I do know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, item 28, of the Internal Rules, promulgated the following

RESOLUTION NO. 36, OF 2001

Ratifies a authorization granted by Resolution No. 26, 2000, of the Federal Senate, for the Municipality of São Paulo-SP, to hire credit operations with the National Economic and Social Development Bank-BNDES, of up to R$ 104,954,180.00 percent (percent and four percent million, nine hundred and fifty and four thousand, one hundred and eighty reais), within the framework of the Modernization Support Program of the Tax Administration and Management of the Basic Social Sectors-PMAT, and of R$ 247,390,000.00 (two hundred and forty-seven million, three hundred and ninety thousand reais), intended for the implementation of the Priority Program of Investments in Transportation in the Municipality.

Federal Senate resolves:

Art. 1º This Resolution ratifies the authorizations granted, in exceptional character, by Resolution No. 26, of 2000, of the Federal Senate, to the Municipality of São Paulo-SP, for the hiring of credit operations with the National Economic and Social Development Bank-BNDES, in the value of up to R$ 104,954,180.00 (one hundred and four million, nine hundred and fifty thousand, one hundred and eighty reais), within the framework of the Modernization Support Program of the Tax Administration and the Management of Basic Social Sectors-PMAT, and of R$ 247,390,000.00 (two hundred and forty-seven million, three hundred and ninety thousand reais), aimed at the implementation of the Priority Programme of Investments in Transportation in the Municipality.

Art. 2º The credit operation within the PMAT it will comply with the following basic conditions:

I-maximum operation value: R$ 104,954,180.00 (one hundred and four million, nine hundred and fifty thousand, one hundred and eighty reais);

II-purpose: exclusively to fund investment program in tax and administrative modernization of the Municipality and management of the basic social sectors;

III-interest rate: 2.5% a.a. (two integers and five tenths per cent per year) plus TJLP;

IV-deadline: 72 (seventy and two) months, after 24 (twenty four) months of grace;

V-warranty: quotas-parts of the ICMS;

VI-release: years 2002, 2003, and 2004.

Art. 3º The credit operation for funding of the Priority Transport Program in the Municipality, will comply with the following basic conditions:

I-value of the operation: R$ 247,390,000.00 (two hundred and forty seven million, three hundred and ninety thousand reais) to be disbursed as follows:

a) subcredit A: R$ 185,932,800.00 (one hundred and eighty five million, nine hundred and thirty-two thousand and eight hundred reais);

b) subcredit B: R$ 16,531,200.00 (sixteen million, five hundred and thirty-one thousand and two hundred real ones);

c) subcredit C: R$ 39,247,300.00 (thirty e nine million, two hundred and forty-seven thousand and three hundred reais);

d) subcredit D: R$ 5,678,700.00 (five million, six hundred and seventy and eight thousand real seavers);

II-purpose: exclusively for funding priority program for investments in transportation in the Municipality;

III-interest rate: 3.5% a.a. (three integers and five tenths per cent a year) (the spread title), above the Long-Term Interest Rate-TJLP, released by the Central Bank of Brazil, observed the general conditions set by the National Bank for Economic Development and Social-BNDES, contract constants;

IV-deadlines:

a) subcredit A: 144 (one hundred and forty four) months, after 36 (thirty-six) months of grace;

b) subcredit B: 144 (one hundred and forty four) months, after 36 (thirty-six) months of grace;

c) subcredit C: 132 (one hundred and thirty-two) months, after 48 (forty-eight) months of deficiency;

d) subcredit D: 132 (one hundred and thirty-two) months, after 48 (forty-eight) months of grace;

V-warranty: quotas-parts of the ICMS;

VI-release: years of 2002, 2003 and 2004.

Single paragraph. The contracting of the remaining balance, of R$ 493,807,458.00 (four hundred and ninety-three million, eight hundred and seven thousand, four hundred and fifty and eight reais), will be subject to the ratification of the Federal Senate, with the exceptionalities established in the Resolution No. 26, of 2000.

Art. 4º The constant operation of paragraph b of the single paragraph of the Twelfth Clause of the Confession Agreement, Consolidation, Assumption of Assumption and Refinancing of Debts, between the Union and the Municipality of São Paulo, approved by Resolution No. 26, of 2000, concerning the Procenter Project, will be subject to ratification by the Federal Senate, considered the exceptionality recognized in that Resolution.

Art. 5º The authorizations that treat this Resolution should be exercised within the maximum period of 270 (two hundred and seventy) days, counted from the date of its publication.

Art. 6º This Resolution comes into force in the date of its publication.

Federal Senate, on December 13, 2001

Senator Ramez Tebet

President of the Federal Senate