DECREE NO 6,897, DE July 14, 2009.

Promulga the Memorandum of Understanding between the Government of the Federative Republic of Brazil and the Government of the Republic of Mozambique in the Biofuels Area, firmed in Brasilia, on September 6, 2007.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution conferring you the art. 84, inciso IV, of the Constitution, and

Considering that the Government of the Federative Republic of Brazil and the Government of the Republic of Mozambique celebrated in Brasilia, on September 6, 2007, a Memorandum of Understanding in the Biofuels Area ;

Considering that the National Congress passed this Memorandum of Understanding through the Decree Legislative n^o 173, of May 14, 2009 ;

Considering that the Memorandum of Understanding entered into force on May 25, 2009, pursuant to your Article VI ;

DECRETA:

Art. 1^o The Memorandum of Understanding between the Government of the Federative Republic of the Brazil and the Government of the Republic of Mozambique in the Biofuels Area, firmed in Brasilia on September 6, 2007, apensed by copy to this Decree, will be executed and fulfilled as entirely as it contains.

Art. 2^o They are subject to approval by the National Congress any acts that may result in revision of the said Memorandum, as well as any further adjustments that, in the terms of the art. 49, inciso I, of the Constitution, carries charges or engraved commitments to the national heritage.

Art. 3^o This Decree goes into effect on the date of its publication.

Brasilia, July 14, 2009 ; 188th of the Independence and 121 of the Republic.

LUIZ INACIO LULA DA SILVA

Ruy Nunes Pinto Nogueira

MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL

AND THE GOVERNMENT OF THE REPUBLIC OF MOZAMBIQUE IN THE AREA OF BIOFUELS

The Government of the Federative Republic of Brazil

and

The Government of the Republic of Mozambique

(henceforth named?Parts?),

Considering the General Agreement for cooperation between the Government of the Federative Republic of Brazil and the Government of the Republic of Mozambique, September 15, 1981 ;

Reiterating the interest in boosting and deepening energy cooperation between the Parties, contributing to strengthen bilateral economic and political ties ;

Recognizing the contribution that biofuels can bring to social development and economic of their peoples and countries, by encouraging the diversification of their energy matrices, increasing the security and quality of energy supply ;

In view of the Parties' interest in narrowing economic relations and promoting partnerships for the feasible production of biofuels in Mozambique,

Arrived to the following understanding:

Article I

General Goal

The Parties agree to establish and implement an Action Plan on biofuels, whose central goal will be to foster cooperation and technical exchange in that area, with the participation of government officials and experts as well as representatives from the private and academic sectors.

Article II

Specific Objectives

The Action Plan should be drawn up within not more than one hundred and eighty (180) days of entry into vigor of this Memorandum, and will include initiatives for:

a) to promote exchange of technical-business missions, on dates of mutual convenience, whose main goals will be:

i. from the Brazilian side, know the Mozambican conditions for the production of biofuels and carry out withdrawals on areas where Brazil could provide cooperation.

ii. on the Mozambican side, know the Brazilian experience with regard to the production chains and the marketing of ethanol and biodiesel, including aspects of regulation and supervision ;

b) support the development of production and use of biofuels in Mozambique, considering, among others, the following areas:

i. institutional strengthening ;

ii. regulatory milestone for the sector ;

iii. agricultural zoning and regional development ;

iv. productive arrangements and business models for the development of production and consumption of biofuels ;

v. exchange of experience on the role of family farming in the production of biofuels ;

vi. logistics and distribution

c) elaborate, jointly, technical cooperation projects to empower human resources of the sector of biofuels in Mozambique ;

d) identify partnerships with third countries and international bodies interested in supporting specific projects for the deployment of the biofuel development programme in Mozambique.

Article III

Working Group

1.As Parties shall constitute, by common agreement, a Working Group which will draw up the Action Plan to which refers to Article II of this Memorandum. Each Party will indicate the members of the Working Group, which will be able to include:

i. by the Federative Republic of Brazil, representatives of the Ministry of Mines and Energy, jointly with the Ministry of Foreign Affairs, the Ministry of Agriculture, Livestock and Supply, the Ministry of Agrarian Development, the Ministry of Agriculture of Development, Industry and Exterior Trade and the Ministry of Science and Technology ;

ii. by the Republic of Mozambique, representatives of the Ministry of Energy jointly with the Ministry of Foreign Affairs and Cooperation, the Ministry of Agriculture, the Ministry of Science and Technology, the Ministry of Planification and Development and the Ministry of Industry and Commerce

2.As Parties may indicate other public or private entities to implement the activities predicted in this Memorandum.

Article IV

Intellectual Property and Confidentiality

1.Em compliance with their respective national laws and international agreements in force in both countries, the Parties shall adopt appropriate measures to protect the intellectual property rights resulting from the implementation of this Memorandum of Understanding.

2.As conditions for the acquisition, maintenance and commercial exploitation of property rights intellectual on possible products and / or processes obtained under the present Memorandum of Understanding will be defined in specific projects, contracts or work programs.

3.Os-specific projects, contracts or work programs will also determine the conditions of confidentiality of information whose disclosure and / or disclosure may endanger the acquisition, maintenance and commercial exploitation of intellectual property rights on possible products and / or processes obtained under the present Memorandum of Understanding.

4.Os projects, contracts or work programs will establish, if couber, the rules and procedures concernable to the solution of controversies in intellectual property under the present Memorandum of Understanding.

Article V

Implementation Costs

1.As Parties shall assume the respective expenses associated with the implementation of this Memorandum, in compliance with the budgetary provisions and relevant laws of each Party, unless mutual agreement to the contrary.

2.Também may be used resources capped by the establishment of partnerships with third parties international countries and bodies.

3.As Parties shall establish, in writing, the terms and conditions of financing of each activity in particular before its inception, subjecting itself to applicable national legislation and regulations and vigour.

Article VI

Input in Vigor, Duration, Emendas,

Denunciation and Solution of Controversy

1.O This Memorandum of Understanding will enter into force when both Parties have been notified, by diplomatic via, on compliance with their respective internal legal procedures. This Memorandum shall remain in force for two (2) years, and may be renewed for equal periods, upon written notification between the Parties, up to thirty (30) days prior to the expiration date. The Memorandum may be amended by agreement between the Parties.

2.Qualquer of the Parties may denounce this Memorandum of Understanding at any time by notification written to the other Party, by diplomatic route, with the minimum of three (3) months in advance. The termination of the Memorandum duration will not affect the ongoing activities.

3.Qualquer controversy related to interpretation or implementation of this Memorandum of Understanding will be resolved amicably, by diplomatic way.

Done in Brasília, on September 6, 2007, in two original copies, in Portuguese language, being both equally authentic texts.

BY THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL:

AMORIM CELSO

Minister of State of the

External relations

NELSON HUBNER

Minister, Interim, of Mines

and Power

BY THE GOVERNMENT OF THE REPUBLIC OF MOZAMBIQUE:

ALCINDA ANTÓNIO DE ABREU

Minister of Business

Foreign and Cooperation

SALVADOR NAMBURETE

Minister of Energy