CHAIR OF THE COUNCIL OF MINISTERS

Proposal for Law No. 24 /XI/1.

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Exhibition of Motives

The effects of the intempseries occurring in the Autonomous Region of Madeira set up a

national emergency situation and not just the Region.

This has even been recognised in the Despacho n. 4482/2010 of March 10, of the

Prime Minister, in which you are referring that the Government has provided, since soon, the provision

permanent aid through the means of emergency, particularly of the services of

civil protection and national defence.

In the same way, the Government, following the scheduling of the theme by you promoted in the

meeting of the council of ministers of general affairs, which took place in Brussels on 22

of February 2010, he initiated, immediately, in articulation with the Regional Government, the

procedures for the actioning of the European Union Solidarity Fund.

On the other hand, still in cooperation with the Regional Government, the Government has initiated the

Representations for use of a special line of financing with the European Bank

of Investments (EIB), for reconstruction of infrastructure, and triggered the

procedures necessary to support the development of a line of credit, from

short term, for aid to the affected traders with a view to the immediate recovery

of installations and reposition of stocks .

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Proposal for Law No. 24 /XI/1.

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In the meantime, a Joint Committee has been appointed, with representatives of the Government and the

Regional government, to assess the damage, to ascertain its financial dimension and to propose the

actions for aid to the victims of the intempseries, support for the private sector and reconstruction of the

infrastructures.

The Commission, in the Report presented in April, valued at € 1080 Million the overall cost

of the reconstruction until 2013. Thus, the apportionment of the financial burden between the

Government and the Autonomous Region, ensuring the Government the money of € 740 Million through

of the following sources of funding:

a) Transfer of the State Budget to the Autonomous Region of Madeira, in the

amount of € 200 Million;

b) Reallocation of the Cohesion Fund, with reinforcement of monies earmarked for the Region

Autonomous of Madeira, in the importance of € 265 Million;

c) Loan from the European Investment Bank (EIB), at the value of € 250

Millions;

d) Reallocation of monies from the Investment Programme and Expenditure of

Development of the Central Administration (PIDDAC), provided for in the Budget

of the State for interventions in the Autonomous Region of Madeira, in the amount in the € 25

Millions, including monies from the PIDDAC of the Institute of Housing and Rehabilitation

Urban (IHRU), for the delivery of supports in the area of housing, and monies of the

PIDDAC of the Institute of Support for Small and Medium Enterprises (IAPMEI), for the

actuation of a line of credit.

The remaining € 340 Million is secured by monies from the Regional Government, from the

Municipalities, of donations and other private finance as well as of the Fund of

Solidarity of the European Union.

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The Commission further points out that, taking into account that the accounting for damages includes

regional and local public entities, the realization of the financing of local entities

should be pursued through the instruments of cooperation between the Government of the Region and

the municipalities in it based.

In this context, the present proposal for a law approving the financial means is presented

extraordinary to be ascribed to the Region in the period from 2010 a to 2013, in the framework of the cooperation

sympathetic between the Government of the Republic and the Regional Government of Madeira.

Thus, the present law contains the specific standards required to regulate the sources of

funding proposed by the Joint Commission.

This Act also includes standards establishing an exceptional regime in respect of

of borrowing limits, public procurement, expropriations and exemption from the Tax

Municipal on Real estate (IMI).

The Government and the Regional Government have further agreed on the temporary suspension of some

standards of the Finance Act of the Autonomous Regions, introduced by the Organic Law n.

1/2010, of March 29, whose maintenance in force would disturb the full application of the

present extraordinary funding law, coming back, in consequence, to invigorate in your

original version, and for the period of duration defined for this Law, the corresponding

standards of the Organic Law No. 1/2007 of February 19.

The self-governing bodies of the Autonomous Regions were heard.

Thus:

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Proposal for Law No. 24 /XI/1.

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Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Chapter I

Object and scope

Article 1.

Subject

This Law sets out the exceptional regime of the extraordinary financial means of which

has the Autonomous Region of Madeira for, in a framework of cooperation between the Government and

the Regional Government and in the face of a national emergency situation, proceed to

reconstruction of the areas affected by the temporal that occurred in the Region.

Article 2.

