TCRLA_Public/050701.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

           Friday, July 1, 2005, Vol. 6, Issue 129

                            Headlines


A R G E N T I N A

ACROMETALICA S.A.: Gets Court Approval to Reorganize
BASCOY S.A.: Debt Payments Halted, Moves to Reorganize
BAUD MOL: Seeks Reorganization Approval From Court
CETECO ARGENTINA: Court Orders Asset Liquidation
CLUB ATLETICO: Declared Bankrupt by Court

COMPANIA ARGENTINA: Initiates Bankruptcy Proceedings
CONSTRUCTORA SOLER: Court Grants Reorganization Motion
CRESUD: Spends $3 Million to Acquire Two Parcels of Land
EDENOR: EdF Board OKs Plan to Sell 65% Stake to Dolphin
INDIANA MYSTERY: Court Designates Trustee for Liquidation

LABORMED S.A.: Reorganization Approved, Trustee Named
MACAI S.R.L.: Liquidates Assets to Pay Debts
MEBAL S.R.L.: Court Authorizes Plan, Concludes Reorganization
OREX S.A.: Court Orders Liquidation, Appoints Trustee
PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize

ROYAL OIL: Begins Liquidation Proceedings
SAFIR S.A.: Court Rules Liquidation Required
* ARGENTINA: Moody's Ups Ratings as Credit Conditions Improve
* ARGENTINA: Plans to Initiate Negotiations With IMF


B R A Z I L

BANCO BRADESCO: Shareholder Dividend Set for July
BRASKEM: Proposals for Deliberation Unanimously Adopted
CEMIG: Board Interest on Equity Payments
ELETROPAULO METROPOLITANA: Sells $202M, High Yield 5-Year Bonds
LIGHT SERVICOS: BNDES to Buy Debt as Part of Special Credit Line

LOCALIZA RENT: New Market Maker Retained for Share Trading
NET SERVICOS: To Hold Extraordinary General Meeting July 12
PRIDE INTERNATIONAL: Signs Deepwater Semisubmersible Contracts


C H I L E

COEUR D'ALENE: Designates President for San Bartolome Project


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Emerges From Default, Ratings Upped To 'B'


G R E N A D A

* GRENADA: IDB Approves $10M Loan for Grenada Reconstruction


J A M A I C A

AIR JAMAICA: S&P Assigns 'B' Rating to $150M Notes Due 2015
KAISER ALUMINUM: Files Reorganization Plan, Disclosure Statement


M E X I C O

EMPRESAS ICA: Plans $200M Share Issue, Dilution a Concern


U R U G U A Y

URAGUA: Files $24M Lawsuit Against Government


V E N E Z U E L A

PDVSA: Obtains $423M Dividend Payment From CITGO
PDVSA: To Pay $688M to Private Operators This Week
PDVSA: Undertaking New Exploration Studies in Lake Maracaibo
PDVSA: Gas Unit Sets Sales Record in Domestic Market


     - - - - - - - - - -

=================
A R G E N T I N A
=================

ACROMETALICA S.A.: Gets Court Approval to Reorganize
----------------------------------------------------
Acrometalica S.A. will begin reorganization following the
approval of its petition by Court No. 17 of Buenos Aires' civil
and commercial tribunal. The court-authorized reorganization
will allow the Company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Nestor Rodolfo del Potro will oversee the reorganization
proceedings as the court-appointed trustee. He will verify
creditors' claims until Oct. 3, 2005. The validated claims will
be presented in court as individual reports on Nov. 3, 2005.

Mr. del Potro is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on Dec. 5, 2005.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on April 5, 2006.

Clerk No. 33 assists the court on this case.

CONTACT: Acrometalica S.A.
         3 de Febrero 1350
         Buenos Aires

         Mr. Nestor Rodolfo del Potro, Trustee
         Avda Corrientes 1291
         Buenos Aires


BASCOY S.A.: Debt Payments Halted, Moves to Reorganize
------------------------------------------------------
Court No. 19 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Bascoy S.A., says Infobae. The report adds that that the
Company filed a "Concurso Preventivo" petition after cessation
of debt payments. The city's Clerk No. 37 assists the court on
this case.

CONTACT: Bascoy S.A.
         Colombres 779
         Buenos Aires


BAUD MOL: Seeks Reorganization Approval From Court
--------------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by Baud Mol S.A.. Argentine daily Infobae reports that the
Company filed the request after defaulting on its debt payments.

The reorganization petition, if granted by the court, will allow
Baud Mol S.A. to negotiate a settlement with its creditors in
order to avoid a straight liquidation. Clerk No. 12 assists the
court on this case.

CONTACT: Baud Mol S.A.
         Avda Rivadavia 1238
         Buenos Aires


CETECO ARGENTINA: Court Orders Asset Liquidation
------------------------------------------------
Ceteco Argentina S.A. prepares to wind-up its operations
following the bankruptcy pronouncement issued by Court No. 19 of
Buenos Aires' civil and commercial tribunal. The declaration
effectively prohibits the Company from administering its assets,
control of which will be transferred to a court-appointed
trustee.

Infobae reports that the court has appointed Estudio Lesta
Calello Di Chiara as trustee. The trustee will be reviewing
creditors' proofs of claim until Sep. 12, 2005. The verified
claims will serve as basis for the individual reports to be
presented for court approval on Oct. 25, 2005. The trustee will
also submit a general report of the case on Dec. 6, 2005.

Clerk No. 37 assists the court on this case that will end with
the sale of the Company's assets. Proceeds from the sale will be
used to repay the Company's debts.

CONTACT: Estudio Lesta, Calello, Di Chiara, Trustee
         Viamonte 783
         Buenos Aires


CLUB ATLETICO: Declared Bankrupt by Court
-----------------------------------------
Club Atletico Huracan(Ing.White) is now "Quiebra" - meaning
bankrupt, says Infobae. Bahia Blanca's civil and commercial
Court No. 6 decreed the Company's bankruptcy and appointed
Gladys Claudia Mayo, as receiver for the Company. Ms. Mayo will
be reviewing creditors' claims until Aug. 8, 2005. Analyzing
these claims is important because the outcome of the process
will determine the amount each creditor will get after all the
assets of the Company are liquidated. The court, which is aided
by Clerk No. 4, will conclude the bankruptcy process by
liquidating its assets to repay creditors.

CONTACT: Club Atletico Huracan(Ing.White)
         Daniel de Solier 4010 Ingeniero White
         Bahia Blanca

         Ms. Gladys Claudia Mayo, Trustee
         Berutti 623
         Bahia Blanca


COMPANIA ARGENTINA: Initiates Bankruptcy Proceedings
----------------------------------------------------
Buenos Aires civil and commercial Court No. 1 declared Compania
Argentina de Servicios Hipotecarios Cash S.A. "Quiebra," reports
Infobae. Clerk No. 1 assists the court on the case, which will
close with the liquidation of the Company's assets to repay
creditors.

