Law 11,079, of December 30, 2004.

THE PRESIDENT OF THE REPUBLIC, I hereby make known that the National Congress decrees and I sanction the following Law:

Chapter I Preliminary Provisions

Art. 1º

This Law establishes general rules for bidding and contracting of public-private partnerships within the powers of the Federal Union, the States, the Federal District and the Municipalities.

Sole paragraph. This Law applies to the bodies of the direct public administration of the Executive and Legislative branches, to special funds, autarchies, public foundations, public enterprises, mixed-capital companies and to the other entities controlled directly or indirectly by the Federal Union, the States, the Federal District and the Municipalities. (Wording given by Law 13,137, of 2015)

Art. 2º

A public-private partnership is the administrative concession contract, in the sponsored or administrative modality.

§ 1º Sponsored concession is the concession of public services or public works covered by Law 8,987, of February 13, 1995, when it involves, in addition to the tariff charged from users, monetary counter-payment from the public partner to the private partner.

§ 2º Administrative concession is the service contract in which the Public Administration is the direct or indirect user, even if it involves execution of works or supply and installation of goods.

§ 3º A common concession does not constitute a public-private partnership, understood as the concession of public services or public works covered by Law 8,987, of February 13, 1995, when it does not involve monetary counter-payment from the public partner to the private partner.

§ 4º It is forbidden to enter into a public-private partnership contract:

1. whose contract value is less than R$ 10,000,000.00 (ten million reais); (Wording given by Law 13,529, of 2017)
2. whose service-provision period is less than 5 (five) years; or
3. whose sole purpose is the supply of labor, the supply and installation of equipment, or the execution of public works.

Art. 3º

Administrative concessions shall be governed by this Law, with the additional application of the provisions of arts. 21, 23, 25 and 27 to 39 of Law 8,987, of February 13, 1995, and of art. 31 of Law 9,074, of July 7, 1995.

§ 1º Sponsored concessions shall be governed by this Law, with the subsidiary application of the provisions of Law 8,987, of February 13, 1995, and of the related laws.

§ 2º Common concessions remain governed by Law 8,987, of February 13, 1995, and by the related laws, with no application of the provisions of this Law.

§ 3º Administrative contracts that do not constitute common, sponsored or administrative concession shall continue to be governed exclusively by Law 8,666, of June 21, 1993, and by the related laws.

Art. 4º

In the contracting of public-private partnerships, the following guidelines shall be observed:

1. efficiency in the fulfillment of State missions and in the use of society's resources;
2. respect for the interests and rights of the addressees of the services and of the private entities charged with their execution;
3. non-delegability of regulatory, judicial, police-power and other functions exclusive to the State;
4. fiscal responsibility in entering into and executing the partnerships;
5. transparency of procedures and decisions;
6. objective allocation of risks between the parties;
7. financial sustainability and socioeconomic advantages of the partnership projects.

Chapter II On Public-Private Partnership Contracts

Art. 5º

The clauses of public-private partnership contracts shall comply, where applicable, with art. 23 of Law 8,987, of February 13, 1995, and shall also provide for:

1. the contract term, compatible with the amortization of the investments made, of no less than 5 (five) and no more than 35 (thirty-five) years, including any extension;
2. the penalties applicable to the Public Administration and to the private partner in case of contractual default, always set in proportion to the gravity of the breach and to the obligations assumed;
3. the allocation of risks between the parties, including those relating to chance, force majeure, sovereign acts and extraordinary economic shocks;
4. the forms of remuneration and of updating of contract values;
5. the mechanisms for preserving the continued adequacy of service provision;
6. the facts that constitute monetary default by the public partner, the means and term of regularization and, where applicable, the way of calling the guarantee;
7. the objective criteria for evaluating the private partner's performance;
8. the provision, by the private partner, of execution guarantees that are sufficient and compatible with the burdens and risks involved, observing the limits of §§ 3º and 5º of art. 56 of Law 8,666, of June 21, 1993, and, with regard to sponsored concessions, the provisions of item XV of art. 18 of Law 8,987, of February 13, 1995;
9. the sharing with the Public Administration of effective economic gains of the private partner resulting from reduction in the credit risk of the financing used by the private partner;
10. inspection of revertible assets, with the public partner being allowed to withhold payments to the private partner in the amount necessary to repair any detected irregularities;
11. the schedule and milestones for transferring to the private partner the installments of the capital contribution, during the investment phase of the project and/or after service availability, whenever the hypothesis of § 2º of art. 6º of this Law is verified. (Added by Law 12,766, of 2012)

§ 1º Contractual clauses providing for automatic updating of values based on indices and mathematical formulas, where they exist, shall be applied without need of approval by the Public Administration, unless the latter publishes, in the official press, where one exists, within 15 (fifteen) days after submission of the invoice, reasoned grounds based on this Law or on the contract for rejecting the update.

