DECREE OF June 12, 2008.

Outorga to the Madeira Energia S.A. company -MESA concession of public good use for exploration of the hydraulic power potential, named Usina Hydrotric Santo Antônio, in stretch of the Madeira River, in the State of Rondônia, 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, July 7, 1995, 10,848, March 15, 2004, in the Decrees in the 2,003, September 10, 1996, 5,163, July 30, 2004, and what is stated in the Process in the 48500.001273 /2008-22,

DECRETA:

Art. 1st gets outwisted to the company Madeira Energia S.A. -MESA concession of use of public good for electrical power generation, with views to the exploration of hydraulic power potential, by means of the Santo Antônio Hydropometric Usina, and the respective transmission facilities of restricted interest of the central generator, in stretch of the Madeira River, Municipality of Porto Velho, State of Rondônia.

Single Paragraph. The electric power produced will be marketed by the Concessionaire in view of its independent producer condition under the terms of 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. 2nd The grant that it treats this Decree will be in force for the term of thirty-five years, counted from the date of signing of the respective Public Use Concession Agreement.

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. 3rd Dealership should deploy restricted transmission facilities to the St Antony Hydropometric Power Plant, I shall provide you with the negotiated acquisition of the respective servings, even if on public domain grounds and public lane domain strips, with subjection to administrative regulations.

Art. 4th The goods and facilities used for the production of electrical energy in the Usina referred to in art. First may only be removed, ceded, transferred or disposed of upon prior and express authorization from the National Electric Power Agency-ANEEL.

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

Art. 5th The Dealership is obliged to satisfy the requirements for protection in the middle environment, flood control, reservoir management and respective areas of protection, and other acautelative prescriptions of the use of water, provided for in art. 143 of the Code of Waters and the subsequent legislation.

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

Brasilia, June 12, 2008 ; 187º of the Independence and 120º of the Republic.

LUIZ INACIO LULA DA SILVA

Edison Loban

This text does not replace the published in the DOU of 6/13/2008