Estudio Chaia, Stolzing y Asociados, who has been appointed as
trustee, will verify creditors' claims until Sep. 9, 2005 and
then prepare the individual reports based on the results of the
verification process.

CONTACT: Estudio Chaia, Stolzing y Asociados, Trustee
         Suipacha 190
         Buenos Aires


CONSTRUCTORA SOLER: Court Grants Reorganization Motion
------------------------------------------------------
Constructora Soler S.A. successfully petitioned for
reorganization after Buenos Aires' civil and commercial Court
No. 24 issued a resolution opening the Company's insolvency
proceedings. Under insolvency protection, the Company will
continue to manage its assets subject to certain conditions
imposed by Argentine law and the oversight of a court-appointed
trustee.

Infobae relates that Adriana del Carmen Gallo will serve as
trustee during the course of the reorganization. The trustee
will be accepting creditors' proofs of claim for verification
until Sep. 15, 2005.

After verifications, the trustee will prepare the individual
reports and submit it in court on Oct. 28, 2005. She will also
present a general report for court review on Dec. 12, 2005.

The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on May 26, 2006.

CONTACT: Ms. Adriana del Carmen Gallo, Trustee
         Roque Saenz Pea 651
         Buenos Aires


CRESUD: Spends $3 Million to Acquire Two Parcels of Land
--------------------------------------------------------
Cresud S.A.C.I.F. y A acquired from the firm Claremont Trading
Inc. S.A. two parcels of land located in Rancul, Province of La
Pampa, Republic of Argentina, with a total surface of 1,946
hectares and 68 areas, for a total price of US$3,000,000. The
acquisition was disclosed in a letter dated June 24, 2005, which
was filed by the Company with the Comision Nacional de Valores.

CONTACT: CRESY -- Cresud S.A.C.I.F. y A
         Av. Roque Saenz Pena 832
         8th Fl.
         Buenos Aires
         Phone: 001-54-1-3287808


EDENOR: EdF Board OKs Plan to Sell 65% Stake to Dolphin
-------------------------------------------------------
The board of French state power company EdF (Electricite de
France) approved Wednesday the planned sale of a 65% interest in
Argentine power company Edenor to local investment fund Grupo
Dolphin. EdF still needs clearances from French and Argentine
authorities in order to go ahead with the deal worth some US$100
million.

The French company will sell Dolphin a 14% direct stake in
Edenor and 100% control of its Argentine holding company EASA,
which controls 51% of the distributor.

EdF holds 90% of Edenor and employees of the Argentine company
own the remaining 10%.

EdF has committed to retain a 25% stake in Edenor and provide
Dolphin with a technical assistance team to help manage the unit
for five years.

Edenor's results have been hurt by the devaluation of the peso
in early 2002 and the government's subsequent decision to freeze
public utility rates, including power tariffs. The unit posted
net losses of ARS90 million (US$31 million) in 2004 on revenues
of US$368 million. Its shares are not actively traded on the
stock exchange.

Edenor distributes electricity to parts of the capital and the
greater Buenos Aires region, with about 2.4 million clients.

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          E-mail: to ofitel@edenor.com.ar
          Web Site: http://www.edenor.com.ar


INDIANA MYSTERY: Court Designates Trustee for Liquidation
---------------------------------------------------------
Buenos Aires accountant Gloria Clara Kremer was assigned trustee
for the liquidation of local company Indiana Mystery S.R.L.,
relates Infobae. Ms. Kremer will verify creditors' claims until
Aug. 1, 2005, the source adds. After that, he will prepare the
individual reports, which are to be submitted in court on Sep.
13, 2005. The submission of the general report should follow on
Oct. 26, 2005.

The city's civil and commercial Court No. 8 holds jurisdiction
over the Company's case. Clerk No. 15 assists the court with the
wind-up proceedings.

CONTACT: Ms. Gloria Clara Kremer, Trustee
         Lavalle 1672
         Buenos Aires


LABORMED S.A.: Reorganization Approved, Trustee Named
-----------------------------------------------------
Labormed S.A., a company operating in La Plata, is ready to
start its reorganization after the city's civil and commercial
Court No. 11 appointed Omar Lares to supervise the proceedings
as trustee.

An Infobae report states that Mr. Lares will verify creditors
claims until July 26, 2005. Afterwards, he will present these
claims as individual reports for final review by the court on
Sep. 8, 2005. Mr. Lares will also provide the court with a
general report pertaining to Labormed's reorganization on Oct.
24, 2005. The schedule for the informative assembly is yet to be
disclosed.

CONTACT: Labormed S.A.
         Calle 37 Nro. 658
         La Plata

         Omar Lares, Trustee
         Calle 11 Nro. 467
         La Plata


MACAI S.R.L.: Liquidates Assets to Pay Debts
--------------------------------------------
Macai S.R.L. will begin liquidating its assets following the
pronouncement of Buenos Aires' civil and commercial Court No. 14
that the Company is bankrupt, Infobae reports.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Rodolfo Fernando Daniel Torella. The
trustee will verify creditors' proofs of claim until Aug. 30,
2005. The validated claims will be presented in court as
individual reports on Oct. 11, 2005.

Mr. Torella will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on Nov. 23, 2005.

The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.

CONTACT: Mr. Rodolfo Fernando Daniel Torella, Trustee
         Bulnes 2057
         Buenos Aires


MEBAL S.R.L.: Court Authorizes Plan, Concludes Reorganization
-------------------------------------------------------------
Buenos Aires-based company Mebal S.R.L. concluded its
reorganization process, according to data released by Infobae on
its Web site. The conclusion came after the city's civil and
commercial Court No. 15, with assistance from Clerk No. 29,
homologated the debt plan signed between the Company and its
creditors.

CONTACT: Mebal S.R.L.
         Buenos Aires


OREX S.A.: Court Orders Liquidation, Appoints Trustee
-----------------------------------------------------
Buenos Aires' civil and commercial Court No. 10 declared Orex
S.A. bankrupt after the Company defaulted on its debt payments.
The bankruptcy order effectively places the Company's affairs as
well as its assets under the control of court-appointed trustee,
Amalia Mild.

As the trustee, Ms. Mild is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Sep. 2, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Oct. 17, 2005. A general report will
also be submitted on Dec. 12, 2005.

Infobae reports that Clerk No. 19 assists the court on this
case, which will end with the disposal of the Company's assets
in favor of its creditors.

CONTACT: Ms. Amalia Mild, Trustee
         Tucuman 1539
         Buenos Aires


PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize
--------------------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal is
reviewing the merits of Productos Magus S.R.L. petition to
reorganize. Infobae recalls that the Company filed the petition
following cessation of debt payments. Reorganization will allow
Productos Magus to avoid bankruptcy by negotiating a settlement
with its creditors.

