United States Senate Resolution No. 12, Of 23 August 2001

Original Language Title: Resolução do Senado Federal nº 12, de 23 de agosto de 2001

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I get to know that the Federal Senate has approved, and I, Edison Lobao, President, Interino, in the terms of art. 48, item 28, of the Internal Rules, promulgated the following

RESOLUTION N ° 12, OF 2001

Authorizes the Federative Republic of Brazil to grant guarantee in credit operation external to be carried out between the Brazilian Carrier Pipeline Bolivia-Brazil S.A. -TBG and the International Bank for Reconstruction and Development-Bird, at the equivalent value of up to US$ 180,000,000.00 (one hundred and eighty million U.S. dollars) of principal, upon launch of securities in the international market of capitals, targeting the resources for the partial financing of the Project of the Bolivia-Brazil Gas pipeline, and gives other arrangements.

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized, pursuant to Resolution No. 96, of 1989, reinstated by Resolution No. 17, of 1992, both of the Senate Federal, to be granted guarantee in external credit operation to be carried out among the Brazilian Carrier Pipeline Bolivia-Brazil S.A. -TBG, and the International Bank for Reconstruction and Development-Bird, at the equivalent value of up to US$ 180,000,000.00 (one hundred and eighty million U.S. dollars), of principal, upon launch of securities in the international market of capitals, targeting the resources for the partial financing of the Project of the Bolivia-Brazil Gas pipeline.

Art. 2º It is granted the temporary elevation of the borrowing limits of the Brazilian Carrier Pipeline Bolivia-Brazil S.A. -TBG, provided for in the art. 7º of Resolution No. 96, 1989, of the Federal Senate, in order that the said company may hire the credit operation of which it treats art. 1º of this Resolution.

Art. 3º The credit operation to which the art relates. 1º of this Resolution has the following characteristics:

I-borrower: Brazilian Carrier Pipeline Bolivia-Brazil S.A. -TBG;

II-guarantor: International Bank for Reconstruction and Development-Bird;

III-contragarantipain: Federative Republic of Brazil;

IV-form of placement: private Traditional in the United States of America;

V-value: amounts to up to US$ 180,000,000.00 (one hundred and eighty million U.S. dollars), of principal;

VI-purpose: to finance, partially, the Project of the Bolivia Pipeline-Brasil;

VII-term: eighteen years;

VIII-coupon: quantitative of base points above the thirty-year US Treasury Notes to be fixed when the issuance and placement of the securities of the Brazilian Carrier Pipeline Bolivia-Brazil S.A. -TBG on the market;

IX-amortization: in three equal annual instalments, as of the end of the sixteenth year;

X-issue price: to be established on the date of the launch, considering the coupon mentioned;

XI-allotment commission: 0.42% (forty-two hundredth percent) flat on the face value of the issue;

XII-general expenses: limited to US$ 125,000.00 percent (one hundred and twenty-five thousand U.S. dollars);

XIII-guarantee commission: due by the Brazilian Carrier Gas Pipeline Bolivia-Brazil-TBG, to be defined, when from the issuance of the bonds. (Added by Resolution # 49, 2002)

§ 1º The guarantee to be granted by the International Bank for Reconstruction and Development-Bird to the Brazilian Carrier pipeline Bolivia-Brazil S.A. -TBG, applies to the entire value of the principal and two more interest installments on a roll on basis (while the guarantee on the interest installments is not executed, Bird extends its coverage to the two subsequent interest installments); the remaining installments of interest does not count on any guarantee of payment.

§ 2º The contragarantia to be granted by the Federative Republic of Brazil to the International Bank for Reconstruction and Development-Bird has reach identical to that of the guarantee granted by the Bank to the Brazilian Carrier Gas pipeline Bolivia-Brazil S.A. -TBG.

§ 3º The Brazilian Carrier Gas Pipeline Bolivia-Brazil S.A. -TBG, will grant the following countermeasures to the Federative Republic of Brazil:

I-contragarantia principal: own revenue of TBG, upon automatic debit mechanism in accounts;

II- contragarantia subsidiary: solidary guarantee of Brazilian Petroleum S.A. -Petrobrás, upon contractual clause, committing to this company to transfer to the National Treasury, on demand and at any time, the resources regarding the TCO (Transport Capacity Option), during the execution phase, or the resources referring to the gas transport contracts signed together with TBG.

Art. 4º The contracting of the external credit operation to which the art relates. 1º of this Resolution is expected to take effect within the maximum of five hundred and forty days, counted from the date of its publication.

Art. 5º This Resolution comes into effect on the date of its publication.

Federal Senate, on August 23, 2001

SENATOR EDISON LOBÃO

President of the Federal Senate,

Interino

Attachment (s)