,366 |   |
| Retained    earnings                                                         |   |     |   |                   | 360,653,617    |   |   | 402,807,650 |   |   | 560,537 |   |
| Net income    (loss) for the year                                            |   |     |   |                   | 42,154,033     |   |   | (223,748,087 | ) |   | (311,362 | ) |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| Total    shareholders’ equity                                           |   |     |   |                   | 1,214,561,979  |   |   | 1,005,580,294 |   |   | 1,399,341 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |
| TOTAL    LIABILITIES AND SHAREHOLDERS’ EQUITY                           |   |     |   |                   | 12,759,799,311 |   |   | 12,621,164,676 |   |   | 17,563,303 |   |
|                                                                         |   |     |   |                        |                |   |  |  |   |  |  |   |

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|                                          |   |     |   | **Years    ended December 31,** |           |
|-----------------------------------------------|--------|----------|--------|---------------------------------|----------------|
|                                          |   |     |   |                                 |           |
|                                          |   | **Note** |   | **2000**                        |           | **2001** |   | **2002** |   | **2002** |   |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
|                                          |   |     |   | **ThCh$**                       |           | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
|                                          |   |     |   |                            |           |   |   |   |   |   |   |   |   | **(Note 2****)** |   |
| OPERATING    INCOME:                          |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| SALES                                         |   |     |   |                            | 2,757,047,098  |   |   | 3,059,380,761 |   |   | 2,485,873,220 |   |   | 3,459,280 |   |
| COST OF    SALES                              |   |     |   |                            | (1,895,035,057 | ) |   | (2,025,312,072 | ) |   | (1,730,050,356 | ) |   | (2,407,496 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| GROSS PROFIT                                  |   |     |   |                            | 862,012,041    |   |   | 1,034,068,689 |   |   | 755,822,864 |   |   | 1,051,784 |   |
| ADMINISTRATIVE    AND SELLING EXPENSES        |   |     |   |                            | (309,262,420   | ) |   | (279,524,922 | ) |   | (223,178,503 | ) |   | (310,570 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| OPERATING    INCOME                           |   |     |   |                            | 552,749,621    |   |   | 754,543,767 |   |   | 532,644,361 |   |   | 741,214 |   |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| NON-OPERATING    INCOME AND EXPENSE:          |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| Interest    income                            |   |     |   |                            | 74,161,853     |   |   | 56,592,832 |   |   | 85,284,624 |   |   | 118,680 |   |
| Equity in    income of related companies      |   | 11b      |   |                            | 4,547,446      |   |   | 3,629,292 |   |   | 14,996,244 |   |   | 20,868 |   |
| Other    non-operating income                 |   | 23a      |   |                            | 463,501,342    |   |   | 194,693,581 |   |   | 308,143,887 |   |   | 428,805 |   |
| Equity in    losses of related companies      |   | 11b      |   |                            | (4,470,693     | ) |   | (14,328,089 | ) |   | (6,732,461 | ) |   | (9,369 | ) |
| Amortization    of goodwill                   |   | 13a      |   |                            | (71,713,807    | ) |   | (80,576,348 | ) |   | (506,344,171 | ) |   | (704,616 | ) |
| Interest    expense                           |   |     |   |                            | (500,043,818   | ) |   | (452,801,275 | ) |   | (439,536,318 | ) |   | (611,646 | ) |
| Other    non-operating expenses               |   | 23b      |   |                            | (118,890,049   | ) |   | (183,929,244 | ) |   | (241,196,604 | ) |   | (335,643 | ) |
| Price-level    restatement, net               |   | 24       |   |                            | (15,251,993    | ) |   | 2,175,075 |   |   | 4,964,890 |   |   | 6,909 |   |
| Exchange    difference, net                   |   | 25       |   |                            | (1,251,722     | ) |   | (30,542,651 | ) |   | (16,110,247 | ) |   | (22,419 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| NON-OPERATING    EXPENSE, NET                 |   |     |   |                            | (169,411,441   | ) |   | (505,086,827 | ) |   | (796,530,156 | ) |   | (1,108,431 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| INCOME    (LOSS) BEFORE INCOME TAXES          |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| EXTRAORDINARY  ITEMS, MINORITY INTEREST  |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| AND    AMORTIZATION OF NEGATIVE GOODWILL      |   |     |   |                            | 383,338,180    |   |   | 249,456,940 |   |   | (263,885,795 | ) |   | (367,217 | ) |
| INCOME TAXES                                  |   | 8f       |   |                            | (146,323,505   | ) |   | (129,850,137 | ) |   | (66,016,985 | ) |   | (91,868 | ) |
| EXTRAORDINARY    ITEMS                        |   | 26       |   |                            | —         |   |   | — |   |   | (22,375,640 | ) |   | (31,137 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| INCOME    (LOSS) BEFORE MINORITY INTEREST AND |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| AMORTIZATION    OF NEGATIVE GOODWILL          |   |     |   |                            | 237,014,675    |   |   | 119,606,803 |   |   | (352,278,420 | ) |   | (490,222 | ) |
| MINORITY    INTEREST                          |   | 21b      |   |                            | (184,000,228   | ) |   | (125,152,619 | ) |   | 16,282,559 |   |   | 22,658 |   |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| INCOME    BEFORE AMORTIZATION OF NEGATIVE     |   |     |   |                            |           |   |   |   |   |   |   |   |   |   |   |
| GOODWILL                                      |   |     |   |                            | 53,014,447     |   |   | (5,545,816 | ) |   | (335,995,861 | ) |   | (467,564 | ) |
| AMORTIZATION    OF NEGATIVE GOODWILL          |   | 13b      |   |                            | 42,646,957     |   |   | 47,699,849 |   |   | 112,247,774 |   |   | 156,202 |   |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |
| NET INCOME    (LOSS) FOR THE YEAR             |   |     |   |                            | 95,661,404     |   |   | 42,154,033 |   |   | (223,748,087 | ) |   | (311,362 | ) |
|                                          |   |     |   |                                 |                |   |  |  |   |  |  |   |  |  |   |

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|                                                  |   | **Number    of shares** |               | **Paid-in    capital** |   | **Additional    paid-in    capital** |   | **Other    reserves** |       | **Retained    earnings** |   | **Net income    (loss) for    the year** |   | **Total** |         |
|-------------------------------------------------------|--------|-------------------------|--------------------|------------------------|--------|--------------------------------------|--------|-----------------------|------------|--------------------------|--------|------------------------------------------|--------|-----------|--------------|
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
|                                                  |   |                    | **(in thousands)** |                   |   | **ThCh$**                            |   |                  | **ThCh$**  |                     |   | **ThCh$**                                |   |      | **ThCh$**    |   |   | **ThCh$** |   |   | **ThCh$** |   |
| As of January 1, 2000                                 |   |                    | 6,800,000          |                   |   | 398,624,586                          |   |                  | 24,184,786 |                     |   | 23,295,280                               |   |      | 330,716,485  |   |   | (78,158,729) |   |   | 698,662,408 |   |
| Transfer of prior year    income to retained earnings |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | (78,158,729) |   |   | 78,158,729 |   |   | — |   |
| Price-level restatement of    capital                 |   |                    | —             |                   |   | 22,015,443                           |   |                  | 1,203,739  |                     |   | 1,094,879                                |   |      | 11,870,214   |   |   | — |   |   | 36,184,275 |   |
| Changes in equity of    affiliates                    |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | (18,382,462)                             |   |      | —       |   |   | — |   |   | (18,382,462) |   |
| Cumulative translation    adjustment                  |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | 1,259,024                                |   |      | —       |   |   | — |   |   | 1,259,024 |   |
| Issuance of shares                                    |   |                    | 1,491,020          |                   |   | 286,758,950                          |   |                  | 6,035,445  |                     |   | —                                   |   |      | —       |   |   | — |   |   | 292,794,395 |   |
| Net income for the year                               |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | —       |   |   | 90,082,590 |   |   | 90,082,590 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of December 31, 2000                               |   |                    | 8,291,020          |                   |   | 707,398,979                          |   |                  | 31,423,970 |                     |   | 7,266,721                                |   |      | 264,427,970  |   |   | 90,082,590 |   |   | 1,100,600,230 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of December 31, 2000 (1)                           |   |                    | 8,291,020          |                   |   | 751,208,197                          |   |                  | 33,370,057 |                     |   | 7,716,749                                |   |      | 280,803,994  |   |   | 95,661,405 |   |   | 1,168,760,402 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of January 1, 2001                                 |   |                    | 8,291,020          |                   |   | 707,398,979                          |   |                  | 31,423,970 |                     |   | 7,266,721                                |   |      | 264,427,970  |   |   | 90,082,590 |   |   | 1,100,600,230 |   |
| Transfer of prior year    income to retained earnings |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | 90,082,590   |   |   | (90,082,590) |   |   | — |   |
| Dividends                                             |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | (14,976,824) |   |   | — |   |   | (14,976,824) |   |
| Price-level restatement of    capital                 |   |                    | —             |                   |   | 21,929,368                           |   |                  | 974,144    |                     |   | 225,268                                  |   |      | 10,615,407   |   |   | — |   |   | 33,744,187 |   |
| Cumulative translation    adjustment                  |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | 18,892,550                               |   |      | —       |   |   | — |   |   | 18,892,550 |   |
| Net income for the year                               |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | —       |   |   | 40,926,246 |   |   | 40,926,246 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of December 31, 2001                               |   |                    | 8,291,020          |                   |   | 729,328,347                          |   |                  | 32,398,114 |                     |   | 26,384,539                               |   |      | 350,149,143  |   |   | 40,926,246 |   |   | 1,179,186,389 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of December 31, 2001 (1)                           |   |                    | 8,291,020          |                   |   | 751,208,197                          |   |                  | 33,370,057 |                     |   | 27,176,075                               |   |      | 360,653,617  |   |   | 42,154,033 |   |   | 1,214,561,979 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of January 1, 2002                                 |   |                    | 8,291,020          |                   |   | 729,328,347                          |   |                  | 32,398,114 |                     |   | 26,384,539                               |   |      | 350,149,143  |   |   | 40,926,246 |   |   | 1,179,186,389 |   |
| Transfer of prior year    income to retained earnings |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | 40,926,246   |   |   | (40,926,246) |   |   | — |   |
| Price-level restatement of    capital                 |   |                    | —             |                   |   | 21,879,850                           |   |                  | 971,943    |                     |   | 791,536                                  |   |      | 11,732,261   |   |   | — |   |   | 35,375,590 |   |
| Cumulative translation    adjustment                  |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | 14,766,402                               |   |      | —       |   |   | — |   |   | 14,766,402 |   |
| Net loss for the year                                 |   |                    | —             |                   |   | —                               |   |                  | —     |                     |   | —                                   |   |      | —       |   |   | (223,748,087) |   |   | (223,748,087) |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |
| As of December 31, 2002                               |   |                    | 8,291,020          |                   |   | 751,208,197                          |   |                  | 33,370,057 |                     |   | 41,942,477                               |   |      | 402,807,650  |   |   | (223,748,087) |   |   | 1,005,580,294 |   |
|                                                  |   |                         |                    |                   |        |                                      |   |                       |            |                     |        |                                          |   |           |              |   |  |  |   |  |  |   |

| (1) | Restated in thousands of    constant Chilean pesos as of December 31, 2002. |
|-----|-----------------------------------------------------------------------------|

----

Back to Index

|                                                                                   |   | **Years ended December 31,** |         |
|----------------------------------------------------------------------------------------|--------|------------------------------|--------------|
|                                                                                   |   |                              |         |
|                                                                                   |   | **2000**                     |         | **2001** |   | **2002** |   | **2002** |   |
|                                                                                   |   |                              |              |   |  |  |   |  |  |   |  |  |   |
|                                                                                   |   | **ThCh$**                    |         | **ThCh$** |   | **ThCh$** |   | **ThUS$** |   |
|                                                                                   |   |                         |         |   |   |   |   |   |   |   | **(Note 2)** |   |
| CASH FLOWS    FROM OPERATING ACTIVITIES:                                               |   |                         |         |   |   |   |   |   |   |   |   |   |   |
| Net income    (loss) for the year                                                      |   |                         | 95,661,405   |   |   | 42,154,033 |   |   | (223,748,087 | ) |   | (311,362 | ) |
| GAIN        (LOSSES) FROM SALES OF ASSETS:                                             |   |                         |         |   |   |   |   |   |   |   |   |   |   |
| Gain        on sale of property, plant and equipment                                   |   |                         | (62,896,876  | ) |   | (5,734,441 | ) |   | (1,095,916 | ) |   | (1,525 | ) |
| Gain on sale    of investments                                                         |   |                         | (208,107,787 | ) |   | — |   |   | — |   |   | — |   |
| Charges    (credits) to income which do not represent cash flows:                      |   |                         |         |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                           |   |                         | 400,622,477  |   |   | 426,020,442 |   |   | 454,471,134 |   |   | 632,431 |   |
| Amortization of intangibles                                                            |   |                         | 34,072,887   |   |   | 8,031,971 |   |   | 10,389,287 |   |   | 14,457 |   |
| Write-offs and accrued expenses                                                        |   |                         | 94,139,743   |   |   | 83,298,120 |   |   | 55,938,311 |   |   | 77,842 |   |
| Equity        in income of related companies                                           |   |                         | (4,547,446   | ) |   | (3,629,292 | ) |   | (14,996,244 | ) |   | (20,868 | ) |
| Equity        in losses of related companies                                           |   |                         | 4,470,693    |   |   | 14,328,089 |   |   | 6,732,461 |   |   | 9,369 |   |
| Amortization of goodwill                                                               |   |                         | 71,713,807   |   |   | 80,576,348 |   |   | 506,344,171 |   |   | 704,616 |   |
| Amortization of negative goodwill                                                      |   |                         | (42,646,957  | ) |   | (47,699,849 | ) |   | (112,247,774 | ) |   | (156,201 | ) |
| Price-level restatement, net                                                           |   |                         | 15,251,993   |   |   | (2,175,075 | ) |   | (4,964,890 | ) |   | (6,909 | ) |
| Foreign currency translation, net                                                      |   |                         | 1,251,722    |   |   | 30,542,651 |   |   | 16,110,247 |   |   | 22,419 |   |
| Other credits to income which do not represent cash flows                              |   |                         | (49,576,106  | ) |   | (85,418,284 | ) |   | (229,054,815 | ) |   | (318,747 | ) |
| Other charges to income which do not represent cash flows                              |   |                         | 113,338,851  |   |   | 69,401,896 |   |   | 147,655,390 |   |   | 205,474 |   |
| Changes in    assets which affect cash flows:                                          |   |                         |         |   |   |   |   |   |   |   |   |   |   |
| Decrease in trade receivables                                                          |   |                         | (109,394,076 | ) |   | 119,961,261 |   |   | 55,973,106 |   |   | 77,891 |   |
| Decrease in inventory                                                                  |   |                         | 23,105,545   |   |   | 1,211,389 |   |   | 11,768,733 |   |   | 16,377 |   |
| Decrease (increase) in other assets                                                    |   |                         | (53,360,920  | ) |   | 24,428,653 |   |   | (23,047,923 | ) |   | (32,073 | ) |
| Changes in    liabilities which affect cash flows:                                     |   |                         |         |   |   |   |   |   |   |   |   |   |   |
| Decrease in accounts payable associated with operating results                         |   |                         | (2,742,827   | ) |   | (62,185,972 | ) |   | (49,587,699 | ) |   | (69,005 | ) |
| Increase in interest payable                                                           |   |                         | 99,951,611   |   |   | 7,825,819 |   |   | 55,125,046 |   |   | 76,711 |   |
| Increase (decrease) in income tax payable                                              |   |                         | 11,473,486   |   |   | (54,073,346 | ) |   | (45,838,237 | ) |   | (63,787 | ) |
| Increase (decrease) in other accounts payable associated with    non-operating results |   |                         | (75,419,017  | ) |   | (93,868,474 | ) |   | 30,029,884 |   |   | 41,789 |   |
| Net decrease in value added tax and other similar taxes payable                        |   |                         | (1,671,587   | ) |   | (117,627,568 | ) |   | (1,891,294 | ) |   | (2,632 | ) |
| Income (loss) attributable to minority interest                                        |   |                         | 184,000,228  |   |   | 125,152,619 |   |   | (16,282,559 | ) |   | (22,658 | ) |
|                                                                                   |   |                              |              |   |  |  |   |  |  |   |  |  |   |
| Net cash    flows provided by operating activities                                     |   |                         | 538,690,849  |   |   | 560,520,990 |   |   | 627,782,332 |   |   | 873,609 |   |
|                                                                                   |   |                              |              |   |  |  |   |  |  |   |  |  |   |

----

Back to Index

|                                                              |   | **Years ended December 31,** |           |
|-------------------------------------------------------------------|--------|------------------------------|----------------|
|                                                              |   |                              |           |
|                                                              |   |                         | **2000**       |   |   | **2001** |   |   | **2002** |   |   | **2002** |   |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
|                                                              |   |                         | **ThCh$**      |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThUS$** |   |
|                                                              |   |                         |           |   |   |   |   |   |   |   |   | **(Note 2)** |   |
| CASH FLOWS    FROM FINANCING ACTIVITIES:                          |   |                         |           |   |   |   |   |   |   |   |   |   |   |
| Issuance of    shares                                             |   |                         | 314,324,467    |   |   | — |   |   | — |   |   | — |   |
| Subsidiary    issuance of shares minoritary interest              |   |                         | —         |   |   | — |   |   | 1,905,653 |   |   | 2,652 |   |
| Proceeds    from the issuance of debt                             |   |                         | 1,600,212,553  |   |   | 1,936,899,708 |   |   | 978,914,577 |   |   | 1,362,233 |   |
| Proceeds    from bond issuances                                   |   |                         | 52,538,205     |   |   | 280,374,847 |   |   | 131,515,409 |   |   | 183,014 |   |
| Other    sources of financing                                     |   |                         | 44,863,139     |   |   | 57,920,839 |   |   | 26,348,466 |   |   | 36,666 |   |
| Distribution    of capital in subsidiary                          |   |                         | —         |   |   | — |   |   | (119,286,568 | ) |   | (165,996 | ) |
| Dividends    paid                                                 |   |                         | (150,311,417   | ) |   | (144,467,460 | ) |   | (100,446,315 | ) |   | (139,779 | ) |
| Payment of    debt                                                |   |                         | (2,123,472,019 | ) |   | (1,870,062,467 | ) |   | (1,094,545,835 | ) |   | (1,523,143 | ) |
| Payment of    bonds                                               |   |                         | (210,365,004   | ) |   | (74,167,788 | ) |   | (29,347,204 | ) |   | (40,839 | ) |
| Payment of    loans obtained from related companies               |   |                         | (157,860,304   | ) |   | (100,900,143 | ) |   | (44,389,633 | ) |   | (61,771 | ) |
| Payment of    bond issuance costs                                 |   |                         | —         |   |   | (996,147 | ) |   | (11,140,779 | ) |   | (15,503 | ) |
| Other    disbursements for financing                              |   |                         | (184,219,710   | ) |   | (43,615,899 | ) |   | (24,567,635 | ) |   | (34,188 | ) |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| Net cash    provided by (used) in financing activities            |   |                         | (814,290,090   | ) |   | 40,985,490 |   |   | (285,039,864 | ) |   | (396,654 | ) |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| CASH FLOWS    FROM INVESTING ACTIVITIES:                          |   |                         |           |   |   |   |   |   |   |   |   |   |   |
| Proceeds    from sales of property, plant and equipment           |   |                         | 140,229,768    |   |   | 19,716,715 |   |   | 22,605,406 |   |   | 31,457 |   |
| Sale of    investment in related companies                        |   |                         | 518,889,641    |   |   | — |   |   | — |   |   | — |   |
| Other loans    received from related companies                    |   |                         | 16,355         |   |   | — |   |   | — |   |   | — |   |
| Proceeds    from sales of Transelec                               |   |                         | 199,277,388    |   |   | — |   |   | — |   |   | — |   |
| Proceeds    from loans obtained from related parties              |   |                         | 3,855,665      |   |   | 5,525,961 |   |   | — |   |   | — |   |
| Other    receipts from investments                                |   |                         | 15,442,082     |   |   | 13,675,849 |   |   | 18,556,146 |   |   | 25,822 |   |
| Additions to    property, plant and equipment                     |   |                         | (343,009,506   | ) |   | (341,553,736 | ) |   | (317,915,443 | ) |   | (442,403 | ) |
| Long-term    investments                                          |   |                         | (323,132,841   | ) |   | (12,879,738 | ) |   | (23,465,277 | ) |   | (32,654 | ) |
| Investment    in financial instruments                            |   |                         | (1,899,939     | ) |   | — |   |   | (724,403 | ) |   | (1,008 | ) |
| Disbursements    for highway construction costs                   |   |                         | (27,107,200    | ) |   | — |   |   | — |   |   | — |   |
| Other loans    granted to related companies                       |   |                         | —         |   |   | (233,615 | ) |   | — |   |   | — |   |
| Other    investment disbursements                                 |   |                         | (5,945,345     | ) |   | (187,891,023 | ) |   | (35,935,186 | ) |   | (50,009 | ) |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| Net cash    used in investing activities                          |   |                         | 176,616,068    |   |   | (503,639,587 | ) |   | (336,878,757 | ) |   | (468,795 | ) |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| POSITIVE    (NEGATIVE) NET CASH FLOW FOR THE YEAR                 |   |                         | (98,983,173    | ) |   | 97,866,893 |   |   | 5,863,711 |   |   | 8,160 |   |
| EFFECT OF    PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENTS |   |                         | 4,115,441      |   |   | (74,996 | ) |   | (2,499,632 | ) |   | (3,478 | ) |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| NET    (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS           |   |                         | (94,867,732    | ) |   | 97,791,897 |   |   | 3,364,079 |   |   | 4,682 |   |
| CASH AND    CASH EQUIVALENTS AT BEGINNING OF YEAR                 |   |                         | 214,903,436    |   |   | 120,035,704 |   |   | 217,827,601 |   |   | 303,123 |   |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |
| CASH AND    CASH EQUIVALENTS AT END OF YEAR                       |   |                         | 120,035,704    |   |   | 217,827,601 |   |   | 221,191,680 |   |   | 307,805 |   |
|                                                              |   |                              |                |   |  |  |   |  |  |   |  |  |   |

----

Back to Index

| **Note 1.** | **Description of Business** |
|-------------|-----------------------------|

| **Note 2.** | **Summary of Significant Accounting Policies** |
|-------------|------------------------------------------------|

| **(a)** | **General** |
|---------|-------------|

----

Back to Index

| **Balance    sheet reclassifications**        |   |
|-----------------------------------------------|--------|
|                                               |        |
| **From**                                      |   | **Charge    (credit)** |   |   | **To** |   | **Charge    (credit)** |   |
|                                          |   | **ThCh$** |   |   |   |   | **ThCh$** |   |
| Notes    receivable                           |   |   | (6,334,876 | ) |   | Other    accounts receivable, net |   |   | 6,334,876 |   |
| Goodwill                                      |   |   | 3,391,332 |   |   | Negative    goodwill, net |   |   | (3,391,332 | ) |
| Land                                          |   |   | (34,153,467 | ) |   | Other assets |   |   | 34,153,467 |   |
| Technical    appraisal                        |   |   | 17,117,163 |   |   | Accumulated    depreciation |   |   | (17,117,163 | ) |
| Current    portion of long-term notes payable |   |   | 5,571,195 |   |   | Current    portion of long-term debt    due to banks and financial institutions |   |   | (4,619,536 | ) |
| Miscellaneous    payables                     |   |   | (5,718,123 | ) |   | Other    current liabilities |   |   | 4,766,464 |   |
| Due to banks    and financial institutions    |   |   | (17,545,577 | ) |   | Short-term    notes payable |   |   | 18,453,424 |   |
| Other    long-term liabilities                |   |   | (21,520,395 | ) |   | Bonds    payable |   |   | 20,612,548 |   |
| Other    reserves                             |   |   | 1,210,739 |   |   | Deficit    during development period of subsidiary |   |   | (1,210,739 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |

| **Statement    of operations reclassifications** |   |
|--------------------------------------------------|--------|
|                                                  |        |
| **From**                                         |   | **Charge    (credit)** |   |   | **To** |   | **Charge    (credit)** |   |
|                                             |   | **ThCh$** |   |   |   |   | **ThCh$** |   |
| Other    non-operating expenses                  |   |   | 1,586,072 |   |   | Other    non-operating income |   |   | 1,940,610 |   |
| Income taxes                                     |   |   | (4,444,572 | ) |   | Interest    expense |   |   | 3,629,529 |   |
| Deferred    income taxes                         |   |   | (2,392,830 | ) |   | Foreign    currency transalation, net |   |   | (318,809 | ) |
| Amortization    of negative goodwill             |   |   | (248,147 | ) |   | Amortization    of goodwill |   |   | 248,147 |   |

| **Statement    of Cash flow reclassifications**              |   |
|--------------------------------------------------------------|--------|
|                                                              |   |
| **From**                                                     |   | **Charge    (credit)** |   |   | **To** |   | **Charge    (credit)** |   |
|                                                         |   | **ThCh$** |   |   |   |   | **ThCh$** |   |
| Payment of    bonds                                          |   |   | 85,102,292 |   |   | Other    accounts payable associated with non-operating results |   |   | (102,068,728 | ) |
| Other    credits to income which do not represent cash flows |   |   | 24,250,320 |   |   | Decrease in    income tax payable |   |   | (7,283,884 | ) |
| Other    sources of financing                                |   |   | 27,586,411 |   |   | Other    charges to income which do not represent cash flows |   |   | (17,297,324 | ) |
| Other    charges to income which do not represent cash flows |   |   | 906,583 |   |   | Other    disburments for financing |   |   | (10,289,087 | ) |
|                                                         |   |   |   |   |   | Amortization    of intangibles |   |   | (906,583 | ) |

----

Back to Index

|                                                         |   | **Percentage    participation as of December 31,** |   |
|--------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                         |   |                                                    |   |
| **Company name**                                             |   | **2000**                                           |   | **2001** |   | **2002** |   |
|                                                         |   |                                                    |   |  |   |  |   |
|                                                         |   | **Total**                                          |   | **Total** |   | **Direct** |   | **Indirect** |   | **Total** |   |
| Chilectra    S.A.                                            |   |                                               | 97.97  |   |   | 98.24 |   |   | 98.24 |   |   | — |   |   | 98.24 |   |
| Compañía    Eléctrica del Río Maipo S.A. |   |                                               | 98.40  |   |   | 98.74 |   |   | 98.74 |   |   | — |   |   | 97.74 |   |
| Synapsis    Soluciones y Servicios IT Ltda.                  |   |                                               | 99.99  |   |   | 100.00 |   |   | 99.99 |   |   | 0.01 |   |   | 100.00 |   |
| Inmobiliaria    Manso de Velasco Ltda.                       |   |                                               | 100.00 |   |   | 100.00 |   |   | 99.99 |   |   | — |   |   | 100.00 |   |
| Cía.    Americana de Multiservicios Ltda. (3)           |   |                                               | 100.00 |   |   | 100.00 |   |   | 99.93 |   |   | 0.07 |   |   | 100.00 |   |
| Endesa    Chile S.A. (4)                                     |   |                                               | 59.98  |   |   | 59.98 |   |   | 59.98 |   |   | — |   |   | 59.98 |   |
| Enersis    de Argentina S.A.                                 |   |                                               | 100.00 |   |   | 100.00 |   |   | 100.00 |   |   | — |   |   | 100.00 |   |
| Enersis    International Ltd.                                |   |                                               | 100.00 |   |   | 100.00 |   |   | 100.00 |   |   | — |   |   | 100.00 |   |
| Inversiones    Distrilima S.A.                               |   |                                               | 53.93  |   |   | 54.54 |   |   | 15.93 |   |   | 39.75 |   |   | 55.68 |   |
| Empresa    Distribuidora Sur S.A. (Edesur)                   |   |                                               | 64.29  |   |   | 65.09 |   |   | 16.02 |   |   | 49.07 |   |   | 65.09 |   |
| Empresa    Eléctrica de Panamá S.A. (3)            |   |                                               | 99.61  |   |   | 99.67 |   |   | — |   |   | — |   |   | — |   |
| Enersis    Investment S.A.                                   |   |                                               | 100.00 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Interocean    Developments Inc. (2)                          |   |                                               | 100.00 |   |   | 100.00 |   |   | — |   |   | — |   |   |   |   |
| Luz    de Bogotá S.A. (1)                               |   |                                               | 44.21  |   |   | 44.66 |   |   | 25.71 |   |   | 18.95 |   |   | 44.66 |   |
| Cerj                                                         |   |                                               | 57.38  |   |   | 58.16 |   |   | 20.37 |   |   | 41.58 |   |   | 61.95 |   |
| Investluz    (1)                                             |   |                                               | 46.50  |   |   | 47.02 |   |   | 15.61 |   |   | 32.80 |   |   | 48.41 |   |
| Cía.    Americana de Multiservicios Uno Ltda. (3)       |   |                                               | 100.00 |   |   | 100.00 |   |   | — |   |   | — |   |   | — |   |
| Electric    Investment                                       |   |                                               | 100.00 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Enersis    Energia de Colombia S.A.                          |   |                                               | 100.00 |   |   | 100.00 |   |   | 100.00 |   |   | — |   |   | 100.00 |   |

| (1)    | Parent    Company of Companhia Energética do Céará S.A. Colelce. The Company obtained    shareholder agreements dated June 25, 1999, from Endesa International, the    majority shareholder of these companies, giving the Company the right to    elect a majority of the Board of Directors.     The Superintendency of Securities and Insurance was notified on June    28, 1999 and they do not have market value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (2)    | These    companies were merged into other Enersis entities during 2002.                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3)    | On    January 1 2002, Cía. Americana de Multiservicios Ltda. merged with Cía.    Americana de Multiservicios Uno.                                                                                                                                                                                                                                                                                                                |