Clerk No. 41 is assisting the court on the Company's case.

CONTACT: Productos Magus S.R.L.
         Ibera 4560
         Buenos Aires


ROYAL OIL: Begins Liquidation Proceedings
-----------------------------------------
Royal Oil S.A. of Buenos Aires will begin liquidating its assets
after Court No. 14 of the city's civil and commercial tribunal
declared the Company bankrupt. Infobae reveals that the
bankruptcy process will commence under the supervision of court-
appointed trustee, Hugo Javier Mancusi.

The trustee will review claims forwarded by the Company's
creditors until Sep. 15, 2005. After claims verification, Mr.
Mancusi will submit the individual reports for court approval on
Oct. 28, 2005. The general report will follow on Dec. 12, 2005.
Clerk No. 27 assists the court on this case.

CONTACT: Mr. Hugo Javier Mancusi, Trustee
         Avda Corrientes 3169
         Buenos Aires


SAFIR S.A.: Court Rules Liquidation Required
--------------------------------------------
Court No. 14 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Safir S.A. after the Company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement will effectively place the Company's affairs as
well as its assets under the control of Luis Maria Escobar, the
court-appointed trustee.

Mr. Escobar will verify creditors' proofs of claim until Sep.
16, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on Oct. 31, 2005.
The submission of the general report follows on Dec. 13, 2005.

Clerk No. 27 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.

CONTACT: Mr. Luis Maria Escobar, Trustee
         Viamonte 1646
         Buenos Aires


* ARGENTINA: Moody's Ups Ratings as Credit Conditions Improve
-------------------------------------------------------------
Moody's Investors Service has upgraded Argentina's foreign-
currency country ceilings to reflect improving credit
conditions, including debt relief following May's bond exchange
that concluded a protracted and confrontational debt
restructuring process.

The rating agency upgraded the foreign-currency ceiling for
bonds and notes to B3 from Caa1 and the ceiling for foreign-
currency bank deposits to Caa1 from Caa2. Moody's has also
upgraded foreign-currency-denominated BODENs, the government
bonds that were issued following Argentina's 2001 default, to B3
from Caa1, while the local-currency rating of peso-denominated
BODENs remains unchanged at B3. All ratings have a stable
outlook. Argentina's local-currency guideline remains at Ba1.

Although May's debt exchange served to improve Argentina's debt
profile and to help alleviate the overall debt burden, Moody's
decision in favor of the upgrades was further encouraged by
recent calculations indicating that post-restructuring debt
ratios are now in line with those observed in countries placed
at the low end of the B-rated category.

Another favorable credit development noted by the rating agency
is the change that has been reported in the government's debt
currency composition as the share of peso-denominated debt
stands currently at some 44% compared with less than 5% four
years ago, a condition that should serve to reduce, on the
margin, Argentina's credit vulnerability to exchange rate
fluctuations in the coming years.

Concerns about the country's ability to maintain the conditions
necessary to assure debt sustainability over time are part of
the rationale for the current rating. Moody's indicated that it
is uncertain if the economic performance observed during the
last two years can serve as a guide to future growth, and to
export and fiscal prospects beyond the near-term. Considerations
of this nature are likely to persist for the foreseeable future
and will have a decisive influence over future rating decisions
involving Argentina's medium-term credit perspective.


* ARGENTINA: Plans to Initiate Negotiations With IMF
----------------------------------------------------
Mr. Rodrigo de Rato, Managing Director of the International
Monetary Fund (IMF), issued the following statement Wednesday:

"The Argentine authorities have informed Fund management of
their desire to start negotiations with the IMF on a new
economic program.

"The program supported by the Fund arrangement approved in
September 2003 was not fully implemented because of a decision
by the Argentine authorities to delay key structural elements of
the program until completion of their debt restructuring. The
authorities now believe that it is time to work toward a new
IMF-supported program.

"On June 20, the Board completed the Article IV consultation
with Argentina. The summing up of the Board discussion, which is
expected to be released soon, contains the Board's sense of the
key economic policy priorities facing Argentina in order to
sustain high growth and reduce poverty further. I believe it
also conveys the main elements of policies that could form the
basis of a Fund-supported program. I also understand the
Argentine authorities will soon approve the publication of the
underlying staff report, which provides the IMF staff's view of
Argentina's economic outlook.

"Because any new arrangement will involve exceptional access to
IMF resources, the Fund's policy will require early consultation
with the Executive Board on any new program negotiations.
Accordingly, I intend to consult with the Board in the very near
future regarding the broad outlines of a program that could be
supported by an IMF arrangement. This Board meeting will also be
an excellent opportunity for the Argentine authorities to convey
to Executive Directors their own views about the content and
timing of key measures of a future program. Such a Board meeting
is expected to be in July."

"After the Executive Board meeting next month, we expect to
engage the Argentine authorities in discussions regarding a new
IMF-supported program."

CONTACT: INTERNATIONAL MONETARY FUND
         700 19th Street, NW
         Washington, D.C. 20431 USA

         IMF EXTERNAL RELATIONS DEPARTMENT
         Public Affairs: 202-623-7300 - Fax: 202-623-6278
         Media Relations: 202-623-7100 - Fax: 202-623-6772



===========
B R A Z I L
===========

BANCO BRADESCO: Shareholder Dividend Set for July
-------------------------------------------------
The Board of Directors of Banco Bradesco S.A. approved in a
meeting held on Wednesday the Board of Executive Officer's
proposal for the payment to the Company's stockholders of
intermediary interest on equity capital related to the first
half of 2005 to be made on July 20, 2005.

In a letter sent to the Securities and Exchange Commission, the
Company's Executive Vice President Milton Almicar Silva Vargas
disclosed:

The Board of Directors of this Bank, in a meeting held on this
date, approved the Board of Executive Officer's proposal for the
payment to the Company's stockholders of intermediary interest
on own capital related to the first half of 2005, in the amount
of R$0.57000 for common stock and R$0.62700 for preferred stock,
which represent ten times the amount regular of Interests paid
monthly, benefiting the stockholders registered in the Company's
records on this date (June 29, 2005).

The payment will be made on July 20, 2005, at the net amount of
R$0.48450 for common stock and R$0.53295 for preferred stock,
after deduction of Withholding Income Tax of fifteen percent
(15%), except for the legal entity stockholders that are exempt
from such taxation, which will receive the declared amount.

The Interests relating to stocks under custody at CBLC -
Brazilian Company and Depository Corporation will be paid to
CBLC which will be transferred to the stockholders through the
depository Brokers.

The respective Interests will be computed, net of withholding
Income Tax, in the calculation of the mandatory dividend for the
year, as provided in the Corporate Bylaws.

