I get to know that the Federal Senate has approved, and I, Renan Calheiros, 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

No. 54, OF 2005

Authorizes the Union to hire external credit operation, no total value of US$ 33,000,000.00 (thirty-three million U.S. dollars) between the Federative Republic of Brazil and the Inter-American Development Bank-BID, whose resources are intended for the Agrofood Technological Innovation Programme and Agroindustrial for the Future-Agrofuture, the execution of which will fit the Brazilian Company of Agrolivestock Research-Embrapa.

The Federal Senate resolves:

Art. 1º It is the Union authorized to hire external credit operation, at the total value of US$ 33,000,000.00 (thirty-three million U.S. dollars), between the Federative Republic of Brazil and the Inter-American Development Bank-BID.

Para. single. The advent resources of the operation referred to in the caput are intended for the Agrofood and Agroindustrial Technological Innovation Programme for the Future-Agrofuture, the implementation of which will fit the Brazilian Company of Agrolivestock Research-Embrapa.

Art. 2º The credit operation referred to in the art. 1º of this Resolution contains the following basic characteristics and conditions:

I-debtor: Federative Republic of Brazil;

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

III-executor: Brazilian Company of Agrolivestock Research-Embrapa;

IV-value of the loan: US$ 33,000,000.00 (thirty-three million U.S. dollars);

V-value of the counterpart: US$ 27,000,000.00 (twenty seven million dollars Americans);

VI-modality: Unimonetary Mechanism Loan with Interest Rate adjustable;

VII-term of disbursement: 5 (five) years;

VIII-amortization: semestral and consecutive plots, of values as much as possible equals, winning over first 6 (six) months from the date initially scheduled for the final disbursement and the last no later than 20 (twenty) years after signing of the Contract, with payment dates on June 15 and December 15 of each year;

IX-interest: required semester, calculated based on the cost of capturing the Bank for qualified unimonetary loans, ascertained during the 6 (six) months prior to the respective maturities, plus a reasonable margin, expressed in terms of an annual percentage, for coverage of administrative expenses;

X-credit commission: required semester on the same dates of the payment of interest and calculated with basis at the rate of 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, at first, will pay a 0.25% a.a. Credit Commission. (twenty five hundrths per cent per cent per year), and this percentage may be modified semi-annually by the Bank, without which, under no circumstances, it may exceed the target percentage of 0.75% a.a. (seventy-five hunduths per cent per year);

XI-resources for inspection and supervision general: during the period of disbursements, no funding resources will be set aside for the fulfillment of general inspection and supervision expenses, unless the Bank establishes otherwise during such a period, and in no case to meet the said expenditures in a given semester, may be earmarked for resources greater than 1% (one per cent) of the financing, divided by the number of semesters understood in the original disbursement term.

Paragraph single. The dates of disbursements, payments from the principal and the financial burden can be changed depending on the date of signing of the Contract.

Art. 3º The realization of the contracting of the credit operation referred to in this Resolution becomes conditional on the prior substantiation, upon manifestation of the BID, of the compliance with the constant conditionalities of Clause 3.02 of the minuta of the Loan Agreement.

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

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

Federal Senate, on August 11, 2005

Senator Renan Calheiros

President of the Federal Senate