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| (4) | Consolidated    subsidiaries of Endesa Chile S.A. are detailed as follow: |
|-----|---------------------------------------------------------------------------|

|                                                          |   | **Percentage participation as of December 31,** |   |
|---------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                          |   |                                                 |   |
|                                                          |   | **2000**                                        |   | **2001** |   | **2002** |   |
|                                                          |   |                                                 |        |   |  |  |   |  |   |
| **Company name**                                              |   | **Total**                                       |   | **Total** |   | **Direct** |   | **Indirect** |   | **Total** |   |
|                                                          |   |                                                 |        |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Enigesa S.A.                                                  |   |                                            | 100.00 |   |   | 100.00 |   |   | 99.51 |   |   | 0.49 |   |   | 100.00 |   |
| Ingendesa    S.A.                                             |   |                                            | 97.64  |   |   | 97.64 |   |   | 96.39 |   |   | 1.25 |   |   | 97.64 |   |
| Pehuenche S.A.                                                |   |                                            | 92.55  |   |   | 93.66 |   |   | 92.65 |   |   | — |   |   | 92.65 |   |
| Endesa    Argentina S.A.                                      |   |                                            | 99.99  |   |   | 99.99 |   |   | 99.99 |   |   | — |   |   | 99.99 |   |
| Endesa-Chile    Internacional                                 |   |                                            | 100.00 |   |   | 100.00 |   |   | 100.00 |   |   | — |   |   | 100.00 |   |
| Pangue S.A.                                                   |   |                                            | 92.48  |   |   | 92.48 |   |   | 94.97 |   |   | 0.02 |   |   | 94.99 |   |
| Hidroinvest    S.A.                                           |   |                                            | 69.93  |   |   | 69.93 |   |   | — |   |   | 69.93 |   |   | 69.93 |   |
| Infraestructura    2000 S.A.                                  |   |                                            | 60.00  |   |   | 60.00 |   |   | 60.00 |   |   | — |   |   | 60.00 |   |
| Hidroeléctrica    El Chocón  S.A.              |   |                                            | 47.45  |   |   | 65.19 |   |   | — |   |   | 65.19 |   |   | 65.19 |   |
| Central    Costanera S.A.                                     |   |                                            | 51.68  |   |   | 51.93 |   |   | — |   |   | 51.93 |   |   | 51.93 |   |
| Endesa    Brasil Participacoes Ltda.                          |   |                                            | 100.00 |   |   | 100.00 |   |   | 5.00 |   |   | 95.00 |   |   | 100.00 |   |
| Túnel El    Melón S.A.                              |   |                                            | 99.95  |   |   | 99.95 |   |   | 99.95 |   |   | — |   |   | 99.95 |   |
| Soc.    Concesionaria Autopista del Sol S.A.                  |   |                                            | 60.04  |   |   | 100.00 |   |   | 0.10 |   |   | 99.90 |   |   | 100.00 |   |
| Inecsa 2000    S.A.                                           |   |                                            | 58.39  |   |   | 97.32 |   |   | — |   |   | 97.32 |   |   | 97.32 |   |
| Soc. Concesionaria    Autopista Los Libertadores S.A.         |   |                                            | 58.36  |   |   | 99.95 |   |   | — |   |   | 99.95 |   |   | 99.95 |   |
| Compañía    Eléctrica Cono Sur S.A.            |   |                                            | 100.00 |   |   | 100.00 |   |   | 100.00 |   |   | — |   |   | 100.00 |   |
| Central    Hidroeléctrica Betania S.A.                   |   |                                            | 85.62  |   |   | 85.62 |   |   | — |   |   | 85.62 |   |   | 85.62 |   |
| Endesa de    Colombia S.A.                                    |   |                                            | 100.00 |   |   | 100.00 |   |   | 5.10 |   |   | 94.90 |   |   | 100.00 |   |
| Lajas    Inversora S.A.                                       |   |                                            | 92.88  |   |   | 100.00 |   |   | — |   |   | 100.00 |   |   | 100.00 |   |
| Cachoeira    Dourada S.A.                                     |   |                                            | 91.80  |   |   | 99.51 |   |   | — |   |   | 99.59 |   |   | 99.59 |   |
| Capital de    Energía S.A.                               |   |                                            | 43.67  |   |   | 50.90 |   |   | — |   |   | 50.90 |   |   | 50.90 |   |
| Emgesa S.A                                                    |   |                                            | 22.41  |   |   | 51.32 |   |   | — |   |   | 51.32 |   |   | 51.32 |   |
| Edegel    S.A.A.                                              |   |                                            | 37.90  |   |   | 63.56 |   |   | — |   |   | 63.56 |   |   | 63.56 |   |
| Generandes    Perú S.A.                                  |   |                                            | 54.26  |   |   | 59.63 |   |   | — |   |   | 59.63 |   |   | 59.63 |   |
| Compañía    Eléctrica San Isidro S.A.          |   |                                            | 75.00  |   |   | 75.00 |   |   | 50.00 |   |   | 25.00 |   |   | 75.00 |   |
| Compañía    Eléctrica Tarapacá  S.A. |   |                                            | 100.00 |   |   | 100.00 |   |   | 99.90 |   |   | 0.10 |   |   | 100.00 |   |
| Inversiones    Endesa Norte S.A.                              |   |                                            | 100.00 |   |   | 100.00 |   |   | 99.99 |   |   | 0.01 |   |   | 100.00 |   |

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| **(b)** | **Periods covered** |
|---------|---------------------|

| **(c)** | **Constant currency restatement** |
|---------|-----------------------------------|

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|                 |   | **Index** |   | **Change over Previous November 30,** |   |
|----------------------|--------|-----------|--------|---------------------------------------|--------|
|                 |   |           |        |                                  |        |  |   |
| November 30,    2000 |   |      | 106.82 |                                  |   | 4.7 | % |
| November 30,    2001 |   |      | 110.10 |                                  |   | 3.1 | % |
| November 30,    2002 |   |      | 113.36 |                                  |   | 3.0 | % |

|                 |   | **Index** |   | **Change over Previous December 31,** |   |
|----------------------|--------|-----------|--------|---------------------------------------|--------|
|                 |   |           |        |                                  |        |  |   |
| December 31,    2000 |   |      | 106.94 |                                  |   | 4.5 | % |
| December 31,    2001 |   |      | 109.76 |                                  |   | 2.6 | % |
| December 31,    2002 |   |      | 112.86 |                                  |   | 2.8 | % |

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|              |   | **Ch$** |      |
|-------------------|--------|---------|-----------|
| December 31, 2000 |   |    | 15,769.92 |   |
| December 31, 2001 |   |    | 16,262.66 |   |
| December 31, 2002 |   |    | 16,744.12 |   |

| **(d)** | **Assets and liabilities in foreign currencies** |
|---------|--------------------------------------------------|

| **Currency**                    |   | **Symbol used** |   | **2000** |    | **2001**     |    | **2002** |         |
|---------------------------------|--------|-----------------|--------|----------|---------|--------------|---------|----------|--------------|
|                            |   |                 |        |     |         |              |    |          |              |   |  |  |   |
|                            |   |            |   |     | **Ch$** |         | **Ch$** |     | **Ch$**      |   |
| United States dollar (Observed) |   |            | US$    |     |    | 573.65       |    |     | 654.79       |   |   | 718.61 |   |
| British pound sterling          |   |            | £ |     |    | 856.58       |    |     | 948.01       |   |   | 1,152.91 |   |
| Colombian peso                  |   |            | $ Col  |     |    | 0.26         |    |     | 0.29         |   |   | 0.25 |   |
| New Peruvian sol                |   |            | Soles  |     |    | 162.69       |    |     | 190.29       |   |   | 204.73 |   |
| Brazilian real                  |   |            | Rs     |     |    | 294.33       |    |     | 282.97       |   |   | 203.57 |   |
| Japanese yen                    |   |            | ¥ |     |    | 5.01         |    |     | 4.99         |   |   | 6.07 |   |
| Euro                            |   |            | € |     |    | 538.84       |    |     | 578.18       |   |   | 752.55 |   |
| French Franc (2)                |   |            | FFr    |     |    | 82.15        |    |     | 88.36        |   |   | — |   |
| Pool Unit (IBRD)(1)             |   |            | UP     |     |    | 7,230,629.88 |    |     | 7,742,160.26 |   |   | 9,089,158.76 |   |
| Unidad de Fomento (UF)          |   |            | UF     |     |    | 15,769.92    |    |     | 16,262.66    |   |   | 16,744.12 |   |
| Unit of Account (IDB) (1)       |   |            | UC     |     |    | 850.92       |    |     | 929.26       |   |   | 1,093.75 |   |
| Argentine peso                  |   |            | $ Arg  |     |    | 573.65       |    |     | 385.17       |   |   | 219.09 |   |

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| (1) | Units of measurement used    by the International Bank for Reconstruction and Development (IBRD) and    Interamerican Development Bank (IDB) to express the weighted-average of    multicurrency loan obligations granted using fixed currency rates to the US    dollar, at a determined date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Beginning on January 1,    2002, these currencies will be expressed in the Euro.                                                                                                                                                                                                                |

| **(e)** | **Time deposits and marketable securities** |
|---------|---------------------------------------------|

| **(f)** | **Allowance for doubtful accounts** |
|---------|-------------------------------------|

| **(g)** | **Inventories** |
|---------|-----------------|

| **(h)** | **Property, plant and equipment** |
|---------|-----------------------------------|

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| **(i)** | **Depreciation** |
|---------|------------------|

| **(j)** | **Leased assets** |
|---------|-------------------|

| **(k)** | **Power installations financed by third parties** |
|---------|---------------------------------------------------|

| **(l)** | **Investments in related companies** |
|---------|--------------------------------------|

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| **(m)** | **Intangibles, other than goodwill** |
|---------|--------------------------------------|

| **(n)** | **Severance indemnity** |
|---------|-------------------------|

| **(o)** | **Revenue recognition** |
|---------|-------------------------|

| **(p)** | **Income tax and deferred income taxes** |
|---------|------------------------------------------|

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| **(q)** | **Accrued vacation expense** |
|---------|------------------------------|

| **(r)** | **Reverse repurchase agreements** |
|---------|-----------------------------------|

| **(s)** | **Statements of cash flows** |
|---------|------------------------------|

| **(t)** | **Financial derivative contracts** |
|---------|------------------------------------|

| **(u)** | **Goodwill and negative goodwill** |
|---------|------------------------------------|

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| **(v)** | **Pension and post-retirement benefits** |
|---------|------------------------------------------|

| **(w)** | **Bonds** |
|---------|-----------|

| **(x)** | **Investments in other companies** |
|---------|------------------------------------|

| **(y)** | **Research and development costs** |
|---------|------------------------------------|

| **Note 3.** | **Change in Accounting Principles** |
|-------------|-------------------------------------|

----

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| **Note 4.** | **Time Deposits** |
|-------------|-------------------|

| **Financial Institution**             |   | **Annual    Rate** |   | **Scheduled    Maturity** |   | **2001** |      | **2002** |        |
|---------------------------------------|--------|--------------------|--------|---------------------------|--------|----------|-----------|----------|-------------|
|                                  |   |                    |        |                      |        |          |      |          |             |   |  |  |   |
|                                  |   | **%**              |   |                      |   |     | **ThCh$** |     | **ThCh$**   |   |
| Banco Bilbao Vizcaya                  |   |               | 1.28   |                      |   | 30.01.03 |      |     | 28,873,651  |   |   | 4,539,102 |   |
| Banco CCF Brasil                      |   |               | — |                      |   | —   |      |     | 812,623     |   |   | — |   |
| Banco Colpatria                       |   |               | 8.50   |                      |   | 02.01.03 |      |     | 8,654,209   |   |   | 14,808,363 |   |
| Banco Continental                     |   |               | 2.42   |                      |   | 01.02.03 |      |     | —      |   |   | 3,369,062 |   |
| Banco Crédito del Perú      |   |               | 1.13   |                      |   | 03.01.03 |      |     | 1,762,858   |   |   | 179,675 |   |
| Banco de Bogotá                  |   |               | 7.50   |                      |   | 02.01.03 |      |     | 444,764     |   |   | 606,954 |   |
| Banco de Chile                        |   |               | 1.10   |                      |   | 02.01.03 |      |     | 491,759     |   |   | 149,484 |   |
| Banco de Chile N.Y.                   |   |               | 1.10   |                      |   | 02.01.03 |      |     | 3,339,638   |   |   | 344,943 |   |
| Banco do Brasil                       |   |               | 18.55  |                      |   | 15.09.03 |      |     | —      |   |   | 1,060,351 |   |
| Banco do Estado do Ceará         |   |               | — |                      |   | —   |      |     | 4,959,682   |   |   | — |   |
| Banco Frances                         |   |               | 25.00  |                      |   | 07.01.03 |      |     | —      |   |   | 603,576 |   |
| Banco Ganadero                        |   |               | — |                      |   | —   |      |     | 11,119      |   |   | — |   |
| Banco Holandes                        |   |               | 3.50   |                      |   | 01.01.03 |      |     | —      |   |   | 431,741 |   |
| Banco Interbank                       |   |               | 1.46   |                      |   | 14.01.03 |      |     | 391,658     |   |   | 2,862,988 |   |
| Banco Itau                            |   |               | 3.00   |                      |   | 01.01.03 |      |     | —      |   |   | 213,069 |   |
| Banco Liberal                         |   |               | — |                      |   | —   |      |     | 482,268     |   |   | — |   |
| Banco Nationale de Paris              |   |               | 2.75   |                      |   | 01.01.03 |      |     | 13,048,776  |   |   | 693,825 |   |
| Banco Pactual                         |   |               | 1.46   |                      |   | 01.01.03 |      |     | —      |   |   | 2,923,141 |   |
| Banco Provincia Buenos    Aires       |   |               | 6.50   |                      |   | 02.01.03 |      |     | —      |   |   | 650,606 |   |
| Banco Rio                             |   |               | 7.30   |                      |   | 21.01.03 |      |     | 9,832       |   |   | 5,125,732 |   |
| Banco Santander                       |   |               | 2.90   |                      |   | 02.01.03 |      |     | 796,736     |   |   | 2,339,169 |   |
| Banco Santander CDB                   |   |               | 7.50   |                      |   | 02.01.03 |      |     | 1,058,196   |   |   | 4,312 |   |
| Banco Santander Do Brasil             |   |               | 18.55  |                      |   | 02.01.03 |      |     | 909,937     |   |   | 1,170,656 |   |
| Banco Sudameris                       |   |               | — |                      |   | —   |      |     | 3,800,198   |   |   | — |   |
| Banco Tequendama                      |   |               | — |                      |   | —   |      |     | 2,936,874   |   |   | — |   |
| Banco Union Colombiano                |   |               | — |                      |   | —   |      |     | 2,720,943   |   |   | — |   |
| Banco Votorantim                      |   |               | 19.40  |                      |   | 23.09.03 |      |     | —      |   |   | 3,228,008 |   |
| Banco Wiese Sudameris                 |   |               | 1.44   |                      |   | 02.01.03 |      |     | 166,454     |   |   | 431,166 |   |
| Bank Boston                           |   |               | 1.10   |                      |   | 03.01.03 |      |     | 1,322,428   |   |   | 94,094 |   |
| Bank of America                       |   |               | 0.87   |                      |   | 01.01.03 |      |     | 17,553,537  |   |   | 5,320,419 |   |
| Banco Credito-Soles                   |   |               | 1.13   |                      |   | 02.01.03 |      |     | —      |   |   | 3,932,045 |   |
| Bonos de Solidaridad                  |   |               | 10.00  |                      |   | 02.01.03 |      |     | 675         |   |   | 1,070 |   |
| Bradesco                              |   |               | 19.37  |                      |   | 15.09.03 |      |     | 683,371     |   |   | 3,764,259 |   |
| Citibank N.Y.                         |   |               | 1.10   |                      |   | 02.01.03 |      |     | 54,433,352  |   |   | 55,244,377 |   |
| Cititrust                             |   |               | 6.24   |                      |   | 02.01.03 |      |     | —      |   |   | 56 |   |
| Colcorp S.A.                          |   |               | 9.00   |                      |   | 03.02.03 |      |     | 1,673,922   |   |   | 1,024,239 |   |
| Corficolombia                         |   |               | 8.12   |                      |   | 02.01.03 |      |     | —      |   |   | 3,687,381 |   |
| Corfivalle                            |   |               | 7.98   |                      |   | 02.01.03 |      |     | 9,812,357   |   |   | 3,724,459 |   |
| Corporacion las Villas                |   |               | — |                      |   | —   |      |     | 3,480,285   |   |   | — |   |
| Cuenta Corriente Remunerada           |   |               | — |                      |   | —   |      |     | 2,749,309   |   |   | — |   |
| Encargo Fiduciario Banco    Santander |   |               | 6.18   |                      |   | 02.01.03 |      |     | —      |   |   | 2,363,837 |   |
| Fiduciaria Banco Colpatria            |   |               | — |                      |   | —   |      |     | 19,448      |   |   | — |   |
| Fiduciaria Banco de Bogotá       |   |               | — |                      |   | —   |      |     | 6,292,881   |   |   | — |   |
| Fiduciaria Bancolombia                |   |               | 8.12   |                      |   | 01.01.03 |      |     | —      |   |   | 226 |   |
| Fiduciaria Cititrust                  |   |               | 6.55   |                      |   | 01.01.03 |      |     | 41,848      |   |   | 475 |   |
| Fiduciaria de Crédito            |   |               | — |                      |   | —   |      |     | 297,505     |   |   | — |   |
| Fiduciaria de Santander               |   |               | 9.00   |                      |   | 02.01.03 |      |     | 23,540      |   |   | 161,687 |   |
| Fiduciaria Lloyds Bank                |   |               | — |                      |   | —   |      |     | 52,337      |   |   | — |   |
| Fiduciaria Cancolombia                |   |               | — |                      |   | —   |      |     | 1,431,793   |   |   | — |   |
| Fiducolombia                          |   |               | — |                      |   | —   |      |     | 125,117     |   |   | — |   |
| Fiduganadero                          |   |               | — |                      |   | —   |      |     | 774,567     |   |   | — |   |
| Fiduoccidente                         |   |               | 7.73   |                      |   | 02.01.03 |      |     | 5,070       |   |   | 9,728 |   |
| Fiduvalle                             |   |               | 7.66   |                      |   | 01.01.03 |      |     | —      |   |   | 761,371 |   |
| HSBC - Bamerindus                     |   |               | 3.00   |                      |   | 01.01.03 |      |     | 586,792     |   |   | 5,450,031 |   |
| Megabanco                             |   |               | — |                      |   | —   |      |     | 42,296      |   |   | — |   |
| Merrill Lynch                         |   |               | 1.50   |                      |   | 06.01.03 |      |     | —      |   |   | 8,211,535 |   |
| Suvalor                               |   |               | 9.04   |                      |   | 02.01.03 |      |     | —      |   |   | 4,015,453 |   |
| Time Deposit                          |   |               | — |                      |   | —   |      |     | 1,038,629   |   |   | — |   |
| Unibanco                              |   |               | 7.00   |                      |   | 08.09.03 |      |     | —      |   |   | 2,124,229 |   |
|                                  |   |               |   |                      |   |     |      |          |             |   |  |  |   |
| Total                                 |   |               |   |                      |   |     |      |     | 178,113,234 |   |   | 145,626,894 |   |
|                                  |   |               |   |                      |   |     |      |          |             |   |  |  |   |

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| **Note 5.** | **Accounts, Notes and Other Receivables** |
|-------------|-------------------------------------------|

|                               |   | **As of december 31,** |        |
|------------------------------------|--------|------------------------|-------------|
|                               |   |                        |        |
|                               |   | **Under 90 days**      |        | **91 days to 1 year** |   | **Sub total** |   | **Current** |   | **Long-term (1)** |   |
|                               |   |                        |        |  |   |  |   |  |   |  |   |
| **Account**                        |   | **2001**               |        | **2002** |   | **2001** |   | **2002** |   | **2002** |   | **2001** |   | **2002** |   | **2001** |   | **2002** |   |
|                               |   | **ThCh$**              |        | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| Accounts receivable                |   |                   | 576,467,295 |   |   | 487,395,335 |   |   | 17,305,993 |   |   | 76,912,334 |   |   | 564,307,669 |   |   | 550,248,992 |   |   | 458,839,724 |   |   | — |   |   | — |   |
| Allowance for doubtful    accounts |   |                   |        |   |   |   |   |   |   |   |   |   |   |   | (105,467,945 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes receivable                   |   |                   | 6,295,375   |   |   | 4,653,993 |   |   | 407,105 |   |   | 1,442,684 |   |   | 6,096,677 |   |   | 5,683,330 |   |   | 5,131,349 |   |   | — |   |   | — |   |
| Allowance for doubtful    accounts |   |                   |        |   |   |   |   |   |   |   |   |   |   |   | (965,328 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Other receivables                  |   |                   | 42,743,736  |   |   | 53,684,615 |   |   | 37,770,437 |   |   | 18,007,739 |   |   | 71,692,354 |   |   | 72,220,719 |   |   | 62,776,096 |   |   | 101,903,562 |   |   | 125,850,513 |   |
| Allowance for doubtful    accounts |   |                   |        |   |   |   |   |   |   |   |   |   |   |   | (8,916,258 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                               |   |                   |        |   |   |   |   |   | Total |   |   |   |   |   |   |   |   | 628,153,041 |   |   | 526,747,169 |   |   | 101,903,562 |   |   | 125,850,513 |   |
|                               |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |

| (1) | Include regulatory assets    from subsidiaries in Brazil for amounts ThCh$64,879,173 and ThCh$87,285,245    in 2001 and 2002, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|        |   | **As of    December 31,** |        |
|-------------|--------|---------------------------|-------------|
|        |   |                           |        |
| **Country** |   | **2001**                  |        | **2002** |   |
|        |   |                           |        |  |   |
|        |   | **ThCh$**                 |        | **%** |   | **ThCh$** |   | **%** |   |
| Chile       |   |                      | 180,592,722 |   |   | 24.74 |   |   | 145,659,152 |   |   | 22.32 |   |
| Peru        |   |                      | 40,147,163  |   |   | 5.50 |   |   | 58,187,147 |   |   | 8.92 |   |
| Argentina   |   |                      | 75,119,315  |   |   | 10.29 |   |   | 40,461,768 |   |   | 6.20 |   |
| Colombia    |   |                      | 127,104,349 |   |   | 17.41 |   |   | 99,788,238 |   |   | 15.29 |   |
| Brasil (1)  |   |                      | 307,093,054 |   |   | 42.06 |   |   | 308,501,377 |   |   | 47.27 |   |
|        |   |                           |             |   |  |  |   |  |  |   |  |  |   |
| Total       |   |                      | 730,056,603 |   |   | 100.00 |   |   | 652,597,682 |   |   | 100.00 |   |
|        |   |                           |             |   |  |  |   |  |  |   |  |  |   |

| (1)    | In accordance with Decree    Law No.14 and Resolution No.91 of the Council for Managing the Electric    Energy Crisis (CGCEE), both dated December 21, 2001, and based on Resolution    No.31 of the National Agency of Electric Energy (ANEEL) dated January 24,    2002, the Company’s distribution subsidiaries in Brasil have recognized as of    December 31, 2001 and at March 1, 2002, a regulated asset, which will be recovered    through extraordinary tariffs in order to recover losses experienced during    the period of energy rationing from June 1, 2001 to March 1, 2002. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The Brazilian rationing    program came to an end on March 1, 2002, the Brazilian Congress ratified the law    to compensate Brazilian electric companies on April 16, 2002.  The law approved a 2.9% and 7.9% increase    for residential and industrial customers, respectively.                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | ANNEL subsequently    established an 18.6% tariff adjustment for CERJ to be effective on January 1,    2002; also, ANNEL set a 14.3% tariff adjustment for Coelce (Subsidiary of    Investluz), to become effective on April 22, 2002.                                                                                                                                                                                                                                                                                                                                                             |

----

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| **Note 6.** | **Transactions with Related Companies** |
|-------------|-----------------------------------------|

| **(a)** | **Notes and accounts receivable:** |
|---------|------------------------------------|

|                                                       |   | **As of    December 31,** |       |
|------------------------------------------------------------|--------|---------------------------|------------|
|                                                       |   |                           |       |
|                                                       |   | **Short-term**            |       | **Long-term** |   |
|                                                       |   |                           |       |  |   |
| **Company**                                                |   | **2001**                  |       | **2002** |   | **2001** |   | **2002** |   |
|                                                       |   |                           |       |  |   |  |   |  |   |
|                                                       |   | **ThCh$**                 |       | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| Aguas    Santiago Poniente S.A.                            |   |                      | 2,496,548  |   |   | 257,796 |   |   | — |   |   | — |   |
| Atacama    Finance Co.                                     |   |                      | 4,297,348  |   |   | 182,046,895 |   |   | 169,196,652 |   |   | — |   |
| Central    Geradora Term. de Fortaleza                     |   |                      | 11,383     |   |   | 3,861 |   |   | — |   |   | — |   |
| Cía.    Interconexión Energética  S.A. |   |                      | 3,004,871  |   |   | 4,101,221 |   |   | — |   |   | 37 |   |
| Com. de    Energía del Mercosur                       |   |                      | 3,369,682  |   |   | 4,422,881 |   |   | — |   |   | — |   |
| Consorcio    Energetico Punta Cana-Macao                   |   |                      | 967        |   |   | 939 |   |   | — |   |   | — |   |
| Distrilec    Inversora S.A.                                |   |                      | 6,810      |   |   | 7,257 |   |   | — |   |   | — |   |
| Edenor S.A.                                                |   |                      | 187,117    |   |   | — |   |   | — |   |   | — |   |
| Elesur S.A.                                                |   |                      | 20,379     |   |   | 24,217 |   |   | — |   |   | — |   |
| Empresa    Eléctrica de Bogotá S.A.              |   |                      | 133,978    |   |   | 171,747 |   |   | — |   |   | — |   |
| Empresa    Eléctrica Piura S.A.                       |   |                      | 100,180    |   |   | 279,542 |   |   | — |   |   | — |   |
| Endesa    España                                      |   |                      | 364,605    |   |   | 322,122 |   |   | — |   |   | — |   |
| Endesa Internacional    S.A.                               |   |                      | 2,387,673  |   |   | 1,632,089 |   |   | — |   |   | — |   |
| Etevensa                                                   |   |                      | 190,584    |   |   | 220,020 |   |   | — |   |   | — |   |
| Fundación    Endesa                                   |   |                      | —     |   |   | 165,273 |   |   | — |   |   | — |   |
| Gasoducto    Atacama Generación                       |   |                      | 49,224     |   |   | 570,445 |   |   | — |   |   | — |   |
| Gasoducto    Tal Tal Ltda.                                 |   |                      | 313,819    |   |   | 144,871 |   |   | — |   |   | — |   |
| Ingendesa Do    Brasil Ltda.                               |   |                      | —     |   |   | — |   |   | — |   |   | 16,021 |   |
| Inversiones    Electrica Quillota S.A.                     |   |                      | 1,030      |   |   | 1,000 |   |   | — |   |   | — |   |
| Sacme S.A.                                                 |   |                      | 175,047    |   |   | 101,097 |   |   | — |   |   | — |   |
| Smartcom    S.A.                                           |   |                      | 896,261    |   |   | 619,403 |   |   | — |   |   | — |   |
| Soc. de Inv.    Chispa Uno S.A.                            |   |                      | 830        |   |   | 1,937 |   |   | — |   |   | — |   |
| Transmisora    Eléctrica de Quillota Ltda.            |   |                      | 11,242     |   |   | 304,222 |   |   | 1,471,140 |   |   | 882,109 |   |
|                                                       |   |                           |            |   |  |  |   |  |  |   |  |  |   |
| Total                                                      |   |                      | 18,019,578 |   |   | 195,398,835 |   |   | 170,667,792 |   |   | 898,167 |   |
|                                                       |   |                           |            |   |  |  |   |  |  |   |  |  |   |

----

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| **(b)** | **Notes and accounts payable:** |
|---------|---------------------------------|

|                                                     |   | **As of December 31,** |       |
|----------------------------------------------------------|--------|------------------------|------------|
|                                                     |   |                        |       |
|                                                     |   | **Short-term**         |       | **Long-term** |   |
|                                                     |   |                        |       |  |   |
| **Company**                                              |   | **2001**               |       | **2002** |   | **2001** |   | **2002** |   |
|                                                     |   |                        |       |  |   |  |   |  |   |
|                                                     |   | **ThCh$**              |       | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| Aguas    Santiago Poniente S.A.                          |   |                   | 8          |   |   | 631 |   |   | — |   |   | — |   |
| Com. de    Energía del Mercosur                     |   |                   | 7,175,604  |   |   | 760,170 |   |   | — |   |   | — |   |
| Compañía    Transmisión del Mercosur S.A. |   |                   | 339,240    |   |   | 107,045 |   |   | — |   |   | — |   |
| Electrogas    S.A.                                       |   |                   | —     |   |   | 233,837 |   |   | — |   |   | — |   |
| Elesur S.A.                                              |   |                   | 17,289,294 |   |   | 11,465,695 |   |   | 984,980,016 |   |   | 987,371,066 |   |
| Empresa    Eléctrica de Bogotá S.A.            |   |                   | 3,629,114  |   |   | 1,226,667 |   |   | — |   |   | 920,539 |   |
| Empresa    Eléctrica Piura S.A.                     |   |                   | 720,573    |   |   | 857,426 |   |   | — |   |   | — |   |
| Endesa    Internacional S.A.                             |   |                   | 342,658    |   |   | 1,109,741 |   |   | 16,727,143 |   |   | — |   |
| Endesa    Inversiones Generales S.A.                     |   |                   | —     |   |   | 8,589 |   |   | — |   |   | — |   |
| Endesa    Servicios                                      |   |                   | —     |   |   | 116,041 |   |   | — |   |   | — |   |
| Etevensa    S.A.                                         |   |                   | 1,116,904  |   |   | — |   |   | — |   |   | — |   |
| Gasoducto    Tal Tal Ltda.                               |   |                   | 213,599    |   |   | 160,559 |   |   | — |   |   | — |   |
| Mundivia    S.A.                                         |   |                   | 76         |   |   | — |   |   | — |   |   | — |   |
| Sacme S.A.                                               |   |                   | 185,803    |   |   | 101,720 |   |   | — |   |   | — |   |
| Smartcom    S.A.                                         |   |                   | 65,236     |   |   | 55,189 |   |   | — |   |   | — |   |
| Transmisora    Eléctrica de Quillota Ltda.          |   |                   | 42,540     |   |   | 82,402 |   |   | — |   |   | — |   |
|                                                     |   |                        |            |   |  |  |   |  |  |   |  |  |   |
| Total                                                    |   |                   | 31,120,649 |   |   | 16,285,712 |   |   | 1,001,707,159 |   |   | 988,291,605 |   |
|                                                     |   |                        |            |   |  |  |   |  |  |   |  |  |   |

