Key Benefits:
DECREE NO. 4,119, OF February 7, 2002.
Promults the Agreement, by exchange of Notes, by which the Governments of the Federative Republic of Brazil and Japan formalize the future grant of financing of Y 46.286.000.000.00 (forty-six billion, two hundred and eighty-six million yen) on the part of the "Japan Bank for International Cooperation" (JBIC) for implementation of five development projects in Brazil, celebrated in Brasilia, on July 14, 2000.
THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on art. 84, inciso VIII, of the Constitution,
Considering that the Government of the Federative Republic of Brazil and the Government of Japan concluded, in Brasilia, on July 14, 2000, an Agreement, by Exchange of Notes, by which they formalize the future funding grant of Y 46,286,000,000.00 (forty-six billion, two hundred and eighty-six million yen) on the part of the "Japan Bank for International Cooperation" (JBIC) for implementation of five development projects in Brazil;
Considering that the National Congress has approved this Agreement through Legislative Decree no 441, of November 8, 200l;
Whereas the Agreement entered into force on November 27 of 2001;
DECRETA:
Art. 1o The Agreement, by Exchange of Notes, by which the Governments of the Federative Republic of Brazil and Japan formalize the future grant of funding of Y 46,286,000,000.00 (forty-six billion, two hundred and eighty-six million yen) on the part of the "Japan Bank for International Cooperation" (JBIC) for implementation of five development projects in Brazil, celebrated in Brasilia, on July 14, 2000, apensed by copy to the present Decree, it will be executed and fulfilled as entirely as it contains.
Art. 2o Are subject to the approval of the National Congress any acts of which may result in alteration or review of the said Agreement, as well as any further adjustments which, under the art. 49, inciso I, of the Federal Constitution, carries gravy charges or commitments to the national heritage.
Art. 3o This Decree takes effect on the date of its publication.
Brasilia, 7 of February 2002; 181o of Independence and 114o of the Republic.
FERNANDO HENRIQUE CARDOSO
Celso Lafer
Brasilia, July 14, 2000.
Honour Ambassador,
I have the honour to acknowledge receipt of the Note of Your Excellency of this date, the content of which is as follows:
" Excellence,
I have the honour to confirm the following recently reached understanding between the representatives of the Government of Japan and the Government of the Federative Republic of Brazil with respect to loans japanese to be granted with vistas to promote the development efforts of the Federative Republic of Brazil and to strengthen the friendly relations between the two countries.
I
1. A loan in Japanese yen, up to the amount of ¥ 40,163,000,000 (forty billion, one hundred and sixty three million yen) (henceforth called "the Loan I") will be granted to the Government of the Federative Republic of Brazil and to the Municipality of Rio of January (henceforth called "the Brazilian Mutuaries") by the Bank of Japan for International Cooperation (henceforth named "the Bank"), in accordance with relevant Japanese laws and regulations, for the implementation of the projects and programs enumerated in the attached list (henceforth named "the List"), according to the allocation specified in the List for each project and program.
2. (1) The Loan I will be made available upon loan agreements to be firmed up between the Brazilian Mutuaries and the Bank. The terms and conditions of the Loan I, as well as the procedures for its use, shall be governed by the said loan agreements, which shall contain, inter alia, the following principles:
(a) (i) The term of amortization will be 18 (eighteen) years, after grace term of 7 (seven) years;
(ii) The interest rate will be 2.5% (two and a half per cent) a year;
(b) Notwithstanding the inciso (a) above, when a party of the Loan I will be made available to cover payments from the project and the anti-pollution program mentioned in the numerals 1 and 2 of the List, and for project and program consultants mentioned in the numerals 3 and 4 of the List, the interest rate of the mentioned part will then be 1.8% (one and eight tenths per cent) per year, and
(c) The disbursement period will be 5 (five) years for the programmes mentioned in the numerals 1 and 3 of the List, from 6 (six) years for the project mentioned in the numeral 2 of the List and 9 (nine) years for the project mentioned in numeral 4 of the List, as of the date on which the relevant loan agreements enter into force.