Scope

1-The extraordinary financial means that the Autonomous Region of Madeira has, in the

terms of this Act, they are intended for the reconstruction of damaged infrastructure, well

as to the support of the private sector and aid to the victims of the weather.

2-Include in the scope of the preceding paragraph, the financial means intended to intervene,

specifically, in the following areas:

a) Roads, aiming at the recovery and reposition of the communication and works routes

of art;

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b) Hydrology, with a view to the regularization of the main watercourses and adoption of

preventive measures of new situations of abnormal rainfall intensities and

of maritime unrest;

c) Sanitation and electricity networks, with a view to the reconstruction of the networks of

water supply, electricity and basic sanitation;

d) Housing, aiming at the reconstruction of damaged dwellings and the rehousing of the

families whose dwellings have been destroyed;

e) Economic activities, with a view to the recovery of commercial establishments and

to the reposition of stocks;

f) Ports and infrastructure of the seaside, aiming at the reconstruction of the infrastructures

damaged and the restraining of the mouth of the various affected water courses, including the

recovery from the port of Funchal and the reposition of infrastructure at the seaside, well

how the prevention of the effects of ripple on the shoreline and on the infra

port structures.

Chapter II

Financing and borrowing limits

Article 3.

Comparticipation of the Government

The Government participates with a total value of € 740 Million, realized through:

a) Transfers of the State Budget;

b) Strengthening of the appropriations of the Cohesion Fund allocated to the Autonomous Region of Madeira;

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c) Line of credit to the European Investment Bank (EIB);

d) Appropriations from the Investment Programme and Development Expenditure of the

Central Administration (PIDDAC).

Article 4.

Transfers of the State Budget

1-A Autonomous Region of Madeira is entitled, for the entire duration of the

present law, to the extraordinary transfers of the State Budget in the amount

global of € 200 Million, to be performed as follows:

a) € 50 Million, in 2010;

b) € 50 Million, in 2011;

c) € 50 Million, in 2012;

d) € 50 Million, in 2013.

2-The transfers referred to in the preceding paragraph may be intended for the enhancement of the

financial funds available in the Autonomous Region of Madeira.

3-The transfers referred to in paragraph 1 may be anticipated as a function of the concrete

reconstruction needs, by dispatching the member of the Government responsible for the

area of finance.

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Article 5.

Strengthening the Cohesion Fund

The monies provided for in the Cohesion Fund, intended for the Autonomous Region of Madeira, are

enhanced by € 265 Million, through reprogramming of the Operational Programs.

Article 6.

Funding through the European Investment Bank

1-The Government ensures for the benefit of the Autonomous Region of Madeira, during the period

of the duration of this Law, a special line of financing with the Bank

European Investment Fund, in the amount of € 250 Million, with the following limits

annual:

a) € 62.5 Million, in 2010;

b) € 62.5 Million, in 2011;

c) € 62.5 Million, in 2012;

d) € 62.5 Million, in 2013.

2-The transfers referred to in the preceding paragraph may be anticipated as a function of the

concrete reconstruction needs, by dispatch of the member of the Government

responsible for the area of finance.

Article 7.

Money from PIDDAC

1-The PIDDAC monies, provided for in the State Budget for interventions in the Region

Autonomous from Madeira, they are reinforced in the amount of € 25 Million.

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2-The amount referred to in the preceding paragraph includes monies from the PIDDAC of the Institute

of Housing And Urban Rehabilitation, I.P. (IHRU, I.P.) in the amount of € 15 Million, for the

delivery of supports in the area of housing, and monies from the PIDDAC of the Institute of

Support for Small and Medium-Sized Enterprises (IAPMEI), for the efectivation of a line of

credit, worth € 10 Million.

Article 8.

Other sources of funding

1-The budget of the Autonomous Region of Madeira and the municipal budgets,

jointly with the regional operational programmes and with the financing

private, comprised in the reconstruction with a total value of € 340 Million.

2-The Government ensures the application to the European Union Solidarity Fund, in

benefit of the Autonomous Region of Madeira.

Article 9.

Projects of the responsibility of municipalities

The reconstruction initiatives to be carried out by the municipalities of the Autonomous Region of Madeira

are financed, among other sources of funding, through community funds, from

loans and regional budget comprisings, these being allocated

upon contracts-programme to be concluded between the Regional Government and local authorities.

Article 10.