§ 2º Contracts may additionally provide for:

1. the requirements and conditions under which the public partner shall authorize the transfer of control or the temporary management of the special purpose entity to its financiers and guarantors with whom it has no direct corporate relationship, with the aim of promoting its financial restructuring and ensuring the continuity of service provision, with the provisions of item I of the sole paragraph of art. 27 of Law 8,987, of February 13, 1995, not applying for this purpose; (Wording given by Law 13,097, of 2015)
2. the possibility of commitment authorizations being issued in the name of the project financiers in relation to the monetary obligations of the Public Administration;
3. the standing of the project financiers to receive indemnities for early termination of the contract, as well as payments made by the funds and state-owned enterprises that guarantee public-private partnerships.

Art. 5º-A (Added by Law 13,097, of 2015)

For the purposes of item I of § 2º of art. 5º, the following are considered:

1. control of the special purpose entity is the resolvable ownership of shares or quotas by its financiers and guarantors who meet the requirements of art. 116 of Law 6,404, of December 15, 1976;
2. temporary management of the special purpose entity, by financiers and guarantors when, without transfer of ownership of shares or quotas, the following powers are granted:
   1. to appoint the members of the Board of Directors, to be elected in General Meeting by the shareholders, in companies governed by Law 6,404, of December 15, 1976; or managers, to be elected by the quota-holders, in other companies;
   2. to appoint the members of the Fiscal Council, to be elected by the controlling shareholders or quota-holders in General Meeting;
   3. to exercise veto power over any proposal submitted to a vote of the shareholders or quota-holders of the concessionaire that represents, or may represent, harm to the purposes set forth in the caput of this article;
   4. other powers necessary to achieve the purposes set forth in the caput of this article.

§ 1º Temporary management authorized by the granting authority shall not impose liability on the financiers and guarantors with respect to taxation, charges, burdens, sanctions, obligations or commitments toward third parties, including toward the granting authority or employees.

§ 2º The Granting Authority shall regulate the term of the temporary management.

Art. 6º

The counter-payment of the Public Administration in public-private partnership contracts may be made by:

1. bank order;
2. assignment of non-tax receivables;
3. grant of rights against the Public Administration;
4. grant of rights over alienable public goods;
5. other means permitted by law.

§ 1º The contract may provide for payment to the private partner of variable remuneration tied to its performance, according to targets and quality and availability standards defined in the contract. (Added by Law 12,766, of 2012)

§ 2º The contract may provide for a capital contribution in favor of the private partner for the execution of works and acquisition of revertible assets, pursuant to items X and XI of the caput of art. 18 of Law 8,987, of February 13, 1995, provided it is authorized in the bid notice, for new contracts, or in a specific law, for contracts entered into through August 8, 2012. (Added by Law 12,766, of 2012)

§ 3º The amount of the capital contribution made pursuant to § 2º may be excluded from the calculation of: (Added by Law 12,766, of 2012)

1. net income for purposes of determining taxable income and the calculation basis of the Social Contribution on Net Income, CSLL; and (Added by Law 12,766, of 2012)
2. the calculation basis of the Contribution to PIS/Pasep and the Contribution for Social Security Financing, COFINS. (Added by Law 12,766, of 2012)
3. the calculation basis of the Social Security Contribution on Gross Revenue, CPRB, owed by the companies referred to in arts. 7º and 8º of Law 12,546, of December 14, 2011, from January 1, 2015. (Added by Law 13,043, of 2014)

§ 4º Until December 31, 2013, for those who elect pursuant to art. 75 of Law 12,973, of May 13, 2014, and until December 31, 2014, for non-electors, the portion excluded under § 3º shall be included in the determination of net income for purposes of taxable income, of the CSLL calculation basis and of the calculation basis of the Contribution to PIS/Pasep and Cofins, in the proportion in which the cost for the execution of works and acquisition of assets referred to in § 2º of this article is incurred, including through depreciation or termination of the concession, pursuant to art. 35 of Law 8,987, of February 13, 1995. (Wording given by Law 13,043, of 2014)