----

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| **(c)** | **Effects in income (expense) in each year are as follows:** |
|---------|--------------------------------------------------------------|

|                                                       |   |                         |                   |     | **Income    (expense)** |        |
|------------------------------------------------------------|--------|------------------------------|------------------------|----------|-------------------------|-------------|
|                                                       |   |                         |                   |     |                         |        |
| **Company**                                                |   | **Nature of    Transaction** |                   | **2000** |                    | **2001**    |   | **2002** |   |
|                                                       |   |                         |                   |          |                    |             |   |  |   |
|                                                       |   |                         |                   |     | **ThCh$**               |        | **ThCh$** |   | **ThCh$** |   |
| Atacama    Finance Co.                                     |   |                         | Interest               |     |                    | 11,022,442  |   |   | 10,056,288 |   |   | 6,659,856 |   |
|                                                       |   |                         | Monetary    correction |     |                    | 5,061,400   |   |   | 4,575,344 |   |   | 498,688 |   |
|                                                       |   |                         | Exchange    difference |     |                    | 3,790,297   |   |   | 17,033,254 |   |   | 11,107,652 |   |
| Central    Geradora Term. de Fortaleza                     |   |                         | Services               |     |                    | —      |   |   | 473,819 |   |   | — |   |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | (21,636 | ) |   | — |   |
| Com. de    Energía del Mercosur                       |   |                         | Sale of    energy      |     |                    | —      |   |   | 22,810,613 |   |   | 19,152,859 |   |
|                                                       |   |                         | Purchase of    energy  |     |                    | —      |   |   | (15,347,195 | ) |   | (1,958,213 | ) |
|                                                       |   |                         | Interest               |     |                    | —      |   |   | (62,519 | ) |   | — |   |
|                                                       |   |                         | Services               |     |                    | —      |   |   | 73,855 |   |   | — |   |
| Com. Transmisión    del Mercosur S.A.                 |   |                         | Purchase of    energy  |     |                    | —      |   |   | (3,985,903 | ) |   | (1,397,696 | ) |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | 450 |   |   | — |   |
|                                                       |   |                         | Monetary    correction |     |                    | —      |   |   | 210 |   |   | — |   |
| Cía.    Interconexión Energética  S.A. |   |                         | Sale of    energy      |     |                    | 39,696,963  |   |   | 46,839,739 |   |   | 26,990,992 |   |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | (3,523 | ) |   | — |   |
|                                                       |   |                         | Services               |     |                    | 471,433     |   |   | 903,382 |   |   | 272,906 |   |
| Inversiones    Eléctrica Quillota S.A.                |   |                         | Interest               |     |                    | 132,335     |   |   | 134,407 |   |   | 144,050 |   |
|                                                       |   |                         | Services               |     |                    | (475,445    | ) |   | — |   |   | 5,066 |   |
|                                                       |   |                         | Monetary    correction |     |                    | —      |   |   | 43,994 |   |   | — |   |
| Gasoducto Atacama    Generación Ltda.                 |   |                         | Services               |     |                    | (1,630,310  | ) |   | 325,374 |   |   | 585,878 |   |
| Empresa    Eléctrica Piura S.A.                       |   |                         | Sale of    energy      |     |                    | 2,472,161   |   |   | 938,354 |   |   | 1,457,382 |   |
|                                                       |   |                         | Purchase of    energy  |     |                    | —      |   |   | (9,812,046 | ) |   | (9,619,648 | ) |
|                                                       |   |                         | Services               |     |                    | (1,211,356  | ) |   | 1,213,149 |   |   | 175,914 |   |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | (809 | ) |   | — |   |
| Gasoducto    Tal Tal Ltda.                                 |   |                         | Services               |     |                    | 629,818     |   |   | — |   |   | 40,494 |   |
| Elesur S.A.                                                |   |                         | Interest               |     |                    | (73,502,634 | ) |   | (51,512,360 | ) |   | (43,408,831 | ) |
|                                                       |   |                         | Services               |     |                    | 8,916       |   |   | 20,478 |   |   | 15,919 |   |
|                                                       |   |                         | Monetary    correction |     |                    | (51,798,765 | ) |   | (30,547,186 | ) |   | (29,082,684 | ) |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | (753,213 | ) |   | — |   |
| Etevensa    S.A.                                           |   |                         | Sale of    energy      |     |                    | (10,603,289 | ) |   | 3,063,312 |   |   | 5,757,877 |   |
|                                                       |   |                         | Services               |     |                    | (46,175     | ) |   | 3,247,425 |   |   | 153,617 |   |
|                                                       |   |                         | Exchange    difference |     |                    | —      |   |   | (563 | ) |   | — |   |
| Electrogas    S.A.                                         |   |                         | Services               |     |                    | (2,319,147  | ) |   | (2,449,634 | ) |   | (2,978,702 | ) |
| Edenor S.A.                                                |   |                         | Services               |     |                    | 2,838,831   |   |   | 4,434,499 |   |   | — |   |
|                                                       |   |                         | Sales of    energy     |     |                    | 38,725,328  |   |   | — |   |   | — |   |
| Smartcom    S.A.                                           |   |                         | Services               |     |                    | 848,613     |   |   | 4,093,653 |   |   | 3,407,292 |   |
| Aguas    Santiago Poniente S.A.                            |   |                         | Interest               |     |                    | —      |   |   | 209,426 |   |   | 70,757 |   |
|                                                       |   |                         | Services               |     |                    | —      |   |   | 29,798 |   |   | 32,060 |   |
| Endesa    Internacional S.A.                               |   |                         | Services               |     |                    | (8,389      | ) |   | 242,914 |   |   | 182,716 |   |
|                                                       |   |                         | Interest               |     |                    | (3,013,636  | ) |   | (2,193,466 | ) |   | (1,026,534 | ) |
| Sacme S.A.                                                 |   |                         | Services               |     |                    | (772,147    | ) |   | (823,528 | ) |   | (364,396 | ) |
| Gasoducto Atacama    y Cía. Ltda.                     |   |                         | Services               |     |                    | 124,963     |   |   | — |   |   | — |   |
| Empresa    Propietaria de la Red                           |   |                         | Services               |     |                    | —      |   |   | — |   |   | 346,994 |   |
| Mundivía    S.A.                                      |   |                         | Services               |     |                    | —      |   |   | 61,157 |   |   | — |   |
| Soc. de Inv.    Chispa Uno S.A.                            |   |                         | Services               |     |                    | 17,788      |   |   | 6,582 |   |   | 8,432 |   |
|                                                       |   |                         |                   |     |                         |             |   |  |  |   |  |  |   |
| Total                                                      |   |                         |                   |     |                    | (39,540,005 | ) |   | 3,317,895 |   |   | (12,769,303 | ) |
|                                                       |   |                         |                   |     |                         |             |   |  |  |   |  |  |   |

----

Back to Index

| **Company**                                     |   | **Type** |                  | **Due date** |   | **Currency** |   | **Capital** |   | **Interest    rate** |   |
|-------------------------------------------------|--------|----------|-----------------------|--------------|--------|--------------|--------|-------------|--------|----------------------|--------|
|                                            |   |     |                  |              |   |              |   |             |   |                      |   |
| Elesur S.A.                                     |   |     | Account    payable    |         |   | May 2004     |   |        | UF     |                 |   | 35,827,780 |   |   | 4.57 | % |
|                                            |   |     | Account    payable    |         |   | May 2004     |   |        | UF     |                 |   | 22,873,999 |   |   | 1.46 | % |
|                                            |   |     | Account    payable    |         |   | Aug 2004     |   |        | UF     |                 |   | 266,448 |   |   | 2.95 | % |
| Transmisora    Eléctrica de Quillota Ltda. |   |     | Account    receivable |         |   | 2006         |   |        | UF     |                 |   | 70,242 |   |   | 9.00 | % |
| Atacama    Finance Co.                          |   |     | Account    receivable |         |   | 2003         |   |        | US$    |                 |   | 250,872,179 |   |   | 3.33 | % |

| **Note 7.** | **Inventories** |
|-------------|-----------------|

|                                   |   | **As of    December 31,** |       |
|----------------------------------------|--------|---------------------------|------------|
|                                   |   |                           |       |
|                                   |   | **2001**                  |       | **2002** |   |
|                                   |   | **ThCh$**                 |       | **ThCh$** |   |
| Real estate    under development       |   |                      | 27,262,972 |   |   | 23,804,228 |   |
| Materials in    transit                |   |                      | 499,963    |   |   | 1,104,204 |   |
| Operation    and maintenance materials |   |                      | 41,944,252 |   |   | 32,051,573 |   |
| Other                                  |   |                      | 7,716,887  |   |   | 3,422,648 |   |
|                                   |   |                           |            |   |  |  |   |
| Total                                  |   |                      | 77,424,074 |   |   | 60,382,653 |   |
|                                   |   |                           |            |   |  |  |   |

| **Note 8.** | **Deferred Income Taxes** |
|-------------|---------------------------|

| **(a)** | Income taxes    (recoverable) payable as of each year-end are as follows: |
|---------|---------------------------------------------------------------------------|

|                                   |   | **As of    December 31,** |        |
|----------------------------------------|--------|---------------------------|-------------|
|                                   |   |                           |        |
|                                   |   | **2001**                  |        | **2002** |   |
|                                   |   | **ThCh$**                 |        | **ThCh$** |   |
| Income tax    provision – current |   |                      | 77,283,022  |   |   | 27,532,029 |   |
| Recoverable    tax credits             |   |                      | (57,510,102 | ) |   | (54,435,976 | ) |
|                                   |   |                           |             |   |  |  |   |
| Total                                  |   |                      | 19,772,920  |   |   | (26,903,947 | ) |
|                                   |   |                           |             |   |  |  |   |

----

Back  to Index

| **(b)** | **The Company and    its subsidiaries incurred taxable losses of ThCh$113,749,137,    ThCh$422,072,497 and ThCh$573,346,119 for the years ended December 31, 2000,    2001 and 2002, respectively.**                                                                                                                                   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                   |
|    | Tax loss    carryforwards relate primarily to Peruvian, Chilean and Brazilian    entities.  In accordance with the    current enacted tax law in Chile and Brazil, such tax losses may be    carried-forward indefinitely, however Peruvian tax carryforwards, for amount    to ThCh$54,887,432 in 2002, expire after five years. |
|    |                                                                                                                                                                                                                                                                                                                                   |
| **(c)** | The balance    of taxed retained earnings and the related tax credits are as follows:                                                                                                                                                                                                                                                  |

| **Year** |   | **Amount****of loss** |        | **Credit** |   |
|----------|--------|-----------------------|-------------|------------|--------|
|     |   |                       |        |            |   |
|     |   | **ThCh$**             |        | **ThCh$**  |   |
| 2001     |   |                  | (18,159,574 | )          |   | — |   |
| 2002     |   |                  | 23,698,947  |       |   | 4,524,557 |   |

| **(d)** | The net    effect of temporary differences resulted in a net charge to income of    ThCh$13,870,328 and a net credit of ThCh$18,862,491 and ThCh$9,072,273 during    the years ended December 31, 2000, 2001 and 2002, respectively.                       |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                       |
| **(e)** | In    accordance with BT No.60 and 69 of the Chilean Association of Accountants,    and Circular No.1,466 of the SVS, the Company and its subsidiaries have    recorded consolidated deferred income taxes as of December 31, 2001 and 2002    as follows: |

|                                       |   | **As of December 31, 2001** |        | **As of December 31, 2002** |   |
|--------------------------------------------|--------|-----------------------------|-------------|-----------------------------|--------|
|                                       |   |                             |        |                             |   |
|                                       |   | **Asset**                   |        | **Liability**               |   | **Asset** |   | **Liability** |   |
|                                       |   |                             |        |                             |   |  |   |  |   |
|                                       |   | **Short-term**              |        | **Long-term**               |   | **Short-term** |   | **Long-term** |   | **Short-term** |   | **Long-term** |   | **Short-term** |   | **Long-term** |   |
|                                       |   | **ThCh$**                   |        | **ThCh$**                   |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| Allowance for doubtful    accounts         |   |                        | 26,027,011  |                        |   | 12,307,740 |   |   | — |   |   | — |   |   | 24,128,592 |   |   | 8,089,173 |   |   | — |   |   | — |   |
| Deferred income                            |   |                        | 684,649     |                        |   | 1,822,685 |   |   | — |   |   | — |   |   | 921,547 |   |   | 1,824,544 |   |   | — |   |   | — |   |
| Vacation accrual                           |   |                        | 1,395,215   |                        |   | — |   |   | — |   |   | — |   |   | 1,211,297 |   |   | — |   |   | — |   |   | — |   |
| Intangibles                                |   |                        | —      |                        |   | — |   |   | 24,954 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Leasing assets                             |   |                        | —      |                        |   | 3,475,357 |   |   | — |   |   | — |   |   | — |   |   | 2,301,708 |   |   | — |   |   | — |   |
| Depreciation                               |   |                        | —      |                        |   | 3,500,985 |   |   | 115,620 |   |   | 388,240,574 |   |   | — |   |   | 3,730,312 |   |   | 63,991 |   |   | 425,486,736 |   |
| Severance indemnities                      |   |                        | —      |                        |   | 4,166 |   |   | — |   |   | 1,954,040 |   |   | — |   |   | 5,248 |   |   | — |   |   | 814,241 |   |
| Other                                      |   |                        | 1,507,717   |                        |   | 1,859,468 |   |   | 6,603,676 |   |   | 3,707,977 |   |   | 4,211,789 |   |   | 2,083,015 |   |   | 4,376,406 |   |   | 9,391,056 |   |
| Contingencies                              |   |                        | 4,325,818   |                        |   | 39,102,316 |   |   | — |   |   | — |   |   | 6,594,295 |   |   | 38,042,633 |   |   | — |   |   | — |   |
| Bond discount                              |   |                        | —      |                        |   | — |   |   | 421,131 |   |   | 1,704,883 |   |   | — |   |   | — |   |   | 154,508 |   |   | 1,717,127 |   |
| Cost of studies                            |   |                        | —      |                        |   | — |   |   | — |   |   | 4,675,640 |   |   | — |   |   | — |   |   | — |   |   | 7,972,554 |   |
| Finance costs                              |   |                        | —      |                        |   | 194,771 |   |   | — |   |   | 8,304,618 |   |   | — |   |   | 117,034 |   |   | — |   |   | 13,755,855 |   |
| Imputed interest on    construction        |   |                        | —      |                        |   | — |   |   | — |   |   | 4,830,117 |   |   | — |   |   | — |   |   | — |   |   | 4,863,433 |   |
| Deferred charges                           |   |                        | —      |                        |   | — |   |   | — |   |   | 1,510,731 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Actuarial deficit    (companies in Brazil) |   |                        | 7,487,563   |                        |   | — |   |   | 1,230,644 |   |   | 4,339,981 |   |   | 6,766,431 |   |   | — |   |   | — |   |   | 2,301,708 |   |
| Withholdings                               |   |                        | 566,417     |                        |   | 1,597,733 |   |   | 5,659 |   |   | — |   |   | 2,391,794 |   |   | 860,956 |   |   | 5,494 |   |   | 193,144 |   |
| Regulated assets                           |   |                        | —      |                        |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 3,828,000 |   |   | — |   |
| Derivative contracts                       |   |                        | 2,775       |                        |   | 1,000,985 |   |   | — |   |   | 512,289 |   |   | 350,818 |   |   | 234,174 |   |   | — |   |   | — |   |
| Provision real estate    projects          |   |                        | —      |                        |   | — |   |   | — |   |   | — |   |   | 2,656,047 |   |   | — |   |   | — |   |   | — |   |
| Materials used                             |   |                        | —      |                        |   | — |   |   | — |   |   | 3,349,399 |   |   | — |   |   | — |   |   | — |   |   | 1,086,289 |   |
| Salaries for    construction-in-progress   |   |                        | —      |                        |   | 5,843,294 |   |   | — |   |   | — |   |   | — |   |   | 3,926,807 |   |   | — |   |   | — |   |
| Tax losses                                 |   |                        | 2,905,532   |                        |   | 77,167,379 |   |   | — |   |   | — |   |   | 15,305,920 |   |   | 101,162,303 |   |   | — |   |   | — |   |
| Hid. El Chocón investment             |   |                        | —      |                        |   | — |   |   | — |   |   | 119,374 |   |   | — |   |   | — |   |   | 37 |   |   | 2,897,754 |   |
| Capitalized expenses                       |   |                        | —      |                        |   | — |   |   | 552,418 |   |   | 4,506,944 |   |   | — |   |   | — |   |   | 770,801 |   |   | 3,112,269 |   |
| Provision for labor    benefits            |   |                        | 306,354     |                        |   | 192,678 |   |   | 559 |   |   | — |   |   | 447,462 |   |   | 1,179,874 |   |   | 517 |   |   | 516 |   |
| Differences between the    financial and   |   |                        |        |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  tax value of Río Maipo S.A.     |   |                        | —      |                        |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,475,222 |   |   | — |   |
| Exchange difference    -subsidiaries       |   |                        | —      |                        |   | — |   |   | — |   |   | — |   |   | 1,288,870 |   |   | 3,866,610 |   |   | — |   |   | — |   |
| Complementary account, net                 |   |                        | (12,121,039 | )                           |   | (49,272,564 | ) |   | (28,750 | ) |   | (296,221,936 | ) |   | (3,647,280 | ) |   | (42,168,372 | ) |   | (3,187 | ) |   | (290,044,693 | ) |
| Valuation allowance                        |   |                        | —      |                        |   | (3,322,326 | ) |   | — |   |   | — |   |   | — |   |   | (3,448,901 | ) |   | — |   |   | — |   |
|                                       |   |                             |             |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                      |   |                        | 33,088,012  |                        |   | 95,474,667 |   |   | 8,925,911 |   |   | 131,534,631 |   |   | 62,627,582 |   |   | 121,807,118 |   |   | 10,671,789 |   |   | 183,547,989 |   |
|                                       |   |                             |             |                        |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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| **(f)** | Income tax    benefits (expense) for the years ended December 31, 2000, 2001 and 2002 is as    follows: |
|---------|---------------------------------------------------------------------------------------------------------|

|                                      |   | **2000**  |         | **2001**  |   | **2002**     |   |
|-------------------------------------------|--------|-----------|--------------|-----------|--------|--------------|--------|
|                                      |   |           |         |           |   |              |   |
|                                      |   | **ThCh$** |         | **ThCh$** |   | **ThCh$**    |   |
| **Tax expense**                           |   |      |         |      |   |         |   |   |   |   |
| Income tax    provision                   |   |      | (160,193,593 | )         |   | (114,099,337 | )      |   | (74,581,690 | ) |
| Adjustment    for tax expense-prior year  |   |      | (240         | )         |   | 3,111,691    |   |   | (507,568 | ) |
|                                      |   |           |              |      |        |              |   |  |  |   |
| Subtotal                                  |   |      | (160,193,833 | )         |   | (110,987,646 | )      |   | (75,089,258 | ) |
|                                      |   |           |              |      |        |              |   |  |  |   |
| **Deferred taxes**                        |   |      |         |      |   |         |   |   |   |   |
| Deferred    taxes                         |   |      | (26,988,959  | )         |   | (36,891,994  | )      |   | 24,471,978 |   |
| Benefits for    tax losses                |   |      | 28,053,730   |      |   | 13,509,821   |   |   | 5,043,185 |   |
| Amortization    of complementary accounts |   |      | 22,425,461   |      |   | 6,143,861    |   |   | (15,501,218 | ) |
| Change in    valuation allowance          |   |      | (1,192,554   | )         |   | (1,607,004   | )      |   | (126,575 | ) |
| Other    charges or credits               |   |      | (8,427,350   | )         |   | (17,175      | )      |   | (4,815,097 | ) |
|                                      |   |           |              |      |        |              |   |  |  |   |
| Total                                     |   |      | (146,323,505 | )         |   | (129,850,137 | )      |   | (66,016,985 | ) |
|                                      |   |           |              |      |        |              |   |  |  |   |

| **Note 9.** | **Other Current Assets** |
|-------------|--------------------------|

|                                           |   | **As of    December 31,** |        |
|------------------------------------------------|--------|---------------------------|-------------|
|                                           |   |                           |        |
|                                           |   | **2001**                  |        | **2002** |   |
|                                           |   |                           |        |  |   |
|                                           |   | **ThCh$**                 |        | **ThCh$** |   |
| Forward    contracts and swaps (1)             |   |                      | 110,734,637 |   |   | 72,800,589 |   |
| Guarantees    and indemnities                  |   |                      | 1,785,077   |   |   | 1,183,406 |   |
| Deferred    expenses                           |   |                      | 3,115,540   |   |   | 5,709,113 |   |
| Post-retirement    benefits                    |   |                      | 884,210     |   |   | 908,669 |   |
| Deposits for    commitments and guarantees (2) |   |                      | 1,656,844   |   |   | 26,098,519 |   |
| Other    accounts receivable                   |   |                      | 3,303,579   |   |   | 8,399,481 |   |
| Fair    value-derivative contracts             |   |                      | —      |   |   | 11,603,424 |   |
| Reverse    repurchase agreements               |   |                      | 1,909,395   |   |   | — |   |
| Other                                          |   |                      | 3,851,947   |   |   | 5,318,407 |   |
|                                           |   |                           |             |   |  |  |   |
| Total                                          |   |                      | 127,241,229 |   |   | 132,021,608 |   |
|                                           |   |                           |             |   |  |  |   |

| (1)    | See detail in Note 27.                                                                                                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)    | Infraestructura 2000 S.A.    Th$25,342,941 of time deposits in 2002.                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                            |
|   | The balance included under    this item corresponds to time deposits invested with funds from the issuance    of bonds and that are to be kept in reserve accounts as agreed in the    corresponding finance contracts.  At    consolidated level, these time deposits are not restricted. |

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| **Note 10.** | **Property, Plant and Equipment** |
|--------------|-----------------------------------|

|                                                               |   | **As of    December 31,** |           |
|--------------------------------------------------------------------|--------|---------------------------|----------------|
|                                                               |   |                           |           |
|                                                               |   | **2001**                  |           | **2002** |   |
|                                                               |   |                           |           |  |   |
|                                                               |   | **ThCh$**                 |           | **ThCh$** |   |
| Land                                                               |   |                      | 123,257,963    |   |   | 129,904,787 |   |
|                                                               |   |                           |                |   |  |  |   |
| Buildings    and infrastructure                                    |   |                      | 6,305,284,319  |   |   | 6,605,971,611 |   |
| Distribution    and transmission lines and public lighting         |   |                      | 4,702,594,096  |   |   | 5,061,388,676 |   |
| Less: third    party contributions                                 |   |                      | (55,731,873    | ) |   | (45,056,759 | ) |
|                                                               |   |                           |                |   |  |  |   |
| Sub-total                                                          |   |                      | 10,952,146,542 |   |   | 11,622,303,528 |   |
|                                                               |   |                           |                |   |  |  |   |
| Machinery    and equipment                                         |   |                      | 1,823,140,358  |   |   | 1,978,358,503 |   |
|                                                               |   |                           |                |   |  |  |   |
| Work in    progress                                                |   |                      | 351,183,870    |   |   | 364,506,933 |   |
| Construction    materials                                          |   |                      | 63,882,077     |   |   | 56,458,627 |   |
| Leased    assets                                                   |   |                      | 2,552,754      |   |   | 715,141 |   |
| Furniture    and fixtures,  tools, and computing    equipment |   |                      | 82,938,365     |   |   | 79,254,829 |   |
| Vehicles                                                           |   |                      | 15,595,644     |   |   | 13,097,921 |   |
| Equipment in    transit                                            |   |                      | 8,193,631      |   |   | 7,462,991 |   |
| Other assets                                                       |   |                      | 13,938,603     |   |   | 13,364,422 |   |
|                                                               |   |                           |                |   |  |  |   |
| Sub-total                                                          |   |                      | 538,284,944    |   |   | 534,860,864 |   |
|                                                               |   |                           |                |   |  |  |   |
| Technical    appraisal                                             |   |                      | 697,624,932    |   |   | 740,645,407 |   |
|                                                               |   |                           |                |   |  |  |   |
| Total property,    plant and equipment                             |   |                      | 14,134,454,739 |   |   | 15,006,073,089 |   |
| Less:    accumulated depreciation                                  |   |                      | (4,509,405,080 | ) |   | (5,126,614,906 | ) |
|                                                               |   |                           |                |   |  |  |   |
| Total    property, plant and equipment, net                        |   |                      | 9,625,049,659  |   |   | 9,879,458,183 |   |
|                                                               |   |                           |                |   |  |  |   |

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| **Note 11.** | **Investment in Related Companies** |
|--------------|-------------------------------------|

| **(a)** | **Investments as of each year-end are as follows:** |
|---------|-----------------------------------------------------|

|                                                    |   |                    |        |                    |   |                  |   | **Carrying Value** |        | **Equity in net     income (losses)** |   |
|---------------------------------------------------------|--------|-------------------------|-------------|-------------------------|--------|-----------------------|--------|--------------------|-------------|--------------------------------------------|--------|
|                                                    |   |                    |        |                    |   |                  |   |                    |        |                                            |   |
| **Related Companies**                                   |   | **Number of****shares** |        | **Percentage****Owned** |   | **Related****Equity** |   | **2001**           |        | **2002**                                   |   | **2000** |   | **2001** |   | **2002** |   |
|                                                    |   |                         |        |                         |   |                       |   |                    |        |                                            |   |  |   |  |   |  |   |
|                                                    |   |                    |        |                    |   | **%**                 |   |               | **ThCh$**   |                                       |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |
| Aguas Santiago Poniente    S.A. (1)                     |   |                    | 1,031,949   |                    |   | 55.00                 |   |               | 2,270,319   |                                       |   | — |   |   | 1,248,675 |   |   | — |   |   | — |   |   | — |   |
| Cía. de Interconexión    Energética S.A. |   |                    | 128,270,527 |                    |   | 45.00                 |   |               | 118,325,971 |                                       |   | 50,667,801 |   |   | 53,246,687 |   |   | (1,563,219 | ) |   | (5,826,850 | ) |   | 7,230,684 |   |
| Gas Atacama Generación                             |   |                    | —      |                    |   | 50.00                 |   |               | 67,770,629  |                                       |   | 36,300,892 |   |   | 33,885,315 |   |   | (2,595,232 | ) |   | (3,441,037 | ) |   | (4,793,334 | ) |
| Gasoducto Atacama Argentina    Ltda.                    |   |                    | —      |                    |   | 50.00                 |   |               | 64,226,451  |                                       |   | 27,899,622 |   |   | 32,113,226 |   |   | 287,536 |   |   | (4,686,666 | ) |   | 2,386,141 |   |
| Gasoducto Atacama Chile    Ltda.                        |   |                    | —      |                    |   | 50.00                 |   |               | 55,859,069  |                                       |   | 23,197,393 |   |   | 27,929,534 |   |   | 2,953,252 |   |   | 3,303,780 |   |   | 3,212,680 |   |
| Inversiones Eléctricas    Quillota S.A.            |   |                    | 608,676     |                    |   | 50.00                 |   |               | 17,127,364  |                                       |   | 7,602,220 |   |   | 8,563,682 |   |   | 615,927 |   |   | (29,794 | ) |   | 1,310,128 |   |
| Inversiones Electrogas S.A.                             |   |                    | 425         |                    |   | 42.50                 |   |               | 15,712,743  |                                       |   | 6,037,668 |   |   | 6,677,916 |   |   | 300,236 |   |   | 34,091 |   |   | 638,377 |   |
| Com. de Energía del    Mercosur S.A.               |   |                    | 6,305,400   |                    |   | 45.00                 |   |               | 7,614,035   |                                       |   | 4,680,261 |   |   | 3,426,316 |   |   | 196,295 |   |   | 48,872 |   |   | (1,524,596 | ) |
| Transquillota Ltda.                                     |   |                    | —      |                    |   | 50.00                 |   |               | 5,032,660   |                                       |   | 2,389,373 |   |   | 2,516,330 |   |   | 96,666 |   |   | 87,840 |   |   | 126,529 |   |
| Atacama Finance Co.                                     |   |                    | 3,150,000   |                    |   | 50.00                 |   |               | 5,179,023   |                                       |   | 2,555,396 |   |   | 2,589,511 |   |   | 90,809 |   |   | 120,819 |   |   | (133,267 | ) |
| Endesa Market Place                                     |   |                    | 210         |                    |   | 15.00                 |   |               | 3,199,945   |                                       |   | 602,376 |   |   | 479,992 |   |   | (312,241 | ) |   | (336,407 | ) |   | (281,264 | ) |
| Sacme S.A.                                              |   |                    | 12,000      |                    |   | 50.00                 |   |               | 78,684      |                                       |   | 41,818 |   |   | 39,342 |   |   | 3,001 |   |   | (7,335 | ) |   | 15,523 |   |
| Consorcio ARA - Ingendesa    Ltda..                     |   |                    | —      |                    |   | —                |   |               | 105,854     |                                       |   | — |   |   | 52,883 |   |   | 3,556 |   |   | — |   |   | 56,927 |   |
| Electrogas S.A.                                         |   |                    | 85          |                    |   | 0.02                  |   |               | 11,190,123  |                                       |   | 2,038 |   |   | 2,378 |   |   | 167 |   |   | 37 |   |   | 339 |   |
| Distrilec Inversora S.A.                                |   |                    | 4,416,141   |                    |   | 51.50                 |   |               | —      |                                       |   | 11,288 |   |   | — |   |   | — |   |   | 11,289 |   |   | — |   |
| Consorcio Ingendesa –    Minmetal Ltda.            |   |                    | —      |                    |   | 50.00                 |   |               | 3,676       |                                       |   | 23,623 |   |   | 1,838 |   |   | — |   |   | 22,564 |   |   | 18,916 |   |
| Central Geradora    Termelectrica Fortaleza S.A.        |   |                    | 20,246,908  |                    |   | 48.82                 |   |               | —      |                                       |   | 5,386,640 |   |   | 21,333,090 |   |   | — |   |   | — |   |   | — |   |
| Ingendesa do Brasil    Limitada (1)                     |   |                    | —      |                    |   | 100.00                |   |               | —      |                                       |   | 49,599 |   |   | 57,442 |   |   | — |   |   | — |   |   | — |   |
|                                                    |   |                    |        |                    |   |                  |   |               |        |                                       |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                                   |   |                    |        |                    |   |                  |   |               |        |                                       |   | 167,448,008 |   |   | 194,164,157 |   |   | 76,753 |   |   | (10,698,797 | ) |   | 8,263,783 |   |
|                                                    |   |                    |        |                    |   |                  |   |               |        |                                       |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

|   | (1) | There subsidiaries were in    development stage for the years shown and accordingly, were not consolidated    under Chilean GAAP. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| **(b)** | Income and    (losses) recognized by Enersis S.A. based on the participation in the related    companies as of December 31, 2002, amounted to ThCh$14,996,244    (ThCh$6,732,461), ThCh$14,328,089 (ThCh$3,629,292) in 2001 and ThCh$4,547,446    (ThCh$4,470,693) in 2000. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| **(c)** | In    accordance with Technical Bulletin No.64 of the Chilean Association of    Accountants for the years ended December 31, 2001 and 2002, the Company has    recorded foreign exchange gains and losses on liabilities related to net    investments in foreign countries that are denominated in the same currency as    the functional currency of those foreign investments.  Such gains and losses are included in the    cumulative translation adjustment account in shareholders’ equity, and in    this way, act as a hedge of the exchange risk affecting the investments.  As of December 31, 2002 the corresponding    amounts are as follows: |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Company**                                          |   | **Country****of origin** |              | **Investment** |   | **Reporting****currency** |   | **Liability** |   |
|------------------------------------------------------|--------|--------------------------|-------------------|----------------|--------|---------------------------|--------|---------------|--------|
|                                                 |   |                          |              |                |   |                           |   |               |   |
|                                                 |   |                     |              | **ThCh$**      |   |                      |   | **ThCh$**     |   |
| Central    Hidroeléctrica Betania               |   |                     | Colombia          |           |   | 600,762,975               |   |          | US$    |   |   | 336,577,165 |   |
| Cachoeira    Dourada                                 |   |                     | Brasil            |           |   | 430,106,204               |   |          | US$    |   |   | 530,228,953 |   |
| Edegel S.A.                                          |   |                     | Peru              |           |   | 220,917,766               |   |          | US$    |   |   | 243,486,508 |   |
| Cía.    Interconexión Energética S.A. |   |                     | Brasil            |           |   | 53,246,687                |   |          | US$    |   |   | 62,574,905 |   |
| Atacama    Finance Co.                               |   |                     | Islas Caymán |           |   | 2,589,511                 |   |          | US$    |   |   | 1,854,668 |   |
| Hidroeléctrica    El Chocón S.A.           |   |                     | Argentina         |           |   | 212,761,767               |   |          | US$    |   |   | 121,855,669 |   |
| Com. de    Energía del Mercosur S.A.            |   |                     | Argentina         |           |   | 3,426,316                 |   |          | US$    |   |   | 3,952,377 |   |
| Central    Costanera S.A.                            |   |                     | Argentina         |           |   | 89,044,456                |   |          | US$    |   |   | 65,498,672 |   |
| Edesur S.A.                                          |   |                     | Argentina         |           |   | 482,071,599               |   |          | US$    |   |   | 392,146,648 |   |
| Edelnor S.A.                                         |   |                     | Peru              |           |   | 52,786,427                |   |          | US$    |   |   | 23,385,019 |   |
| Cía. do    Electricidade do Río do Janeiro |   |                     | Brasil            |           |   | 362,673,182               |   |          | US$    |   |   | 385,080,177 |   |
| Codensa S.A.                                         |   |                     | Colombia          |           |   | 276,586,841               |   |          | US$    |   |   | 306,287,700 |   |
| Coelce                                               |   |                     | Brasil            |           |   | 93,034,182                |   |          | US$    |   |   | 116,004,085 |   |
|                                                 |   |                     |              |           |        |                           |   |          |   |   |  |  |   |
| Total                                                |   |                     |              |           |   | 2,880,007,913             |   |          |   |   |   | 2,588,932,546 |   |
|                                                 |   |                     |              |           |        |                           |   |          |   |   |  |  |   |

