DECREE OF August 26, 2010

Outorga to the North company Energia S.A. granting of public good use for exploitation of the hydraulic power potential, named Usina Hydroétrica Belo Monte, in stretch of the Xingu River in the State of Pará, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution conferring you the art. 84, inciso IV, of the Constitution, and in view of the provisions of the Laws in the 9,074, of July 7, 1995, and 10,848, of March 15, 2004, in the Decrees at 2,003, September 10, 1996, and 5,163, of July 30, 2004, and what is stated in the Process in the 48500.003805 /2010-81,

DECRETA:

Art. 1º It gets outored to the North Company Energia S.A. granting of public good for electrical power generation, with views on the exploitation of hydraulic power potential, through the Belo Monte Hydrotric Usina, and the respective transmission facilities of restricted interest of the plant generator, in stretch of the Xingu River, in the Municipality of Vitoria do Xingu, in the State of Para.

Single Paragraph. The electric power produced will be marketed by the dealership, in view of its independent producer condition, pursuant to the Laws in the 9,074, July 7, 1995, and 10,848, of March 15, 2004, and of the Decrees in the 2,003, of 10 of September 1996, and 5,163, of July 30, 2004.

Art. 2º The granting of this Decree shall apply for the period of thirty-five years, counted from the date of signature of the respective public good-use concession contract.

Single Paragraph. The contract is to be signed within the period stipulated by the Ministry of Mines and Energy, under penalty of ineffectiveness of the concession awarded by this Decree.

Art. 3º The Concessionaire should deploy restricted-interest transmission facilities to the Belo Monte Hydrotric Usina, and provide it with the negotiated acquisition of the respective servings, even if on public domain grounds and domain strips of public roads, with subjection to administrative regulations.

Art. 4º The goods and facilities used for the production of electric power in the Belo Monte hydropower plant can only be removed, ceded, transferred or disposed of upon prior and express authorization from the National Electrical Energy Agency -ANEEL.

Single Paragraph. Upon the expiry of the concession deadline, the goods and installations linked to the operation of the Belo Monte Hydrotric Usina and of the transmission facilities of restricted interest of the generator plant will pass on to the Union heritage, guaranteed compensation of those still unamortized, in the form of the legislation in force.

Art. 5º The dealership is obliged to meet the requirements for environmental protection, flood control, reservoir management and respective areas of protection, and other acautelative prescriptions of water use, provided for in art. 143 of the Code of Waters and in the subsequent legislation.

Art. 6º This Decree goes into effect on the date of its publication.

Brasilia, August 26, 2010 ; 189º of the Independence and 122º of the Republic.

LUIZ INACIO LULA DA SILVA

Marcio Pereira Zimmermann