CONTACT: Banco Bradesco S.A.
         URL: http://www.bradesco.com.br
         Phone: 55-11-3684-9229


BRASKEM: Proposals for Deliberation Unanimously Adopted
-------------------------------------------------------
AGENDA of Braskem S.A.'s 503rd Board of Directors Meeting held
June 22, 2005:

I) Subjects for deliberation

The following resolutions were unanimously adopted: 1) PROPOSALS
FOR DELIBERATION ("PD") -after due analysis of their terms and
associated documents, the following Proposals For Deliberation
were approved, which had been previously presented by the Board
of Executive Officers for the cognizance of the members of the
Board of Directors, as envisaged in its Internal Regulation, and
the copies thereof having been properly filed at the Company's
headquarters:

a) PD. CA/BAK-10/2005 - Adaptation to the requirements
formulated in the "Sarbanes Oxley Act" (SOX), in order to
approve (i) the proposal to change the Internal Regulation of
the Board of Directors as per the proposal previously presented
by the Executive Officers, pursuant Annex 1 to PD.CA/BAK-
10/2005, and further contributions and observations made by the
Fiscal Council, the final version whereof, after having been
presented for the cognizance of all the Board Members present,
was filed at the Company's headquarters; (ii) the "Pre-Approval
Policy for the Engagement of Services that may be rendered by
Independent Accountants", pursuant Annex 2 appended to this PD,
abiding by the contributions made by the members of the Fiscal
Council, forwarded when the meeting of the Fiscal Council was
held on June 15, 2005, the final version whereof was provided
for the cognizance of all, and filed at the Company's
headquarters, the responsibility for its applicability,
supervision and updating was assigned to the Company's Fiscal
Council;

b) PD.CA/BAK-11/2005 - Engagement of the Services of Independent
Accountants, in order to ratify the selection of
PricewaterhouseCoopers Auditores Independentes (PWC) as the
external Independent Accountants for Braskem, and to authorize
the Executive Officers to engage the services of PWC to
accomplish auditing services regarding the annual and quarterly
balance sheets for the year 2005 (BR GAAP and US GAAP);

c) PD.CA/BAK-12/2005 - Association with Petrobras Quimica S.A. -
Petroquisa , which, in compliance with the contributions and
suggestions made by the Company's Investment Committee to the
respective PD, approved (i) the "Feasibility Report" as defined
by the respective PD; (ii) the implementation of the "Paulinia
Project", as per the definition of the respective PD; and (iii)
the incorporation of a new company which will serve as the joint
venture between Braskem and Petroquisa, authorizing Braskem's
Executive Officers to celebrate any documents, notices, and
agreements that may be needed for the faithful implementation of
the Paulinea Project;

d) PD.CA/BAK-13/2005 - Investment into an Integrated Information
System in order to authorize the execution of the "ERP Project",
as per its definition in the respective PD, with the engagement
of the services of the necessary company(ies), preceded by a
specific audit to be carried out by Ernst &Young as per the
Executive Summary appended as Annex I to the respective PD,
there having been recorded the observations and recommendations
made by the Board Members; and

e) PD.CA/BAK-14/2005 - Investment to be Made in the PVC-Camacari
Unit in order to approve the investment to acquire advance
technology as envisaged in Braskem's Business Plan 2005-2009,
and pursuant the Executive Summary which is an appurtenant to
the respective PD, intended to treat the gaseous emissions
originating from the PVC plant in Camacari, so as to insure the
continued adequacy by Braskem to the intended environmental
requirements;

f) PD.CA/BAK-15/2005 -Modernization of the Polymerization
Reactors at the PVC-Camacari Unit, in order to approve the
investment to acquire advanced technology so as to insure the
operability, trustworthiness and competitiveness of all the
polymerization reactors used at Braskem's Camacari PVC Unit
according to the presentation and justifications found in Annex
1 appended to the respective PD;

g) PD.CA/BAK-16/2005 - Amendment and Exchange of Instruments of
Indebtedness Issued on the International Market in order to
allow the Executive Officers to celebrate any documents, notices
and agreements that may be needed for the faithful
implementation of the amendment and the exchange of the
instruments of indebtedness on the international financial
market, as per the reasons and terms that have been described in
the respective PD;

h) PD.CA/BAK-17/2005 - Financing of Investments Through Credit
Obtained from the BNDES, in order to be able to authorize
Braskem's Executive Officers to (i) enter into a credit facility
with BNDES in the amount of R$384.623.077,66 (three hundred and
eighty-four million, six hundred and twenty-three thousand,
seventy-seven reais and sixty-six centavos), in the quality of
borrower; and (ii) to sign all and any documents related to the
Operation, as described in the respective PD, including the
Finance Agreements by Opening up Credit Facilities nos.
05.2.0249.1, 05.2.0250.1 and 05.2.0251.1;

i) PD.CA/BAK-18/2005 - Ratification of the Rate Regarding the
13th. Debenture Issuance, in order to approve the compensation
to be paid for the Debentures, the issuance of which has been
approved during the 501st. Board of Directors Meeting held on
April 13, 2005, in the amount of 104.1% (one hundred and four
and one tenth of one percent) of the cumulative daily rates for
the over extra group DIs (Interfinance One Day Deposits),
computed and disclosed by CETIP, based on 252 days, and
expressed as percentages per year, taking into account the
results obtained in the bookbuilding process. Thus, the powers
of the Executive Officers were ratified to celebrate amendments
to the Issuance Deed, as well as any other documents that may
become necessary to implement said issuance.

II) Matters for Cognizance: A presentation was made of the
results accomplished by the Chief Executive Officer up to May,
2005.

III) Matters of Interest to the Company: Nothing to record;

IV) CLOSING OF THE AGENDA: There being nothing else to discuss,
these minutes were drafted which, after being read, discussed,
and found to be in order, will be signed by all the Board
Members present, by the Chairman and by the Secretary of the
Meeting. Sao Paulo, June 22, 2005 [Signatures: Pedro Augusto
Ribeiro Novis - Chairman; Ana Patricia Soares Nogueira -
Secretary; Alvaro Fernandes da Cunha Filho - Vice-President;
Alvaro Pereira Novis; Andre Tapajos Cunha; Francisco Teixeira de
Sa (pp/ Ruy Lemos Sampaio); Jose de Freitas Mascarenhas;
Kuniyuki Terabe; Luiz Fernando Cirne Lima; Maria Roma de
Freitas; Newton Sergio de Souza; Patrick Horbach Fairon].

CONTACT: BAK - Braskem S.A.
         Rua Eteno, 1561
         Polo Petroquimico de Camacari
         Camacari
         Bahia CEP 42810-000
         Brazil
         URL: http://www.braskem.com.br
         Phone: (55 11) 3443 9529


CEMIG: Board Interest on Equity Payments
----------------------------------------
The Board of Directors of Companhia Energetica De Minas Gerais -
CEMIG, in a meeting held on Wednesday, decided to pay interest
on equity in respect of the year 2005.