|                                                         |   | **ThCh$** |       |
|--------------------------------------------------------------|--------|-----------|------------|
| **Acquisitions:**                                            |   |      |       |   |
| Luz de Río    Ltda.                                     |   |      | 61,469     |   |
| Central    Termoléctrica Fortaleza S.A.                 |   |      | 15,480,376 |   |
| Compañía    Eléctrica del Río Maipo S.A. |   |      | 1,134      |   |
| Cachoeira    Dourada S.A.                                    |   |      | 58,931     |   |
| Aguas    Santiago Poniente S.A.                              |   |      | 1,633,280  |   |
| Pangue S.A.                                                  |   |      | 4,998,894  |   |
| Inversiones    Distrilima S.A.                               |   |      | 1,190,289  |   |
| Other                                                        |   |      | 40,904     |   |
|                                                         |   |           |            |   |
| Total                                                        |   |      | 23,465,277 |   |
|                                                         |   |           |            |   |

| • | In May of    2002, Enersis S.A. acquired 6,824,495 Sociedad Inversiones Distrilima S.A.    shares equivalent to 1.14% of issued capital for US$1,767,761,22 increasing    its direct interest from 14.79% to 15.93%. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Index

| **•** | In February    and April of 2002 Enersis S.A. made contributions of US$22,773,195.87 to    Central Geradora Termelétrica Fortaleza S.A. for a capital increase,    maintaining its 48.82% interest equivalent to 20,246,908 shares.                                                                                          |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                              |
| •     | During 2002,    Lajas Inversora (Endesa subsidiary) acquired 753,627 (0.0803%) Central Eléctrica    Cachoeira Dourada S.A. (Brasil) shares for Th$58,931, increasing its interest    to 99.59% in said company.                                                                                                              |
|       |                                                                                                                                                                                                                                                                                                                              |
| •     | On September    13, 2002, Endesa acquired 7,275,433 (2.51%) Pangue S.A. (Chile) shares for    Th$4,998,894, increasing its interest to 94.97% in said company.                                                                                                                                                                    |
|       |                                                                                                                                                                                                                                                                                                                              |
| •     | Debenture    capitalization in Cerj                                                                                                                                                                                                                                                                                               |
|       | On July 11,    2002, the company Luz de Río Ltda. and Endesa Internacional Energía Ltda.,    holders of convertible bonds issued by Companhía de Electricidade do Río de    Janeiro, exercised the option to capitalize their investment. To that effect,    420,705,127,532 no par value shares were issued. |

| **Note 12.** | **Investments in Other Companies** |
|--------------|------------------------------------|

|                                          |   | **Number ofshares** |       | **Percentageowned** |   | **As of    December 31,** |   |
|-----------------------------------------------|--------|---------------------|------------|---------------------|--------|---------------------------|--------|
|                                               |
| **Company**                                   |   | **2001**            |       | **2002**            |   |
|                                          |   |                     |            |                |        |                           |   |  |  |   |  |  |   |
|                                          |   |                |       |                |   | **%**                     |   |   | **ThCh$** |   |   | **ThCh$** |   |
| Distasa S.A.    E.S.P.                        |   |                | 1          |                |   | —                    |   |   |   |   |   | 6 |   |
| Emgesa S.A.    E.S.P.                         |   |                | 1          |                |   | —                    |   |   |   |   |   | 3 |   |
| Club de la    Banca y Comercio                |   |                | 2          |                |   | 0.001                     |   |   | 2,572 |   |   | 2,699 |   |
| Club    Empresarial                           |   |                | 2          |                |   | 0.001                     |   |   | 6,328 |   |   | 6,150 |   |
| Edegas                                        |   |                | 1          |                |   | 0.010                     |   |   | 2,616 |   |   | 3,422 |   |
| Empresa    Eléctrica de Aysen S.A        |   |                | 2,516,231  |                |   | —                    |   |   | 1,978,031 |   |   | 1,978,031 |   |
| Inmobiliaria    España S.A.              |   |                | 1          |                |   | —                    |   |   | 98 |   |   | 98 |   |
| Inverandes    S.A.                            |   |                | 1,011,899  |                |   | —                    |   |   | 3,420 |   |   | 3,420 |   |
| Cooperativa    Eléctrica de Chillán |   |                | —     |                |   | —                    |   |   | 12,907 |   |   | 12,907 |   |
| CDEC-SIC    Ltda.                             |   |                | —     |                |   | 30.770                    |   |   | 153,100 |   |   | 223,114 |   |
| Empresa    Eléctrica de Bogotá S.A. |   |                | 12,818,264 |                |   | 11.000                    |   |   | 147,160,783 |   |   | 156,799,970 |   |
| Autopista    del Río Maipo S.A.          |   |                | 25         |                |   | 0.200                     |   |   | 4,827 |   |   | 4,827 |   |
| Financiera    Eléctrica Nacional         |   |                | —     |                |   | 0.100                     |   |   | 124,006 |   |   | 353,555 |   |
| Saelpa                                        |   |                | —     |                |   | —                    |   |   | 1,036 |   |   | 725 |   |
| Teleceara                                     |   |                | —     |                |   | —                    |   |   | 738 |   |   | 516 |   |
| Supra CCVM    Lltda.                          |   |                | —     |                |   | —                    |   |   | 37,906 |   |   | 26,525 |   |
| Banco Destak                                  |   |                | —     |                |   | —                    |   |   | 61,376 |   |   | 42,947 |   |
| Menescal    Produções Artisticas    |   |                | —     |                |   | —                    |   |   | 8,344 |   |   | 5,838 |   |
| Termocartagena                                |   |                | 22         |                |   | —                    |   |   | — |   |   | 6 |   |
| Coger                                         |   |                | —     |                |   | —                    |   |   | 2,909 |   |   | 2,035 |   |
|                                          |   |                |       |                |   |                      |   |  |  |   |  |  |   |
| Total                                         |   |                |       |                |   |                      |   |   | 149,560,997 |   |   | 159,466,785 |   |
|                                          |   |                |       |                |   |                      |   |  |  |   |  |  |   |

----

Back to Index

| **Note 13.** | **Goodwill** |
|--------------|--------------|

| **(a)** | In    accordance with current standards, recognition has been given to the excess    of purchase price of the proportional equity in the net assets acquired    (goodwill) in the purchase of shares as of December 31, 2001 and 2002, as    follows: |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | **As of    December 31,** |        |
|----------------------------------------------------------|--------|---------------------------|-------------|
|                                                     |   |                           |        |
|                                                     |   | **Amortization**          |        | **Net    balance** |   |
|                                                     |   |                           |        |  |   |
| **Company**                                              |   | **2000**                  |        | **2001** |   | **2002** |   | **2001** |   | **2002** |   |
|                                                     |   | **ThCh$**                 |        | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| Central    Costanera S.A. (1)                            |   |                      | (1,477,224  | ) |   | (1,635,472 | ) |   | (24,019,065 | ) |   | 22,542,503 |   |   |   |   |
| Chilectra    S.A.                                        |   |                      | (1,040,007  | ) |   | (6,178,814 | ) |   | (6,244,383 | ) |   | 112,424,542 |   |   | 106,276,518 |   |
| Cía. de    Electricidade do Río de Janeiro (1) |   |                      | (6,144,427  | ) |   | (6,802,644 | ) |   | (109,374,320 | ) |   | 102,650,570 |   |   | — |   |
| C.    Hidroeléctrica Cachoeira Dourada (1)          |   |                      | (3,685,680  | ) |   | (4,080,506 | ) |   | (69,564,545 | ) |   | 65,288,089 |   |   | — |   |
| Coelce (1)                                               |   |                      | (10,994,059 | ) |   | (12,171,789 | ) |   | (213,989,455 | ) |   | 200,834,527 |   |   | — |   |
| Codensa                                                  |   |                      | (1,515,697  | ) |   | (1,677,992 | ) |   | (1,787,998 | ) |   | 26,569,990 |   |   | 26,522,265 |   |
| Distrilec    Inversora S.A. (1)                          |   |                      | (596,749    | ) |   | (660,678 | ) |   | (11,642,227 | ) |   | 10,926,526 |   |   | — |   |
| Edegel S.A.                                              |   |                      | (34,232     | ) |   | (37,900 | ) |   | (41,020 | ) |   | 609,554 |   |   | 608,459 |   |
| Edesur S.A.    (1)                                       |   |                      | (577,694    | ) |   | (639,580 | ) |   | (9,483,835 | ) |   | 8,900,820 |   |   | — |   |
| Emgesa S.A.                                              |   |                      | (1,369,908  | ) |   | (1,516,659 | ) |   | (1,615,435 | ) |   | 24,013,765 |   |   | 23,970,674 |   |
| Empresa    Eléctrica de Colina S.A.                 |   |                      | (185,188    | ) |   | (185,188 | ) |   | (185,188 | ) |   | 2,731,517 |   |   | 2,546,329 |   |
| Empresa    Eléctrica de Pangue S.A.                 |   |                      | —      |   |   | — |   |   | (69,692 | ) |   | — |   |   | 3,275,515 |   |
| Endesa    (Chile)                                        |   |                      | (42,958,280 | ) |   | (42,958,281 | ) |   | (42,958,280 | ) |   | 710,600,834 |   |   | 667,642,554 |   |
| Gasoducto    Atacama y Cía Ltda.                    |   |                      | (4,772      | ) |   | (4,772 | ) |   | (4,772 | ) |   | 81,927 |   |   | 77,154 |   |
| Hidroeléctrica    El Chocón S.A. (1)           |   |                      | (507,513    | ) |   | (810,026 | ) |   | (10,069,320 | ) |   | 9,450,309 |   |   | — |   |
| Hidroinvest    S.A. (1)                                  |   |                      | (70,177     | ) |   | (77,694 | ) |   | (1,379,722 | ) |   | 1,294,904 |   |   | — |   |
| Inversiones    Distrilima S.A.                           |   |                      | (1,272      | ) |   | (1,408 | ) |   | (1,500 | ) |   | 18,301 |   |   | 18,000 |   |
| Investluz    S.A. (1)                                    |   |                      | (56,270     | ) |   | (62,297 | ) |   | (1,095,242 | ) |   | 1,027,913 |   |   | — |   |
| Lajas    Inversora S.A. (1)                              |   |                      | (95,269     | ) |   | (105,474 | ) |   | (1,798,130 | ) |   | 1,687,590 |   |   | — |   |
| Luz de    Bogotá S.A.                               |   |                      | (363,754    | ) |   | (402,719 | ) |   | (445,628 | ) |   | 6,376,384 |   |   | 6,348,417 |   |
| Cía.    Eléctrica del Río Maipo S.A.      |   |                      | (35,635     | ) |   | (566,455 | ) |   | (574,414 | ) |   | 10,802,028 |   |   | 10,227,614 |   |
|                                                     |   |                           |             |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                                    |   |                      | (71,713,807 | ) |   | (80,576,348 | ) |   | (506,344,171 | ) |   | 1,318,832,593 |   |   | 847,513,499 |   |
|                                                     |   |                           |             |   |  |  |   |  |  |   |  |  |   |  |  |   |

| **(b)** | Following    current standards, recognition has been given to the excess of the equity in    the net assets purchased over the purchase price (negative goodwill) in the    purchase of shares as of December 31, 2001 and 2002 as follows: |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | **As of    December 31,** |       |
|----------------------------------------------------------|--------|---------------------------|------------|
|                                                     |   |                           |       |
|                                                     |   | **Amortization**          |       | **Net    balance** |   |
|                                                     |   |                           |       |  |   |
| **Company**                                              |   |                      | **2000**   |   |   | **2001** |   |   | **2002** |   |   | **2001** |   |   | **2002** |   |
|                                                     |   |                      | **ThCh$**  |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |
| Inversiones  Destrilima S.A.                        |   |                      | —     |   |   | — |   |   | 18,366 |   |   | — |   |   | 611,346 |   |
| Hidroeléctrica    El Chocón S.A. (1)           |   |                      | —     |   |   | 248,147 |   |   | 3,613,468 |   |   | 3,391,331 |   |   | — |   |
| Synapsis    Soluciones y Servicios IT Ltda.              |   |                      | 15,314     |   |   | 15,315 |   |   | 15,315 |   |   | 156,983 |   |   | 141,668 |   |
| Edelnor S.A.                                             |   |                      | 1,054,693  |   |   | 1,167,676 |   |   | 1,244,160 |   |   | 3,696,809 |   |   | 2,694,795 |   |
| Central    Hidroeléctrica Betania S.A.              |   |                      | 30,582,139 |   |   | 33,765,719 |   |   | 34,886,018 |   |   | 56,035,189 |   |   | 24,819,551 |   |
| Cía.    Eléctrica Cachoeira Dourada (1)        |   |                      | 1,773,475  |   |   | 1,996,761 |   |   | 36,869,705 |   |   | 34,362,010 |   |   | — |   |
| Edegel S.A.                                              |   |                      | 8,564,986  |   |   | 9,661,331 |   |   | 10,294,161 |   |   | 68,866,610 |   |   | 63,083,303 |   |
| Empresa de    Energía de Bogotá S.A.           |   |                      | 215,999    |   |   | 239,139 |   |   | 254,803 |   |   | 3,826,225 |   |   | 3,822,287 |   |
| Cía. de    Electricidade do Río de Janeiro (1) |   |                      | —     |   |   | 118,238 |   |   | 15,874,719 |   |   | 2,246,500 |   |   | — |   |
| Coelce (1)                                               |   |                      | 440,352    |   |   | 487,523 |   |   | 9,177,059 |   |   | 8,612,903 |   |   | — |   |
|                                                     |   |                           |            |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                                    |   |                      | 42,646,958 |   |   | 47,699,849 |   |   | 112,247,774 |   |   | 181,194,560 |   |   | 95,172,950 |   |
|                                                     |   |                           |            |   |  |  |   |  |  |   |  |  |   |  |  |   |

----

Back to Index

| (1) | To carry out the analysis of the recoverability of    goodwill and negative goodwill on investments abroad, as explained in Note 2    u, the Company used International Accounting Standard (IAS) No.36. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Note 14.** | **Other Assets** |
|--------------|------------------|

|                                              |   | **As of    December 31,** |        |
|---------------------------------------------------|--------|---------------------------|-------------|
|                                              |   |                           |        |
|                                              |   | **2001**                  |        | **2002** |   |
|                                              |   |                           |        |  |   |
|                                              |   | **ThCh$**                 |        | **ThCh$** |   |
| Bond    discount                                  |   |                      | 23,317,438  |   |   | 20,817,166 |   |
| Bond    issuance cost                             |   |                      | 2,227,309   |   |   | 11,513,319 |   |
| Forwards    contracts and swaps                   |   |                      | 6,778,289   |   |   | 9,363,825 |   |
| Deferred    expenses                              |   |                      | 29,372,305  |   |   | 32,395,491 |   |
| Deferred    commissions on foreign currency loans |   |                      | 8,504,753   |   |   | 10,428,709 |   |
| Post-retirement    benefits                       |   |                      | 50,753,635  |   |   | 19,278,057 |   |
| Security    deposits for judicial obligations     |   |                      | 17,219,611  |   |   | 23,650,617 |   |
| Recoverable    - taxes                            |   |                      | 16,938,241  |   |   | 14,575,779 |   |
| Reimbursable    contributions                     |   |                      | 1,644,724   |   |   | 1,445,742 |   |
| Argentinean    Goverment bond (Edesur)            |   |                      | 6,744,337   |   |   | 793,976 |   |
| Regulated    assets                               |   |                      | 28,334,477  |   |   | 36,046,501 |   |
| Fair value-derivative    contracts                |   |                      | —      |   |   | 51,900,113 |   |
| Others                                            |   |                      | 6,700,336   |   |   | 6,546,301 |   |
|                                              |   |                           |             |   |  |  |   |
| Total                                             |   |                      | 198,535,455 |   |   | 238,755,596 |   |
|                                              |   |                           |             |   |  |  |   |

----

Back to Index

| **Note 15.** | **Due to Banks    and Financial Institutions** |
|--------------|------------------------------------------------|

| **(a)** | **Short-term debt due to banks and financial institutions:** |
|---------|--------------------------------------------------------------|

|                                     |   | **Foreign    Currency** |        |                         |   |
|------------------------------------------|--------|-------------------------|-------------|------------------------------|--------|
|                                     |   |                         |        |                         |   |
|                                     |   | **US$**                 |        | **Other foreign currencies** |   | **Ch$** |   | **Total** |   |
|                                     |   |                         |        |                              |   |  |   |  |   |
| **Financial    Institution**             |   | **2001**                |        | **2002**                     |   | **2001** |   | **2002** |   | **2001** |   | **2002** |   | **2001** |   | **2002** |   |
|                                     |   |                    | **ThCh$**   |                         |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |   | **ThCh$** |   |
| **Short-term:**                          |   |                    |        |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ABN Amro Bank                            |   |                    | —      |                         |   | 6,557,278 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 6,557,278 |   |
| Banco Alfa                               |   |                    | —      |                         |   | — |   |   | 9,978,137 |   |   | 2,914,580 |   |   | — |   |   | — |   |   | 9,978,137 |   |   | 2,914,580 |   |
| Banco Banrisul                           |   |                    | —      |                         |   | — |   |   | 2,943,626 |   |   | 2,033,821 |   |   | — |   |   | — |   |   | 2,943,626 |   |   | 2,033,821 |   |
| Banco Bayernische Landes                 |   |                    | 3,900       |                         |   | 8,744,459 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 3,900 |   |   | 8,744,459 |   |
| Banco BBVA Argentaria                    |   |                    | 19,383,881  |                         |   | 15,389,863 |   |   | — |   |   | 7,176,274 |   |   | — |   |   | — |   |   | 19,383,881 |   |   | 22,566,137 |   |
| Banco BBVA BHIF                          |   |                    | 11,690,051  |                         |   | 14,868,221 |   |   | — |   |   | — |   |   | 260 |   |   | 20,387,682 |   |   | 11,690,311 |   |   | 35,255,903 |   |
| Banco Beal                               |   |                    | —      |                         |   | 14,077,559 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 14,077,559 |   |
| Banco Brasiletros                        |   |                    | —      |                         |   | — |   |   | 325,235 |   |   | — |   |   | — |   |   | — |   |   | 325,235 |   |   | — |   |
| Banco Granahorrar                        |   |                    | —      |                         |   | — |   |   | — |   |   | 5,058,544 |   |   | — |   |   | — |   |   | — |   |   | 5,058,544 |   |
| Banco Continental - Perú            |   |                    | —      |                         |   | 8,967 |   |   | 15,050,838 |   |   | 3,688,212 |   |   | — |   |   | — |   |   | 15,050,838 |   |   | 3,697,179 |   |
| Banco Continental - Soles                |   |                    | 6,091,898   |                         |   | — |   |   | — |   |   | 20,734,860 |   |   | — |   |   | — |   |   | 6,091,898 |   |   | 20,734,860 |   |
| Banco Crédito (Perú)           |   |                    | —      |                         |   | — |   |   | 20,726,463 |   |   | 20,534,043 |   |   | — |   |   | — |   |   | 20,726,463 |   |   | 20,534,043 |   |
| Banco Crédito Inversiones           |   |                    | 6,249       |                         |   | — |   |   | 4,401,289 |   |   | — |   |   | — |   |   | 5,677,901 |   |   | 4,407,538 |   |   | 5,677,901 |   |
| Banco de Bogotá                     |   |                    | —      |                         |   | — |   |   | — |   |   | 12,605,923 |   |   | — |   |   | — |   |   | — |   |   | 12,605,923 |   |
| Banco de Chile                           |   |                    | —      |                         |   | 1,395,421 |   |   | — |   |   | 53,818 |   |   | 94 |   |   | 7,074,827 |   |   | 94 |   |   | 8,524,066 |   |
| Banco de Occidente                       |   |                    | —      |                         |   | — |   |   | — |   |   | 5,024,251 |   |   | — |   |   | — |   |   | — |   |   | 5,024,251 |   |
| Banco Davivienda                         |   |                    | —      |                         |   | — |   |   | — |   |   | 2,297,651 |   |   | — |   |   | — |   |   | — |   |   | 2,297,651 |   |
| Banco Europeu de Investimentos           |   |                    | —      |                         |   | 986,292 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 986,292 |   |
| Banco Ganadero                           |   |                    | —      |                         |   | — |   |   | 8,328,537 |   |   | 884,609 |   |   | — |   |   | — |   |   | 8,328,537 |   |   | 884,609 |   |
| Banco HBSC                               |   |                    | —      |                         |   | 14,966,456 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 14,966,456 |   |
| Banco Itau                               |   |                    | 14,868,328  |                         |   | 17,336,064 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 14,868,328 |   |   | 17,336,064 |   |
| Banco Lloyds                             |   |                    | 12,725,024  |                         |   | 11,001,720 |   |   | — |   |   | 962,348 |   |   | — |   |   | — |   |   | 12,725,024 |   |   | 11,964,068 |   |
| Banco Nationale de Paris                 |   |                    | 5,451,346   |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 5,451,346 |   |   | — |   |
| Banco Nazionale del Lavoro               |   |                    | 25,998      |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 25,998 |   |   | — |   |
| Banco Real                               |   |                    | 3,285,690   |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 3,285,690 |   |   | — |   |
| Banco Río                           |   |                    | 15,773,388  |                         |   | 5,169,358 |   |   | 22,748 |   |   | 4,638,644 |   |   | — |   |   | — |   |   | 15,796,136 |   |   | 9,808,002 |   |
| Banco Safra                              |   |                    | 4,621,310   |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 4,621,310 |   |   | — |   |
| Banco Santander                          |   |                    | 1,505,541   |                         |   | 10,494,702 |   |   | 8,441,260 |   |   | 11,236,876 |   |   | — |   |   | 116 |   |   | 9,946,801 |   |   | 21,731,694 |   |
| Banco Santander Central    Hispano       |   |                    | —      |                         |   | 88,495 |   |   | — |   |   | 6,756,148 |   |   | — |   |   | — |   |   | — |   |   | 6,844,643 |   |
| Banco Santiago                           |   |                    | 1,407,374   |                         |   | 944,155 |   |   | — |   |   | — |   |   | 2,363,855 |   |   | 30,047,885 |   |   | 3,771,229 |   |   | 30,992,040 |   |
| Banco Wiese                              |   |                    | 36,542      |                         |   | — |   |   | 23,274 |   |   | — |   |   | — |   |   | — |   |   | 59,816 |   |   | — |   |
| Bank Boston                              |   |                    | 22,883,118  |                         |   | 21,573,421 |   |   | 12,840,183 |   |   | 7,617,506 |   |   | — |   |   | — |   |   | 35,723,301 |   |   | 29,190,927 |   |
| Bank of América                     |   |                    | 18,039,049  |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 18,039,049 |   |   | — |   |
| Bank of Tokio                            |   |                    | 129,569     |                         |   | 12,207,873 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 129,569 |   |   | 12,207,873 |   |
| Barings                                  |   |                    | 6,767,943   |                         |   | 5,034,740 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 6,767,943 |   |   | 5,034,740 |   |
| Bndes                                    |   |                    | —      |                         |   | — |   |   | — |   |   | 3,797,550 |   |   | — |   |   | — |   |   | — |   |   | 3,797,550 |   |
| BNP Paribas                              |   |                    | —      |                         |   | — |   |   | — |   |   | 1,728,888 |   |   | — |   |   | — |   |   | — |   |   | 1,728,888 |   |
| Brandesco                                |   |                    | 11,929,665  |                         |   | 4,069,600 |   |   | 6,643,422 |   |   | — |   |   | — |   |   | — |   |   | 18,573,087 |   |   | 4,069,600 |   |
| Caixa General de Depósitos          |   |                    | —      |                         |   | — |   |   | — |   |   | 4,488,965 |   |   | — |   |   | — |   |   | — |   |   | 4,488,965 |   |
| Chase Manhattan Bank                     |   |                    | 578         |                         |   | — |   |   | 2,943,675 |   |   | — |   |   | — |   |   | — |   |   | 2,944,253 |   |   | — |   |
| Citibank                                 |   |                    | 22,932,354  |                         |   | 17,080,123 |   |   | 7,618,861 |   |   | 10,622,525 |   |   | — |   |   | — |   |   | 30,551,215 |   |   | 27,702,648 |   |
| Deutsche Bank                            |   |                    | 3,510,307   |                         |   | — |   |   | 173 |   |   | 723,970 |   |   | — |   |   | — |   |   | 3,510,480 |   |   | 723,970 |   |
| Interbank                                |   |                    | —      |                         |   | 24 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 24 |   |
| San Paolo IMI Bank                       |   |                    | —      |                         |   | 40,312,584 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 40,312,584 |   |
| Santander Overseas Bank                  |   |                    | 10,119,892  |                         |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 10,119,892 |   |   | — |   |
| Unibanco                                 |   |                    | 5,169,139   |                         |   | 3,973,468 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 5,169,139 |   |   | 3,973,468 |   |
|                                     |   |                         |             |                         |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                    |   |                    | 198,358,134 |                         |   | 226,280,843 |   |   | 100,287,721 |   |   | 135,580,006 |   |   | 2,364,209 |   |   | 63,188,411 |   |   | 301,010,064 |   |   | 425,049,260 |   |
|                                     |   |                         |             |                         |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total Principal                          |   |                    | 161,053,463 |                         |   | 172,781,954 |   |   | 66,462,707 |   |   | 122,203,397 |   |   | 2,364,209 |   |   | 63,024,860 |   |   | 229,880,379 |   |   | 358,010,211 |   |
|                                     |   |                         |             |                         |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Weighted average annual    interest rate |   |                    | 10.98%      |                         |   | 8.14% |   |   | 11.28% |   |   | 14.84% |   |   | 4.62% |   |   | 2.48% |   |   | 10.99% |   |   | 9.42% |   |

|                                    |   | **As of December 31,** |   |
|-----------------------------------------|--------|------------------------|--------|
|                                    |   |                        |   |
|                                    |   | **2001%**              |   | **2002%** |   |
| Percentage of debt in foreign currency: |   |                   | 99.21  |   |   | 85.13 |   |
| Percentage of debt in local currency:   |   |                   | 0.79   |   |   | 14.87 |   |
|                                    |   |                        |        |   |  |  |   |
| Total                                   |   |                   | 100.00 |   |   | 100.00 |   |
|                                    |   |                        |        |   |  |  |   |

----

Back to Index

| **(b)** | **Current portion of long-term debt due to banks and financial    institutions:** |
|---------|-----------------------------------------------------------------------------------|

|                                     |   | **Foreign    Currency** |        |
|------------------------------------------|--------|-------------------------|-------------|
|                                     |   |                         |        |
|                                     |   | **US$**                 |        | **Euros** |   | **Yen** |   | **Other    foreign currency** |   |
|                                     |   |                         |        |  |   |  |   |  |   |
| **Financial Institution**                |   | **2001**                |        | **2002** |   | **2001** |   | **2002** |   | **2001** |   | **2002** |   | **2001** |   | **2002** |   |
|                                     |   | **ThCh$**               |        | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| **Current    portion of long -term:**    |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ABN Amro Bank                            |   |                    | 4,641,206   |   |   | 2,636,765 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Corporación Fin. del Valle          |   |                    | —      |   |   | 55,827 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Bayernische Landes                 |   |                    | 21,333,470  |   |   | 5,622,544 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco BBVA Bhif                          |   |                    | 586,366     |   |   | 1,447,394 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Beal                               |   |                    | 15,484,073  |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco de Chile                           |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco do Brasil                          |   |                    | 147,266     |   |   | 152,837 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 916,285 |   |   | — |   |
| Banco do Estado  de Ceará      |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 6,865 |   |   | 882,985 |   |
| Banco do Nordeste do Brasil              |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 185,154 |   |   | 1,987 |   |
| Banco Estado                             |   |                    | 1,654,097   |   |   | 931,318 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 42,548 |   |
| Bancolombia                              |   |                    | —      |   |   | 107,119 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco HBSC                               |   |                    | 21,590      |   |   | 10,824,955 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Hermes                             |   |                    | 6,577,752   |   |   | 5,391,528 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Lloyds                             |   |                    | —      |   |   | 7,219,445 |   |   | — |   |   | — |   |   | — |   |   | 7,067,648 |   |   | — |   |   | — |   |
| Banco Medio Crédito                 |   |                    | 4,214,536   |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Nacional Desarrollo Soc.           |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 651,402 |   |   | 2,019,382 |   |
| Banco Real                               |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 470,332 |   |
| Banco Rio                                |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,896 |   |   | — |   |
| Banco Nacional del Lavoro                |   |                    | —      |   |   | 171,165 |   |   | — |   |   | — |   |   | — |   |   | 3,365,645 |   |   | — |   |   | 2,409 |   |
| Banco San Paolo                          |   |                    | 67,508,298  |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco Santander                          |   |                    | 3,744,556   |   |   | 768,636 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 2,178,745 |   |   | — |   |
| Banesto                                  |   |                    | 4,292,992   |   |   | 4,601,056 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Bank Boston                              |   |                    | —      |   |   | 600,561 |   |   | — |   |   | — |   |   | — |   |   | 14,637,719 |   |   | — |   |   | — |   |
| Bank of América                     |   |                    | 69,521,918  |   |   | 97,779,555 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Bank of Tokio - Mitsubishi               |   |                    | 56,082,775  |   |   | 46,988,580 |   |   | — |   |   | 127,292 |   |   | 395,184 |   |   | 14,585,777 |   |   | 496,814 |   |   | — |   |
| Banque Nationale París              |   |                    | 4,626,119   |   |   | 11,861,505 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 456,684 |   |
| Birf                                     |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,066,471 |   |   | — |   |
| Chase Manhattan Bank                     |   |                    | 57,741,816  |   |   | 596,408 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,195,763 |   |
| BNP Paribas                              |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 6,615,690 |   |
| Citibank N.A.                            |   |                    | 22,631,820  |   |   | 24,295,402 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Dresner B. Luxemburg                     |   |                    | 232,752     |   |   | 82,932,830 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Electrobras - Brasil                     |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 2,969,352 |   |   | — |   |
| Eximbank                                 |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 459,473 |   |
| Export Develop. Corp.                    |   |                    | 1,681,533   |   |   | 2,506,978 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| J.P.Morgan Chase Bank                    |   |                    | —      |   |   | 408,710 |   |   | 3,624,390 |   |   | 4,545,759 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Kreditanstal Fur    Weideraubau          |   |                    | 403,235     |   |   | 424,774 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Midland Bank                             |   |                    | 5,085,611   |   |   | 5,668,452 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Santander Central Hispano                |   |                    | —      |   |   | 215,947,206 |   |   | — |   |   | — |   |   | — |   |   | 6,481,411 |   |   | — |   |   | — |   |
| Santander Inv. Bank                      |   |                    | 5,063,018   |   |   | 6,349,226 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Scotiabank                               |   |                    | 559,807     |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Skandinaviska Enskildabnken              |   |                    | 2,229,111   |   |   | 2,375,122 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Societe Generale                         |   |                    | 1,740,953   |   |   | 1,845,522 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Unibanco                                 |   |                    | —      |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 73,033 |   |   | 52,797 |   |
|                                     |   |                         |             |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                    |   |                    | 357,806,670 |   |   | 540,511,420 |   |   | 3,624,390 |   |   | 4,673,051 |   |   | 395,184 |   |   | 46,138,200 |   |   | 8,546,017 |   |   | 12,200,050 |   |
|                                     |   |                         |             |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total principal                          |   |                    | 307,836,499 |   |   | 513,485,849 |   |   | 3,624,390 |   |   | 4,647,499 |   |   | 395,184 |   |   | 45,826,512 |   |   | 8,544,119 |   |   | 8,884,706 |   |
|                                     |   |                         |             |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Weighted average annual    interest rate |   |                    | 6.03        | % |   | 3.24 | % |   | 4.26 | % |   | 3.79 | % | z | 0.90 | % |   | 2.08 | % |   | 8.60 | % |   | 8.53 | % |