§ 5º Upon termination of the contract, the private partner shall not receive indemnity for the installments of investments tied to revertible assets not yet amortized or depreciated, when such investments were made with amounts originating from the capital contribution referred to in § 2º. (Added by Law 12,766, of 2012)

§ 6º From January 1, 2014, for those who elect pursuant to art. 75 of Law 12,973, of May 13, 2014, and from January 1, 2015, for non-electors, the portion excluded under § 3º shall be included in the determination of net income for purposes of taxable income, of the CSLL calculation basis and of the calculation basis of the Contribution to PIS/Pasep and Cofins in each calculation period during the remaining contract term, counted from the start of the provision of public services. (Added by Law 13,043, of 2014)

§ 7º In the case of § 6º, the amount to be added in each calculation period shall be the value of the excluded portion divided by the number of calculation periods within the remaining contract term. (Added by Law 13,043, of 2014)

§ 8º For concession contracts in which the concessionaire has already started providing public services on the dates referred to in § 6º, the subsequent additions shall be made in each calculation period during the remaining contract term, considering the remaining balance not yet added. (Added by Law 13,043, of 2014)

§ 9º The portion excluded under item III of § 3º shall be included in the determination of the calculation basis of the social security contribution referred to in item III of § 3º in each calculation period during the remaining term provided in the contract for construction, recovery, reform, expansion or improvement of the infrastructure to be used in providing public services. (Added by Law 13,043, of 2014)

§ 10. In the case of § 9º, the amount to be added in each calculation period shall be the value of the excluded portion divided by the number of calculation periods within the remaining term provided in the contract for construction, recovery, reform, expansion or improvement of the infrastructure to be used in providing public services. (Added by Law 13,043, of 2014)

§ 11. If the concession is terminated before the contractual end date, the balance of the portion excluded under § 3º, not yet added, shall be included in the determination of net income for purposes of taxable income, of the CSLL calculation basis and of the social security contribution referred to in item III of § 3º in the calculation period of the termination. (Wording given by Complementary Law 214, of 2025)

§ 12. The calculation regime and rates of the Contribution to PIS/Pasep and Cofins applicable to the private partner's revenues from the provision of public services apply to the revenues earned by the private partner under § 6º. (Added by Law 13,043, of 2014)

Art. 7º

The counter-payment of the Public Administration shall be necessarily preceded by the availability of the service that is the object of the public-private partnership contract.

§ 1º The public administration is allowed, under the terms of the contract, to make payment of the counter-payment for an enjoyable portion of the service that is the object of the public-private partnership contract. (Added by Law 12,766, of 2012)

§ 2º The capital contribution referred to in § 2º of art. 6º, when made during the investment phase undertaken by the private partner, shall be proportional to the stages actually executed. (Added by Law 12,766, of 2012)

Chapter III On Guarantees

Art. 8º

The monetary obligations assumed by the Public Administration in a public-private partnership contract may be guaranteed by:

1. earmarking of revenues, subject to the provisions of item IV of art. 167 of the Federal Constitution;
2. creation or use of special funds provided for in law;
3. contracting of guarantee insurance with insurance companies not controlled by the Public Power;
4. guarantee provided by international organizations or financial institutions; (Wording given by Law 14,227, of 2021)
5. guarantees provided by a guarantor fund or state-owned enterprise created for this purpose;
6. other mechanisms permitted by law.

Sole paragraph. (VETOED) (Added by Law 13,043, of 2014)

Chapter IV On the Special Purpose Entity

Art. 9º

Before the execution of the contract, a special purpose entity shall be incorporated, charged with implementing and managing the object of the partnership.

§ 1º The transfer of control of the special purpose entity shall be conditional on express authorization from the Public Administration, pursuant to the bid notice and the contract, observing the provisions of the sole paragraph of art. 27 of Law 8,987, of February 13, 1995.

§ 2º The special purpose entity may take the form of a publicly held company, with securities admitted to trading on the market.

§ 3º The special purpose entity shall comply with corporate governance standards and adopt standardized accounting and financial statements, as set forth in regulation.

§ 4º The Public Administration is forbidden from holding the majority of voting capital of the companies covered by this Chapter.

§ 5º The prohibition in § 4º of this article does not apply to a possible acquisition of the majority of voting capital of the special purpose entity by a financial institution controlled by the Public Power in case of default of financing contracts.

