DECREE OF June 14, 2005

Authorizes the increase in the social capital of the VALEC-Engineering, Constructions and Ferrovias S.A.

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 art. 4º of Decree-Law No. 1,678 of February 22, 1979,

DECRETA:

Art. 1º It is authorized to increase the social capital of VALEC-Engineering, Constructions and Ferrovias S.A. of R$ 844,956,223.81 (eight hundred and forty-four million, nine hundred and fifty thousand, two hundred and twenty-three reais and eighty-one cents) for R$ 901,928,813.19 (nine hundred and one million, nine hundred and twenty-eight thousand, eight hundred and thirteen real and nineteen cents), upon incorporation of Union credits worth R$ 56,972,589.38 (fifty and six million, nine hundred and seventy two thousand, five hundred and eighty-nine reais and thirty-eight cents), arising from appropriations budget in the 2004 financial year

Art. 2º This Decree shall enter into force on the date of its publication.

Brasilia, June 14, 2005 ; 184º of the Independence and 117º of the Republic.

LUIZ INACIO LULA DA SILVA

Murilo Portugal Filho

Alfredo Nascimento