----

|                                     |   | **Foreign    Currency** |       |
|------------------------------------------|--------|-------------------------|------------|
|                                     |   |                         |       |
|                                     |   | **UF**                  |       | **Total** |   |
|                                     |   |                         |       |  |   |
| **Financial    Institution**             |   | **2001**                |       | **2002** |   | **2001** |   | **2002** |   |
| **Current    portion of long -term:**    |   | **ThCh$**               |       | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| ABN Amro Bank                            |   |                    | —     |   |   | — |   |   | 4,641,206 |   |   | 2,636,765 |   |
| Corporación Fin. del Valle          |   |                    | —     |   |   | — |   |   | — |   |   | 55,827 |   |
| Banco Bayernische Landes                 |   |                    | —     |   |   | — |   |   | 21,333,470 |   |   | 5,622,544 |   |
| Banco BBVA Bhif                          |   |                    | —     |   |   | — |   |   | 586,366 |   |   | 1,447,394 |   |
| Banco Beal                               |   |                    | —     |   |   | — |   |   | 15,484,073 |   |   | — |   |
| Banco de Chile                           |   |                    | 17,742,450 |   |   | — |   |   | 17,742,450 |   |   | — |   |
| Banco do Brasil                          |   |                    | —     |   |   | — |   |   | 1,063,551 |   |   | 152,837 |   |
| Banco do Estado  de Ceará      |   |                    | —     |   |   | — |   |   | 6,865 |   |   | 882,985 |   |
| Banco do Nordeste do Brasil              |   |                    | —     |   |   | — |   |   | 185,154 |   |   | 1,987 |   |
| Banco Estado                             |   |                    | 19,679,568 |   |   | 1,739,232 |   |   | 21,333,665 |   |   | 2,713,098 |   |
| Bancolombia                              |   |                    | —     |   |   | — |   |   | — |   |   | 107,119 |   |
| Banco HBSC                               |   |                    | —     |   |   | — |   |   | 21,590 |   |   | 10,824,955 |   |
| Banco Hermes                             |   |                    | —     |   |   | — |   |   | 6,577,752 |   |   | 5,391,528 |   |
| Banco Lloyds                             |   |                    | —     |   |   | — |   |   | — |   |   | 14,287,093 |   |
| Banco Medio Crédito                 |   |                    | —     |   |   | — |   |   | 4,214,536 |   |   | — |   |
| Banco Nacional Desarrollo    Soc.        |   |                    | —     |   |   | — |   |   | 651,402 |   |   | 2,019,382 |   |
| Banco Real                               |   |                    | —     |   |   | — |   |   | — |   |   | 470,332 |   |
| Banco Rio                                |   |                    | —     |   |   | — |   |   | 1,896 |   |   | — |   |
| Banco Nacional del Lavoro                |   |                    | —     |   |   | — |   |   | — |   |   | 3,539,219 |   |
| Banco San Paolo                          |   |                    | —     |   |   | — |   |   | 67,508,298 |   |   | — |   |
| Banco Santander                          |   |                    | 17,742,450 |   |   | — |   |   | 23,665,751 |   |   | 768,636 |   |
| Banesto                                  |   |                    | —     |   |   | — |   |   | 4,292,992 |   |   | 4,601,056 |   |
| Bank Boston                              |   |                    | —     |   |   | — |   |   | — |   |   | 15,238,280 |   |
| Bank of América                     |   |                    | —     |   |   | — |   |   | 69,521,918 |   |   | 97,779,555 |   |
| Bank of Tokio - Mitsubishi               |   |                    | —     |   |   | — |   |   | 56,974,773 |   |   | 61,701,649 |   |
| Banque Nationale París              |   |                    | —     |   |   | — |   |   | 4,626,119 |   |   | 12,318,189 |   |
| Birf                                     |   |                    | —     |   |   | — |   |   | 1,066,471 |   |   | — |   |
| Chase Manhattan Bank                     |   |                    | —     |   |   | — |   |   | 57,741,816 |   |   | 1,792,171 |   |
| BNP Paribas                              |   |                    | —     |   |   | — |   |   | — |   |   | 6,615,690 |   |
| Citibank N.A.                            |   |                    | —     |   |   | — |   |   | 22,631,820 |   |   | 24,295,402 |   |
| Dresner B. Luxemburg                     |   |                    | —     |   |   | — |   |   | 232,752 |   |   | 82,932,830 |   |
| Electrobras - Brasil                     |   |                    | —     |   |   | — |   |   | 2,969,352 |   |   | — |   |
| Eximbank                                 |   |                    | —     |   |   | — |   |   | — |   |   | 459,473 |   |
| Export Develop. Corp.                    |   |                    | —     |   |   | — |   |   | 1,681,533 |   |   | 2,506,978 |   |
| J.P.Morgan Chase Bank                    |   |                    | —     |   |   | — |   |   | 3,624,390 |   |   | 4,954,469 |   |
| Kreditanstal Fur    Weideraubau          |   |                    | —     |   |   | — |   |   | 403,235 |   |   | 424,774 |   |
| Midland Bank                             |   |                    | —     |   |   | — |   |   | 5,085,611 |   |   | 5,668,452 |   |
| Santander Central Hispano                |   |                    | —     |   |   | — |   |   | — |   |   | 222,428,617 |   |
| Santander Inv. Bank                      |   |                    | —     |   |   | — |   |   | 5,063,018 |   |   | 6,349,226 |   |
| Scotiabank                               |   |                    | —     |   |   | — |   |   | 559,807 |   |   | — |   |
| Skandinaviska Enskildabnken              |   |                    | —     |   |   | — |   |   | 2,229,111 |   |   | 2,375,122 |   |
| Societe Generale                         |   |                    | —     |   |   | — |   |   | 1,740,953 |   |   | 1,845,522 |   |
| Unibanco                                 |   |                    | —     |   |   | — |   |   | 73,033 |   |   | 52,797 |   |
|                                     |   |                         |            |   |  |  |   |  |  |   |  |  |   |
| Total                                    |   |                    | 55,164,468 |   |   | 1,739,232 |   |   | 425,536,729 |   |   | 605,261,953 |   |
|                                     |   |                         |            |   |  |  |   |  |  |   |  |  |   |
| Total principal                          |   |                    | 55,164,468 |   |   | 1,554,097 |   |   | 375,564,660 |   |   | 574,398,663 |   |
|                                     |   |                         |            |   |  |  |   |  |  |   |  |  |   |
| Weighted average annual    interest rate |   |                    | 7.50%      |   |   | 8.73% |   |   | 6.27% |   |   | 3.30% |   |

|                                    |   | **As of December 31,** |   |
|-----------------------------------------|--------|------------------------|--------|
|                                    |   |                        |   |
|                                    |   | **2001    %**          |   | **2002    %** |   |
| Percentage of debt in foreign currency: |   |                   | 87.04  |   |   | 99.71 |   |
| Percentage of debt in local currency:   |   |                   | 12.96  |   |   | 0.29 |   |
|                                    |   |                        |        |   |  |  |   |
| Total                                   |   |                   | 100.00 |   |   | 100.00 |   |
|                                    |   |                        |        |   |  |  |   |

----

Back to Index

| **Note 16.** | **Long-Term    Portion of Debt Due to Banks and Financial Institutions** |
|--------------|--------------------------------------------------------------------------|

|                                  |   | **As of    December 31, 2002** |    |
|---------------------------------------|--------|--------------------------------|---------|
|                                  |   |                                |    |
| **Financial    Institution**          |   | **Currency**                   |    | **After 1 year    but within    2 years** |   | **After 2 year    but within    3 years** |   | **After 3 year    but within    5 years** |   | **After 5 year    but within    10 years** |   |
|                                  |   |                           |    |  |   |  |   |  |   |  |   |
|                                  |   |                           |    | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| ABN Amro    Bank                      |   |                           | US$     |   |   | 10,060,540 |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | 71,861,000 |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | 348,727 |   |   | 348,727 |   |   | 697,454 |   |   | 697,457 |   |
| Banco    Bayernische Landes           |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco BBVA                            |   |                           | US$     |   |   | 467,096,500 |   |   | — |   |   | — |   |   | — |   |
| Banco Estado                          |   |                           | $ Reaj. |   |   | 14,644,588 |   |   | 39,055,660 |   |   | 2,936,985 |   |   | — |   |
|                                  |   |                           | US$     |   |   | 4,604 |   |   | — |   |   | — |   |   | — |   |
| Banco    Europeo de Investimentos     |   |                           | US$     |   |   | — |   |   | — |   |   | 11,976,834 |   |   | 23,953,666 |   |
| Banco do    Brasil                    |   |                           | Rs      |   |   | 1,612,832 |   |   | 806,416 |   |   | 1,612,832 |   |   | 4,032,080 |   |
|                                  |   |                           | US$     |   |   | 666,812 |   |   | 310,166 |   |   | 543,906 |   |   | 1,223,757 |   |
| Banco Medio    Crédito           |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | $ Arg   |   |   | 1,843,524 |   |   | 1,843,524 |   |   | 1,843,524 |   |   | 6,440,033 |   |
| Banco    Nacional Desarrollo Soc.     |   |                           | Rs      |   |   | 924,558 |   |   | 462,279 |   |   | — |   |   | — |   |
| Banco    Nacional del Lavoro          |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco    Nacionale  de Paris     |   |                           | US$     |   |   | 10,624,361 |   |   | 10,624,361 |   |   | 21,248,722 |   |   | 16,661,934 |   |
|                                  |   |                           | US$     |   |   | 1,927,400 |   |   | 1,927,400 |   |   | 3,854,800 |   |   | 5,895,808 |   |
| Bancolombia                           |   |                           | US$     |   |   | — |   |   | — |   |   | 484,743 |   |   | — |   |
| Banco    Santander                    |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Scotiabank                            |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Banco    Santander Central His.       |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | 287,444,000 |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | Yen     |   |   | 6,979,153 |   |   | — |   |   | — |   |   | — |   |
| Banesto                               |   |                           | US$     |   |   | 3,545,818 |   |   | 3,545,818 |   |   | 7,091,636 |   |   | 14,183,276 |   |
| Bank Boston                           |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Bank of    America                    |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Bank Tokio -    Mitsubishi            |   |                           | US$     |   |   | 6,895,050 |   |   | 6,895,050 |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | Lira    |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | Pound   |   |   | 438,973 |   |   | 438,973 |   |   | — |   |   | — |   |
|                                  |   |                           | Yen     |   |   | 462,018 |   |   | 462,018 |   |   | — |   |   | — |   |
|                                  |   |                           | Euros   |   |   | 122,980 |   |   | 122,980 |   |   | — |   |   | — |   |
| Bco. do    Estado  de Ceará |   |                           | Rs      |   |   | 145,548 |   |   | — |   |   | — |   |   | — |   |
| Bco. do    Nordeste do Brasil         |   |                           | Rs      |   |   | 83,792 |   |   | 34,914 |   |   | — |   |   | — |   |
| BIRF                                  |   |                           | U.P.    |   |   | 1,189,530 |   |   | — |   |   | — |   |   | — |   |
| BNDES                                 |   |                           | Rs      |   |   | — |   |   | 49,049,488 |   |   | — |   |   | — |   |
|                                  |   |                           | Rs      |   |   | 21,350,096 |   |   | 7,116,699 |   |   | — |   |   | 10,519,313 |   |
| J.P.Morgan    Chase Bank              |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | 39,523,550 |   |   | 17,965,250 |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | Euros   |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Citibank    N.A.                      |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Citibank    N.Y.                      |   |                           | US$     |   |   | 22,584,885 |   |   | 11,292,443 |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | 359,305,000 |   |   | — |   |   | — |   |   | — |   |
| Corfinsura                            |   |                           | US$     |   |   | — |   |   | — |   |   | 32,609,567 |   |   | — |   |
| Electrobas -    Brasil                |   |                           | Rs      |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Export    Develop. Corp.              |   |                           | US$     |   |   | 987,113 |   |   | 987,113 |   |   | 1,974,226 |   |   | 4,935,565 |   |
|                                  |   |                           | US$     |   |   | 1,043,482 |   |   | 1,043,482 |   |   | 2,086,964 |   |   | 2,608,704 |   |
| HBSC Bank                             |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Kreditanstal    Fur Weideraubau       |   |                           | US$     |   |   | 393,104 |   |   | 393,104 |   |   | 786,208 |   |   | 589,654 |   |
| Lloyd’s Bank                     |   |                           | US$     |   |   | 1,135,176 |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           | Yen     |   |   | 1,077,915 |   |   | — |   |   | — |   |   | — |   |
| Midland Bank                          |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Santander    Investment               |   |                           | US$     |   |   | 3,664,911 |   |   | — |   |   | — |   |   | — |   |
| Skandinaviska    Enskildabnken        |   |                           | US$     |   |   | 2,375,122 |   |   | 2,375,122 |   |   | 2,375,007 |   |   | — |   |
| Dresdner    Bank                      |   |                           | US$     |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Societe    Generale                   |   |                           | US$     |   |   | 1,378,048 |   |   | — |   |   | — |   |   | — |   |
| Unibanco                              |   |                           | Rs      |   |   | 78,528 |   |   | — |   |   | — |   |   | — |   |
|                                  |   |                           |    |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total                                 |   |                           |    |   |   | 1,304,295,688 |   |   | 178,659,287 |   |   | 110,088,658 |   |   | 91,741,247 |   |
|                                  |   |                           |    |   |  |  |   |  |  |   |  |  |   |  |  |   |

|                                  |         | **As of    December 31, 2002** |               | **Annual    interest    rate    average** |                              | **Total    Long-term    portion - 2001** |   |
|---------------------------------------|--------------|--------------------------------|--------------------|-------------------------------------------|-----------------------------------|------------------------------------------|--------|
|                                  |              |
| **Financial Institution**             | **Currency** |                           | **After 10 years** |                                      | **Total    Long-term    portion** |
|                                  |         |                           |               |                                           |                              |                                          |   |   |   |  |   |
|                                  |         |                           |               | **years**                                 |                              | **ThCh$**                                |   | **ThCh$** |   |   |   | **ThCh$** |   |
| ABN Amro    Bank                      |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 10,060,540 |   |   | 2.75 | % |   | 1,963,737 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 71,861,000 |   |   | 2.81 | % |   | 67,443,370 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 2,092,365 |   |   | 2.70 | % |   | — |   |
| Banco    Bayernische Landes           |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 2,085,128 |   |
| Banco BBVA                            |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 467,096,500 |   |   | 2.66 | % |   | 406,852,130 |   |
| Banco Estado                          |         |                           | $ Reaj.            |                                      |                              | —                                   |   |   | — |   |   | 56,637,233 |   |   | 4.32 | % |   | 58,028,908 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 4,604 |   |   | 6.50 | % |   | 864,034 |   |
| Banco    Europeo de Investimentos     |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 35,930,500 |   |   | 1.37 | % |   | — |   |
| Banco do    Brasil                    |         |                           | Rs                 |                                      |                              | —                                   |   |   | 201,601 |   |   | 8,265,761 |   |   | 19.13 | % |   | 10,016,239 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | 1,802,494 |   |   | 4,547,135 |   |   | 4.05 | % |   | 4,363,330 |   |
| Banco Medio    Crédito           |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 35,267,772 |   |
|                                  |         |                           | $ Arg              |                                      |                              | —                                   |   |   | — |   |   | 11,970,605 |   |   | 1.75 | % |   | — |   |
| Banco    Nacional Desarrollo Soc.     |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 1,386,837 |   |   | 9.04 | % |   | 2,548,105 |   |
| Banco    Nacional del Lavoro          |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 3,303,104 |   |
| Banco    Nacionale  de Paris     |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 59,159,378 |   |   | 4.35 | % |   | 65,648,923 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | 2,575,466 |   |   | 16,180,874 |   |   | 4.70 | % |   | 7,477,621 |   |
| Bancolombia                           |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 484,743 |   |   | 3.00 | % |   | 7,327,862 |   |
| Banco    Santander                    |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 7,729,276 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 708,728 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 20,680 |   |
| Scotiabank                            |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 130,840,138 |   |
| Banco    Santander Central His.       |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 366,386,108 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 287,444,000 |   |   | 2.64 | % |   | — |   |
|                                  |         |                           | Yen                |                                      |                              | —                                   |   |   | — |   |   | 6,979,153 |   |   | 2.09 | % |   | — |   |
| Banesto                               |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 28,366,548 |   |   | 4.30 | % |   | 32,850,615 |   |
| Bank Boston                           |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 14,247,345 |   |
| Bank of    America                    |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 27,584,337 |   |
| Bank Tokio -    Mitsubishi            |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 13,790,100 |   |   | 2.66 | % |   | 14,785,268 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 8,138,664 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 19,413,538 |   |
|                                  |         |                           | Lira               |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 293,321 |   |
|                                  |         |                           | Pound              |                                      |                              | —                                   |   |   | — |   |   | 877,946 |   |   | 4.81 | % |   | 1,115,357 |   |
|                                  |         |                           | Yen                |                                      |                              | —                                   |   |   | — |   |   | 924,036 |   |   | 0.89 | % |   | 1,173,625 |   |
|                                  |         |                           | Euros              |                                      |                              | —                                   |   |   | — |   |   | 245,960 |   |   | 4.13 | % |   | — |   |
| Bco. do    Estado  de Ceará |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 145,548 |   |   | 9.83 | % |   | 166,106 |   |
| Bco. do    Nordeste do Brasil         |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 118,706 |   |   | 8.04 | % |   | 221,316 |   |
| BIRF                                  |         |                           | U.P.               |                                      |                              | —                                   |   |   | — |   |   | 1,189,530 |   |   | 5.32 | % |   | 2,056,583 |   |
| BNDES                                 |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 49,049,488 |   |   | 10.00 | % |   | 9,441,620 |   |
|                                  |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 38,986,108 |   |   | 26.00 | % |   | — |   |
| J.P.Morgan    Chase Bank              |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 74,113 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 57,488,800 |   |   | 8.53 | % |   | 53,954,696 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 5,395,470 |   |
|                                  |         |                           | Euros              |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 3,589,264 |   |
| Citibank    N.A.                      |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 52,991,219 |   |
| Citibank    N.Y.                      |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 33,877,328 |   |   | 3.88 | % |   | 36,311,511 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 359,305,000 |   |   | 2.56 | % |   | 362,170,897 |   |
| Corfinsura                            |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 32,609,567 |   |   | 12.38 | % |   | — |   |
| Electrobas -    Brasil                |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 524,017 |   |
| Export    Develop. Corp.              |         |                           | US$                |                                      |                              | —                                   |   |   | 1,974,229 |   |   | 10,858,246 |   |   | 2.90 | % |   | 6,478,693 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 6,782,632 |   |   | 2.75 | % |   | 7,552,397 |   |
| HBSC Bank                             |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 10,116,506 |   |
| Kreditanstal    Fur Weideraubau       |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 2,162,070 |   |   | 4.85 | % |   | 2,398,095 |   |
| Lloyd’s Bank                     |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 1,135,176 |   |   | 5.75 | % |   | 6,744,337 |   |
|                                  |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 1,011,651 |   |
|                                  |         |                           | Yen                |                                      |                              | —                                   |   |   | — |   |   | 1,077,915 |   |   | 2.09 | % |   | — |   |
| Midland Bank                          |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 12,525,197 |   |
| Santander    Investment               |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 3,664,911 |   |   | 7.25 | % |   | 9,307,185 |   |
| Skandinaviska    Enskildabnken        |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | 7,125,251 |   |   | 0.65 | % |   | 8,916,338 |   |
| Dresdner    Bank                      |         |                           | US$                |                                      |                              | —                                   |   |   | — |   |   | — |   |   | 0.00 | % |   | 77,627,317 |   |
| Societe    Generale                   |         |                           | US$                |                                      |                              | —                                   |   |   |   |   |   | 1,378,048 |   |   | 1.62 | % |   | 3,017,776 |   |
| Unibanco                              |         |                           | Rs                 |                                      |                              | —                                   |   |   | — |   |   | 78,528 |   |   | 6.54 | % |   | 180,353 |   |
|                                  |         |                           |               |                                      |                                   |                                          |   |  |  |   |  |  |   |   |   |   |  |  |   |
| Total                                 |         |                           |               |                                      |                              | —                                   |   |   | 6,553,790 |   |   | 1,691,338,670 |   |   |   |   |   | 1,971,249,920 |   |
|                                  |         |                           |               |                                      |                                   |                                          |   |  |  |   |  |  |   |   |   |   |  |  |   |

|                                    |   | **As of December 31,** |   |
|-----------------------------------------|--------|------------------------|--------|
|                                    |   |                        |   |
|                                    |   | **2001**               |   | **2002** |   |
|                                    |   |                        |        |   |  |  |   |
|                                    |   | **%**                  |   | **%** |   |
| Percentage of debt in foreign currency: |   |                   | 97.06  |   |   | 97.13 |   |
| Percentage of debt in local currency:   |   |                   | 2.94   |   |   | 2.87 |   |
|                                    |   |                        |        |   |  |  |   |
| Total                                   |   |                   | 100.00 |   |   | 100.00 |   |
|                                    |   |                        |        |   |  |  |   |

----

Back to Index

| **Note 17.** | **Other Current Liabilities** |
|--------------|-------------------------------|

|                                        |   | **As of December 31,** |        |
|---------------------------------------------|--------|------------------------|-------------|
|                                        |   |                        |        |
|                                        |   | **2001**               |        | **2002** |   |
|                                        |   |                        |        |  |   |
|                                        |   | **ThCh$**              |        | **ThCh$** |   |
| Advances and    guarantee on construction   |   |                   | 6,803,215   |   |   | 601,997 |   |
| Taxes    payable                            |   |                   | 4,293,154   |   |   | 2,482,871 |   |
| Contingencies    - third party claims       |   |                   | 11,142,417  |   |   | 15,212,625 |   |
| Customer    advances                        |   |                   | 4,341,372   |   |   | 3,293,578 |   |
| Losses in    excess of insurance settlement |   |                   | —      |   |   | 2,336,683 |   |
| Acrued    employes benefits - other         |   |                   | 3,187,555   |   |   | 2,228,103 |   |
| Forward    contracts and swaps              |   |                   | 114,377,655 |   |   | 5,729,893 |   |
| Fair value -    derivative contracts        |   |                   | —      |   |   | 11,251,521 |   |
| Emergency    energy provision (Brazil)      |   |                   | 1,319,668   |   |   | 10,708,453 |   |
| Other    current liabilities                |   |                   | 4,918,722   |   |   | 5,696,233 |   |
|                                        |   |                        |             |   |  |  |   |
| Total                                       |   |                   | 150,383,758 |   |   | 59,541,957 |   |
|                                        |   |                        |             |   |  |  |   |

| **Note 18.** | **Promissory Notes** |
|--------------|----------------------|

|                                 |   |          |       |             |     |             |     | **As of    December 31,** |   |
|--------------------------------------|--------|---------------|------------|------------------|----------|------------------|----------|---------------------------|--------|
|                                 |   | **Facevalue** |       | **Maturitydate** |     | **Interestrate** |     |                           |   |
| **Financial    Instrument**          |   |          |       |             | **2001** |             | **2002** |                      |
|                                 |   |               |       |                  |     |                  |     |                           |   |  |   |
|                                 |   | **ThCh$**     |       |             |     | **%**            |     | **ThCh$**                 |   | **ThCh$** |   |
| 2001-029                             |   |          | 42,328,262 |             |     | May 13, 2002     |     |                      | 18.13  |   |   | 43,598,110 |   |   | — |   |
| Commercial    paper                  |   |          | 10,456,868 |             |     | Feb 01, 2002     |     |                      | 8.48   |   |   | 11,032,138 |   |   | — |   |
| Commercial    paper                  |   |          | 3,030,678  |             |     | May, 2003        |     |                      | 5.00   |   |   | — |   |   | 3,089,607 |   |
| Commercial    paper                  |   |          | 2,081,801  |             |     | Aug, 2003        |     |                      | 5.25   |   |   | — |   |   | 2,124,305 |   |
| Promissory    note-AFR               |   |          | —     |             |     | Dec, 2003        |     |                      | 10.00  |   |   | — |   |   | 122,129 |   |
| OPP-027/2002                         |   |          | 1,000      |             |     | June, 2003       |     |                      | — |   |   | — |   |   | 3,465,944 |   |
| Promissory    note - Banco Santander |   |          | 286,299    |             |     | Jan, 2003        |     |                      | 5.00   |   |   | — |   |   | 286,299 |   |
| OPP-058/2002                         |   |          | 1,000      |             |     | Sep, 2003        |     |                      | — |   |   | — |   |   | 4,101,230 |   |
|                                 |   |          |       |             |     |             |     |                      |   |   |  |  |   |  |  |   |
| Total                                |   |          |       |             |     |             |     |                      |   |   |   | 54,630,248 |   |   | 13,189,514 |   |
|                                 |   |          |       |             |     |             |     |                      |   |   |  |  |   |  |  |   |

----

Back  to Index

| **Note 19.** | **Bonds Payable** |
|--------------|-------------------|

| **(a)** | **Details of the current portion of bonds payable is as follows at each    year-end:** |
|---------|----------------------------------------------------------------------------------------|

|                            |   |       |            |         |   |                          |   |                 |        |                 |     | **Par Value** |   |
|---------------------------------|--------|------------|-----------------|--------------|--------|-------------------------------|--------|----------------------|-------------|----------------------|----------|---------------|--------|
|                            |   |       |            |         |   | **Face value    outstanding** |   | **Interest    rate** |        | **Maturity    Date** |     |               |   |
| **Instrument**                  |   | **Series** |            | **Currency** |   |                          |   |                 | **2001**    |                 | **2002** |          |
|                            |   |            |            |              |   |                               |   |                      |        |                      |     |               |   |  |   |
|                            |   |       |            |         |   |                          |   | **ThCh$**            |        | **%**                |     |          |   |   | **ThCh$** |   | **ThCh$** |   |
| Bonds – Distrilima         |   |       | 1               |         |   | Soles                         |   |                 | 49,919,000  |                 |     | 9.61          |   |   | Feb 01, 2011 |   |   | 5,827 |   |   | 5,946 |   |
| Bonds – Distrilima         |   |       | 1st    Prog     |         |   | Soles                         |   |                 | 15,104,316  |                 |     | 7.50          |   |   | Jul 01, 2006 |   |   | 577,643 |   |   | 595,057 |   |
| Bonds – Distrilima         |   |       | 1st    Prog     |         |   | Soles                         |   |                 | 6,134,974   |                 |     | 6.50          |   |   | Jan 01, 2004 |   |   | — |   |   | 178,340 |   |
| Bonds – Distrilima         |   |       | 1st    Prog     |         |   | Soles                         |   |                 | 4,089,983   |                 |     | 6.34          |   |   | Jan 01, 2004 |   |   | — |   |   | 49,009 |   |
| Bonds – Distrilima         |   |       | 1st    Prog     |         |   | Soles                         |   |                 | 3,859,972   |                 |     | 7.50          |   |   | Jan 01, 2004 |   |   | — |   |   | 43,787 |   |
| Bonds – Distrilima         |   |       | 1st    Prog     |         |   | Soles                         |   |                 | 18,949,365  |                 |     | 6.90          |   |   | Oct 10, 2006 |   |   | 273,062 |   |   | 289,297 |   |
| Bond No.269                     |   |       | B1    – B2 |         |   | UF                            |   |                 | 2,945,863   |                 |     | 5.63          |   |   | Jun 15, 2009 |   |   | 7,338,014 |   |   | 7,707,332 |   |
| Yankee Bonds – Enersis     |   |       | 1               |         |   | US$                           |   |                 | 300,000,000 |                 |     | 6.90          |   |   | Nov 21, 2006 |   |   | 1,124,617 |   |   | 1,198,281 |   |
| Yankee Bonds – Enersis     |   |       | 2               |         |   | US$                           |   |                 | 350,000,000 |                 |     | 7.45          |   |   | Nov 21, 2016 |   |   | 1,004,024 |   |   | 1,069,787 |   |
| Yankee Bonds – Enersis     |   |       | 3               |         |   | US$                           |   |                 | 150,000,000 |                 |     | 6.63          |   |   | Nov 21, 2026 |   |   | 537,860 |   |   | 573,091 |   |
| Bonds Endesa                    |   |       | 1               |         |   | US$                           |   |                 | 230,000,000 |                 |     | 7.88          |   |   | Feb 01, 2027 |   |   | 4,559,675 |   |   | 4,858,340 |   |
| Bonds Endesa                    |   |       | 2               |         |   | US$                           |   |                 | 220,000,000 |                 |     | 7.33          |   |   | Feb 01, 2037 |   |   | 4,528,542 |   |   | 4,825,168 |   |
| Bonds Endesa                    |   |       | 3               |         |   | US$                           |   |                 | 200,000,000 |                 |     | 8.13          |   |   | Feb 01, 2097 |   |   | 947,084 |   |   | 1,009,124 |   |
| Bonds Endesa                    |   |       | 1               |         |   | US$                           |   |                 | 400,000,000 |                 |     | 7.75          |   |   | July 15, 2008 |   |   | 9,582,578 |   |   | 10,210,249 |   |
| Bonds Endesa                    |   |       | 1               |         |   | US$                           |   |                 | 400,000,000 |                 |     | 8.50          |   |   | Apr 01, 2009 |   |   | 5,732,686 |   |   | 6,108,185 |   |
| Bonds Endesa                    |   |       | E-1,    E-2     |         |   | UF                            |   |                 | 6,000,000   |                 |     | 6.20          |   |   | Aug 01, 2006 |   |   | 2,557,305 |   |   | 2,556,325 |   |
| Bonds Endesa Internacional      |   |       | C               |         |   | US$                           |   |                 | 150,000,000 |                 |     | 7.20          |   |   | Apr 01, 2006 |   |   | 1,820,971 |   |   | 1,940,247 |   |
| Bonds Endesa                    |   |       | B-1,    B-2     |         |   | UF                            |   |                 | 750,000     |                 |     | 6.00          |   |   | Oct 01, 2001 |   |   | — |   |   | — |   |
| Bonds Endesa                    |   |       | C2;    D1, D2   |         |   | UF                            |   |                 | 1,315,960   |                 |     | 6.80          |   |   | Nov 01, 2010 |   |   | 2,332,264 |   |   | 2,448,643 |   |
| Bonds Pehuenche                 |   |       | 1               |         |   | US$                           |   |                 | 170,000,000 |                 |     | 7.30          |   |   | May 01, 2003 |   |   | 1,394,954 |   |   | 123,650,025 |   |
| Bonds Edegel                    |   |       | 1               |         |   | US$                           |   |                 | 30,000,000  |                 |     | 8.75          |   |   | June 13, 2007 |   |   | 139,657 |   |   | 148,805 |   |
| Bonds Edegel                    |   |       | 2               |         |   | US$                           |   |                 | 30,000,000  |                 |     | 8.41          |   |   | Feb 14, 2007 |   |   | 648,384 |   |   | 690,620 |   |
| Bonds Edegel                    |   |       | 3               |         |   | US$                           |   |                 | 30,000,000  |                 |     | 8.75          |   |   | Jun 03, 2006 |   |   | 91,499 |   |   | 97,493 |   |
| Bonds Edegel                    |   |       | 4               |         |   | US$                           |   |                 | 20,000,000  |                 |     | 8.44          |   |   | Nov 21, 2005 |   |   | 123,910 |   |   | 135,327 |   |
| Bonds Edegel                    |   |       | 5               |         |   | US$                           |   |                 | 10,000,000  |                 |     | 11.50         |   |   | Feb 22, 2003 |   |   | 280,254 |   |   | 7,450,131 |   |
| Bonds Emgesa                    |   |       | B-1             |         |   | $    Col.                     |   |                 | 85,000,000  |                 |     | 15.80         |   |   | Jun 01, 2006 |   |   | 1,721,866 |   |   | — |   |
| Bonds Emgesa                    |   |       | B-5             |         |   | $    Col.                     |   |                 | 12,750,006  |                 |     | 14.95         |   |   | Oct 09, 2004 |   |   | 119,042 |   |   | 74,909 |   |
| Bonds Emgesa                    |   |       | B-7             |         |   | $    Col.                     |   |                 | 19,500,010  |                 |     | 15.27         |   |   | Oct 09, 2006 |   |   | 186,358 |   |   | 118,162 |   |
| Bonds Emgesa                    |   |       | B-10            |         |   | $    Col.                     |   |                 | 229,825,122 |                 |     | 15.60         |   |   | Oct 09, 2009 |   |   | 2,247,058 |   |   | 1,435,070 |   |
| Bonds Emgesa                    |   |       | C-10            |         |   | $    Col.                     |   |                 | 19,777,918  |                 |     | 10.25         |   |   | Oct 09, 2009 |   |   | 136,358 |   |   | 43,693 |   |
| Bonds Emgesa                    |   |       | B-10    2nd     |         |   | $    Col.                     |   |                 | 273,130     |                 |     | 15.78         |   |   | Nov 09, 2009 |   |   | 336,523 |   |   | 220,970 |   |
| Bonds Emgesa                    |   |       | A-5             |         |   | $    Col.                     |   |                 | 172,858     |                 |     | 8.35          |   |   | Oct 12, 2010 |   |   | 228,550 |   |   | 70,046 |   |
| Bonds Emgesa                    |   |       | B-3             |         |   | $    Col.                     |   |                 | 31,525,018  |                 |     | 14.79         |   |   | Feb 08, 2002 |   |   | 9,461,897 |   |   | 10,162,475 |   |
| Bonds Emgesa                    |   |       | A-1             |         |   | $    Col.                     |   |                 | 15,000,006  |                 |     | 13.95         |   |   | July 09, 2006 |   |   | 108,833 |   |   | 1,426,838 |   |
| Bonds Endesa                    |   |       | F               |         |   | UF                            |   |                 | 1,500,000   |                 |     | 6.20          |   |   | Aug 01, 2022 |   |   | 639,327 |   |   | 639,081 |   |
| Bonds Emgesa                    |   |       | C-10            |         |   | $    Col.                     |   |                 | 1,245,298   |                 |     | 9.88          |   |   | Oct 10, 2010 |   |   | — |   |   | 80,679 |   |
| Eurobonds                       |   |       | First           |         |   | Euro                          |   |                 | 400,000,000 |                 |     | 3.34          |   |   | July 24, 2003 |   |   | 2,061,700 |   |   | 303,740,866 |   |
| Bonds Autopista del Sol    S.A. |   |       | A-1             |         |   | UF                            |   |                 | 3,466,160   |                 |     | 5.80          |   |   | Oct 18, 2018 |   |   | — |   |   | 1,632,119 |   |
| Bonds Autopista del Sol    S.A. |   |       | A-2             |         |   | UF                            |   |                 | 861,540     |                 |     | 5.80          |   |   | Oct 19, 2018 |   |   | — |   |   | 408,030 |   |
| Bonds Autopista del Sol    S.A. |   |       | B-1             |         |   | UF                            |   |                 | 964,372     |                 |     | 5.80          |   |   | Oct 20, 2018 |   |   | — |   |   | 486,834 |   |
| Bonds Autopista del Sol    S.A. |   |       | B-2             |         |   | UF                            |   |                 | 243,578     |                 |     | 5.80          |   |   | Jan 01, 2018 |   |   | — |   |   | 122,963 |   |
|                            |   |       |            |         |   |                          |   |                 |        |                 |     |          |   |   |   |   |  |  |   |  |  |   |
| Total                           |   |       |            |         |   |                          |   |                 |        |                 |     |          |   |   |   |   |   | 62,848,322 |   |   | 498,501,344 |   |
|                            |   |       |            |         |   |                          |   |                 |        |                 |     |          |   |   |   |   |  |  |   |  |  |   |