(2) Each of the loan agreements mentioned in the inciso (1) above will be firmed after the Bank considers itself satisfied with respect to the feasibility, including as to the environmental considerations, of the projects and programs to which these loan agreements are referred.
3. The amortization of the principal of the loan granted to the Municipality of Rio de Janeiro and the payment of the interest that on it incidirem, as well as the payment mentioned in paragraph 2 (a) of Part III, shall have the guarantee of the Government of the Federative Republic from Brazil.
To His Excellency the Lord
Katsunari Suzuki
Ambassador Extraordinary and Plenipotentiary
of Japan
4. (1) The Loan I will be available to cover payments to be effected by the Brazilian executive agencies to the suppliers, companies and / or consultants of eligible source countries, in accordance with the contracts that come to be signed between them for the purchase of products and / or services necessary for the implementation of the projects and programs listed on the List, provided that such purchases are effected in the eligible source countries and refer to products manufactured by these countries and / or services by them provided.
(2) The determination of the eligible source countries, mentioned in the inciso (1) above, will be the object of agreement between the authorities concerned by the two Governments.
(3) Part of the Loan I can be used to cover cableable expenses, in local currency, that are necessary for the implementation of the projects and programs enumerated in the List.
5. The Government of the Federative Republic of Brazil will ensure that the acquisition of the products and / or services mentioned in the inciso (1) of paragraph 4 will comply with the Bank's procurement standards, which establish, inter alia, the bidding procedures international to be followed, except when such procedures are judged to be inapplicable or inappropriate.
6. With respect to the shipping and marine insurance of products purchased pursuant to the Loan I, the two Governments shall avoid, in accordance with the relevant laws and regulations of their respective countries, the imposition of any restrictions that may creating obstacles to the free and fair competition between the shipping and maritime insurance companies of the two countries.
7. The Japanese ages whose services may be required in the Federative Republic of Brazil in the context of the supply of products and / or services mentioned in the inciso (1) of paragraph 4 above shall have, in accordance with the laws and regulations Brazilians pertinent about foreigners, all the facilities necessary to their entry and to their stay in the Federative Republic of Brazil, for the performance of their activities.
II
1. One in Japanese yen, up to the amount of ¥ 6,123,000,000 (six billion, one hundred and twenty three million yen) (henceforth named "the Loan II") will be granted, in accordance with the relevant laws and regulations of Japan, to the Bank of Northeast S.A. (henceforth called the "the Mutuary") by the Bank for the implementation of the Caatinga Environmental Conservation Project (henceforth named "the Project").
2. (1) Loan II will become available upon loan agreement to be firmed up between the Mutuary and the Bank. The terms and conditions of the Loan II, as well as the procedures for its use, shall be governed by the aforementioned loan agreement, which shall contain, inter alia, the following principles:
(a) The term of amortization will be 18 (eighteen) years, after a grace period of 7 (seven) years;
(b) The interest rate will be 1.8% (one and eight tenths per cent) per year;
(c) The disbursement period will be 4 (four) years, as of the date on which their respective loan agreement is entered into force.
(2) The loan agreement mentioned in the inciso (1) above will be firmed after the Bank considers itself satisfied with respect to the feasibility, including as to the environmental considerations, of the project referred to in the loan agreement.
3. The amortization of the principal of the Loan II and the payment of the interest that on it incidirem, as well as the payment mentioned in paragraph 2 (b) of Part III, shall have the guarantee of the Government of the Federative Republic of Brazil.
4. The Loan II will be available to cover credits to be granted by the Mutuary to other borrowers taking loans under the Project.
5. (1) A portion of the Loan II will be used to cover the payments to be effected by the Mutuary to consultants from eligible countries under the contracts that may have been firmed up between them for the hiring of necessary services to the implementation of the Project, always and when such hires are made in countries-source eligible for providing services of that nature.