Limits of borrowing

1-Except for the rule of net indebtedness, net increases in

borrowing up to the following limits:

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a) € 75 Million, in 2010;

b ) € 75 Million, in 2011;

c) € 25 Million, in 2012;

d) € 25 Million, in 2013.

2-Except still from the rule of net borrowing void the loans for

to the financing of projects with the participation of community funds from the

responsibility of the regional and local administration, which add to the limits

maximum net indebtedness set at points in the preceding paragraph,

dispatch of the member of the Government responsible for the area of finance.

Article 11.

Changes and budget transfers

1-The Government may carry out, during the term of this Law, all of the

budget changes and transfers of monies necessary to the full implementation of the law,

upon dispatch of the member of the Government responsible for the area of finance.

2-The provisions of the preceding paragraph shall include all budgetary changes which shall consist of the

enrollment of new programmes or in an increase in the total amount of expenditure of each

program, as well as transfers of monies between different programs,

particularly when they impart changes of the functional classification.

3-Include also in paragraph 1, the changes in the budget of integrated services, which

consisted of an increase in the total amount of each title or chapter or nature

functional, and the transfers of appropriations between different titles and chapters or from

functional nature.

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4-Include still in paragraph 1, the changes in the budget of services and funds

autonomous, which consisted of an increase in the amount of the overall expenditure of each

autonomous service or fund or the expenses of each service or autonomous fund

affects to a functional classification item, and transfers of monies in the

budget of each service or autonomous fund consisting of transfers of

functional nature.

Chapter III

Supports for housing

Article 12.

Extraordinary support for housing

1-The interventions to be promoted in the area of housing, as referred to in point d) of paragraph 2 of the

article 2, are realized through the granting of financing under the

PROHABITA-Funding Program for Housing Access, regulated by the

Decree-Law No. 135/2004 of June 3, as amended by Decree-Law No. 54/2007, of 12

of March, hereafter abbreviated by PROHABITA Program.

2-To the collaboration agreements to be concluded under the PROHABITA Programme are

applicable the provisions laid down in the following article.

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3-Financing to be granted under this Law and the remaining benefits

financial and tax applicable to the employs of real estate rehabilitation have by

object to the realization of the works in the dwellings and their ancillary parts, and may include

the reclamation works of containment walls and pedonal accesses, up to the value

maximum funding applicable to those.

4-Are excepted from the provisions of Article 39 (2) of Law No 2/2007 of 15 of

January, the loans and depreciation relating to the financing provided to the

shelter from the provisions of this article.

Article 13.

Instruction of housing support processes

1-The agreements provided for in the preceding article may be concluded between the IHRU, I. P., a

IHM-Housing Investments of Madeira, E. P. E. (IHM, E.P.E.) and the municipalities

territorially competent, as long as it is necessary for the interventions of

rehabilitation of dwellings fully or partially destroyed by the 20 intempseries of

February 2010 and the definitive accommodation of persons and households

affected.

2-The collaboration agreements are approved by the member of the Government responsible for the

area of housing upon proposal of the IHRU, I. P., and have an effective term

understood between the date of its celebration and the expiry of this Law, without

injury of the prolongation, in the case of housing acquisition processes or

realization of works still in progress, only to the extent necessary for the completion of the

same.

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3-A The instruction of the collaboration agreements is the responsibility of IHM, E. P. E., and has

in consideration of the elements set out in the report approved by this and the IHRU,

I. P., and shall contain, in particular:

a) The elements relating to the households covered;

b) The definitive solutions for their respective housing caries;

c) The maximum values of financing required for this.

4-Are deemed to be deprived, for any of the effects provided for in the Program

PROHABITA, the households covered by the survey underlying the

report referred to in the preceding paragraph, not being applicable to the provisions of paragraph d)

of Article 3 (1) of the Decree-Law No 135/2004 of June 3, as amended by the

Decree-Law No. 54/2007 of March 12, competing for IHM, E. P. E., and the municipality

competent to approve the most appropriate accommodation solutions depending on the

characteristics of each situation and the household, as long as those are

previously accepted by the IHRU, I. P.

