I do know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

RESOLUTION N. 65? DE 2002

Authorizes the Federative Republic of Brazil to hire operation of external credit with Japan Bank for International Cooperation (JBIC), worth ¥ 3,595,000,000.00 (three billion, five hundred and ninety and five million yen), targeting the resources to the co-funding of the Program of Sustainable Development of Water Resources for the Brazilian Semi-arid (Proágua/Semi-Arido).

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized, pursuant to Resolution 96, 1989, reinstated by the Resolution No. 17, 1992, both of the Federal Senate, to hire external credit operation with the Japan Bank for International Cooperation (JBIC), worth ¥ 3,595,000,000.00 (three billion, five hundred and ninety and five million yen), targeting the resources to the co-financing of the Sustainable Development Programme of Water Resources for the Brazilian Semi-arid (Proágua/Semi-Arido).

Art. 2º The financial conditions of the external credit operation to which the art refers. 1º are as follows:

I? debtor: Federative Republic of Brazil ;

II? creditor: Japan Bank for International Cooperation (JBIC) ;

III? value: ¥ 3,595,000,000.00 (three billion, five hundred and ninety and five million yen) ;

IV? purpose: co-funding of the Sustainable Development Program of Water Resources for the Brazilian Semi-arid (Proágua/Semi-Arido) ;

V? disbursement deadline: 5 (five) years after the date of the Contract's effectiveness ;

VI? amortization: 37 (thirty-seven) consecutive semi-annual installments, being the first in the value of ¥ 97,168,000.00 (ninety seven million, one hundred and sixty-eight thousand yen), to be paid on June 20, 2009, and the following in the value of ¥ 97,162,000.00 (ninety-seven million, one hundred and sixty-two thousand yen), winning last on June 20, 2027 ;

VII? interest: semestrally required, in the value of 2.5%, a.a. (two integers and five tenths per cent a year), for loan resources disbursed in the civil works category, and from 1.8% a.a. (an integer and eight tenths per cent per year), for resources intended for the payment of consulting services:

VIII? general expenses: 0.1% (one tenth per cent) on the amount of each disbursement, and may be financed by means of the loan facility itself.

Art. 3º The authorisation granted by this Resolution is to be exercised within the maximum period of 540 (five hundred and forty) days, counted from the date of its publication.

Art. 4º This Resolution comes into force on the date of its publication.

Federal Senate, on December 19, 2002

SENATOR RAMEZ TEBET

President of the Federal Senate