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

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No. 18, DE 2011

Authorize Power Plants S.A. (Furnas) to hire external credit operation, with Union guarantee, with the Inter-American Development Bank (BID), in the total value of up to US$ 128,660,000.00 (one hundred and twenty-eight million, six hundred and sixty thousand dollars Americans).

The Federal Senate resolves:

Art. 1º Is Power Power Plants S.A. (Furnas) authorized to hire external credit operation, with Union guarantee, with the Inter-American Development Bank (BID), in the total value of up to US$ 128,660,000.00 (one hundred and twenty-eight million, six hundred and sixty thousand dollars Americans).

Single Paragraph. The features advected from the external credit operation referred to in the caput are intended for the partial financing of the "Modernization Project of the Furnas and Luiz Carlos Barreto de Carvalho".

Art. 2º The credit operation referred to in art. 1º should be carried out under the following conditions:

I-dever: Furnas Electric S.A. Electric (Furnas) ;

II-credor: Inter-American Development Bank (BID) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 128,660,000.00 (one hundred and twenty-eight million, seishundred and sixty thousand dollars Americans) ;

V-modality: loan of the unimonetary mechanism with interest rate based on Libor;

VI-deadline of disbursement: 3 (three) years and 6 (six) months, counted from the duration of the contract ;

VII-amortization: semiannual and consecutive plots, of values as much as possible, paid on June 15 and on December 15 of each year, winning the first on the next payment date, counted 4 (four) years of the date of signing of the contract, and the last, no later than 20 (twenty) years after that date ;

VIII-interest: required semester on the same dates of payment of amortization and calculated on the periodic debtor balance of the loan, at an annual fee for each quarter determined by the BID and made up of: a) interest rate Libor quarterly to US dollar ; b) more or less a loan-related cost margin that finance the Libor modality loans ; c) plus the margin for loans from the ordinary capital ;

IX-credit commission: initially, 0.25% a.a. (twenty-belt hundredths per cent per year). It may be established periodically by the BID, and calculated on the non-disbursed balance of the loan, required together with interest, entering into force 60 (sixty) days after the contract is signed. Under no circumstances may it exceed 0.75% a.a. (seventy and five hundredths per cent a year) ;

X-expenses with general inspection and supervision: per current policy decision, the BID will not charge amount to meet expenses with general inspection and supervision, with, as per periodic review of their policies, it will notify the borrower a value due in a given semester, which may not exceed 1% (one per cent) of the loan, divided by the number of semesters understood within the original period of disbursements ;

XI-interest rate fixation options: it is provided to the borrower, with written consent of the guarantor, exercise the interest rate conversion option applicable to the total or partial amount of the loan, of float, based on Libor, for fixed interest rate, and vice versa. Each conversion can only be performed at a minimum value equivalent to 25% (twenty-five per cent) of the loan amount or US$ 3,000,000.00 (three million U.S. dollars), whatever is greater.

Single Paragraph. The dates of payment of the principal, financial charges and planned disbursements may be changed depending on the date of signing of the loan contract.

Art. 3º It is the Union authorized to grant Furnas guarantee in the external credit operation referred to in this Resolution.

§ 1º The authorization provided in the caput is conditional on Furnas to contract with the Union for the granting of contragarantias, in the form of indication of access to the centralizing current account of their entitlement, and other guarantees in law admitted, and the Federal Government may retain the resources required for coverage of the honored commitments directly from the Furnas centralizer account.

§ 2º Previously to the signing of the contractual instruments, Furnas will prove, together with the Ministry of the Sale, the fulfilment of the conditions for the first disbursement, as stipulated in the loan agreement, and their adimplance as to the payments and accounts of accounts of which it treats the art. 10 of Resolution 48, 2007, of the Federal Senate.

Art. 4º The maximum period for the exercise of this authorisation shall be 540 (five hundred and forty) days, counted from the entry into force of this Resolution.

Art. 5º This Resolution shall enter into force on the date of its publication.

Federal Senate, on November 14, 2011

Senator JOSÉ SARNEY

President of the Federal Senate