PROVISIONAL MEASURE NO. 165, OF February 11, 2004.

Disposes on the management contract between the National Agency of Waters and the delegated entities of the functions of Water Agency, in the terms of the art. 51 of Law No. 9,433 of January 8, 1997 and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that gives him the art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

Art. 1º For the purposes of art. 51 of Law No. 9,433 of January 8, 1997, the National Agency of Águas-ANA will sign management contract with the delegated entity for the exercise of competence functions of Water Agencies, with views to the management of water resources in the respective or respective river basins.

Art. 2º The management contract, drawn up in accordance with the rules set out in this Interim Measure, shall discriminate against assignments, responsibilities and obligations of the signatory parts.

Single paragraph. The term of contract shall be submitted, after manifestation of the respective or respective River Basin Committees, to the Minister of State for the Environment, for his approval.

Art. 3º In the elaboration and implementation of the management contract, the principles of legality, impersonation, morality, publicity, economicity and efficiency, as well as the following are to be observed precepts:

I-specification of the proposed work program, the stipulation of the targets to be achieved and the respective deadlines for implementation, as well as express prediction of the objective evaluation criteria to be used, upon performance indicators;

II-the stipulation of limits and criteria for expenditure on remuneration and advantages of any nature to be perceived by the directors and employees of the entities delegataries, in the exercise of their duties;

III-the obligation of the delegated entity to present to the ANA, the Water Resources Office of the Ministry of the Environment and the respective or respective Committees of Basin Hydrographic, at the end of each financial year, report on the execution of the management contract, containing specific comparative of the proposed targets with the results achieved, accompanied by accountability of the spending and revenue effectively performed, regardless of the predictions mentioned in the inciso II;

IV-the publication, in the Official Journal of the Union, of excerpt from the instrument firming and demonstrative of its physical-financial execution;

V-the term of the contract and the conditions for its suspension, termination and renewal;

VI-the impossibility of delegation of the competence foreseen in the inciso III of the art. 44 of Law No. 9,433, of 1997.

Single paragraph. ANA will define the remaining requirements to be included in the management contracts of which it is a signatory.

Art. 4º The ANA will constitute the evaluation commission that will periodically review the results achieved with the implementation of the management contract and shall forward conclusive report on the assessment proceeded, containing specific comparative of the proposed targets with the results achieved, accompanied by the accountability corresponding to the financial year financial, to the Water Resources Office of the Ministry of the Environment and to the respective or respective Basin Committees.

Single paragraph. The committee that it treats the caput of this article will be made up of experts from notorious capacity and appropriate qualification, members of the ANA cadres, of the Water Resources Office of the Ministry of Environment and other bodies and entities of the Federal Government.

Art. 5º The ANA, by taking notice of any wrongdoing or illegality in the use of resources or goods of public origin by the delegated entity, of it will give science to the Union Court of Auditors, under penalty of sympathetic responsibility of its leaders.

Art. 6º Without prejudice to the extent to which the art relates. 5º, when so requiring the gravity of the facts or the public interest, if there are substantiated evidence of malversation of goods or resources of public origin, ANA, without prejudice to representation with the Federal Public Prosecutor's Office, will adopt arrangements with views to the decrement, the competent judgement, the unavailability of the entity's assets and the hijacking of the assets of its leaders, as well as its servers or third parties, which may have unlawfully enriched or caused damage to the public patrimony.

Single paragraph. Until the termination of the action, ANA will remain as the depositary and manager of the hijacked or unavailable goods and values and will ensure the continuity of the activities of the delegated entity, as the executive secretariat of the respective or respective Committees of Catchment Area.

Art. 7º To the delegated entities could be earmarked for budget resources and the use of public goods necessary for the fulfilment of the management contract.

§ 1º They are assured to the delegated entity the ANA transfers, arising from the revenue from collection by the uses of water resources in Union-area rivers, of which they treat the incisies I, II, III and V of the art caput. 12 of Law No. 9,433, 1997, raised in the respective or respective river basins.

§ 2º The goods of which this article deals will be intended for delegated entities, dispensed bidding, upon permission of use, depending on the express clause of the management contract.

Art. 8º The ANA will be able to assign server of its personnel framework to assist the implementation of the activities of the delegated entity.

§ 1º The designation will have the maximum term of six months, admitted an extension.

§ 2º The designated server will make jus at the remuneration at the origin and cost aid for displacement and housing benefits, pursuant to the current legislation.

Art. 9º The ANA should promote the termination of the management contract, if found to be the disservice of its provisions.

§ 1º The termination will be preceded by administrative process, secured the right of broad defence, responding to the leaders of the entity, individually and severally, for the damage or damage arising from their action or omission.

§ 2º The termination will impose reversal of the goods whose uses have been permitted and of the values delivered to the use of the delegated entity, without prejudice to other sanctions that are fully fit.

Art. 10. ANA will edit, within the maximum of ninety days, counted from the date of publication of this Provisional Measure, own standard containing the procedures that the delegated entity will adopt for the selection and recruitment of personnel as well as for purchases and contracting of works and services with employment of public resources.

Single paragraph. The norm that it treats the caput will observe the principles set out in the art. 37 of the Constitution.

Art. 11. This Interim Measure shall come into force on the date of its publication.

Brasilia, February 11, 2004; 183º of Independence and 116º of the Republic.

LUIZ INÁCIO LULA DA SILVA

Marina Silva

José Dirceu de Oliveira e Silva