NOTICE TO STOCKHOLDERS

We hereby inform our stockholders that the Board of Directors,
in a meeting held on 29 June 2005, decided to pay interest on
equity in respect of the year 2005, in accordance with Section 9
of Law 9249/95 of 26 December 1995, which shall be taken into
account and offset in the calculation of the obligatory
dividend, in accordance with Clause 29, Paragraph 2 of the
Bylaws, in the amount of R$ 283,000,000.00 (two hundred and
eighty-three million Reais), which corresponds to R$
1.7460008031 per thousand shares.
This amount will be paid in two equal parts, the first on or
before 30 June 2006 and the second on or before 30 December
2006.

All stockholders whose names are on the company's Nominal Share
Register on 10 July 2005 will have the right to this payment, on
which tax at 15% will be withheld at source of payment, other
than for stockholders that are exempt from this withholding
under current legislation. The shares will trade with the
exclusion of this benefit on 11 July 2005.

We remind stockholders of the importance of updating their
registration information. This can be done by visiting any
branch of Banco Itau S.A. (the institution which administers
Cemig's system of registered nominal shares), taking their
personal documents with them.

CONTACT: Companhia Energetica De Minas Gerais - CEMIG
         Investor Relations:
         Phone: 31 3299-3930
                31 3299-4015
         Fax: 31 3299-3934
              31 3299-3933
         URL: www.cemig.com.br
         E-Mail: ri@cemig.com.br


ELETROPAULO METROPOLITANA: Sells $202M, High Yield 5-Year Bonds
---------------------------------------------------------------
Power distributor Eletropaulo Metropolitana Eletricidade de
Sao Paulo SA confirmed Tuesday that it sold on the international
market BRL475-million (US$202mn) 5-year bonds denominated in the
Brazilian currency. Business News Americas reports that the
bonds will pay interest every six months at an annual rate of
19.125%.

The Company, which is controlled by a joint venture between
U.S.-based AES Corp. (AES) and Brazil's National Development
Bank (BNDES), will use part of the proceeds to pay down BRL176
million and US$25.6 million of its existing debt, meeting
conditions of a debt restructuring agreement it signed with
creditors on March 12, 2004.

CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
         Investor Relations Manager
         Ms. Clarice Silva Assis
         E-mail: clarice.assis@aes.com
         Phone:(55 11) 2195-2229
         Fax:(55 11) 2195-2503


LIGHT SERVICOS: BNDES to Buy Debt as Part of Special Credit Line
----------------------------------------------------------------
Brazil's National Development Bank (BNDES) agreed Wednesday to
buy BRL727 million worth of debentures to be issued by Light
Servicos de Electricidade SA as part of its US$1.5 billion debt-
restructuring program announced on May 18.

According to Dow Jones Newswires, the 10-year debentures will
pay annual interest equivalent to the BNDES's long-term interest
rate, or TJLP, currently 9.75% per year, plus a four percentage
point spread.

BNDES can convert up to 50% of the debentures into Light's
shares, whenever the firm's shareholders raise new capital or as
the firm's operating losses decrease.

BNDES agreed to buy the convertible debentures as part of its
electric power credit program. The bank established the special
credit line after a number of electric power utilities ran into
financial problems following a slump in demand resulting from
nine months of government-imposed power rationing in 2001 and
2002.

Light's US$1.5 billion debt-restructuring program also includes
extending maturities on more than US$600 million of short-term
debt the Company owes 12 banks and investment funds, the
postponement to 2012 from 2007 the payment of US$160 million in
debt and a US$400-million capital injection by Light's
controller, France's EDF.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


LOCALIZA RENT: New Market Maker Retained for Share Trading
----------------------------------------------------------
Under the terms of Instruction #358 issued by CVM (Securities
and Exchange Commission of Brazil) on January 3, 2002, Localiza
Rent a Car S.A. (Bovespa: RENT3) ("Company") announces to
shareholders and the market in general that, under the terms of
Instruction #384 issued by CVM on March 17, 2003, Pactual
Corretora de Titulos e Valores Mobiliarios S.A. ("Market
Maker"), a joint-stock company headquartered in the city and
state of Sao Paulo, Av. Brigadeiro Faria Lima, no. 3729, 6o
andar, parte - Itaim Bibi, with corporate taxpayer ID (CNPJ/MF)
43.815.158/0001-22, has been hired as Market Maker for the
Company's common shares ("RENT3"), within the scope of Bovespa's
Novo Mercado, for a four-month period, automatically extended
for the same period in the event no objections are raised by any
party, aiming to promote the abovementioned shares' liquidity.
The Company also announced that it has 23,026,325 common shares
outstanding issued and its controlling shareholders did not
reach an agreement with the Market Maker regulating voting
rights or the purchase and sale of securities issued by the
Company.

Localiza operates in the car rental and fleet rental business
and in the fleet management and franchising of those businesses.

Thirty-two years in existence and with 299 agencies, Localiza is
currently the largest car rental company in Latin America in
number of agencies and the pioneer in fleet management business
in Brazil. Localiza is part of BOVESPA's Novo Mercado and is
listed under the ticker "RENT3".

CONTACT: Localiza Rent a Car S.A.
         Investors: Silvio Guerra
         Tel: +011-5531-3247-7055
         E-mail: ri@localiza.com

         Media: Priscilla Duarte
         Tel: +011-5531-3247-7879
         Fax: +011-5531-3247-7684
         E-mail: priscila@localiza.com


NET SERVICOS: To Hold Extraordinary General Meeting July 12
-----------------------------------------------------------
NET Servicos de Comunicacao S.A. will hold an Extraordinary
Shareholders' Meeting on July 12, 2005 at 11:00 p.m., at the
Company's headquarters located at Rua Verbo Divino in the city
and state of Sao Paulo, to deliberate on the following agenda:

a) Reorganization of CHAPTER V - FISCAL COUNCIL - of the
Company's bylaws to make this council a permanent one and to
adjust under the scope of the Sarbanes-Oxley Act.

b) Placement of the Fiscal Council, sitting and alternate
member's election, and definition of their fixed remuneration.

c) Change the article 5 of the Company's bylaws to reflect the
Company's capital increase confirmed at the Board of Directors'
Meeting held on May 10, 2005, from R$2,748,650,800.00 to
R$3,387,408,498.71, arising from a private underwriting, within
the authorized capital, corresponding to 745,147,153 common
shares and 1,079,874,843 preferred shares, all registered, book-
entry and nonpar shares, at a price of R$0.35 per common and
preferred shares.

The minute of the Company's bylaws to be deliberated on the
Extraordinary General Meeting now summoned is available to the
shareholders as from this date at the Company's headquarters,
and was submitted to Bovespa - Sao Paulo Stock Exchange, under
the scope of article 135, paragraph 3 and article 124, paragraph
6 of the Law 6.404/76, and amendments.