5-Without prejudice to its consideration in the framework of the collaboration agreements, the

funding for rehabilitation of the dwellings can be granted directly to the

Households, under the conditions of Article 23-G of Decree-Law No. 135/2004, of 3

of June, as amended by Decree-Law No. 54/2007 of March 12, competing for IHM,

E. P. E., the coordination of the processes of these households and their submission to the

IHRU, I. P., for appreciation and hiring.

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Article 14.

Special Tax Benefits Scheme

1-During the duration of this Law are exempt from the municipal real estate tax

(IMI) the business public entities in respect of buildings or part of buildings

which are intended directly and exclusively for the promotion of social housing.

2-A exemption to which the previous number beams from the year in which the building or the

part of building for affection to the purposes referred to therein.

Chapter IV

Procedures for public procurement and special expropriation regime

Article 15.

Direct adjustment procedure

1-Without prejudice to the respect for the principles of transparency, equality and

competition, it may adopt the direct adjustment procedure for the celebration of

public works contracts, acquisition of movable and acquisition goods

of services entered into under this Act, provided that the value of the contract is

lower than the value referred to, as the case may be, in the paragraphs b) or c) of Article 7 of the Directive

n. 2004 /18/CE, of the European Parliament and of the Council of March 31 and the decision

of hiring be taken until December 31, 2010.

2-In the direct adjustment procedures adopted under the preceding paragraph, it shall

contracting authority to invite at least five separate entities for the presentation

of proposals.

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Article 16.

Urgent public tender procedure

1-Without prejudice to the provisions of the preceding article, the procedure of

urgent public tender for the conclusion of works contracts of works

public, of purchase of movable property and purchase of services entered into under the

present law, provided that the value of the contract is less than the value referred to, depending on the

case, in the points b ) or c) of Article 7 of Directive No 2004 /18/CE of Parliament

European and Council, of March 31, and the award criterion is that of the most

low price.

2-Without prejudice to the provisions of Article 156 (2) of the Public Procurement Code

(CCP), is required by the adjudicator to provide a surety, pursuant to the provisions of the

in Articles 88 to 91 of the CCP.

Article 17.

Contracting authorities

They are covered by the exceptional public procurement scheme provided for in the articles

previous, the contracting authorities referred to in Article 2 of the CCP.

Article 18.

Subsidiary application of the Code of Public Procurement

1-In everything that is not specially provided for in Articles 15 and 16 of this Law, it is

applicable subsidiary, and with due adaptations, the provisions of the Code of

Public Procurement.

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2-Where in the Code of Public Procurement references are made to the values

constants of Articles 19 and 20 of the same Code, must understand-if, in respect of

to the procedures for the formation of public procurement referred to in Articles 15 and 16.

of this Act, which such remissions are made for the values referred to in paragraph 1 of the article

15. and in Article 16 (1) of this Law, depending on the procedure in question.

Article 19.

Special expropriation regime

1-For the duration of this Law, public entities in the Autonomous Region of the

Wood with skills in the areas of planning, public works,

acessibilities and communications may take immediate administrative possession of the

goods intended to provide for the necessities arising from the intempseries of February 20

of 2010, provided that they are included in the scope of Article 2, with dispensation of any

prior formality, following without further representations the established in the Code of

Expropriations, with regard to the setting of compensation in litigation.

2-During the duration of this Law, the judicial admission of any relative processes

to the expropriative procedure has no suspensive effect.

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Chapter V

Final Provisions

Article 20.

Suspension and reposition of effective

1-Is suspended, during the period in which it beams the present law:

a) The duration of Articles 18, 22, 26, 30, 41, 42, 44, 49, 51, 51, 51, 51, 51, 51, 51

56, 58, 62, 68, 68 and 74 of the Organic Law No. 1/2007 of February 19 in the

wording and renumbering conferred by the Organic Law No 1/2010 of March 29;

b) The duration of Article 4 of the Organic Law No 1/2010 of March 29.

2-Are reimposed in force, during the period in which it beams the present law, Articles 15,

19, 25, 30, 37, 39, 44, 49, 51, 55, 55, 55, 55 and 59 of the Organic Law No. 1/2007, 55, 55

of February 19, in the drafting and numbering originating.

Article 21.

Entry into force and production of effects

This Law shall come into force on the day following that of its publication and retroact its effects

to February 20, 2010.

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Article 22.

Term of duration

This Law invigorates until December 31, 2013.

Seen and approved in Council of Ministers of May 6, 2010

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs