I do know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

RESOLUTION NO. 6, OF 2006

Authorizes the State of São Paulo to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank-BID, worth up to US$ 9,000,000.00 (nine million of U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation, with guarantee of the Union, with the Inter-American Development Bank-BID, worth up to US$ 9,000,000.00 (nine million U.S. dollars).

Paragraph single. The features of this external credit operation are intended for the partial financing of the Ecotourism Development Project in the São Paulo State of the Atlantic Mata Region.

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

I-debtor: State of São Paulo;

II-creditor: Inter-American Development Bank-BID;

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 9,000,000.00 (nine million U.S. dollars);

V-deadline of disbursement: up to 4 (four) years;

VI-amortization: semestral and consecutive plots, of values as much as possible equals, winning semester on days 15 of the months of March and September, as of March 15, 2010, and the last one no later than 25 (twenty five) years after the effective date;

VII-interest: required semiannually and paid on the days March 15 and September 15 of each year, calculated on the periodic debtor balance of the loan, at an annual rate for each quarter composed by:

a) interest rate?Libor? quarterly to U.S. dollar;

b) more (or less) a related cost margin to the loans that finance the loans modality?Libor?;

c) plus the net value of any cost / profit generated by operations to mitigate the fluctuations of the?Libor?;

d) plus the margin for loans from the ordinary capital;

VIII-credit commission: required semester on the same interest payment dates and calculated on the basis of the rate up to 0.75% a.a. (seventy-five hundrths per cent a year) on the undisbursed balance of the loan, coming into force 60 (sixty) days after the signing of the Contract; the borrower, however, at first will pay a 0.25% a.a. credit commission. (twenty-five hundrths per cent per year), and this percentage may be modified, semiannually by the BID, without which, under no circumstances, may exceed the target percentage of 0.75% a.a. (seventy-five hunduths per cent per year);

IX-resources for inspection and supervision general: during the disbursement period, no funding resources will be set aside for the fulfilment of general inspection and supervision expenses, unless the BID establishes otherwise during such a period, but, to meet the said expenses in a given semester, they will not be able to target resources greater than 1% (one percent) of the funding, divided by the number of semesters understood in the original disbursement term.

Paragraph single. The payment dates of the principal, the financial charges and the expected disbursements, may be changed depending on the date of signing of the loan Agreement.

Art. 3º It is the Union authorized to grant guarantee to the State of São Paulo in the external credit operation referred to in this Resolution.

Single paragraph. The intended permit in the caput is conditioned to:

I-that the State of São Paulo celebrates contract with the Union for the granting of countermeasures, in the form of binding of the revenue allocation quotas provided for in the arts. 157 and 159, complemented by own revenue, in the terms of art. 167, § 4º, all of the Federal Constitution, and the Federal Government may withhold the necessary resources for coverage of the honorable commitments, directly from the centralizing accounts of the state's fundraising;

II-that is verified the fulfillment by the State of São Paulo from the conditions of the first disbursements.

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

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

Federal Senate, on January 25, 2006.

Senator Renan Calheiros

President of the Federal Senate