R E S O L U UNK UNK No. 63, DE 2010

Authorizes the hiring of operation of external credit, with collateral of the Federative Republic of Brazil, worth up to ¥ 19,169,000,000.00 (nineteen billion, one hundred and sixty-nine million yen), between the São Paulo Sanitation Company (Sabesp) and the Cooperation Agency International Japan (Jica), intended to finance, partially, the "Environmental Recovery Program of the Metropolitan Region of the Low Santista-Phase II (Clean wave II)".

The Federal Senate resolves:

Art. 1º It is the Union authorized to grant collateral in the external credit operation, worth up to ¥ 19,169,000,000.00 (nineteen billion, one hundred and sixty-nine million yen), to be concluded between the Basic Sanitation Company of the State of São Paulo (Sabesp) and the Japan International Cooperation Agency (Jica).

Single Paragraph. The resources of this credit operation are intended to finance, partially, the "Environmental Recovery Program of the Metropolitan Region of the Low Santista-Phase II (Clean Wave II)".

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

I-dever: Basic Sanitation Company of the State of São Paulo (Sabesp) ;

II-creditor: Japan International Cooperation Agency (Jica) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to ¥ 19,169,000,000.00 (nineteen billion, one hundred and sixty-nine million yen) ;

V-time disbursement: up to March 2012 ;

VI-amortization: in 37 (thirty-seven) semi-annual and consecutive installments, as far as possible, of equal values, to be paid always on August 20 and on February 20 ; the first instalment will be paid 7 (seven) years after the date of signing of the contract BZ-P15 (Environmental Recovery Program of the Metropolitan Region Holder-Phase I ("Clean Wave I") ;

VII-interest: two interest rates will be charged: i) 1.8% a.a. (an integer and eight tenths per cent per year) on the amount allocated to the category "Esgoto Treatment Stations" and ii) 2.5% a.a. (two integers and five tenths per cent a year) on the amount earmarked for the category "Esgoto Networks" ; during the period of disbursements, the half-yearly payments will be made on September 20 (interest incurred between February 20 and 19 of August of the year in question) and on March 20 (interest incurred between August 20 and February 19 of the previous year) ; closed the period of disbursements, the half-yearly payments will be made on August 20 (interest incurred between February 20 and August 19 of the current year) and on February 20 (interest incurred between August 20 of the previous year and February 19 of the current year) ; however, when the final date of the disbursements (closing date) is not less than 3 (three) months of the day September 20 or March 20, the first payment of interest after the closing date will be effected on September 20 or on March 20, whatever occurs first ;

VIII-interest arrears: 2% a.a. (two per cent a year) above the interest due ;

IX-commission on disbursements: 0.1% a.a. (one tenth per cent a year) on each disbursement.

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

Art. 3º The exercise of the authorization referred to in the caput of the art. 1º is conditioned to which:

I-the Basic Sanitation Company of the State of São Paulo (Sabesp) celebrates contract with the Union for concession of contragarantias through the indication and linking of their own revenues ;

II-the State of São Paulo, duly authorized by this Resolution, conclude contract with the Union for the concession of contragarantias, in the form of binding of the recipes for which they treat the arts. 155, 157 and 159, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may apply for the transfers of resources required to cover the commitments honoured directly from the centralizing accounts of the state collection or federal transfers, in the terms of art. 167, § 4º, of the Federal Constitution ;

III-in advance of the signing of the contract, the Ministry of Finance checks and attests to the adimplance of the Basic Sanitation Company of the State of São Paulo as to the payments and accounts of accounts of which it treats the art. 10 of Resolution No. 48, 2007.

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

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

Federal Senate, on December 22, 2010.

Senator JOSÉ SARNEY

President of the Federal Senate