(2) The scope of the eligible source countries mentioned in the inciso (1) above will be agreed between the relevant authorities of the two Governments.
6. The Government of the Federative Republic of Brazil will ensure that the contracting of the services mentioned in the inciso (1) of paragraph 5 above will comply with the Bank's service contracting standards, which establish, inter alia, the bidding procedures international to be followed, except when such procedures are judged to be inapplicable or inappropriate.
7. Japanese citizens whose services may come to be required in the Federative Republic of Brazil, in the context of providing the services mentioned in the inciso (1) of paragraph 5 above will have, in accordance with the Brazilian laws and regulations pertinent on foreigners, the facilities necessary to their entry and to their stay in the Federative Republic of Brazil, for the performance of their activities.
III
1. The respective disbursement periods mentioned in the inciso (1) (c) of paragraph 2 of Part I and the inciso (1) (c) of paragraph 2 of Part II may be extended with the concordance of the competent authorities of the two countries.
2. The Government of the Federative Republic of Brazil will adopt all necessary measures to ensure that:
(a) Brazilian Mutuaries will assume the obligation of payment of all taxes and tax levies imposed in the Republic Federative of Brazil that may focus on the Loan I, in a direct or indirect way, as well as the interest arising;
(b) The Mutuary will assume the obligation to pay all taxes and tax levies imposed in the Federative Republic of Brazil that may focus on the Loan II, either in a direct or indirect way, as well as the interest arising.
3. The Government of the Federative Republic of Brazil will adopt all the necessary measures to ensure that:
(a) Loan I and Loan II are used appropriately and exclusively for the projects and programs enumerated in the List and the Project respectively;
(b) Nstalations built with the features of the Loan I are retained and used appropriate and effectively for the purposes stated in this understanding.
4. The Government of the Federative Republic of Brazil, when it is requested, will provide the Government of Japan with the information and data relating to the evolution of the implementation of the projects and programs listed in the List and the Project respectively.
5. The two Governments will hold bilateral consultations when any question arises as to the understandings already cited or to them regarding.
I also have the honour to propose that this Note and the Note of Response of Your Excellency, confirming the above on behalf of the Government of the Federative Republic of Brazil, shall constitute an Agreement between the two Governments, which shall enter into force on the date of receipt, by the Government of Japan, of the written notification of the Government of the Federative Republic of Brazil informing you of the internal formalities required for the entry into force of the said Agreement.
I take the opportunity to present Your Excellency the protests of my more high regard.
Katsunari Suzuki
Ambassador Extraordinary and Plenipotentiary of Japan at
Federative Republic of Brazil
List
(Maximum value in millions of yen)
1. São Luís 6,886 Island Environmental Sanitation Program
(São Luís Sanitation Improvement Program)
2. Project of Modernization of the Sanitation Sector - PMSS II 11,320
(Urban Sanitation Improvement Project? (PMSS II)
3. Water Resource Development Program of the
Semi-Arid Brasileiro - PROAGUA 3,595
(Northeast Water Resources Development Program - PROAGUA)
4. Retired Environmental Recovery Program of
Jacarepaguá 18,362
(Jacarepaguá Basin Environmental Project)
total 40,163 "
I have still the honour to confirm, on behalf of the Government of the Federative Republic of Brazil, that the above is also the understanding of the Government of the Federative Republic of Brazil, and of agree that the Note of Your Excellency and this Response Note constitute an Agreement between the two Governments, which shall enter into force on the date of receipt, by the Government of Japan, of the written notification, on the part of the Government of the Federative Republic of Brazil, of which the necessary internal formalities have been fulfilled.
I take advantage of the opportunity to present Your Excellency the protests of my highest regard.
Luiz Felipe Lampreia
Minister of State for Foreign Affairs of
Republic Federative of Brazil