----

Back to Index

| **(b)** | **Details of the long-term portion of bonds payable is as follows at    each year-end:** |
|---------|------------------------------------------------------------------------------------------|

|                        |   |       |                 |   |                          |        |   |   |      |                 |     |                 |   |   |     |   | **Par Value** |          |
|-----------------------------|--------|------------|----------------------|--------|-------------------------------|-------------|--------|--------|-----------|----------------------|----------|----------------------|--------|--------|----------|--------|---------------|---------------|
|                        |   |       |                 |   | **Face value    outstanding** |        |   |   |      | **Interest    rate** |     | **Maturity    Date** |   |        |     |
| **Instrument**              |   | **Series** |                 |   | **Currency**                  |        |   |   | **2001**  |                 | **2002** |                 |
|                        |   |       |                 |        |                          |             |   |        |      |                      |     |                      |   |        |     |
|                        |   |       |                 |   |                          | **ThCh$**   |   |   |      |                 |     | **%**                |   |   |     |   |          | **ThCh$**     |   |   | **ThCh$** |   |
| Bonos Edelnor               |   |       | Uno                  |   |                          | 825,918     |   |   | Soles     |                 |     | 9.61%                |   |   | 01.02.11 |   |          | 957,975       |   |   | 1,000,390 |   |
| Bonos Edelnor               |   |       | I°Prog.         |   |                          | 15,104,316  |   |   | Soles     |                 |     | VAC    + 7,5%        |   |   | 01.07.06 |   |          | 15,557,445    |   |   | 16,482,681 |   |
| Bonos Edelnor               |   |       | I°Prog.         |   |                          | 18,949,365  |   |   | Soles     |                 |     | VAC    + 6,9%        |   |   | 10.10.06 |   |          | 19,517,846    |   |   | 20,677,950 |   |
| Bonos Edelnor               |   |       | I°Prog.         |   |                          | 6,134,974   |   |   | Soles     |                 |     | 6.5%                 |   |   | 01.01.04 |   |          | —        |   |   | 6,134,974 |   |
| Bonos Edelnor               |   |       | I°Prog.         |   |                          | 4,089,983   |   |   | Soles     |                 |     | 6.34%                |   |   | 01.01.04 |   |          | —        |   |   | 4,089,983 |   |
| Bonos Edelnor               |   |       | I°Prog.         |   |                          | 3,859,972   |   |   | Soles     |                 |     | VAC    + 7.5%        |   |   | 01.03.07 |   |          | —        |   |   | 3,859,972 |   |
| Yankee Bonds - Enersis      |   |       | Uno                  |   |                          | 300,000,000 |   |   | US$       |                 |     | 0.069                |   |   | 21.11.06 |   |          | 202,330,110   |   |   | 215,583,000 |   |
| Yankee Bonds - Enersis      |   |       | Dos                  |   |                          | 350,000,000 |   |   | US$       |                 |     | 0.0745               |   |   | 21.11.16 |   |          | 168,429,026   |   |   | 179,461,350 |   |
| Yankee Bonds - Enersis      |   |       | Tres                 |   |                          | 150,000,000 |   |   | US$       |                 |     | 0.0663               |   |   | 21.11.26 |   |          | 101,165,055   |   |   | 107,791,500 |   |
| Bono N° 269            |   |       | B1                   |   |                          | 2,928,543   |   |   | U.F.      |                 |     | 0.055                |   |   | 15.06.09 |   |          | 56,523,126    |   |   | 49,035,877 |   |
| Bono N° 269            |   |       | B2                   |   |                          | 2,500,000   |   |   | U.F.      |                 |     | 0.0575               |   |   | 15.06.22 |   |          | 41,876,350    |   |   | 41,860,300 |   |
| Bonos Endesa                |   |       | Uno                  |   |                          | 230,000,000 |   |   | US$       |                 |     | 0.0788               |   |   | 01.02.27 |   |          | 138,853,085   |   |   | 147,948,145 |   |
| Bonos Endesa                |   |       | Dos                  |   |                          | 220,000,000 |   |   | US$       |                 |     | 0.0733               |   |   | 01.02.37 |   |          | 148,375,414   |   |   | 158,094,200 |   |
| Bonos Endesa                |   |       | Tres                 |   |                          | 200,000,000 |   |   | US$       |                 |     | 0.0813               |   |   | 01.02.97 |   |          | 27,257,913    |   |   | 29,043,342 |   |
| Bonos Endesa                |   |       | Uno                  |   |                          | 400,000,000 |   |   | US$       |                 |     | 0.0775               |   |   | 15.07.08 |   |          | 269,773,480   |   |   | 287,444,000 |   |
| Bonos Endesa                |   |       | Unica                |   |                          | 400,000,000 |   |   | US$       |                 |     | 0.085                |   |   | 01.04.09 |   |          | 269,773,480   |   |   | 287,444,000 |   |
| Bonos Endesa                |   |       | E-1 y E-2            |   |                          | 6,000,000   |   |   | U.F.      |                 |     | 0.062                |   |   | 01.08.06 |   |          | 100,503,239   |   |   | 100,464,720 |   |
| Bonos Endesa                |   |       | C2; D1 Y D2          |   |                          | 1,439,153   |   |   | U.F.      |                 |     | 0.068                |   |   | 01.11.10 |   |          | 22,043,038    |   |   | 19,831,566 |   |
| Bonos Endesa                |   |       | F                    |   |                          | 1,500,000   |   |   | U.F.      |                 |     | 0.062                |   |   | 01.08.22 |   |          | 25,125,810    |   |   | 25,116,180 |   |
| Bonos Pehuenche             |   |       | Unica                |   |                          | 170,000,000 |   |   | US$       |                 |     | 0.073                |   |   | 01.05.03 |   |          | 114,653,729   |   |   | — |   |
| Bonos Edegel                |   |       | Uno                  |   |                          | 30,000,000  |   |   | US$       |                 |     | 0.0875               |   |   | 13.08.07 |   |          | 20,233,011    |   |   | 21,558,300 |   |
| Bonos Edegel                |   |       | Dos                  |   |                          | 30,000,000  |   |   | US$       |                 |     | 0.0841               |   |   | 14.02.07 |   |          | 20,233,011    |   |   | 21,558,300 |   |
| Bonos Edegel                |   |       | Tres                 |   |                          | 30,000,000  |   |   | US$       |                 |     | 0.0875               |   |   | 13.06.06 |   |          | 20,233,011    |   |   | 21,558,300 |   |
| Bonos Edegel                |   |       | Cuatro               |   |                          | 20,000,000  |   |   | US$       |                 |     | 0.0844               |   |   | 21.11.05 |   |          | 13,488,674    |   |   | 14,372,200 |   |
| Bonos Edegel                |   |       | Cinco A              |   |                          | 10,000,000  |   |   | Soles     |                 |     | 0.1154               |   |   | 22.08.03 |   |          | 6,854,001     |   |   | — |   |
| Bonos Edegel                |   |       | Cinco B              |   |                          | 30,000,000  |   |   | Soles     |                 |     | 0.06                 |   |   | 22.02.04 |   |          | —        |   |   | 6,134,974 |   |
| Bonos Emgesa                |   |       | A-1                  |   |                          | 15,000,006  |   |   | $    Col. |                 |     | 0.1343               |   |   | 09.07.06 |   |          | 4,415,413     |   |   | 3,762,632 |   |
| Bonos Emgesa                |   |       | B-1                  |   |                          | 85,000,000  |   |   | $    Col. |                 |     | 0.1575               |   |   | 01.07.06 |   |          | 25,020,672    |   |   | 21,321,580 |   |
| Bonos Emgesa                |   |       | B-5                  |   |                          | 12,750,006  |   |   | $    Col. |                 |     | 0.1495               |   |   | 09.10.04 |   |          | 3,753,101     |   |   | 3,198,237 |   |
| Bonos Emgesa                |   |       | B-7                  |   |                          | 19,500,010  |   |   | $    Col. |                 |     | 0.1527               |   |   | 09.10.06 |   |          | 5,740,037     |   |   | 4,891,422 |   |
| Bonos Emgesa                |   |       | B-10                 |   |                          | 229,825,122 |   |   | $    Col. |                 |     | 0.156                |   |   | 09.10.09 |   |          | 67,651,483    |   |   | 57,649,691 |   |
| Bonos Emgesa                |   |       | C-10                 |   |                          | 19,777,918  |   |   | $    Col. |                 |     | 0.1025               |   |   | 09.10.09 |   |          | 5,821,842     |   |   | 5,279,069 |   |
| Bonos Emgesa                |   |       | B-10 2° emision |   |                          | 60,000,031  |   |   | $    Col. |                 |     | 0.1578               |   |   | 08.11.09 |   |          | 17,661,651    |   |   | 15,050,527 |   |
| Bonos Autopista del Sol S.A |   |       | A-1                  |   |                          | 3,446,160   |   |   | U.F.      |                 |     | 0.058                |   |   | 15.01.18 |   |          | —        |   |   | 57,702,917 |   |
| Bonos Autopista del Sol S.A |   |       | A-2                  |   |                          | 861,540     |   |   | U.F.      |                 |     | 0.058                |   |   | 15.01.18 |   |          | —        |   |   | 14,425,729 |   |
| Bonos Autopista del Sol S.A |   |       | B-1                  |   |                          | 964,372     |   |   | U.F.      |                 |     | 0.058                |   |   | 15.01.18 |   |          | —        |   |   | 16,147,555 |   |
| Bonos Autopista del Sol S.A |   |       | B-2                  |   |                          | 243,578     |   |   | U.F.      |                 |     | 0.058                |   |   | 15.01.18 |   |          | —        |   |   | 4,078,505 |   |
| Eurobono                    |   |       | Unica                |   |                          | 400,000,000 |   |   | Euro      |                 |     | 0.0334               |   |   | 24.07.03 |   |          | 236,481,576   |   |   | — |   |
| Bonos Endesa Internacional  |   |       | Unica                |   |                          | 150,000,000 |   |   | US$       |                 |     | 0.072                |   |   | 01.04.06 |   |          | 101,165,055   |   |   | 107,791,500 |   |
|                        |   |       |                 |   |                          |        |   |   |      |                 |     |                 |   |   |     |   |               |               |   |  |  |   |
| Total                       |   |       |                 |   |                          |        |   |   |      |                 |     |                 |   |   |     |   |          | 2,271,468,659 |   |   | 2,097,845,568 |   |
|                        |   |       |                 |   |                          |        |   |   |      |                 |     |                 |   |   |     |   |               |               |   |  |  |   |
|                             |        |            |                      |        |                               |             |        |        |           |                      |          |                      |        |        |          |        |               |               |  |  |  |  |  |

| **(c)** | **Bonds payable are comprised of the following:** |
|---------|---------------------------------------------------|

|   | **i.** | **Enersis S.A. Series B1-B2**                                                                                    |
|--------|--------|------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                             |
|   |   | On September    11, 2001, Enersis S.A. registered two series of bearer bonds as of June 14,    2001, as follows: |

| **Series** |   | **Total amount    In UF** |      | **No.of bonds    per series** |   | **Face value    in UF** |   |
|------------|--------|---------------------------|-----------|-------------------------------|--------|-------------------------|--------|
|       |   |                           |           |                          |        |                         |   |  |  |   |
| B1         |   |                      | 1,000,000 |                          |   | 1,000                   |   |   | 1,000 |   |
| B1         |   |                      | 3,000,000 |                          |   | 300                     |   |   | 10,000 |   |
| B2         |   |                      | 1,000,000 |                          |   | 1,000                   |   |   | 1,000 |   |
| B2         |   |                      | 1,500,000 |                          |   | 150                     |   |   | 10,000 |   |

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|   | The    scheduled maturity of the Series B-1 bonds is 8 years, interest and principal    payable semi-annually.  Annual    interest is 5.50%, compounded semi-annually.                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                     |
|   | The    scheduled maturity of the Series B-2 bonds is 21 years, principal payments    beginning after 5 years, interest and principal payable semi-annually.  Annual interest is 5.75%, compounded    semi-annually. |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |

| **ii.** | **Enersis S.A. (Yankee Bonds)** |
|---------|---------------------------------|

|   | On November    21, 1996, the Company, acting through its agency in the Cayman Islands,    issued corporate notes (Yankee Bonds) for US$800 million in three series, as    follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Series** |   | **Total    amount    In US$** |        | **Years to    maturity** |   | **Stated    annual    interest rate** |   |
|------------|--------|-------------------------------|-------------|--------------------------|--------|---------------------------------------|--------|
|       |   |                               |        |                          |   |                                       |   |
| 1          |   |                          | 300,000,000 |                     |   | 10                                    |   |   | 6.90 | % |
| 2          |   |                          | 350,000,000 |                     |   | 20                                    |   |   | 7.40 | % |
| 3          |   |                          | 150,000,000 |                     |   | 30                                    |   |   | 6.60 | % |

|   | Interest is    payable on a semi-annual basis and principal is due upon maturity.  The Series 3 bond holders have an option    to require the Company to redeem all or any US$1,000 portion thereof on    December 31, 2003 at a redemption price equal to face value.                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | **Repurchase of Yankee Bonds**                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | During    November 2001, the Company made a tender offer to repurchase all or a portion    of the Series 2 Yankee Bonds.  The    offer expired November 21, 2001 and the Company repurchased a total of    US$100,266,000 in bonds with accrued interest, at a price of US$95,536,000,    resulting in a gain of US$8,201,000 (ThCh$5,531,051), which is included in    other non-operating income (see Note 23a). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                    |

| **iii.** | **Edelnor Bonds (Subsidiary of Distrilima S.A.)** |
|----------|---------------------------------------------------|

| **First issue**               |   |                                             |
|-------------------------------|--------|--------------------------------------------------|
| Date of    Issue              | :      | March 1,    1996                                 |
| Number of    bonds subscribed | :      | 49,919                                           |
| Face value                    | :      | 100 soles    each                                |
| Redemption    term            | :      | 15 years                                         |
| Interest    rate              | :      | 9.6136%    annual                                |
| Interest    payment           | :      | Annually, on    coupon maturity                  |
| Principal    amortization     | :      | Amortization    of total principal upon maturity |

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| **Second issue**                     |   |                            |
|--------------------------------------|--------|---------------------------------|
| Date of Issue                        | :      | November 10, 1998               |
| Number of bonds subscribed           | :      | 146,300                         |
| Face value                           | :      | 1000 soles each                 |
| Redemption term                      | :      | 4 years                         |
| Interest rate                        | :      | 14.396%                         |
| Interest payment                     | :      | Accrued and paid within 90 days |
| Anticipated redemption option        | :      | Early redemption option         |
|                                 |   |                            |
| **Third issue**                      |   |                            |
| Date of Issue                        | :      | August 7, 1998                  |
| Number of bonds subscribed           | :      | 15,000                          |
| Face value                           | :      | US$1,000 each                   |
| Redemption term                      | :      | 3 years                         |
| Interest rate                        | :      | 7.7%                            |
| Interest payment                     | :      | Accrued and paid within 90 days |
|                                 |   |                            |
| **First program of Corporate Bonds** |   |                            |
| **First issue**                      |   |                            |
| Date of Issue                        | :      | October 29, 2001                |
| Face value                           | :      | 30,000 new soles each           |
| Redemption term                      | :      | 2 years                         |
| Interest rate                        | :      | 7.5%                            |
| Interest payment                     | :      | Semi – annual              |
|                                 |   |                            |
| **Second issue**                     |   |                            |
| Date of Issue                        | :      | October 19, 2001                |
| Number of bonds subscribed           | :      | 20,000                          |
| Face value                           | :      | 5,000 new soles each            |
| Redemption term                      | :      | 5 years                         |
| Interest rate                        | :      | 6.9%                            |
| Interest payment                     | :      | Semi – annual              |
|                                 |   |                            |
| **Third issue:**                     |   |                            |
| Date of issue                        | :      | January 24, 2002                |
| Number of bonds subscribed           | :      | 6,000                           |
| Face value                           | :      | 5,000 (new soles each)          |
| Redemption term                      | :      | 2 years                         |
| Interest rate                        | :      | 6.5% annual                     |
| Interest payment                     | :      | Semi – annual              |
|                                 |   |                            |
| **Fourth issue:**                    |   |                            |
| Date of issue                        | :      | April 24, 2002                  |
| Number of bonds subscribed           | :      | 4,000                           |
| Face value                           | :      | 5,000 (new soles each)          |
| Redemption term                      | :      | 2 years                         |
| Interest rate                        | :      | 6.34% annual                    |
| Interest payment                     | :      | Semi – annual              |

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| **iv.** | **Endesa    Chile S.A.**                                                             |
|---------|--------------------------------------------------------------------------------------|
|    |                                                                                 |
| I       | Risk rating of the issued bonds is a follows as of    the date of December 31, 2002: |

|                                                | **Category** |
|-----------------------------------------------------|--------------|
| - Comisión Clasificadora de    Riesgo          | AA           |
| - Fitch IBCA Chile    Clasificadora de Riesgo Ltda. | AA           |
| - Clasificadora de Riesgo    Humphreys Ltda.        | AA           |

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| Issuer                | :      | Empresa Nacional de    Electricidad S.A.                                                                                                                                                                                                                      |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | :      | Bearer bonds in local currency, denominated in    Unidades de Fomento                                                                                                                                                                                         |
| Issuance Value        | :      | Four million Unidades de Fomento (UF4,000,000)    divided into:                                                                                                                                                                                               |
|                  |   | - Series C-1:     120 bonds at UF10,000 each                                                                                                                                                                                                             |
|                  |   | - Series C-2:     800 bonds at UF1,000 each                                                                                                                                                                                                              |
|                  |   | - Series D-1:     120 bonds at UF10,000 each                                                                                                                                                                                                             |
|                  |   | - Series D-2:     800 bonds at UF1,000 each                                                                                                                                                                                                              |
| Indexation            | :      | Based on variations in Unidad de Fomento index                                                                                                                                                                                                                |
| Amortization period   | :      | Series C-1 and C-2:     15 years (5-year grace period and 10 years to amortize capital).                                                                                                                                                                 |
|                  |   | Series D-1 and D-2:     20 years (5-year grace period and 15 years to amortize capital).                                                                                                                                                                 |
| Capital amortization  | :      | Series C-1 and C-2:     20 consecutive installments payable semi-annually, starting April 1, 1996.    Series D-1 and D-2: 30 consecutive installments payable semi-annually,    starting May 1, 1996.  Amortization    installments are incremental |
| Early Redemption      | :      | As elected by the issuer, starting May 1, 1996 and    only on the interest payment and amortization dates.                                                                                                                                                    |
| Nominal interest rate | :      | 6.8% annually upon expiration, compound and actual    rate per semester on outstanding capital, readjusted by the value of the    Unidad de Fomento.  The applicable    semi-annual interest rate will be equal to 3.34409%.                             |
| Interest Payments     | :      | Interest will be paid semi-annually each May 1 and    November 1, starting May 1, 1991.     Accrued interest at the end of the period amounts to ThCh$245,619    (ThCh$268,716 in 2001), and is shown under current liabilities.                         |
| Guarantee             | :      | There is no specific guarantee, however, a general    guarantee covers all the issuer’s assets.                                                                                                                                                          |
| Placement period      | :      | 48 months from the registration date in the Chilean    Securities Register of the Superintendency of Securities and Insurance.                                                                                                                                |

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| Issuer                | :      | Empresa Nacional de    Electricidad S.A.                                                                                                                                                        |
|-----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | :      | Bearer bonds in local currency, denominated in    Unidades de Fomento                                                                                                                           |
| Issuance Value (1)    | :      | Up to seven and a half million (UF7,500,000) divided    into:                                                                                                                                   |
|                  |   | Series E-1: 1,500 bonds at UF1,000 each.                                                                                                                                                        |
|                  |   | Series E-2:     600 bonds at UF10,000 each.                                                                                                                                                |
|                  |   | Series F:     200 bonds at UF10,000 each.                                                                                                                                                  |
| Readjustment          | :      | Variation in the UF                                                                                                                                                                             |
| Amortization period   | :      | Series E-1 and E-2: August 1, 2006.                                                                                                                                                             |
|                  |   | Series F: August 1, 2022.                                                                                                                                                                       |
| Early redemption      | :      | Only in the Series F case, beginning February 1,    2012.                                                                                                                                       |
| Nominal interest rate | :      | 6.2% annually, compounded semi-annually and    effective on the outstanding capital adjusted for the value of the Unidad de    fomento.  The semi-annual interest    rate will be 3.0534%. |
| Interest payments     | :      | Accrued interest as of December 31, 2002 amounts to    ThCh$3,195,406 (ThCh%3,196,631 in 2001) which is shown under current    liabilities.                                                     |
| Guarantee             | :      | There is no specific guarantee; however, a general    guarantee covers all the issuer’s assets                                                                                             |
| Placement period      | :      | 36 months from the registration date in the Chilean    Securities Register of the Superintendency of Securities and Insurance                                                                   |

| (1) | Through a currency swap, the UF debt was changed to    US dollars, leaving a net position of ThCh$2,192,610 as of December 31, 2002    which is included in other assets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| II | The Company has issued and placed three public    offerings of bonds in the international market as follows: |
|----|--------------------------------------------------------------------------------------------------------------|

| Issuer            | :      | Empresa Nacional de    Electricidad S.A.                                    |
|-------------------|--------|-----------------------------------------------------------------------------|
| Securities issued | :      | Marketable securities denominated in US$(Yankee    bonds) in the US market. |
| Issuance Value    | :      | Six hundred and fifty million US Dollars    (US$650,000,000) divided into:  |
|              |   | Series 1: US$230,000,000                                                    |
|              |   | Series 2: US$220,000,000                                                    |
|              |   | Series 3: US$200,000,000                                                    |
| Readjustment      | :      | Variation in the US Dollar                                                  |

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| Amortization period   | :      | Series 1 matures on February 1, 2027:  Series 2 matures on February 1, 2037 (Put    Option on February 1, period 2009, on which date the holders may redeem 100%    of bonds plus accrued interest).                                             |
|-----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   | Series 3 matures on February 1, 2097.                                                                                                                                                                                                                 |
| Nominal interest rate | :      | Series 1:     7.875% annually                                                                                                                                                                                                                    |
|                  |   | Series 2:     7.325% annually                                                                                                                                                                                                                    |
|                  |   | Series 3:     8.125% annually                                                                                                                                                                                                                    |
| Interest Payments     | :      | Interest will be paid semi-annually each February 1    and August 1 annually, starting January 27, 1997.  Accrued interest as of the year end amounts to ThCh$15,114,018    (ThCh$14,184,888 in 2001), which is shown under current liabilities. |

| Issuer                | : | Empresa Nacional de    Electricidad S.A.                                                                                                                                                                                                            |
|-----------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in US$(Yankee    bonds) in the US market.                                                                                                                                                                         |
| Issuance Value        | : | Four hundred million US Dollars (US$400,000,000) :                                                                                                                                                                                                  |
| Readjustment          | : | Variation in the US Dollar                                                                                                                                                                                                                          |
| Capital amortization  | : | Series 1 matures on July 15, 2008 period                                                                                                                                                                                                            |
| Nominal interest rate | : | Series 1:     7.75% annually                                                                                                                                                                                                                   |
| Interest Payments     | : | Interest will be paid semi-annually each January 15    and July 15 annually, starting January 15, 1999.  Accrued interest as of the year end amounts to ThCh$10,210,249    (ThCh$9,582,578 in 2001), which is shown under current liabilities. |

| Issuer                | : | Empresa Nacional de    Electricidad S.A.                                                                                                                                                                                                                                     |
|-----------------------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in US$(Yankee    bonds) in the US market.                                                                                                                                                                                                  |
| Issuance Value        | : | Four hundred million US Dollars (US$400,000,000) :                                                                                                                                                                                                                           |
| Readjustment          | : | Variation in the US Dollar                                                                                                                                                                                                                                                   |
| Capital amortization  | : | Series 1 matures on April 1, 2009.                                                                                                                                                                                                                                           |
| Nominal interest rate | : | Series 1:     8.502% annually                                                                                                                                                                                                                                           |
| Interest Payments     | : | Interest will be paid semi-annually each October 1    and April 1 annually, starting October 1, 1999.  Accrued interest as of the year end amounts to ThCh$6,108,185    and ThCh$5,732,686 in 2002 and 2001, respectively, which is shown under    current liabilities. |

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|                         | **Category** |
|------------------------------|--------------|
| - Standard & Poor’s | BBB          |
| - Moodys Investors Services  | Baa3         |
| - Fitch                      | BBB+         |

| • | Series 1: ThCh$230,000 at 30 years, maturing in    2027.  |
|--------|-----------------------------------------------------------|
| • | Series 3: ThCh$200,000 at 100 years, maturing in    2097. |

| **v.** | **Subsidiaries of Endesa S.A.**                                     |
|--------|---------------------------------------------------------------------|
|   |                                                                |
| I      | Endesa Chile Internacional issued Yankee Bonds on    April 1, 1996. |

|                         | **Category** |
|------------------------------|--------------|
| - Standard & Poor’s | BBB          |
| - Moodys Investors Services  | Baa3         |

| Issuer                | : | Endesa Chile Internacional.                                                                                                                                                                                            |
|-----------------------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in US$(150,000    bonds).                                                                                                                                                            |
| Issuance Value        | : | One hundred and fifty million Dollars    (US$150,000,000):                                                                                                                                                             |
| Capital amortization  | : | Maturity as of April 1, 2006                                                                                                                                                                                           |
| Nominal interest rate | : | 7.2% annually in arrears.                                                                                                                                                                                              |
| Interest Payments     | : | Interest will be paid semi-annually in arrears    starting October 1, 1996.  Accrued    interest as of the year end amounts to ThCh$1,940,247 (ThCh$1,820,971 in    2001) and is shown under current liabilities. |
| Guarantee             | : | Guarantee from Empresa Nacional    de Electricidad S.A.                                                                                                                                                                |

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| Securities registered     | : | 1,000 million Euros                                                                                                                                                                         |
|---------------------------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Issuance value            | : | Euros 400,000,000 (*)                                                                                                                                                                       |
| Capital amortización | : | Principal due July 24, 2003                                                                                                                                                                 |
| Nominal interest rate     | : | Euribor + 0.80                                                                                                                                                                              |
| Interest payments         | : | Quarterly beginning October 24, 2000 in    arrears.  Accrued interest as of the    year end amounts to ThCh$2,310,497 (ThCh$2,061,701 in 2001) and is shown in    current liabilities. |
| Guarantee                 | : | Empresa Nacional de    Electricidad S.A.                                                                                                                                                    |

| (*) | By way of a swap operation,    the debt in Euro was changed to US dollars. |
|-----|----------------------------------------------------------------------------|

| II | Empresa Eléctrica Pehuenche S.A. issued bonds on May    2, 1996. |
|----|-----------------------------------------------------------------------|

| Issuer                | : | Empresa Eléctrica Pehuenche    S.A.                                                                                                                                                                              |
|-----------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in US$.                                                                                                                                                                             |
| Issuance Value        | : | One hundred and seventy million US Dollars    (US$170,000,000)                                                                                                                                                        |
| Capital amortization  | : | Maturity as of May 1, 2003                                                                                                                                                                                            |
| Nominal interest rate | : | 7.3% annually                                                                                                                                                                                                         |
| Interest payments     | : | Interest will be paid semi-annually in arrears,    starting November 1, 1996.  Accrued    interest as of the year end amounts to ThCh$1,486,325 (ThCh$1,394,954 in    2001) and is shown in Current Liabilities. |

| III | Edegel S.A. issued bonds on June 4, 1999, February    15, 2000, June 14, 2000 and November 27, 2000 and August 22, 2001 as per the    following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| Issuer                | : | Edegel S.A.                                                                                                                                                                                                     |
|-----------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in US$(120,000    bonds).                                                                                                                                                     |
| Issuance value        | : | US$120,000,000                                                                                                                                                                                                  |
| Capital amortization  | : | June 3, 2006, February 14, 2007, June 13, 2007, November    26, 2005 and August 22, 2003, respectively.                                                                                                         |
| Nominal interest rate | : | 8.75%, 8.41%, 8.75%, 8.4375% and 11.50% annually                                                                                                                                                                |
| Interest payments     | : | Interest will be paid semi-annually, starting    December 3, 1999.  Accrued interest as    of the year-end amounts to ThCh$1,367,515 ThCh$1,283,703 in 2001) and is    shown in other current liabilities. |

