I do know that the Federal Senate has approved, and I, Jader Barbalho, President, in the terms of art. 48, item 28, of the Rules of Procedure, promulgated the following

RESOLUTION N ° 9, DE 2001

Authorizes the Government of the Federal District to hire, with the guarantee of the Federative Republic of Brazil, external credit operation worth up to US$ 130,000,000.00 (one hundred and thirty million U.S. dollars), of principal, with the Inter-American Development Bank? BID, intended to partially finance the Basic Sanitation Program in the Federal District.

SenateFederal resolves:

Art. 1º It is the Government of the Federal District authorized to hire external credit operation at the equivalent value and up to US$ 130,000,000.00 (a hundred and thirty million U.S. dollars), of principal, with the Bank InterAmerican Development-BID, intended to partially fund the Basic Sanitation program in the Federal District.

Art. 2º The credit operation referred to in art. 1º presents the following financial characteristics:

I? borrover: Government of the Federal District ;

II? lender: Inter-American development bank? BID ;

III? guarantor: Federative Republic of Brazil ;

IV? value: the equivalent of up to US$ 130,000,000.00 (one hundred and thirty million U.S. dollars), equivalent to R$ 248,690,000.00 (two hundred and forty-eight million, seishundred and ninety thousand reais), on October 31, 2000 ;

V? purpose: to terminate, partially, the Federal District's Basic Sanitation Program, which aims at improving the health framework and quality of life of the population, in addition to protecting the superficial and underground water resources of its territory ;

VI? deadline: three hundred months ;

VII? deficiency: sixty-six months, from the disbursement ;

VIII? interest: at the variable rate equal to the Cost of Qualified Multimonetary Loans, increased spread determined at the end of each semester [ for the second half of 2000 this rate is 7.03% a.a. (seven integers and three hundredths per cent a year) ], on the debtor balance of the principal, incurred after each disbursement, payable semiannually, on June 15 and December 15 each year ;

IX? compromise commission: limited to 0.75% a.a. (seventy and five hundredths per cent a year) on the value of the principal of the undisbursed loan ;

X? deadline for disbursement: December 31, 2005 ;

XI? inspection fee and general supervision: limited to 1,300,00.00 (one million and three hundred thousand U.S. dollars) ;

XII? payment conditions:

a) of the principal: amortized in forty semiannual, equal and consecutive installments, winning the first on June 15, 2006 ;

b) of interest: semiannually accrued, on June 15 and December 15 of each year ;

c) of the commission of appointment: payable semester ;

d) inspection fee and general supervision: payable in quarterly instalments.

Art. 3º It is the Federative Republic of Brazil authorized to grant warranty to the credit operation to which the arts refers. 1º and 2º, upon the offer of contragarantias by the Government of the Federal District.

Art. 4º The conclusion of the Agreement of the credit operation with the BID is conditional on the prior formalization of the Contract to which the art refers. 3º.

Art. 5º The authorisation granted by this Resolution should be exercised within five hundred and forty days, counted from the date of its publication.

Art. 6º This Resolution comes into force on the date of its publication.

Federal Senate, on June 5, 2001

Senator JADER BARBALHO

President of the Federal Senate