Chapter V On Bidding

Art. 10

The contracting of a public-private partnership shall be preceded by bidding in the open bid or competitive dialogue modality, with the opening of the bidding procedure being conditional on: (Wording given by Law 14,133, of 2021)

1. authorization by the competent authority, supported by a technical study that demonstrates:
   1. the convenience and timeliness of the contracting, identifying the reasons that justify the choice of the public-private partnership form;
   2. that the expenses created or increased will not affect the fiscal target results provided in the Annex referred to in § 1º of art. 4º of Complementary Law 101, of May 4, 2000, with their financial effects, in subsequent periods, to be offset by permanent revenue increases or permanent expense reductions; and
   3. where applicable, in accordance with the rules issued under art. 25 of this Law, compliance with the limits and conditions resulting from the application of arts. 29, 30 and 32 of Complementary Law 101, of May 4, 2000, for the obligations assumed by the Public Administration relating to the object of the contract;
2. preparation of an estimate of the budgetary and financial impact in the fiscal years during which the public-private partnership contract is in force;
3. declaration by the expenditure authorizing officer that the obligations assumed by the Public Administration over the course of the contract are compatible with the budgetary guidelines law and provided for in the annual budget law;
4. estimate of public-resource flows sufficient to meet, during the term of the contract and per fiscal year, the obligations assumed by the Public Administration;
5. that its object be provided for in the pluriannual plan in force in the jurisdiction where the contract will be entered into;
6. submission of the draft bid notice and contract to public consultation, by publication in the official press, in widely circulated newspapers and by electronic means, which shall provide the justification for the contracting, identify the object, the term of the contract, its estimated value, setting a minimum period of 30 (thirty) days for receiving suggestions, with the deadline ending at least 7 (seven) days before the date scheduled for publication of the bid notice; and
7. prior environmental license or issuance of the guidelines for environmental licensing of the undertaking, as set forth in regulation, whenever the object of the contract so requires.

§ 1º The proof referred to in items b and c of item I of the caput of this article shall contain the premises and methodology of calculation used, observing the general rules for consolidation of public accounts, without prejudice to the examination of compatibility of expenses with the other rules of the pluriannual plan and the budgetary guidelines law.

§ 2º Whenever the signing of the contract occurs in a fiscal year different from the one in which the bid notice is published, it shall be preceded by an updating of the studies and demonstrations referred to in items I to IV of the caput of this article.

§ 3º Sponsored concessions in which more than 70% (seventy percent) of the private partner's remuneration is paid by the Public Administration shall depend on specific legislative authorization.

§ 4º The engineering studies for defining the PPP investment value shall be at preliminary-design level of detail, and the value of the investments for defining the reference price for the bidding shall be calculated based on market values considering the global cost of similar works in Brazil or abroad, or based on cost systems that use market values of the specific project sector as input, verified, in any case, by a synthetic budget prepared using expedited or parametric methodology. (Added by Law 12,766, of 2012)

Art. 11

The bid notice shall contain a draft of the contract, expressly indicate the submission of the bidding to the rules of this Law and observe, where applicable, §§ 3º and 4º of art. 15, arts. 18, 19 and 21 of Law 8,987, of February 13, 1995, and may also provide for:

1. a requirement of a bid guarantee from the bidder, subject to the limit of item III of art. 31 of Law 8,666, of June 21, 1993;
2. (VETOED)
3. the use of private dispute resolution mechanisms, including arbitration, to be conducted in Brazil and in the Portuguese language, pursuant to Law 9,307, of September 23, 1996, to resolve conflicts arising out of or related to the contract.

Sole paragraph. The bid notice shall specify, where applicable, the guarantees of the counter-payment of the public partner to be granted to the private partner.

Art. 12

The bidding process for the contracting of public-private partnerships shall comply with the procedure provided for in the legislation in force on biddings and administrative contracts and also with the following:

1. judging may be preceded by a stage of qualification of technical proposals, with the disqualification of bidders that do not reach the minimum score, who shall not participate in the subsequent stages;
2. judging may adopt as criteria, in addition to those provided in items I and V of art. 15 of Law 8,987, of February 13, 1995, the following:
   1. lowest value of the counter-payment to be paid by the Public Administration;
   2. best proposal based on the combination of the criterion of item a with the best technique, according to the weights established in the bid notice;
3. the bid notice shall define the form of presentation of the economic proposals, permitting:
   1. written proposals in sealed envelopes; or
   2. written proposals, followed by open oral bids;
4. the bid notice may provide for the possibility of correcting flaws, supplementing deficiencies or making corrections of a formal nature during the procedure, provided the bidder is able to meet the requirements within the deadline set in the bid notice.