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| IV | Emgesa S.A. issued bonds on October 8, 1999 and July    9, 2001 as per the following: |
|----|---------------------------------------------------------------------------------------|

| Issuer                | : | Emgesa S.A.                                                                                                                                                                                                     |
|-----------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | : | Marketable securities denominated in Colombian pesos                                                                                                                                                            |
| Issuance Value        | : | $Col 530,000,000                                                                                                                                                                                                |
| Capital amortization  | : | Maturities as of 2002, 2004, 2006, 2007, 2009 and    2010 for $Col 1,525,000; $Col 15,000,000; $Col 85,000,000; $Col 81,407,744;    $Col 19,500,000;  $Col 297,567,256 and    $Col 30,000,000 respectively |
| Interest nominal rate | : | 15.5% annual average rate                                                                                                                                                                                       |
| Interest payment      | : | Interest will be paid semi-annually. Accrued    interest as of the year end amounts to ThCh$5,385,981 (ThCh$5,715,660 in    2001) and is shown under current liabilities.                                       |

| V | Sociedad Concesionaria Autopista del Sol S.A. issued    bonds on March 8, 2002. |
|---|---------------------------------------------------------------------------------|

| Issuer                | :      | Sociedad Concesionaria    Autopista del Sol S.A.                                                                                                                                                        |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities issued     | :      | Bearer bonds in local currency, denominated in    Unidades de Fomento                                                                                                                                   |
| Issuance Value        | :      | U.F. 5,540,000 divided into:                                                                                                                                                                            |
|                  |   | Series A – 1     U.F.3,460,000                                                                                                                                                                |
|                  |   | Series A – 2     U.F.865,000                                                                                                                                                                  |
|                  |   | Series B – 1     U.F.970,000                                                                                                                                                                  |
|                  |   | Series B – 1     U.F.245,000                                                                                                                                                                  |
| Indexation            | :      | Variation in the U.F.                                                                                                                                                                                   |
| Amortization period   | :      | 16 years                                                                                                                                                                                                |
| Capital amortization  | :      | Semi - annually and consecutive                                                                                                                                                                         |
| Interest nominal rate | :      | 5.8% annually in arrears, compounded semi - annually    on outstanding capital, readjusted for the value of the Unidad de    Fomento.  The applicable semi-annual    rate will be equal to 2.8591% |
| Interest payment      | :      | Interest will be paid semi-annually each January 15    and July 15 starting January 15, 2003.     Accrued interest at the year end amounts to ThCh$2,427,752 and is show    in current liabilities |

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| **Note 20.** | **Accrued Expenses** |
|--------------|----------------------|

| **(a)** | **Short-term accruals:** |
|---------|--------------------------|

|                                    |   | **As of    December 31,** |       |
|-----------------------------------------|--------|---------------------------|------------|
|                                    |   |                           |       |
|                                    |   | **2001**                  |       | **2002** |   |
|                                    |   |                           |            |   |  |  |   |
|                                    |   | **ThCh$**                 |       | **ThCh$** |   |
| Bonus and other employee benefits       |   |                      | 29,586,443 |   |   | 26,911,641 |   |
| Litigation and contingencies            |   |                      | 21,817,851 |   |   | 21,256,038 |   |
| Construction and other                  |   |                      | 7,757,541  |   |   | 7,173,039 |   |
| Energy purchases and other              |   |                      | 10,004,985 |   |   | 14,461,761 |   |
| Income tax installments and other taxes |   |                      | 192,034    |   |   | 198,643 |   |
| Pension accruals                        |   |                      | 1,282,688  |   |   | 1,793,090 |   |
| Suppliers and services                  |   |                      | 2,891,319  |   |   | 6,294,182 |   |
| Other accruals                          |   |                      | 6,387,468  |   |   | 6,841,927 |   |
|                                    |   |                           |            |   |  |  |   |
| Total                                   |   |                      | 79,920,329 |   |   | 84,930,321 |   |
|                                    |   |                           |            |   |  |  |   |

| **(b)** | **Long-term accruals:** |
|---------|-------------------------|

|                                          |   | **As of    December 31,** |        |
|-----------------------------------------------|--------|---------------------------|-------------|
|                                          |   |                           |        |
|                                          |   | **2001**                  |        | **2002** |   |
|                                          |   |                           |             |   |  |  |   |
|                                          |   | **ThCh$**                 |        | **ThCh$** |   |
| Provision for contingencies and lawsuits      |   |                      | 143,903     |   |   | 1,131,005 |   |
| Advance monthly corporate and other taxes     |   |                      | 10,659,029  |   |   | 7,000,596 |   |
| Post-retirement benefits-Chilean subsidiaries |   |                      | 8,686,281   |   |   | 10,352,416 |   |
| Severance indemnity                           |   |                      | 7,091,909   |   |   | 8,589,109 |   |
| Labour contingencies (Cerj)                   |   |                      | 83,342,951  |   |   | 87,993,076 |   |
| Post-retirement benefits (Cerj Coelce)        |   |                      | 80,089,342  |   |   | 38,637,287 |   |
| Post-retirement benefits-foreign subsidiaries |   |                      | 44,375,523  |   |   | 71,228,212 |   |
| Others                                        |   |                      | —      |   |   | 1,990,916 |   |
|                                          |   |                           |             |   |  |  |   |
| Total                                         |   |                      | 234,388,938 |   |   | 226,922,617 |   |
|                                          |   |                           |             |   |  |  |   |

|                            |   | **As of    December 31,** |       |
|---------------------------------|--------|---------------------------|------------|
|                            |   |                           |       |
|                            |   | **2001**                  |       | **2002** |   |
|                            |   |                           |            |   |  |  |   |
|                            |   | **ThCh$**                 |       | **ThCh$** |   |
| Opening balance as of January 1 |   |                      | 6,396,342  |   |   | 7,377,430 |   |
| Increase in accrual             |   |                      | 2,352,065  |   |   | 2,072,912 |   |
| Transfer to short-term          |   |                      | (276,711   | ) |   | 82,969 |   |
| Payments during the year        |   |                      | (1,379,787 | ) |   | (944,202 | ) |
|                            |   |                           |            |   |  |  |   |
| Total                           |   |                      | 7,091,909  |   |   | 8,589,109 |   |
|                            |   |                           |            |   |  |  |   |

----

Back to Index

| **Note 21.** | **Minority Interest** |
|--------------|-----------------------|

| (a) | Minority shareholders’ participation in the    shareholders’ equity of the Company’s subsidiaries as of each year-end is as    follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | **As of    December 31, 2001** |          | **As of    December 31, 2002** |   |
|-----------------------------------------------------------|--------|--------------------------------|---------------|--------------------------------|--------|
|                                                      |   |                                |          |                                |   |
| **Company**                                               |   | **Equity**                     |          | **Participation**              |   | **Total** |   | **Equity** |   | **Participation** |   | **Total** |   |
|                                                      |   | **ThCh$**                      |          | **%**                          |   | **ThCh$** |   | **ThCh$** |   | **%** |   | **ThCh$** |   |
| Autopista Los Libertadores S.A.                           |   |                           | 25,296,795    |                           |   | 0.05 | % |   | 12,648 |   |   | 25,213,021 |   |   | 0.05 | % |   | 12,607 |   |
| Cam Argentina S.A. (Ex - M.Velasco Arg.)                  |   |                           | 687,066       |                           |   | 0.10 | % |   | 687 |   |   | 545,460 |   |   | 0.10 | % |   | 545 |   |
| Cam Colombia S.A.                                         |   |                           | 1,081,791     |                           |   | 0.001 | % |   | 14 |   |   | 1,864,792 |   |   | 0.001 | % |   | 25 |   |
| Capital de Energía S.A.                              |   |                           | 534,797,609   |                           |   | 49.10 | % |   | 262,585,626 |   |   | 566,223,719 |   |   | 49.10 | % |   | 278,015,846 |   |
| Central     Hidroeléctrica Betania S.A.         |   |                           | 494,429,051   |                           |   | 14.38 | % |   | 71,088,020 |   |   | 519,458,738 |   |   | 14.38 | % |   | 74,686,738 |   |
| Central Cachoeira Dourada                                 |   |                           | 499,191,115   |                           |   | 0.49 | % |   | 2,452,676 |   |   | 486,715,435 |   |   | 0.41 | % |   | 1,982,200 |   |
| Central Costanera S.A.                                    |   |                           | 137,706,613   |                           |   | 48.07 | % |   | 66,192,075 |   |   | 171,461,783 |   |   | 48.07 | % |   | 82,417,327 |   |
| Cía. do Electricidade do Río do Janeiro         |   |                           | 489,488,446   |                           |   | 41.25 | % |   | 201,912,651 |   |   | 579,561,108 |   |   | 37.42 | % |   | 216,887,924 |   |
| Chilectra S.A.                                            |   |                           | 498,295,654   |                           |   | 1.76 | % |   | 8,770,774 |   |   | 421,691,742 |   |   | 1.76 | % |   | 7,366,481 |   |
| Cía. Eléctrica San Isidro S.A.                  |   |                           | 30,362,233    |                           |   | 50.00 | % |   | 15,181,116 |   |   | 34,217,794 |   |   | 50.00 | % |   | 17,108,897 |   |
| Cía. Peruana de Electricidad S.A.                    |   |                           | 39,939,117    |                           |   | 49.00 | % |   | 19,565,417 |   |   | 43,202,088 |   |   | 49.00 | % |   | 21,169,023 |   |
| Codensa S.A.                                              |   |                           | 1,112,677,346 |                           |   | 51.52 | % |   | 573,222,783 |   |   | 1,009,464,988 |   |   | 51.52 | % |   | 520,777,588 |   |
| Companhia Energetica Do Ceara - Coelce                    |   |                           | 658,685,746   |                           |   | 43.41 | % |   | 285,937,346 |   |   | 694,587,778 |   |   | 43.41 | % |   | 301,522,520 |   |
| Compañía Eléctrica del Río Maipo S.A. |   |                           | 22,260,807    |                           |   | 1.26 | % |   | 279,942 |   |   | 22,623,680 |   |   | 1.26 | % |   | 284,505 |   |
| Constructora y Proyectos Los Maitenes S.A.                |   |                           | 936,792       |                           |   | 45.00 | % |   | 421,556 |   |   | 349,958 |   |   | 45.00 | % |   | 157,481 |   |
| Edegel S.A.                                               |   |                           | 661,672,216   |                           |   | 36.44 | % |   | 241,138,499 |   |   | 680,564,639 |   |   | 36.44 | % |   | 248,023,616 |   |
| Edelnor S.A.                                              |   |                           | 272,154,844   |                           |   | 40.00 | % |   | 108,861,938 |   |   | 292,048,556 |   |   | 40.00 | % |   | 116,819,422 |   |
| Edesur S.A.                                               |   |                           | 677,251,928   |                           |   | 34.11 | % |   | 230,997,210 |   |   | 729,817,969 |   |   | 34.11 | % |   | 248,926,444 |   |
| Emgesa S.A.                                               |   |                           | 919,463,877   |                           |   | 51.52 | % |   | 473,679,287 |   |   | 963,653,136 |   |   | 51.52 | % |   | 496,444,223 |   |
| Empresa Eléctrica Pangue S.A.                        |   |                           | 59,573,673    |                           |   | 7.52 | % |   | 4,479,940 |   |   | 74,436,633 |   |   | 5.01 | % |   | 3,729,275 |   |
| Endesa                                                    |   |                           | 1,446,549,434 |                           |   | 40.02 | % |   | 578,895,713 |   |   | 1,430,635,320 |   |   | 40.02 | % |   | 572,527,032 |   |
| Endesa Argentina S.A.                                     |   |                           | 30,646,605    |                           |   | 0.01 | % |   | 3,064 |   |   | 21,798,627 |   |   | 0.01 | % |   | 2,180 |   |
| Generandes Perú S.A.                                 |   |                           | 351,973,200   |                           |   | 40.37 | % |   | 142,088,131 |   |   | 369,454,446 |   |   | 40.37 | % |   | 149,145,139 |   |
| Hidroeléctrica El Chocón S.A.                   |   |                           | 237,400,257   |                           |   | 34.81 | % |   | 82,639,029 |   |   | 227,177,787 |   |   | 34.81 | % |   | 79,080,588 |   |
| Hidroinvest S.A.                                          |   |                           | 111,674,081   |                           |   | 30.07 | % |   | 33,580,396 |   |   | 92,470,425 |   |   | 30.07 | % |   | 27,805,857 |   |
| Inecsa 2000 S.A.                                          |   |                           | 25,510,699    |                           |   | 2.68 | % |   | 683,687 |   |   | 25,412,375 |   |   | 2.68 | % |   | 681,052 |   |
| Infraestructura 2000 S.A.                                 |   |                           | 63,589,515    |                           |   | 40.00 | % |   | 25,435,806 |   |   | 64,002,478 |   |   | 40.00 | % |   | 25,600,991 |   |
| Ingendesa S.A.                                            |   |                           | 2,480,040     |                           |   | 2.36 | % |   | 58,591 |   |   | 2,266,772 |   |   | 2.36 | % |   | 53,552 |   |
| Inmobiliaria Centro Nuevo Ltda.                           |   |                           | (12,043       | )                              |   | 0.08 | % |   | (9 | ) |   | (13,327 | ) |   | 0.08 | % |   | (10 | ) |
| Inmobiliaria y Constructora Stgo. 2000 Ltda.              |   |                           | 74,764        |                           |   | 7.50 | % |   | 5,607 |   |   | 80,994 |   |   | 7.50 | % |   | 6,075 |   |
| Inversiones Distrilima S.A.                               |   |                           | 159,715,296   |                           |   | 32.75 | % |   | 52,306,760 |   |   | 172,793,816 |   |   | 31.61 | % |   | 54,620,126 |   |
| Investluz S.A.                                            |   |                           | 532,119,077   |                           |   | 37.55 | % |   | 199,810,714 |   |   | 357,552,300 |   |   | 37.55 | % |   | 134,260,889 |   |
| Luz de Bogotá S.A.                                   |   |                           | 643,243,838   |                           |   | 55.00 | % |   | 353,784,118 |   |   | 600,529,806 |   |   | 55.00 | % |   | 330,291,399 |   |
| Empresa Eléctrica Pehuenche S.A.                     |   |                           | 177,950,062   |                           |   | 6.34 | % |   | 11,282,034 |   |   | 182,901,476 |   |   | 7.35 | % |   | 13,443,258 |   |
| Soc. Agrícola de Cameros Ltda.                       |   |                           | 6,066,690     |                           |   | 42.50 | % |   | 2,578,343 |   |   | 6,936,375 |   |   | 42.50 | % |   | 2,947,959 |   |
| Soc. Agrícola Pastos Verdes Ltda.                    |   |                           | 52,532,429    |                           |   | 45.00 | % |   | 23,639,595 |   |   | 52,902,360 |   |   | 45.00 | % |   | 23,806,062 |   |
| Túnel El Melón S.A.                             |   |                           | (1,313,139    | )                              |   | 0.05 | % |   | (656 | ) |   | (4,230,882 | ) |   | 0.05 | % |   | (2,115 | ) |
|                                                      |   |                           |          |                           |   |   |   |  |  |   |   |   |   |   |   |   |  |  |   |
| Total                                                     |   |                           |          |                           |   |   |   |   | 4,073,571,128 |   |   |   |   |   |   |   |   | 4,050,602,721 |   |
|                                                      |   |                           |          |                           |   |   |   |  |  |   |   |   |   |   |   |   |  |  |   |

----

Back to Index

| **(b)** | **Minority shareholders’    participation in the net (income) or loss of the Company’s subsidiaries as of    each year-end is as follows:** |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | **As of    December 31, 2000** |        | **Year-ended    December 31, 2001** |   | **Year-ended    December 31, 2002** |   |
|--------------------------------------------------------------|--------|--------------------------------|-------------|-------------------------------------|--------|-------------------------------------|--------|
|                                                         |   |                                |        |                                     |   |                                     |   |
| **Company**                                                  |   | **Net income**                 |        | **Participation**                   |   | **Total**                           |   | **Net income** |   | **Participation** |   | **Total** |   | **Net income** |   | **Participation** |   | **Total** |   |
|                                                         |   |                                |             |                                |        |                                     |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                         |   | **ThCh$**                      |        | **%**                               |   | **ThCh$**                           |   | **ThCh$** |   | **%** |   | **ThCh$** |   | **ThCh$** |   | **%** |   | **ThCh$** |   |
| Autopista Los Libertadores    S.A.                           |   |                           | 139,949     |                                |   | 0.050                               |   |   | 70 |   |   | (45,093 | ) |   | 0.05 | % |   | (23 | ) |   | 83,773 |   |   | 0.05 | % |   | 42 |   |
| Cam Argentina S.A. (Ex -    M.Velasco Arg.)                  |   |                           | 202,967     |                                |   | 0.100                               |   |   | 203 |   |   | 1,428,756 |   |   | 0.10 | % |   | 1,429 |   |   | 186,609 |   |   | 0.10 | % |   | 187 |   |
| Cam Colombia S.A.                                            |   |                           | (56,653     | )                                   |   | 0.001                               |   |   | (40,934 | ) |   | (414,777 | ) |   | 0.001 | % |   | (5 | ) |   | (712,142 | ) |   | 0.001 | % |   | (9 | ) |
| Capital de Energía S.A.                                 |   |                           | 20,837,378  |                                |   | 49.000                              |   |   | 10,210,316 |   |   | (8,602,334 | ) |   | 49.10 | % |   | (4,223,747 | ) |   | (23,671,013 | ) |   | 49.10 | % |   | (11,622,467 | ) |
| Central  Hidroeléctrica Betania S.A.               |   |                           | (6,921,376  | )                                   |   | 14.380                              |   |   | (995,142 | ) |   | 8,666,017 |   |   | 14.38 | % |   | 1,245,983 |   |   | 7,354,973 |   |   | 14.38 | % |   | 1,057,483 |   |
| Central Cachoeira Dourada                                    |   |                           | 24,007,006  |                                |   | 1.160                               |   |   | 279,281 |   |   | (25,841,820 | ) |   | 0.49 | % |   | (126,969 | ) |   | 35,501,840 |   |   | 0.41 | % |   | 144,585 |   |
| Central Costanera S.A.                                       |   |                           | 16,524,363  |                                |   | 48.320                              |   |   | 7,984,572 |   |   | 11,567,900 |   |   | 48.07 | % |   | 5,560,396 |   |   | (24,735,275 | ) |   | 48.07 | % |   | (11,889,619 | ) |
| Central Termoeléctrica    Buenos Aires S.A.             |   |                           | 978,864     |                                |   | 22.170                              |   |   | 217,014 |   |   | — |   |   | 0.00 | % |   | — |   |   | — |   |   | 0.00 | % |   | — |   |
| Inm. Centro Nuevo                                            |   |                           | —      |                                |   | 0.00                                | %      |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,285 |   |   | 0.08 | % |   | 1 |   |
| Cía. do Electricidade do    Río do Janeiro         |   |                           | (5,078,215  | )                                   |   | 41.250                              |   |   | (3,548,717 | ) |   | 3,400,351 |   |   | 41.25 | % |   | 1,402,635 |   |   | 9,012,430 |   |   | 37.42 | % |   | 3,372,704 |   |
| Chilectra S.A.                                               |   |                           | 66,966,267  |                                |   | 2.030                               |   |   | 18,070,116 |   |   | (73,185,248 | ) |   | 1.76 | % |   | (1,382,051 | ) |   | 31,001,664 |   |   | 1.76 | % |   | 541,744 |   |
| Cía. Eléctrica San Isidro    S.A.                  |   |                           | 2,476,112   |                                |   | 50.000                              |   |   | 1,238,057 |   |   | 101,281 |   |   | 50.00 | % |   | 50,641 |   |   | (5,250,225 | ) |   | 50.00 | % |   | (2,625,113 | ) |
| Cía. Peruana de    Electricidad S.A.                    |   |                           | 1,974,335   |                                |   | 49.000                              |   |   | 967,424 |   |   | (3,074,599 | ) |   | 49.00 | % |   | (1,506,554 | ) |   | (3,258,139 | ) |   | 49.00 | % |   | (1,596,488 | ) |
| Codensa S.A.                                                 |   |                           | 21,605,936  |                                |   | 51.520                              |   |   | 12,306,264 |   |   | (22,798,893 | ) |   | 51.52 | % |   | (11,745,404 | ) |   | 6,655,951 |   |   | 51.52 | % |   | 3,429,146 |   |
| Companhia Energetica Do    Ceara - Coelce                    |   |                           | 18,918,834  |                                |   | 43.410                              |   |   | 8,212,719 |   |   | (13,440,399 | ) |   | 43.41 | % |   | (5,834,514 | ) |   | (20,351,782 | ) |   | 43.41 | % |   | (8,834,766 | ) |
| Compañía Eléctrica del Río    Maipo S.A. |   |                           | 10,165,435  |                                |   | 1.610                               |   |   | 1,508,429 |   |   | (9,261,986 | ) |   | 1.26 | % |   | (133,933 | ) |   | (11,727,292 | ) |   | 1.26 | % |   | (147,477 | ) |
| Constructora y Proyectos    Los Maitenes S.A.                |   |                           | (46,357     | )                                   |   | 45.000                              |   |   | (20,861 | ) |   | 494,907 |   |   | 45.00 | % |   | 222,708 |   |   | 586,836 |   |   | 45.00 | % |   | 264,076 |   |
| Edegel S.A.                                                  |   |                           | 33,815,692  |                                |   | 30.160                              |   |   | 10,197,629 |   |   | (28,636,179 | ) |   | 36.44 | % |   | (10,436,112 | ) |   | (4,554,496 | ) |   | 36.44 | % |   | (1,659,831 | ) |
| Edelnor S.A.                                                 |   |                           | 11,511,204  |                                |   | 40.000                              |   |   | 4,604,481 |   |   | (18,672,139 | ) |   | 40.00 | % |   | (7,468,855 | ) |   | (19,759,294 | ) |   | 40.00 | % |   | (7,903,718 | ) |
| Edesur S.A.                                                  |   |                           | 60,280,290  |                                |   | 34.110                              |   |   | 21,734,633 |   |   | (83,679,490 | ) |   | 34.11 | % |   | (28,541,415 | ) |   | (8,205,141 | ) |   | 34.11 | % |   | (2,798,611 | ) |
| Emgesa S.A.                                                  |   |                           | 37,682,800  |                                |   | 51.520                              |   |   | 19,412,352 |   |   | (18,796,538 | ) |   | 51.52 | % |   | (9,683,394 | ) |   | (56,168,714 | ) |   | 51.52 | % |   | (28,936,380 | ) |
| Empresa Eléctrica Pangue    S.A.                        |   |                           | (2,073,199  | )                                   |   | 7.520                               |   |   | (155,905 | ) |   | (6,568,538 | ) |   | 7.52 | % |   | (493,954 | ) |   | (18,850,842 | ) |   | 5.01 | % |   | (944,427 | ) |
| Endesa S.A.                                                  |   |                           | 114,924,893 |                                |   | 40.020                              |   |   | 45,991,879 |   |   | (72,160,018 | ) |   | 40.02 | % |   | (28,877,772 | ) |   | 9,319,056 |   |   | 40.02 | % |   | 3,729,400 |   |
| Endesa Argentina S.A.                                        |   |                           | 3,695,025   |                                |   | 0.010                               |   |   | 370 |   |   | 10,823,292 |   |   | 0.01 | % |   | 1,083 |   |   | 10,781,159 |   |   | 0.01 | % |   | 1,078 |   |
| Generandes Perú S.A.                                    |   |                           | 35,191,253  |                                |   | 45.740                              |   |   | 16,095,423 |   |   | (27,929,472 | ) |   | 40.37 | % |   | (11,274,854 | ) |   | (13,105,328 | ) |   | 40.37 | % |   | (5,290,492 | ) |
| Hidroeléctrica El Chocón    S.A.                   |   |                           | 10,022,417  |                                |   | 34.810                              |   |   | 3,488,804 |   |   | (8,929,943 | ) |   | 34.81 | % |   | (3,108,513 | ) |   | 25,772,502 |   |   | 34.81 | % |   | 8,971,408 |   |
| Hidroinvest S.A.                                             |   |                           | 2,916,610   |                                |   | 30.070                              |   |   | 877,024 |   |   | (2,636,004 | ) |   | 30.07 | % |   | (792,647 | ) |   | 26,502,276 |   |   | 30.07 | % |   | 7,969,234 |   |
| Inecsa 2000 S.A.                                             |   |                           | 101,580     |                                |   | 2.680                               |   |   | 2,722 |   |   | (32,301 | ) |   | 2.68 | % |   | (865 | ) |   | 98,323 |   |   | 2.68 | % |   | 2,635 |   |
| Infraestructura 2000 S.A.                                    |   |                           | 450,056     |                                |   | 40.000                              |   |   | 180,022 |   |   | (996,272 | ) |   | 40.00 | % |   | (398,509 | ) |   | (412,963 | ) |   | 40.00 | % |   | (165,185 | ) |
| Ingendesa S.A.                                               |   |                           | 931,578     |                                |   | 2.360                               |   |   | 22,008 |   |   | (873,679 | ) |   | 2.36 | % |   | (20,640 | ) |   | (923,250 | ) |   | 2.36 | % |   | (21,812 | ) |
| Inmobiliaria Centro Nuevo    Ltda.                           |   |                           | 2,685       |                                |   | 7.500                               |   |   | 203 |   |   | (1,449 | ) |   | 0.08 | % |   | — |   |   | — |   |   | — |   |   | — |   |
| Inmobiliaria y Constructora    Stgo. 2000 Ltda.              |   |                           | (1,449      | )                                   |   | 0.080                               |   |   | (1 | ) |   | (2,763 | ) |   | 7.50 | % |   | (207 | ) |   | (6,231 | ) |   | 7.50 | % |   | (468 | ) |
| Inversiones Distrilima S.A.                                  |   |                           | 7,932,094   |                                |   | 32.750                              |   |   | 2,597,761 |   |   | (12,342,281 | ) |   | 32.75 | % |   | (4,042,097 | ) |   | (13,071,302 | ) |   | 31.61 | % |   | (4,131,839 | ) |
| Investluz S.A.                                               |   |                           | (7,276,872  | )                                   |   | 37.550                              |   |   | (2,732,466 | ) |   | 11,720,860 |   |   | 37.55 | % |   | 4,401,183 |   |   | 198,253,211 |   |   | 37.55 | % |   | 74,444,081 |   |
| Luz de Bogotá S.A.                                      |   |                           | 10,536,326  |                                |   | 55.000                              |   |   | 5,794,979 |   |   | (11,524,049 | ) |   | 55.00 | % |   | (6,338,227 | ) |   | 4,512,003 |   |   | 55.00 | % |   | 2,481,602 |   |
| Empresa Eléctrica Pehuenche    S.A.                     |   |                           | (6,344,120  | )                                   |   | 7.450                               |   |   | (472,637 | ) |   | (4,963,596 | ) |   | 6.34 | % |   | (314,692 | ) |   | (20,012,133 | ) |   | 7.35 | % |   | (1,470,892 | ) |
| Soc. Agrícola de Cameros    Ltda.                       |   |                           | (1,860      | )                                   |   | 42.470                              |   |   | (790 | ) |   | 165,481 |   |   | 42.50 | % |   | 70,329 |   |   | (104,616 | ) |   | 42.50 | % |   | (44,462 | ) |
| Soc. Agrícola Pastos Verdes    Ltda.                    |   |                           | (57,795     | )                                   |   | 45.000                              |   |   | (26,006 | ) |   | (3,031,153 | ) |   | 45.00 | % |   | (1,364,019 | ) |   | (98,333 | ) |   | 45.00 | % |   | (44,250 | ) |
| Túnel El Melón S.A.                                |   |                           | (2,315,999  | )                                   |   | 0.050                               |   |   | (1,068 | ) |   | 1,932,383 |   |   | 0.05 | % |   | 966 |   |   | 2,917,743 |   |   | 0.05 | % |   | 1,459 |   |
|                                                         |   |                           |        |                                |   |                                |   |  |  |   |   |   |   |   |   |   |  |  |   |   |   |   |   |   |   |  |  |   |
| Total                                                        |   |                           |        |                                |   |                                |   |   | 184,000,228 |   |   |   |   |   |   |   |   | (125,152,619 | ) |   |   |   |   |   |   |   | 16,282,559 |   |
|                                                         |   |                           |        |                                |   |                                |   |  |  |   |   |   |   |   |   |   |  |  |   |   |   |   |   |   |   |  |  |   |

----

Back to Index

| **Note 22.** | **Shareholders’ Equity** |
|--------------|-------------------------------|

| **(a)** | **Dividends** |
|---------|---------------|

| **Dividend Number** |   | **Payment date** |   | **Historical value** |   | **Type of dividend** |   | **Related to** |   |
|---------------------|--------|------------------|--------|----------------------|--------|----------------------|--------|----------------|--------|
|                |   |             |   | **Ch$ per share**    |   |                 |   |           |   |
| 71                  |   | April 2001       |   | 1.806391             |   | Final                |   | 2000           |   |

| **(b)** | **Number of shares** |
|---------|----------------------|

|       |   | **As of December 31, 2000, 2001 and 2002** |           |
|------------|--------|--------------------------------------------|----------------|
|       |   | **Number of shares**                       |           |
|       |   |                                            |           |
| **Series** |   |                                       | **Subscribed** |   |   | **Paid** |   |   | **With vote** |   |
| First      |   |                                       | 8,291,020,100  |   |   | 8,291,020,100 |   |   | 8,291,020,100 |   |

| **(c)** | **Subscribed and paid capital is as    follows as of the year-end:** |
|---------|----------------------------------------------------------------------|

|       |   | **As of December 31, 2000, 2001 and 2002** |        |
|------------|--------|--------------------------------------------|-------------|
|       |   |                                            |        |
| **Series** |   | **Capital    subscribed**                  |        | **Capital paid** |   |
|       |   | **ThCh$**                                  |        | **ThCh$** |   |
| First      |   |                                       | 751,208,197 |   |   | 751,208,197 |   |
|            |        |                                            |             |  |  |  |  |

| **(d)** | **Other reserves** |
|---------|--------------------|

|                                                           |   | **2000**  |      | **2001**  |   | **2002**   |   |
|----------------------------------------------------------------|--------|-----------|-----------|-----------|--------|------------|--------|
|                                                           |   |           |           |      |        |            |   |  |  |   |
|                                                           |   | **ThCh$** |      | **ThCh$** |   | **ThCh$**  |   |
| Accumulated net losses of development-stage subsidiaries       |   |      | —    |      |   | (308,094   | )      |   | (4,937,110 | ) |
| Reserve for transaction entities using remeasurement    method |   |      | 2,337,516 |      |   | 2,318,686  |   |   | 1,177,508 |   |
| Reserve for accumulated conversion differences                 |   |      | 4,929,205 |      |   | 24,373,947 |   |   | 45,702,079 |   |
|                                                           |   |           |           |      |        |            |   |  |  |   |
| Total (historical Chilean pesos)                               |   |      | 7,266,721 |      |   | 26,384,539 |   |   | 41,942,477 |   |
|                                                           |   |           |           |      |        |            |   |  |  |   |
| Total, as restated (1)                                         |   |      | 7,716,749 |      |   | 27,176,075 |   |   | 41,942,477 |   |
|                                                           |   |           |           |      |        |            |   |  |  |   |

| (1) | Restated in thousands of    constant Chilean pesos as of December 31, 2002. |
|-----|-----------------------------------------------------------------------------|

