Lei no , de 30 de dezembro de Retrieved August 13, , from http :// Brasil. Lei No , de 30 de dezembro de , available at: Lei/Lhtm>. An English version. Full text of the law is available online. Lei No. , de Dezembro de ( Braz.) Lei/Lhtm>.
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V — other contracts that produce the effect of a guarantee, provided they do not transfer the ownership or direct possession of the FGP assets to the private partner before the execution of the guarantee.
I — authorization by the public authority, based on a technical study that shall demonstrate: I — the Ministry of Planning, Budget and Management, with regard to the merit of the project. III — the legitimacy of project funders to receive compensation for early termination of the contract, as well as payments made by funds and state-owned enterprises acting as guarantors of public-private partnerships.
This Law establishes general norms for public-private partnership 111079 and contracts within the Federal Government, States, Federal District and Municipalities. I — authorization by the public authority, kei on a technical study that shall demonstrate:.
This is a free translation offered only as a convenience to support foreign investors. The payment obligations undertaken by the Public Administration under a public-private partnership contract may be guaranteed by:. III — the invitation to tender shall define the form for presenting the proposals, allowing the following formats:.
I — the Ministry of Planning, Budget and Management, with regard to the merit of the project; II — the Ministry of Finance, with regard to the viability of granting public payment guarantees and their form, relative to the risks for the National Treasury and compliance with the limit set forth in art.
III — if the bidder who made the best offer is not qualified, the qualification documents of the second best proposal shall be examined, and so forth, until a classified bidder complies with the requirements established in the invitation to tender. III — the use of private mechanisms for dispute resolution, including arbitration, to be conducted in Brazil and in the Portuguese language, according to Lawdated September 23rd,in order to resolve conflicts that may arise in relation to the contract.
The payments from the Public Administration to the private partner in public-private partnership contracts may take the form of:. Taking into account the guarantees already granted and other obligations, the FGP shall 111079 provide guarantees with a net present value that exceeds the total value of its assets. II — respect for the interests and rights of service users and of private entities responsible for service provision.
The trust funds assets will not be subject to search and seizure resulting from other obligations of the FGP. III — the sharing of ,ei among the parties, including those that refer to acts of God, force majeure, acts of State and unforeseeable events. II — the penalties applicable to the Public Administration 1107 to the private partner in case of non-compliance with contractual obligations, which shall always be determined proportionately to the magnitude of the offence committed and to the obligations assumed.
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The clauses of public-private partnership contracts shall be in accordance with the provisions of art. II — estimate of budgetary and financial impact in the periods in which the public-private 1109 contract shall be in effect.
A public-private partnership is a concession contract, in the sponsored or administrative forms. V — the mechanisms to preserve 1109 nature of the service provision. The competitive tendering oei contracting public-private partnerships shall comply with the procedures set forth in the legislation that regulates tenders and administrative contracts and also the following:.
V — its object is included in the Multi-Year Plan in effect within the scope of the conclusion of the contract. The contract may stipulate a variable payment to the private partner linked to its performance, which shall leei assessed against required quality and availability standards. II — after compliance with the requirements of the invitation to tender has been attested, the bidder who made the best offer shall be declared winner.
IV — fiduciary transfer of ownership, remaining the possession of the assets, until execution of the guarantees, with the FGP or with a trustee contracted by the Fund. II — state-owned enterprises or corporations with mixed public and private capital controlled by the Federal Government.
III — authorization for opening bidding processes and approval of invitations to tender. The FGP shall not pay any dividends to its quotaholders. The FGP may set up trust funds to provide guarantees to specific private partners. I — bank draft; II — assignment of non-tax credits; III — granting of rights against the Public Administration; IV — granting of eli over real estate owned by the government; V — other means permitted by law.
According to the terms of the contract, the Public Administration may pay the private sector partner for the portion of the service that is made available.
I — pension funds; II — state-owned enterprises or corporations with mixed public and private capital controlled by the Federal Government. After the dissolution of the FGP, its equity shall be divided among the quotaholders, based on the equity position of the Fund on the date of dissolution. VII — the objective criteria for evaluating the performance of the private partner. I – collateral in cash or government bonds, which must llei been issued in book entry form, by registration in a central system for settlement and custody authorized by the Central Bank of Brazil and appraised at their economic value, as defined by the Ministry of Finance; The opening of the bidding process requires:.
III — the sole scope of the contract is the supply of labor, the supply and installation of equipment or the execution of public works. The opening of the bidding process requires: II — the Ministry of Finance, with regard to the viability of granting public payment guarantees and their form, relative to the risks for the National Treasury and compliance with the limit set forth in art. The Ministries and Regulatory Agencies shall be responsible, within their respective jurisdictions, for submitting the invitation to tender to the agency, carrying 110779 the bidding process, monitoring and controlling the public-private partnership contracts.
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Administrative concessions shall be regulated by this Law and additionally by art. IV — granting of rights over real estate owned by the government.
The National Treasury Office shall publish, in accordance with the appropriate legislation, general norms regarding public accounts in relation to public-private partnership contracts.
III — statement by the party responsible for authorizing the expenditure that the obligations undertaken by the Public Administration in a partnership contract are in line with the Budget Guidelines Law and have been considered in the Annual Budget Law.
Any questions arising from the translated text should be clarified by consulting the original version in Portuguese: The guarantees of the FGP to each quotaholder shall be made in proportion to the value of his quotas.
I — the bids in the open outcry auction shall always be submitted in the reverse order of classification of the written proposals and the invitation to tender shall not limit the number of bids. The constitution of trust funds shall be registered by a Real Estate Notary in the case of real estate or by a Regular Public Notary in the case of other types of assets.
Before contract execution, bidders must set up a special purpose entity, which shall be responsible for implementing and managing the project.
The redemption price shall be determined based on lie equity value of the FGP on the date of redemption. V — guarantees provided by a guarantee fund or by a state-owned enterprise set up for this purpose. The invitation to tender shall specify, when applicable, the payment guarantees to be granted by the public sector to the private partner. IV — estimate of long-term flow of public funds, necessary for fulfilling, throughout the term of the contract and in each fiscal year, the financial obligations undertaken by the Public Administration.
The National Monetary Council shall establish, in accordance with the appropriate legislation, guidelines for the concession of credit facilities for financing public-private partnership projects, as well as for the participation of pension funds in funding partnership contracts.