The shareholders participating in the Fungible Custody of
Registered Shares of the Stock Exchanges intending to
participate in this Meeting shall submit a statement issued
forty-eight (48) hours before the Meeting, containing their
respective shareholding provided by the custody agency.

CONTACT: NET Servicos de Comunicacao S.A.
         Rua Verbo Divino 1356
         Chacara Santo Antonio
         Sao Paulo, SP 04719-002
         Brazil
         Phone: 5511-5186-2000
         URL: http://globocabo.globo.com


PRIDE INTERNATIONAL: Signs Deepwater Semisubmersible Contracts
--------------------------------------------------------------
Pride International, Inc. (NYSE: PDE) announced Wednesday that
it has signed contracts to operate its four Amethyst-class
deepwater semisubmersibles in Brazil. The Pride Rio de Janeiro
and the Pride Portland, 5,500 foot water depth, dynamically-
positioned semisubmersibles, are operated by the Company and
owned by a joint venture of which Pride owns 30%. Both rigs
received five-year contracts from Petroleo Brasileiro S.A.
(Petrobras) for work offshore Brazil with total contract value
of approximately $600 million, including mobilization and
performance bonus opportunities.

The contracts for the Pride Rio de Janeiro and the Pride
Portland include a base dayrate of $141,750 and a 15%
performance bonus potential plus mobilization amortization, for
a maximum possible dayrate of approximately $164,000. In
addition, Pride expects to receive approximately $9,000 per rig,
per day in fees from the joint venture in connection with the
Company's management of the two rigs. The Company currently
anticipates both rigs to commence contract operations during
October 2005 following client acceptance.

Additionally, Pride announced that it has signed extensions of
the existing contracts with Petrobras for the Pride Carlos
Walter and the Pride Brazil, 5,000 foot water depth,
dynamically-positioned semisubmersibles. These extensions
represent potential contract revenues of $230 million, including
performance bonus opportunities. The contracts extend two years
through June 2008 at a base dayrate of $137,000 plus a 15%
performance bonus potential, for a maximum possible dayrate of
approximately $157,000, with the new terms commencing June 2006.

Kevin C. Robert, Vice President -- Marketing commented, "We have
enjoyed an excellent relationship with Petrobras, and these
contracts allow Pride to expand our services in Brazil to six
semisubmersibles on a long-term basis."

Pride International, Inc., headquartered in Houston, Texas, is
one of the world's largest drilling contractors. The Company
provides onshore and offshore drilling and related services in
more than 30 countries, operating a diverse fleet of 289 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 29 jackup rigs, 19 tender-assisted, barge and platform
rigs, and 227 land rigs.

CONTACT: PRIDE INTERNATIONAL, INC.
         Robert E. Warren
         Steven D. Oldham
         Tel: (713) 789-1400



=========
C H I L E
=========

COEUR D'ALENE: Designates President for San Bartolome Project
-------------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM), the
world's largest primary silver producer and a growing gold
producer, announced Wednesday the appointment of James K. Duff
as President of Empresa Minera Manquiri, S.A., Coeur's Bolivian
subsidiary, to lead the Company's efforts at the San Bartolome
project.

Mr. Duff has been actively involved in the San Bartolome project
since 1999 and formerly served as Coeur's Vice President of
Business Development. Jim has over 37 years of mining
experience, 25 years of which were primarily focused on South
American projects.

In Mr. Duff's capacity, he will be responsible for managing the
day to day activities of the project, which commenced
construction activities in October, 2004, as well as continuing
to monitor the overall political climate in Bolivia.

Dennis E. Wheeler, Chairman, President and CEO stated, "We are
pleased that Jim will be re-joining the Coeur team on a full
time basis. The Company is currently evaluating the project
timetable in view of the recent period of political change in
Bolivia and Jim has the experience in project development and
socio-economic issues in South America that will be of great
benefit to the Company as we continue our efforts".

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.

CONTACT: COEUR D'ALENE MINES CORPORATION
         Investor Relations:
         Tony Ebersole, Director
         800-523-1535



===================================
D O M I N I C A N   R E P U B L I C
===================================

* DOMINICAN REPUBLIC: Emerges From Default, Ratings Upped To 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit ratings on the Dominican Republic to
'B' from 'SD'. Standard & Poor's also raised its short-term
foreign currency sovereign credit rating on the republic to 'B'
from 'SD'. The long-term local currency sovereign credit rating
was raised to 'B' from 'CC', the short-term local currency
sovereign credit rating to 'B' from 'C'. The outlook on the
local currency ratings is stable. Standard & Poor's also
assigned its 'B' senior unsecured debt rating to Dominican
Republic's two global bonds (a 9.5% bond due in 2011 and a 9.04%
bond due 2018, together totaling $1.1 billion) that were issued
as part of the recent restructuring.

According to Standard & Poor's credit analyst Richard Francis,
the upgrade of the Dominican Republic's ratings were prompted by
the successful restructuring of the government's commercial bank
loans and bonded debt. "A sustained fiscal adjustment and
improved expectations following this reprofiling of scheduled
amortization will likely boost domestic confidence," said Mr.
Francis. "This, in turn, could enable the government to achieve
its robust growth projections of 4% per annum for several years
beginning in 2006. The result will be a lowering of the already-
moderate general government debt burden, projected at about 50%
of GDP (including recapitalization costs of public sector
financial enterprises) at year-end 2005," he added.

The Dominican Republic is exiting default with the highest
rating ever assigned a sovereign previously rated 'SD'. Other
post-default sovereign ratings have ranged between 'B-' and
'CCC+'.

"Despite recent improvements, a number of challenges remain,"
noted Mr. Francis. "Monetary policy remains constrained by
quasi-fiscal losses at the central bank. Political policy is
constrained by weak, albeit improving, governance and the need
for the executive to reach agreement with an opposition-
controlled Congress," he concluded.

Primary Credit Analyst: Richard Francis, New York (1) 212-438-
7348; richard_francis@standardandpoors.com

Secondary Credit Analyst: John Chambers, CFA, New York (1) 212-
438-7344; john_chambers@standardandpoors.com



=============
G R E N A D A
=============

* GRENADA: IDB Approves $10M Loan for Grenada Reconstruction
------------------------------------------------------------
The Inter-American Development Bank announced Wednesday the
approval of a $10 million soft loan to the Caribbean Development
Bank to assist the recovery and reconstruction and recovery of
Grenada in the aftermath of Hurricane Ivan. The resources will
finance investment projects in the private sector for the
revitalization of businesses, preparation of housing sites and
services on properties with clear titles and reconstruction of
public sector infrastructure facilities, including roads and
bridges and installations critical to protecting the
environment.

Grenada, a Caribbean island state with a population of a little
over 100,000, was severely hit by Hurricane Ivan in September
2004. About 80 percent of the building structures on the island
were damaged and the main productive sectors, agriculture and
tourism, were crippled. The economy contracted by three percent
in 2004 compared with a 4 percent growth rate that had been
projected prior to the hurricane.

