1E9Ct5D

It is relevant to mention that, at the end of the agreement, the ownership of the property, as set forth inthe notice with invitation to bid and agreement, shall be of the Public Administration.c) RemunerationThe PPP Act determines that the agreements may establish the payment, to the private partner, ofvariable remuneration, related to its performance in the execution of the agreement, according to thequality and availability goals and standards defined in the agreement. This procedure is a stimulant forthe private partner.The remuneration payable by the Public Administration to the private partner may be paid either at theinvestment stage (“Public Financing”) or during performance of the service subject of the agreement(“Pecuniary Obligation”).Payments due by the Public Administration may be made by bank order, the assignment of non-taxcredits, grant of rights before the Public Administration and grant of rights over public property, as wellas other means permitted by legislation.d) GuaranteesWithout prejudice to other guarantees contemplated in legislation, such as the surety insurance, theLaw determines the following guarantees for PPP agreements, to be granted by the PublicAdministration in favor of the private partner:(i) lien of revenues, with due regard to the legal exceptions;(ii) institution or use of special funds provided in law.It is relevant to mention the existence of the Guarantor Fund (Fundo Garantidor - FGP), which is of aprivate nature and will have separate assets to those of its quota holders and is formed by thecontribution of assets and rights made by the quota holders, consisting of cash, governmentsecurities, immovable property of public domain, movable property, including shares of federalgovernment-controlled (private) companies or other rights with an asset value.The FGP was formalized by Decree 5,411/05, which authorized the initial transfer, to the said Fund, ofthe blue chip shares of 15 state or private companies, which were in the possession of the FederalUnion, representing approximately R$ 4 billion (US$ 2.42 billion). Banco do Brasil S.A., which iscontrolled by the Federal Union, was designated to manage and represent the FGP.68