----

Back to Index

|                              |   | **Initial    balance** |       | **Reserve    for assets** |   | **Reserve for liabilities** |   | **Final    balance** |         |
|-----------------------------------|--------|------------------------|------------|---------------------------|--------|-----------------------------|--------|----------------------|--------------|
|                              |   |                        |       |                           |   |                             |   |                      |         |
|                              |   | **ThCh$**              |       | **ThCh$**                 |   | **ThCh$**                   |   | **ThCh$**            |         |
| **2001**                          |   |                   |       |                      |   |                        |   |                 |         |   |   |   |   |
| Cumulative translation adjustment |   |                   | 5,234,472  |                      |   | 133,093,729                 |   |                 | (113,223,032 | ) |   | 25,105,169 |   |
|                              |   |                        |            |                      |        |                             |   |                      |              |   |  |  |   |
| **2002**                          |   |                   |       |                      |   |                        |   |                 |         |   |   |   |   |
| Cumulative translation adjustment |   |                   | 25,105,169 |                      |   | 96,536,552                  |   |                 | (75,939,638  | ) |   | 45,702,079 |   |
|                              |   |                        |            |                      |        |                             |   |                      |              |   |  |  |   |

|                                               |   | **As of    December 31,** |      |
|----------------------------------------------------|--------|---------------------------|-----------|
|                                               |   |                           |      |
|                                               |   | **2000**                  |      | **2001** |   | **2002** |   |
|                                               |   | **ThCh$**                 |      | **ThCh$** |   | **ThCh$** |   |
| Enersis Energía de Colombia S.A.              |   |                      | —    |   |   | — |   |   | 19,753 |   |
| Distrilec Inversora S.A.                           |   |                      | 303,852   |   |   | 1,230,145 |   |   | 2,494,214 |   |
| Inversiones Distrilima S.A.                        |   |                      | 845,972   |   |   | 2,048,579 |   |   | 3,034,207 |   |
| Cía. Peruana de Electricidad S.A.             |   |                      | 1,853,416 |   |   | 3,755,485 |   |   | 5,027,002 |   |
| Edesur S.A.                                        |   |                      | 1,236,498 |   |   | 7,936,100 |   |   | 13,222,829 |   |
| Cía. de Electricidade do Río de Janeiro  |   |                      | 935,165   |   |   | 4,205,754 |   |   | 10,996,981 |   |
| Luz de Bogotá S.A.                            |   |                      | —    |   |   | 1,407,698 |   |   | 2,370,986 |   |
| Investluz S.A.                                     |   |                      | 59,569    |   |   | 4,579,207 |   |   | 7,012,529 |   |
| Endesa Market Place S.A.                           |   |                      | —    |   |   | 103,883 |   |   | 280,302 |   |
| Endesa-Chile Subsidiary                            |   |                      | —    |   |   | (161,682 | ) |   | — |   |
| Central Geradora Termoelétrica Fortaleza S.A. |   |                      | —    |   |   | — |   |   | 1,243,276 |   |
|                                               |   |                           |           |   |  |  |   |  |  |   |
| Total                                              |   |                      | 5,234,472 |   |   | 25,105,169 |   |   | 45,702,079 |   |
|                                               |   |                           |           |   |  |  |   |  |  |   |

| **(e)** | Net losses from operations and accumulated net    income (losses) of development-stage subsidiaries are as follows: |
|---------|---------------------------------------------------------------------------------------------------------------------|

|                                           |   | **As of    December 31, 2002    Net income (losses)** |       |
|------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                           |   |                                                       |       |
| **Company**                                    |   | **Of the period**                                     |       | **Accumulated** |   |
|                                           |   | **ThCh$**                                             |       | **ThCh$** |   |
|                                           |   |                                                  |       |   |   |   |   |
| Compañía Eléctrica Taltal Ltda. |   |                                                  | —     |   |   | 146,371 |   |
| Central Geradora Termoelectrica Fortaleza S.A. |   |                                                  | (939,553   | ) |   | (1,302,505 | ) |
| Aguas Santiago Poniente S.A.                   |   |                                                  | (111,586   | ) |   | (111,586 | ) |
| Infraestructura 2000 S.A.                      |   |                                                  | —     |   |   | 347,252 |   |
| Gas Atacama Generación                    |   |                                                  | —     |   |   | 811,149 |   |
| Ingendesa (Ingendesa do Brasil)                |   |                                                  | 1,451      |   |   | (46,306 | ) |
| Enigesa (Ingendesa do Brasil)                  |   |                                                  | 19         |   |   | (642 | ) |
| Cía. Eléctrica Conosur S.A. (CIEN)   |   |                                                  | (4,780,843 | ) |   | (4,780,843 | ) |
|                                           |   |                                                       |            |   |  |  |   |
| Total                                          |   |                                                  | (5,830,512 | ) |   | (4,937,110 | ) |
|                                           |   |                                                       |            |   |  |  |   |

----

Back to Index

| **Note 23.** | **Other Income and Expenses** |
|--------------|-------------------------------|

| a. | The detail of other non-operating income in each    year is as follows: |
|----|-------------------------------------------------------------------------|

|                                            |   | **Year ended    December 31,** |        |
|-------------------------------------------------|--------|--------------------------------|-------------|
|                                            |   |                                |        |
|                                            |   | **2000**                       |        | **2001** |   | **2002** |   |
|                                            |   |                                |             |   |  |  |   |  |  |   |
|                                            |   | **ThCh$**                      |        | **ThCh$** |   | **ThCh$** |   |
| Adjustments to investments in related companies |   |                           | 11,545,770  |   |   | 3,253,049 |   |   | 512,200 |   |
| Gain on sale of property, plant and equipment   |   |                           | 98,540,540  |   |   | 12,845,817 |   |   | 6,131,310 |   |
| Gain on forward contracts and swaps             |   |                           | 7,744,183   |   |   | 17,822,984 |   |   | 4,815,297 |   |
| Services - proyects and inspections             |   |                           | 31,360,163  |   |   | 9,251,066 |   |   | 14,382,141 |   |
| Penalties charged to contractors and suppliers  |   |                           | 6,106,866   |   |   | 15,141,355 |   |   | 10,129,602 |   |
| CDEC-SING power settlement gain                 |   |                           | 8,334,080   |   |   | 6,487,257 |   |   | 11,153,158 |   |
| Public lighting and telephone lines             |   |                           | —      |   |   | 13,963,267 |   |   | 13,525,674 |   |
| Gain on sale of investments                     |   |                           | 208,107,787 |   |   | 3,163,324 |   |   | — |   |
| Cost recoveries                                 |   |                           | 12,778,359  |   |   | 6,349,126 |   |   | 5,112,788 |   |
| Recoverable taxes                               |   |                           | 4,203,502   |   |   | 8,116,807 |   |   | 6,387,623 |   |
| Effect of application of BT 64 (1)              |   |                           | 44,329,990  |   |   | 62,673,747 |   |   | 210,813,735 |   |
| Comahue fourth line income                      |   |                           | 13,032,224  |   |   | 411,352 |   |   | 337,450 |   |
| Gain on repurchase of bonds                     |   |                           | —      |   |   | 24,112,843 |   |   | — |   |
| Dividend from investees                         |   |                           | —      |   |   | 5,425,032 |   |   | 10,732,246 |   |
| Other                                           |   |                           | 17,417,878  |   |   | 5,676,555 |   |   | 14,110,663 |   |
|                                            |   |                                |             |   |  |  |   |  |  |   |
| Total                                           |   |                           | 463,501,342 |   |   | 194,693,581 |   |   | 308,143,887 |   |
|                                            |   |                                |             |   |  |  |   |  |  |   |

| b. | Other non-operating expenses in each year are as    follows: |
|----|--------------------------------------------------------------|

|                                                |   | **Year ended    December 31,** |        |
|-----------------------------------------------------|--------|--------------------------------|-------------|
|                                                |   |                                |        |
|                                                |   | **2000**                       |        | **2001** |   | **2002** |   |
|                                                |   |                                |             |   |  |  |   |  |  |   |
|                                                |   | **ThCh$**                      |        | **ThCh$** |   | **ThCh$** |   |
| Adjustments to investments in related companies     |   |                           | 11,068,850  |   |   | 2,181,904 |   |   | 4,166,463 |   |
| Cost of sales – materials                      |   |                           | 5,480,701   |   |   | 14,806,557 |   |   | 11,254,237 |   |
| Cost of projects, inspections and other             |   |                           | 22,901,666  |   |   | 8,290,316 |   |   | 5,255,189 |   |
| Effect of application of BT 64 (1)                  |   |                           | 4,826,202   |   |   | 39,426,469 |   |   | 30,767,763 |   |
| Contingencies and litigation                        |   |                           | 9,937,236   |   |   | 35,163,985 |   |   | 48,293,521 |   |
| Deferred expense amortization                       |   |                           | 29,667,643  |   |   | 1,224,252 |   |   | 9,133,401 |   |
| SIC power settlement loss                           |   |                           | 9,771,881   |   |   | 9,450,051 |   |   | 16,978,444 |   |
| Loss on forward contracts                           |   |                           | 3,254,625   |   |   | 23,575,152 |   |   | — |   |
| Pension plan expense                                |   |                           | 6,205,758   |   |   | 22,407,456 |   |   | 5,745,126 |   |
| Penalties and fines                                 |   |                           | 2,672,151   |   |   | 15,663,147 |   |   | 13,018,169 |   |
| Sales tax adjustment (Brazil)                       |   |                           | —      |   |   | — |   |   | 6,731,332 |   |
| Argentinean Government bond-market value adjustment |   |                           | —      |   |   | — |   |   | 5,103,764 |   |
| Provision for real estate projects                  |   |                           | —      |   |   | — |   |   | 16,600,195 |   |
| Provision for write off-work in progress            |   |                           | —      |   |   | — |   |   | 46,311,933 |   |
| Other                                               |   |                           | 13,103,336  |   |   | 11,739,955 |   |   | 21,837,067 |   |
|                                                |   |                                |             |   |  |  |   |  |  |   |
| Total                                               |   |                           | 118,890,049 |   |   | 183,929,244 |   |   | 241,196,604 |   |
|                                                |   |                                |             |   |  |  |   |  |  |   |

| (1) | These    amounts correspond to the net adjustments related to the translation of    financial statements of foreign affiliates from the respective local country    currency to US Dollars. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Index

| **Note 24.** | **Price-level Restatement** |
|--------------|-----------------------------|

|                                                             |   | **As of    December 31,** |         |
|------------------------------------------------------------------|--------|---------------------------|--------------|
|                                                             |   |                           |         |
|                                                             |   | **2000**                  |         | **2001** |   | **2002** |   |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
|                                                             |   | **ThCh$**                 |         | **ThCh$** |   | **ThCh$** |   |
| **Assets**                                                       |   |                      |         |   |   |   |   |   |   |   |
| Inventory                                                        |   |                      | 289,029      |   |   | 679,797 |   |   | 1,081,801 |   |
| Current assets                                                   |   |                      | 13,397,412   |   |   | 86,825 |   |   | 6,108,070 |   |
| Accounts receivable from subsidiaries                            |   |                      | 5,061,400    |   |   | 4,575,344 |   |   | 5,032,682 |   |
| Property, plant and equipment                                    |   |                      | 102,746,124  |   |   | 69,607,844 |   |   | 71,181,494 |   |
| Investment in subsidiaries                                       |   |                      | 10,754,175   |   |   | 30,582,762 |   |   | 35,860,652 |   |
| Amortization of goodwill                                         |   |                      | 36,887,897   |   |   | 27,626,882 |   |   | 25,787,859 |   |
| Other assets                                                     |   |                      | 21,363,984   |   |   | 25,101,509 |   |   | 2,282,536 |   |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
| Net credit - assets                                              |   |                      | 190,500,021  |   |   | 158,260,963 |   |   | 147,335,094 |   |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
| **Liabilities and Shareholders’    equity**                 |   |                      |         |   |   |   |   |   |   |   |
| Shareholders’ equity                                        |   |                      | (38,425,168  | ) |   | (34,756,513 | ) |   | (35,375,590 | ) |
| Current and long-term liabilities                                |   |                      | (128,254,204 | ) |   | (95,013,142 | ) |   | (86,890,351 | ) |
| Minority interest                                                |   |                      | 15,247,338   |   |   | 6,517,278 |   |   | 5,418,099 |   |
| Accounts payable to subsidiaries                                 |   |                      | (51,798,765  | ) |   | (30,547,186 | ) |   | (24,050,002 | ) |
| Non-monetary liabilities                                         |   |                      | 210,397      |   |   | (679,233 | ) |   | (51,951 | ) |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
| Net charge-liabilities and shareholders’ equity    accounts |   |                      | (203,020,402 | ) |   | (154,478,796 | ) |   | (140,949,795 | ) |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
| Price-level restatement of the income statement                  |   |                      | (2,731,612   | ) |   | (1,607,092 | ) |   | (1,420,409 | ) |
|                                                             |   |                           |              |   |  |  |   |  |  |   |
| Net credits to income                                            |   |                      | (15,251,993  | ) |   | 2,175,075 |   |   | 4,964,890 |   |
|                                                             |   |                           |              |   |  |  |   |  |  |   |

----

Back to Index

| **Note 25.** | **Exchange Differences** |
|--------------|--------------------------|

|                               |   | **As of    December 31,** |         |
|------------------------------------|--------|---------------------------|--------------|
|                               |   |                           |         |
| **Assets**                         |   |                      | **Currency** |   | **2000** |   | **2001** |   | **2002** |   |
|                                    |   |                      |              |   |  |  |   |  |  |   |  |  |   |
|                               |   |                      |         |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| **Current assets**                 |   |                      |         |   |   |   |   |   |   |   |
| Cash                               |   |                      | US$          |   |   | (65,615 | ) |   | 1,495,922 |   |   | 2,671,496 |   |
|                               |   |                      | Other        |   |   | (268 | ) |   | (56,291 | ) |   | (13,698 | ) |
| Time deposits                      |   |                      | US$          |   |   | — |   |   | 202,284 |   |   | 264,124 |   |
|                               |   |                      | Other        |   |   | — |   |   | (77,389 | ) |   | (31,054 | ) |
| Marketable securities              |   |                      | US$          |   |   | — |   |   | 11,797,767 |   |   | 6,855,639 |   |
|                               |   |                      | Other        |   |   | — |   |   | (1,886 | ) |   | — |   |
| Accounts receivable, net           |   |                      | US$          |   |   | 25,951 |   |   | 104,099 |   |   | 489,200 |   |
|                               |   |                      | Other        |   |   | — |   |   | (48,663 | ) |   | — |   |
| Other accounts receivable, net     |   |                      | US$          |   |   | 21,741 |   |   | 1,124,688 |   |   | 218,125 |   |
|                               |   |                      | Other        |   |   | 81,745 |   |   | 52,495 |   |   | 42,536 |   |
| Inventory                          |   |                      | Other        |   |   | — |   |   | (11,824 | ) |   | — |   |
| Prepaid expenses                   |   |                      | US$          |   |   | 156,908 |   |   | 168,986 |   |   | 29,442 |   |
|                               |   |                      | Other        |   |   | — |   |   | (2,365 | ) |   | — |   |
| Other current assets               |   |                      | US$          |   |   | 285,338 |   |   | 11,521,079 |   |   | (136,043 | ) |
|                               |   |                      | Other        |   |   | 9,696 |   |   | (264,455 | ) |   | (140,837 | ) |
| **Non-current assets**             |   |                      |         |   |   | — |   |   |   |   |   |   |   |
| Long-term receivables              |   |                      | US$          |   |   | (18,507 | ) |   | 1,054,144 |   |   | 599,944 |   |
|                               |   |                      | Other        |   |   | 1,569 |   |   | 277,166 |   |   | 202,009 |   |
| Amounts due from related companies |   |                      | US$          |   |   | 6,387,947 |   |   | 17,033,254 |   |   | 11,082,499 |   |
| Deferred expenses                  |   |                      | US$          |   |   | 1,044,069 |   |   | 246,859 |   |   | 228,059 |   |
| Other assets                       |   |                      | US$          |   |   |   |   |   | 28,336,082 |   |   | 6,541,035 |   |
| Forward contracts and swaps        |   |                      | US$          |   |   | 28,122,985 |   |   | 36,011,211 |   |   | 16,037,562 |   |
|                               |   |                      |         |   |  |  |   |  |  |   |  |  |   |
| **Total gain**                     |   |                      |         |   |   | 36,053,559 |   |   | 108,963,163 |   |   | 44,940,038 |   |
|                               |   |                      |         |   |  |  |   |  |  |   |  |  |   |

|                                                                         |   | **As of    December 31,** |   |
|------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                         |   |                           |   |
| **Liabilities**                                                              |   | **Currency**              |   | **2000** |   | **2001** |   | **2002** |   |
|                                                                              |   |                           |   |  |   |  |   |  |   |
|                                                                         |   |                      |   |   | **ThCh$** |   | **ThCh$** |   | **ThCh$** |   |
| **Current    liabilities**                                                   |   |                      |   |   |   |   |   |   |   |   |
| Short-term debt due to banks and financial institutions                      |   |                      | US$    |   |   | (368,116 | ) |   | (6,823,954 | ) |   | (2,633,314 | ) |
|                                                                         |   |                      | Other  |   |   | (245,995 | ) |   | (1,890 | ) |   | — |   |
| Current portion of long-term debt due to banks and financial    institutions |   |                      | US$    |   |   | (299,187 | ) |   | (2,346,817 | ) |   | 3,552,078 |   |
|                                                                         |   |                      | Yen    |   |   | — |   |   | 26,250 |   |   | (71,707 | ) |
|                                                                         |   |                      | Other  |   |   | — |   |   | (63,570 | ) |   | (242,103 | ) |
|                                                                         |   |                      | Euro   |   |   | — |   |   | — |   |   | (26,128 | ) |
| Current portion of bonds payable                                             |   |                      | US$    |   |   | — |   |   | (3,831,594 | ) |   | (2,102,419 | ) |
|                                                                         |   |                      | US$    |   |   | (479,233 | ) |   | (1,426,092 | ) |   | (856,727 | ) |
| Current portion of notes payable                                             |   |                      | Other  |   |   | — |   |   | 19,127 |   |   | — |   |
| Dividends payable                                                            |   |                      | Other  |   |   | — |   |   | 101 |   |   | 1,840 |   |
| Accounts payable                                                             |   |                      | US$    |   |   | — |   |   | 284,714 |   |   | 472,907 |   |
|                                                                         |   |                      | Other  |   |   | — |   |   | 193,407 |   |   | (861,657 | ) |
| Notes payable                                                                |   |                      | US$-   |   |   | — |   |   | (307,780 | ) |   | — |   |
|                                                                         |   |                      | Other  |   |   | — |   |   | (81,896 | ) |   | — |   |
| Miscellaneous payables                                                       |   |                      | US$    |   |   | (544,449 | ) |   | (430,288 | ) |   | (649,158 | ) |
|                                                                         |   |                      | Other  |   |   | (39,597 | ) |   | 195,405 |   |   | — |   |
| Other current liabilities                                                    |   |                      | US$    |   |   | — |   |   | (921,658 | ) |   | 83,986 |   |
|                                                                         |   |                      | Other  |   |   | — |   |   | (11,922 | ) |   | — |   |
| Accrued expenses                                                             |   |                      | US$    |   |   | (3,441 | ) |   | 37,716 |   |   | (103 | ) |
|                                                                         |   |                      | Other  |   |   | — |   |   | (29,947 | ) |   | — |   |
| Deferred income                                                              |   |                      | US$    |   |   | — |   |   | (56,780 | ) |   | (362,291 | ) |
| **Long-term liabilities**                                                    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Due to banks and financial institutions                                      |   |                      | US$    |   |   | (13,949,405 | ) |   | (42,070,677 | ) |   | (22,646,874 | ) |
|                                                                         |   |                      | Yen    |   |   | 29,438 |   |   | 22,840 |   |   | (180,770 | ) |
|                                                                         |   |                      | Euro   |   |   | — |   |   | — |   |   | (60,487 | ) |
|                                                                         |   |                      | Other  |   |   | 925 |   |   | (246,923 | ) |   | (368,719 | ) |
| Bonds payable                                                                |   |                      | US$    |   |   | (13,294,614 | ) |   | (52,035,450 | ) |   | (24,995,100 | ) |
| Notes payable                                                                |   |                      | US$    |   |   | (2,236,806 | ) |   | (6,734,909 | ) |   | (2,814,391 | ) |
| Accounts payable                                                             |   |                      | US$    |   |   | (223,869 | ) |   | (995,614 | ) |   | 358,233 |   |
| Other long-term liabilities                                                  |   |                      | US$    |   |   | (5,648,107 | ) |   | (21,897,139 | ) |   | (6,647,384 | ) |
|                                                                         |   |                      | Other  |   |   | (2,825 | ) |   | 29,525 |   |   | 3 |   |
|                                                                         |   |                      |   |   |  |  |   |  |  |   |  |  |   |
| **Total loss**                                                               |   |                      |   |   |   | (37,305,281 | ) |   | (139,505,815 | ) |   | (61,050,285 | ) |
|                                                                         |   |                      |   |   |  |  |   |  |  |   |  |  |   |
| **Exchange difference - net loss**                                           |   |                      |   |   |   | (1,251,722 | ) |   | (30,542,652 | ) |   | (16,110,247 | ) |
|                                                                         |   |                      |   |   |  |  |   |  |  |   |  |  |   |

| **Note 26.** | **Extraordinary Items** |
|--------------|-------------------------|

| **Company**                                 |   | **ThCh$** |       |
|---------------------------------------------|--------|-----------|------------|
|                                             |   |           |       |
| Central Hidroeléctrica de Betania S.A. |   |      | 2,025,115  |   |
| Capital de Energía S.A.                |   |      | 67,124     |   |
| Emgesa S.A.                                 |   |      | 8,837,853  |   |
| Cam Colombia S.A.                           |   |      | 33,540     |   |
| Codensa S.A.                                |   |      | 11,412,008 |   |
|                                        |   |           |            |   |
| Total                                       |   |      | 22,375,640 |   |
|                                        |   |           |            |   |

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Back to Index

| **Note 27.** | **Financial Derivatives** |
|--------------|---------------------------|

|        |   |                  |   |                    |   |          |   |                   |   |                            |   | **As of December 31, 2002** |
|-------------|--------|-----------------------|--------|-------------------------|--------|---------------|--------|------------------------|--------|---------------------------------|--------|-----------------------------|
|        |   |                  |   |                    |   |          |   |                   |   |                            |   |                             |
| **Type(1)** |   | **Nominal    amount** |   | **Date of    Maturity** |   | **Item**      |   | **Sales/    Purchase** |   | **Hedged    Item**              |   | **Initial hedged amount**   |   | **Closing hedged amount** |
|             |   |                       |   |                         |   |               |        |                        |   |                                 |   |                             |   |  |
|        |   | **US$**               |   |                    |   |          |   |                   |   |                            |   | **ThCh$**                   |   | **ThCh$** |
| COLLAR      |   | 50,000,000            |   | II quarter 2004         |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| COLLAR      |   | 400,000,000           |   | III quarter 2004        |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 287,444,000                 |   | 287,444,000 |
| COLLAR      |   | 50,000,000            |   | III quarter 2005        |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| COLLAR      |   | 250,000,000           |   | I quarter 2006          |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 179,652,500                 |   | 179,652,500 |
| COLLAR      |   | 850,000,000           |   | II quarter 2006         |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 610,818,500                 |   | 610,818,500 |
| FR          |   | 7,000,000             |   | I quarter 2003          |   | Exchange rate |   | P                      |   | Accounts payable                |   | 5,030,270                   |   | 5,030,270 |
| FR          |   | 88,000,000            |   | I quarter 2003          |   | Exchange rate |   | P                      |   | Bank obligations                |   | 293,192,880                 |   | 293,192,880 |
| FR          |   | 77,755,000            |   | I quarter 2003          |   | Exchange rate |   | P                      |   | Bank obligations                |   | 48,413,946                  |   | 53,869,310 |
| FR          |   | 154,600,000           |   | II quarter 2003         |   | Exchange rate |   | P                      |   | Yankee Bonds/Bank    obligation |   | 111,096,962                 |   | 111,096,962 |
| FR          |   | 68,400,000            |   | II quarter 2003         |   | Exchange rate |   | P                      |   | Bank obligations                |   | 49,153,068                  |   | 49,153,068 |
| FR          |   | 93,000,000            |   | II quarter 2003         |   | Exchange rate |   | P                      |   | Bank obligations                |   | 788,315,170                 |   | 788,315,170 |
| FR          |   | 15,000,000            |   | lI quarter 2003         |   | Exchange rate |   | P                      |   | Accounts payable                |   | 10,779,150                  |   | 10,779,150 |
| FR          |   | 108,000,000           |   | IV quarter 2003         |   | Exchange rate |   | P                      |   | Bank obligations                |   | 78,783,930                  |   | 78,783,930 |
| FR          |   | 23,084,000            |   | I quarter 2004          |   | Exchange rate |   | P                      |   | Bank obligations                |   | 13,945,714                  |   | 16,086,072 |
| S           |   | 100,000,000           |   | I quarter 2003          |   | Interest rate |   | P/S                    |   | Bonds                           |   | 71,861,000                  |   | 71,861,000 |
| S           |   | 100,000,000           |   | I quarter 2003          |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 71,861,000                  |   | 71,861,000 |
| S           |   | 4,253,031             |   | I quarter 2003          |   | Interest rate |   | P                      |   | Accounts payable                |   | 3,056,270                   |   | 3,056,270 |
| S           |   | 44,229,017            |   | I quarter 2003          |   | Exchange rate |   | P                      |   | Bank obligations                |   | 31,783,414                  |   | 31,783,414 |
| S           |   | 95,000,000            |   | II quarter 2003         |   | Exchange rate |   | P                      |   | Bank obligations                |   | 68,267,950                  |   | 61,703,496 |
| S           |   | 20,150,000            |   | II quarter 2003         |   | Interest rate |   | P                      |   | Bonds                           |   | 14,479,992                  |   | 14,479,992 |
| S           |   | 58,453,199            |   | II quarter 2003         |   | Interest rate |   | P                      |   | Bank obligations                |   | 42,005,053                  |   | 42,005,053 |
| S           |   | 381,200,000           |   | III quarter 2003        |   | Exchange rate |   | P/S                    |   | Bonds                           |   | 273,934,132                 |   | 273,934,132 |
| S           |   | 1,708,667             |   | III quarter 2003        |   | Exchange rate |   | P                      |   | Bank obligations                |   | 1,227,865                   |   | 1,227,865 |
| S           |   | 6,668,000             |   | IV quarter 2003         |   | Interest rate |   | P                      |   | Bank obligations                |   | 4,545,759                   |   | 4,545,759 |
| S           |   | 17,520,000            |   | IV quarter 2003         |   | Interest rate |   | P                      |   | Bank obligations                |   | 12,590,047                  |   | 12,590,047 |
| S           |   | 94,696,298            |   | I quarter 2004          |   | Interest rate |   | P                      |   | Bank obligations                |   | 68,049,707                  |   | 68,049,707 |
| S           |   | 50,000,000            |   | I quarter 2004          |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| S           |   | 41,932,249            |   | II quarter 2004         |   | Exchange rate |   | P                      |   | Bank obligations                |   | 30,132,934                  |   | 30,132,934 |
| S           |   | 50,000,000            |   | II quarter 2004         |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| S           |   | 50,000,000            |   | III quarter 2004        |   | Interest rate |   | P/S                    |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| S           |   | 33,600,000            |   | II quarter 2005         |   | Interest rate |   | P                      |   | Bank obligations                |   | 24,145,296                  |   | 24,145,296 |
| S           |   | 50,000,000            |   | II quarter 2006         |   | Interest rate |   | P                      |   | Bank obligations                |   | 35,930,500                  |   | 35,930,500 |
| S           |   | 144,470,000           |   | III quarter 2006        |   | Currency      |   | P                      |   | Bonds                           |   | 103,021,045                 |   | 103,021,045 |
| S           |   | 50,000,000            |   | III quarter 2006        |   | Currency      |   | S                      |   | Bonds                           |   | 35,529,359                  |   | 35,529,359 |
| S           |   | 81,905,702            |   | II quarter 2009         |   | Exchange rate |   | P                      |   | Bonds                           |   | 56,637,729                  |   | 56,637,729 |

| (1) | Fr = Forward, S = Swap |
|-----|------------------------|

----

Back to Index

| **Note 28.** | **Commitments and Contingencies** |
|--------------|-----------------------------------|

|                                        |   |                      |   |                                           |   | **Committed    assets**         |
|---------------------------------------------|--------|---------------------------|--------|------------------------------------------------|--------|---------------------------------|
|                                        |   |                      |   |                                           |   |                                 |
| **Guarantee**                               |   | **Subsidiary**            |   | **Type of guarantee**                          |   | **Type**                        |   | **Currency** |   | **Accounting****value** |
| Cía. de Telecomunicaciones    de Chile |   | Enersis S.A.              |   | Pledge                                         |   | Promissory note UF              |   | ThCh$ |   | 1,675 |
| Public Works Bureau                         |   | Autopista del Sol         |   | Complian. Operat. ctto.    Conc                |   |                            |   | ThCh$ |   | 654,208 |
| Banco Estado de Chile                       |   | Pehuenche S.A.            |   | Chat. Mortg. Whithout    conveyan              |   | Equipment                       |   | ThCh$ |   | 12,030,211 |
| Director Customs Office of    Chile         |   | Pehuenche S.A.            |   | Bank bond                                      |   |                            |   | ThCh$ |   | — |
| Director Customs Office of    Chile         |   | Pangue S.A.               |   | Bill of exchange                               |   |                            |   | ThCh$ |   | 64,675 |
| Creditors Banks                             |   | Pangue S.A.               |   | Mortgage and pledge                            |   | Real estate prop. and    Equip. |   | ThCh$ |   | 83,976,230 |
| Mitsubishi Corp.                            |   | San Isidro S.A.           |   | Chattel mortgage                               |   | Facilities                      |   | ThCh$ |   | 76,193,289 |
| Public Works Bureau                         |   | Autop. Los Libertadores   |   | Construction compliance    concession contract |   | Invest. Works of concession     |   | ThCh$    ThCh$ |   | — |
| Public Works Bureau                         |   | Autop. Los Libertadores   |   | Construction compliance    concession contract |   | Operation of concession         |   | ThCh$    ThCh$ |   | 2,632,804 |
| Tax Authorities of Chile                    |   | Celta S.A.                |   | Bond                                           |   | Bond                            |   | ThCh$ |   | 172,681 |
| Banco  Estado de Chile                 |   | Tunel el Melón       |   | Pledge over 45% of income    minim. guaranteed |   |                            |   | ThCh$    ThCh$ |   | 1,351,074 |
| FSA Inc                                     |   | Infraestructura 2000 S.A. |   | Pledge                                         |   | Shares                          |   | ThCh$ |   | 35,476,728 |
| FSA Inc                                     |   | Autopista del Sol         |   | Pledge                                         |   |                            |   | ThCh$ |   | 22,580,871 |
| Soc. de Energía de la    Rep.Arg. S.A. |   | EASA                      |   | Pledge                                         |   | Shares                          |   | ThCh$    ThCh$ |   | 68,033,383 |

|   |
|--------|