The IDB financial assistance is being coordinated with a
worldwide relief and reconstruction effort of the world's main
multilateral financial institutions and donor nations.

The loan from the Fund for Special Operations is for a 40-year
term, with a 10-year grace period, at a 1 percent interest rate
during the grace period and a 2 percent rate thereafter. The
IDB's charter enables it to assist small, vulnerable island
states of the Caribbean through loans administered by the
Caribbean Development Bank.

CONTACT: Inter-American Development Bank - IDB
         Peter Bate
         E-mail: peterb@iadb.org
         Phone:(202) 623-2609
         URL: http://www.iadb.org/



=============
J A M A I C A
=============

AIR JAMAICA: S&P Assigns 'B' Rating to $150M Notes Due 2015
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Air Jamaica Ltd.'s $150 million 9.375% notes due June 2015. The
rating on the Air Jamaica notes, which is equal to the long-term
foreign currency rating on the sovereign, is based on the
government's unconditional guarantee of both principal and
interest payments, and is subject to final review of the
guarantee documentation and proper parliament approval.

On Dec. 23, 2004, the government purchased 72.3% of the
outstanding shares of Air Jamaica, giving it total control of
the airline. The government had privatized the airline in 1994,
but took control of it following major losses in recent years.
"We believe that the airline may require more government support
in the next few years to continue operations, due to strong
competition from other international airlines, as well as its
vulnerable cost structure," said Standard & Poor's credit
analyst Juan P. Becerra.

Air Jamaica will use proceeds to pay trade creditors, undertake
capital expenditures, and meet working capital requirements.
With the new notes, Air Jamaica is planning to prepay some
credits to extend its current average debt life to 10 years from
six months.

The sovereign credit ratings on Jamaica are constrained by a
high general government debt burden, limited fiscal flexibility,
and vulnerability stemming from the island's geographical
location and size. General government debt stock has been
declining, reflecting improving fiscal performance since mid-
2003, and is expected to decline toward 130% of GDP by the end
of this fiscal year (down from 138% in 2003 and 140% in 2002).
Still, the looming debt size remains a major constraining factor
on the ratings. Jamaica's debt profile is unfavorable, with a
high (albeit declining) sensitivity to interest- and exchange-
rate fluctuations, and an increasing share of more expensive
commercial debt.

The ratings are supported by the island's improving fiscal and
external liquidity position (despite external shocks), ongoing
commitment to fiscal austerity, and stronger growth prospects-
all of which have helped stabilize the Jamaican dollar and
increase investor confidence.

The stable outlook reflects the outlook on the sovereign credit
rating on Jamaica. Any rating action on Jamaica would be
reflected in the ratings on the Air Jamaica notes. Jamaica's
stable outlook balances the improvement in the government's
fiscal and debt positions, supported by promising growth
prospects and a stronger external liquidity stance, with
significant risk stemming from the size of the government's
debt.

PRIMARY CREDIT ANALYST: Juan P Becerra, Mexico City (52) 55-
5081-4416; juan_becerra@standardandpoors.com

SECONDARY CREDIT ANALYSTS: Olga Kalinina, CFA, New York (1) 212-
438-7350; olga_kalinina@standardandpoors.com

Joydeep Mukherji, New York (1) 212-438-7351;
joydeep_mukherji@standardandpoors.com


KAISER ALUMINUM: Files Reorganization Plan, Disclosure Statement
----------------------------------------------------------------
Kaiser Aluminum Corporation announced Wednesday that it,
together with Kaiser Aluminum & Chemical Corporation and 19 of
their subsidiaries, filed a plan of reorganization and a related
disclosure statement in the U.S. Bankruptcy Court for the
District of Delaware.

The disclosure statement is subject to approval by the
Bankruptcy Court, and certain provisions of the plan regarding
the treatment of asbestos and other personal injury claims
remain under negotiation. In addition, the plan must be voted
upon by Kaiser's creditors and ultimately confirmed by the
Bankruptcy Court.

Once the disclosure statement is approved by the Bankruptcy
Court, the company will commence solicitation of approval of the
plan by the creditors. No assurance can be given that the plan
will ultimately receive the necessary approvals by creditors or
be confirmed by the Bankruptcy Court, or that the transactions
contemplated by the plan will ultimately be consummated.

Based on the recent pace of the reorganization process and
assuming there are no prolonged delays in the plan approval
process, the company would expect to emerge from Chapter 11
during the fourth quarter of 2005.

Consistent with disclosures in Kaiser's Annual Report on Form
10-K for the year ended December 31, 2004 and its Quarterly
report on Form 10-Q for the period ended March 31, 2005, the
company's restructuring would resolve pre-petition claims that
are currently subject to compromise. Those claims include, among
others, retiree medical, pension, asbestos and other tort, bond
and note claims.

The plan would also result in the cancellation of the equity
interests of current stockholders and the distribution of equity
in the emerging company to creditor constituents. The majority
of the new equity would be distributed to two voluntary employee
benefit associations that were created in 2004 for salaried and
hourly retirees in connection with the cancellation of retiree
medical plans. All pre-petition personal injury claims relating
to asbestos, silica, coal tar pitch and hearing loss would be
permanently resolved by the formation of certain trusts funded
primarily by Kaiser's rights to proceeds from certain of its
insurance policies.

Kaiser Aluminum President and Chief Executive Officer Jack A.
Hockema said on Wednesday, "In February of 2002, we said that
Chapter 11 would provide us with the tools we needed to
restructure our balance sheet and return to sustained long-term
profitability. The plan we filed today provides those tools. We
are now well on our way to completing our goal of emerging with
a solid financial position, a strong balance sheet and the
capability to grow in our key transportation and industrial
markets."

Hockema said, "None of this would have been possible without the
employees, customers, suppliers and other supporters who stuck
with us through this period, and we thank them. Our job now is
to complete the reorganization and drive this company to its
full potential in terms of customer service, quality, product
development and financial performance."

Kaiser Aluminum Corporation (OTCBB:KLUCQ) is a leading producer
of fabricated aluminum products for aerospace and high-strength,
general engineering, automotive and custom industrial
applications. The company has more than 2,000 employees and 11
plants in North America having the capacity to produce more than
400 million pounds annually of value-added sheet, plate,
extrusions, forgings, rod, bar and tube. Upon emergence, the
company also expects to continue to own its 49% interest in
Anglesey Aluminium Limited, which operates an aluminum smelter
in Wales.

