United States Senate Resolution No. 9, 08 June 2004

Original Language Title: Resolução do Senado Federal nº 9, de 08 de junho de 2004

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Do I know that the Senate approved, and I, Jose Sarney, President, pursuant to art. 48, paragraph XXVIII, the internal regulations, enact the following R E S O L U t I O N° 9, 2004 authorizing the Companhia de Saneamento Basico do Estado de São Paulo (Sabesp) hiring external credit operation, with guarantee of the Union, with the Japan Bank for International Cooperation (JBIC), worth up to JPY 21,320,000,000.00 (twenty one billion , 320 million yen).
The Senate resolves: Art. first is the Companhia de Saneamento Basico do Estado de São Paulo (Sabesp) authorized to hire external credit operation, with guarantee of the Union, with the Japan Bank for International Cooperation (JBIC), worth up to JPY 21,320,000,000.00 (twenty-one billion, 320 million yen).
Sole paragraph. The resources from the external credit operation referred to in the caput are intended for partial funding of Environmental recovery program of the metropolitan region of Baixada Santista, building and recovering the water and sewer systems with environmental monitoring system.
Art. 2 the credit operation referred to in art. 1st should be conducted under the following conditions: (I)? debtor: Companhia de Saneamento Basico do Estado de São Paulo (Sabesp);
II. creditor: Japan Bank for International Cooperation (JBIC);
III. guarantor: Federative Republic of Brazil, having as counter-guarantees, as defined in the text of the State Law No. 10820, of 20 June 2001, autorizativa the desired loan quotas or portions of the State's participation in the Union's collection, supplemented by the own resources of the State, and the transfer, subject to availability, of own revenue of Sabesp as authorisation granted by its Board and by its Board of Directors;
IV. value: up to JPY 21,320,000,000.00 (twenty-one billion, 320 million yen);
V? disbursement period: up to 7 (seven) years after the date of effectiveness of the agreement;
I SAW? amortization: 37 (37) and consecutive semi-annual installments, the first being due on 20 March 2011, winning the last on 20 March 2029;
VII. interest: required semi-annually, as follows: a) Main i: 1.8% p.a. (a and eight-tenths by 100 per year) on the resources intended for financing: 1? in categories (B), (C) and (D) of section 1 Annex 2 of the agreement, relating to sewage treatment, environmental monitoring and System Consulting Services, respectively, in the total amount of JPY 7,596,000,000.00 (seven billion 596 million yen);
2. the category? contingencies? (E) for the financing of categories (B), (C) and (D) indicated in item 1;
3. of 0.1% (one tenth per 100 a year), on Commission from the Bank (service charge) on the features of the loan disbursed to finance the categories set out in item 1;
b) Main II: 2.5% per year (two integers and five tenths by 100 per year) for the funding: 1. of category (A)? Sewage networks, in the amount of JPY 13,270,000,000.00 (thirteen billion, 270 million yen);
2. the category? contingencies? (E), intended for the financing of sewer Networks; and 3? of 0.1% (one tenth per 100 a year), on Commission from the Bank (service charge) on the features of the loan disbursed to finance the categories set out in item 1;
VIII. Bank Commission: 0.1% (one tenth per 100) on the amount of each disbursement (service charge).
Sole paragraph. The main payments dates and financial burdens can be changed depending on the date of signature of the loan contract.
Art. third Is the Union authorized to grant guarantees for Companhia de Saneamento Basico do Estado de São Paulo (Sabesp) on external credit operation referred to in this resolution.
Sole paragraph. The authorization referred to in the caput is conditioned to the State of São Paulo to bind, as the Union, quotas of counter-guarantees allocation tax revenues set out in the Constitution. 157 and 159, complemented by its own resources, in accordance with art. 167, subparagraph IV, all of the Federal Constitution, and the transfer, subject to availability, of own revenue of Sabesp as authorisation granted by its Board and by its Board of Directors, upon formalization of contract of reinsurance, and the Federal Government withhold amounts required directly of the self-centering of the accounts of the State.
Art. 4 the maximum time limit for the exercise of this authorization shall not exceed 540 (540) days, counted from publication.
Art. 5 this decision shall enter into force on the date of its publication.
Senate, on 8 June 2004.

Senator José Sarney, President of the Senate

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