I get to know that the Federal Senate has approved, and I, José Sarney, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

R E S O L U Ç Ã ¨

No. 15, DE 2003

Authorizes the Municipal Prefecture of Porto Alegre-RS, to hire external credit operation, with guarantee from the Federative Republic of Brazil, at the total value of up to US$ 27,500,000.00 (twenty-and Seven million and five hundred thousand U.S. dollars), from principal, to the Financial Fund for the Development of the Silver Basin (Fonplata), intended to finance, partially, the Integrated North Zone Program? Entry of Porto Alegre.

The Federal Senate resolves:

Art. 1º Is the Municipal Prefecture of Porto Alegre? RS authorized to hire external credit operation next to the Financial Fund for the Development of the Silver Basin (fonplata).

Single paragraph. Will the resources referred to in the caput be used to finance, partially, the Integrated North Zone Program? Entry of Porto Alegre.

Art. 2º Must be solved the pendants pointed out by the Attorney General of the National Farm before the signing of the contractual instruments:

I? is to be formalized and signed the respective contract of countering;

II? shall be recognized by the Fonplata as fulfilled the following conditions:

a) constitution of the Executive Unit of the Program and presentation of the terms of reference and procedures for the hiring of necessary consultants for the operation of the Executive Unit;

b) presentation of the procedures that it proposes to apply to carry out the convening, selection, adjudication and hiring of builders and suppliers according to?Policy for the Acquisition of Bens and Services by the Mutuaries of the Fonplata?;

c) presentation of the procedures it proposes to apply to carry out the convocation, selection, adjudication and contracting of consulting services for the supervision of works, in accordance with the established in art. 27 of the Special Conditions; and

d) submission of the Municipal Prefectural decree by which to expropriate the grounds necessary for the implementation of the entirety of the Program.

Art. 3º The operation of credit mentioned in the art. 1º presents the following financial characteristics:

I? intended value: US$ 27,500,000.00 (twenty-seven million and five hundred thousand U.S. dollars);

II? loan modality: single currency (U.S. dollar);

III? term of disbursement: 60 (sixty) months from the date of the Contract's effective;

IV? amortization: within the unextended term of 15 (fifteen) years from the term of the Contract, in semi-annual instalments, consecutive and, as far as possible, equal, being that the first instalment should be paid 180 (one hundred and eighty) days after the date predicted for the last disbursement;

V? interest: required semester, calculated on the basis of the semi-annual Libor for U.S. dollar, plus a spread of 2.45% a.a. (two integers and forty-five hundsths per cent per year);

VI? commission of appointment: 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed balance of the loan, which will begin to be calculated 180 percent (one hundred and eighty) days after the Contract's signature. This committee will be raised to 1% (one per cent) should there be any extension of the original disbursement deadline;

VII? commission in sight: US$ 231,250.00 (two hundred and thirty-one thousand, two hundred and fifty U.S. dollars), in a single instalment, after the effectivity of the Contract.

Art. 4º It is the authorized Union, pursuant to § 9º of the art. 3º and of the art. 4º of Resolution No. 96, 1989, reinstated by Resolution No. 17, 1992, both of the Federal Senate, to be granted guarantee to the credit operation mentioned in the art. 1º.

Single paragraph. The warranty mentioned in the caput will have as countering the quotas of the Union Constitutional Transfers to which the Prefecture does jus, complemented by its own revenues.

Art. 5º The authorization granted by this Resolution should be exercised within 540 (five hundred and forty) days from the date of its publication.

Art. 6º This Resolution comes into effect on the date of its publication.

Federal Senate, in October 21, 2003

Senator José Sarney

President of the Federal Senate