CONTACT: Kaiser Aluminum Corporation
         Scott Lamb
         Phone: 713-775-2742
         URL: www.kaiseraluminum.com



===========
M E X I C O
===========

EMPRESAS ICA: Plans $200M Share Issue, Dilution a Concern
---------------------------------------------------------
Empresas ICA (NYSE; BMV: ICA), the country's largest engineering
and construction outfit, seeks to raise as much as US$200
million by issuing new shares in the Company. According to a
source, the Company, which will ask shareholders to vote the
capital increase at a meeting on July 14, expects the share
offer to take place in the Mexican market in early August.

ICA has earmarked the proceeds of the stock offering to fund new
projects.

"All of the projects coming up in the short term require capital
and lines of credit, and a company that does not have capital
will not be able to meet new opportunities," newspaper El
Financiero reported company officials as saying.

ICA is part of the consortium expected to win the concessions
contract for the US$600 million Cuautitlan-Buenavista suburban
train concession, along with French firm Alstom and financial
group Grupo Interacciones.

The Company has restructured its finances over the past year,
which has allowed it to post three straight quarters of net
profit after six years of losses.

In January of last year, ICA called for a capital increase worth
about US$230 million, which helped it ease its debt burden and
bolster growth.

In May, it paid off US$94.9 million of debt that cut liabilities
at its corporate level to zero and has been busy refinancing
other chunks of debt.

Analysts believe the new share issue could have a negative
impact on the Company's stock price in the short term because it
will dilute the participation of current shareholders in ICA.

CONTACT: Empresas ICA Sociedad Controladora S.A. de CV
         Minera No. 145
         Edificio Central
         Mexico, DF 11800
         Phone: 52 55 792 9991
         Fax: 52 5 271 2431
         URL: http://www.ica.com.mx



=============
U R U G U A Y
=============

URAGUA: Files $24M Lawsuit Against Government
---------------------------------------------
Private water operator Uragua will bring a US$24-million lawsuit
against the government, reports Business News Americas. The move
follows a failure by both sides to come up with an agreement
regarding state water utility OSE's decision last month to
revoke Uragua's concessions contract to operate in the city of
Maldonado.

Uragua expressed regret about the impasse. "For us, this means
that the time has come and gone when we had hoped that the
government would open up a formal dialogue," company spokesman
Ernesto Kreimerman said.

After rescinding Uragua's concession for allegedly not meeting
requirements as outlined in the contract, OSE announced plans to
absorb 115 of the private firm's workers.



=================
V E N E Z U E L A
=================

PDVSA: Obtains $423M Dividend Payment From CITGO
------------------------------------------------
State oil firm Petroleos de Venezuela (PDVSA) received a
dividend payment of US$423 million from its US refining arm
CITGO Petroleum Corp. for the year 2004, reports Business News
Americas.

The amount, according to PDVSA CFO Eudomario Carruyo, will be
used by Mercal, a state-sponsored chain of supermarkets and mini
markets that sells staple foodstuffs at subsidized prices.

The opposition has denounced this scheme, saying it is a ploy
used by the administration to win votes in the coming election.

PDVSA does not expect additional dividends from CITGO for the
rest of this year, Carruyo said.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: To Pay $688M to Private Operators This Week
--------------------------------------------------
PDVSA will pay private companies involved in 32 oil operating
agreements a total of US$688 million this week to settle the
Company's account up to June 27, Business News Americas reports,
citing PDVSA CFO Eudomario Carruyo.

Of the total amount, US$386 million will be paid in US dollars
and the remainder in the local currency in line with the
government's decision to reduce its costs by paying private
operators 50:50 in US dollars and bolivares.

The Company "will review the cost structures of each of the
agreements to determine what cost should be paid in dollars
depending on the justification each company gives of dollars
invested in equipment and what [costs] are in bolivares, for
instance the Venezuelan payroll," Mr. Carruyo said.

Until now, PDVSA had paid producers about 48% of the spot price
of the West Texas Intermediate benchmark crude price in US
dollars. In addition, PDVSA reimbursed companies for operating
expenses in US dollars.

But President Hugo Chavez, who considered this arrangement
costly on the part of PDVSA, decided in May that operators will
be paid in bolivares and said those companies that do not like
the new conditions "can sue me."

He also ordered the operators to migrate to mixed capital joint
ventures controlled by PDVSA by the end of this year or leave.


PDVSA: Undertaking New Exploration Studies in Lake Maracaibo
------------------------------------------------------------
Petroleos de Venezuela will pursue new exploration studies in
Lake Maracaibo where reserves of 2 billion barrels of hydrogen
sulphur associated hydrocarbons have been estimated, announced
oil state company Exploration and Production Vice-President Luis
Vierma. "We need to develop a technology to efficiently separate
this component and be able to use these reserves", he said.

This activity makes part of the exploration and production
program being executed by PDVSA, which has resulted in the
discovery of major reservoirs in the three corporate divisions.
The plan was implemented to carry out re-exploration activities
in areas known to hold reserves, and exploration activities in
areas that have never been drilled before.

Mr. Vierma pointed out these findings during his appearance
before the special sub-commission of the Comptrollership
Permanent Commission of the National Assembly which is in charge
of investigating alleged irregularities in CITGO and PDVSA
Services Inc.

"There have been major achievements in the re-exploration of the
Western areas. We have completed the exploration of Franquera
1X, a well in the eastern coast of Lake Maracaibo, which is
currently producing 4,000 barrels per day. This discovery is
opening up the way to a reservoir that may leverage our
reserves," Mr. Vierma stated. This volume substantially exceeds
the average well production in the area, which is 200,000
barrels per day.

In the Tomoporo field exploration activities have been completed
in wells Tom 12 and Tom 13, which will soon guarantee an
additional production of 12,000 barrels per day. Mr. Vierma
affirmed "in 3 years we will be producing approximately 220,000
barrels per day in that area", and also highlighted that
drilling in Rubio would start next year, while exploration in
the southern Lake would continue.

As regards the Center South division, two wells were discovered
in the last two months in the Borburata field. These wells will
represent an additional production of 3,000 barrels, and will
contribute barrels to the resource base.

Luis Vierma also took this opportunity to underline the
completion of drilling activities in Travis, a well that led to
the discovery of a reservoir that will start producing in the
short term. Mr. Vierma also highlighted developments in
Chaguaramal and Cotoperi.


PDVSA: Gas Unit Sets Sales Record in Domestic Market
----------------------------------------------------
PDVSA GAS set a gas sales record in the national market this
past weekend when it reached 1.967 billion of standard cubic
feet per day (BSCFD) of gas sales both for the industrial and
domestic sectors. On Saturday, June 18, 2005, the gas PDVSA
affiliate reached a sales level of 1.948 BSCFD, thus breaking
the record achieved on January 3, 2005 of 1.944 BSCFD.

This growth in domestic gas sales reflects the steady effort the
New PDVSA GAS is making to achieve a greater and better
distribution of our hydrocarbons.

Once again, gas consolidates its position as raw material and
energy input for the domestic and the industrial sectors in our
country, while increasing the quality of life of the Venezuelan
people.



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