I get to know that the Federal Senate has approved, and I, Garibaldi Alves Filho, President, in the terms of the art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

R E S O L U Ç Ã ° 11, DE 2008

Authorizes the Municipality of Campo Gran-MS, to hire external credit operation, with Union warranty, to the Inter-American Development Bank (BID), worth up to US$ 19,382,000.00 (nineteen million and three hundred and eighty-two thousand U.S. dollars), whose resources are intended for the partial funding of?Integrated Development and Urban Qualification program of Campo Grande?, in the framework of the Pro-cities.

The Federal Senate resolves:

Art. 1º It is the Municipality of Campo Grande-MS authorized to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank (BID), in the value of up to US$ 19,382,000.00 (nineteen million and three hundred and eighty-two thousand U.S. dollars).

Paragraph single. The advinds features of the external credit operation referred to in the caput are intended for the partial financing of the ?Integrated Development and Urban Qualification program of Campo Grande?, within the framework of the Pro-cities.

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

I? creditor: Inter-American Development Bank (BID);

II-value of the loan: up to US$ 19,382,000.00 (nineteen million and three hundred and eighty and two thousand U.S. dollars);

III-conversion options: will the borrower be able to exercise?Conversion option of the Currency Disbursements? and / or a?Currency Conversion option of the Debtor Rooms?, being charged, to each conversion, a commission equivalent to twenty-five basis points (annualized) over the converted amount;

IV? value of the municipal counterpart: US$ 19,382,000.00 (nineteen million and three hundred and eighty-two thousand U.S. dollars);

V-disbursement: deadline of 48 (forty eight) months, counted from the effective date of the Contract;

VI? deficiency: 60 (sixty) months;

VII-amortization of the debtor balance in dollars: by up to 41 (forty and one) semestral plots, successive and, where possible, equal, paid always on the 15º (fifteenth) day of the months of April and October;

VIII-amortization of the debtor balance in reais: will it be fixed for each disbursement converted to real, according to the conditions offered by the BID na?Letter of Quote Indicative of the Conversion of Disbursement to the Mutuary? and da?Letter of Notification of the Disbursement Conversion?;

IX-interest applicable to balances debtors in dollars: in the loans of the Unimonetary Engine, the borrower will be able to opt for the Libor-based Interest Rate or Adjustable Interest Rate:

a) in the case of the Libor-based interest rate, the interest will be required semiannually, calculated on the debtor balance of the loan, at an annual rate for each quarter composed by: interest rate Libor quarterly to U.S. dollar, more (or less) a cost margin related to the captions that finance the Libor modality loans, plus the net value of any cost / profit generated by operations to mitigate the fluctuations of Libor and more the current margin (spread) for loans from the ordinary capital;

b) in the case of Unimonetary Engine Loans with Adjustable Interest Rate, the interest will focus on the daily debtor balances of the loan at an annual rate for each semester that will be determined depending on the Cost of the Qualified Loans with a Adjustable Interest Rate in the Financing Single Currency, plus the prevailing margin (spread) for loan of the ordinary capital, expressed in terms of a annual percentage;

X? interest applicable to debtor balances in reais: in the case of currency conversion, the BID will indicate via the Notification Letters, the Base Interest Rate;

a) the Base Interest Rate means the equivalent interest rate in the BRL market at the sum of: rate USD Libor for 3 (three) months, plus ten basis points;

b) the Base Interest Rate will be determined for each Conversion in function of the fixed rate of interest applied to an amount nominal corrected by inflation, payment schedule, date of conversion and nominal amount of each conversion;

XI-commission of credit: from up to 0.75% a.a. (seventy-five hundred percent a year), calculated on the undisbursed balance of the loan, required together with the interest, going into effect 60 (sixty) days after the signing of the Contract;

XII? expenses with general inspection and supervision: up to 1% (one percent) of the funding, it is said to highlight that at the moment this fee is not being charged.

Art. 3º Stay the Union authorized to grant assurance to the Municipality of Campo Grande-MS in the external credit operation referred to in this Resolution.

Single paragraph. The permit provided in the caput is conditional on the Municipality, in advance of the signing of the contractual instruments, to satisfy the following demands:

I-comply with the following prerequisites for the realization of the first disbursement, including upon manifestation of the BID:

a) contracting of the 6 (six) Program management support consultants according to terms of reference beforehand agreed with the Bank; and

b) entry into force of the municipal decree establishing the participation of the individuals of the indirect administration involved in the implementation of the Program, pursuant to the terms previously agreed with the Bank;

II-formalize the respective contract of contragarantia.

Art. 4º The authorization granted by this Resolution is to be exercised within the maximum period of 540 (five hundred and forty) days, counted from its publication.

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

Federal Senate, on May 13, 2008.

Senator Garibaldi Alves Filho

President of the Federal Senate