§ 1º In the hypothesis of item b of item III of the caput of this article:

1. open oral bids shall always be offered in the inverse order of the ranking of the written proposals, with the bid notice being forbidden from limiting the number of bids;
2. the bid notice may restrict the offering of open oral bids to bidders whose written proposal is at most 20% (twenty percent) higher than the value of the best proposal.

§ 2º The examination of technical proposals, for purposes of qualification or judging, shall be made by a reasoned act, based on requirements, parameters and result indicators relevant to the object, defined with clarity and objectivity in the bid notice.

Art. 13

The bid notice may provide for inverting the order of the qualification and judging phases, in which case:

1. once the classification of proposals or the offering of bids has been concluded, the envelope with the qualification documents of the highest-ranked bidder shall be opened, to verify compliance with the conditions set forth in the bid notice;
2. once compliance with the requirements of the bid notice is verified, the bidder shall be declared the winner;
3. if the highest-ranked bidder is disqualified, the qualification documents of the bidder ranked 2nd (second) shall be analyzed, and so on, until a ranked bidder meets the conditions set forth in the bid notice;
4. once the final result of the bidding is proclaimed, the object shall be awarded to the winner under the technical and economic conditions it has offered.

Chapter VI Provisions Applicable to the Federal Union

Art. 14

A federal public-private partnerships management body shall be established by decree, with competence to:

1. define the priority services for execution under the public-private partnership regime;
2. regulate the procedures for entering into such contracts;
3. authorize the opening of the bidding and approve the bid notice;
4. review the contract execution reports.

§ 1º The body referred to in the caput of this article shall be composed of one titular representative and respective alternate, nominally appointed from each of the following bodies:

1. Ministry of Planning, Budget and Management, to which the task of coordinating the respective activities shall be entrusted;
2. Ministry of Finance;
3. Office of the Chief of Staff of the Presidency of the Republic.

§ 2º Meetings of the body referred to in the caput of this article to examine public-private partnership projects shall be attended by a representative of the direct Public Administration body whose area of competence is relevant to the object of the contract under analysis.

§ 3º For the deliberation of the management body on the contracting of a public-private partnership, the file shall be supported by a prior, reasoned opinion:

1. of the Ministry of Planning, Budget and Management, on the merits of the project;
2. of the Ministry of Finance, on the viability of granting the guarantee and its form, in relation to the risks to the National Treasury and compliance with the limit referred to in art. 22 of this Law.

§ 4º To perform its duties, the body referred to in the caput of this article may create a technical support structure with the presence of representatives of public institutions.

§ 5º The body referred to in the caput of this article shall annually submit to the National Congress and to the TCU (Federal Court of Accounts) performance reports of the public-private partnership contracts.

§ 6º For purposes of meeting the provisions of item V of art. 4º of this Law, except for information classified as confidential, the reports referred to in § 5º of this article shall be made available to the public, through a public data transmission network.

Art. 14-A (Added by Law 13,137, of 2015)

The Chamber of Deputies and the Federal Senate, through acts of their respective Bureaus, may regulate the matter referred to in art. 14 in the case of public-private partnerships entered into by them, maintaining the competence of the Ministry of Finance described in item II of § 3º of the referred article.

Art. 15

It is the responsibility of the Ministries and the Regulatory Agencies, in their respective areas of competence, to submit the bid notice to the management body, to conduct the bidding, and to monitor and supervise the public-private partnership contracts.

Sole paragraph. The Ministries and Regulatory Agencies shall send to the body referred to in the caput of art. 14 of this Law, on a semiannual basis, detailed reports on the execution of the public-private partnership contracts, in the form defined in regulation.

Art. 16

The Federal Union, its special funds, autarchies, public foundations and dependent state-owned enterprises are authorized to participate, up to an overall limit of R$ 6,000,000,000.00 (six billion reais), in a Public-Private Partnerships Guarantor Fund (FGP), which shall have the purpose of providing a guarantee for payment of monetary obligations assumed by federal, district, state or municipal public partners by virtue of the partnerships covered by this Law. (Wording given by Law 12,766, of 2012)

§ 1º The FGP shall have private nature and its own assets separate from the assets of the quota-holders, and shall be subject to its own rights and obligations.

§ 2º The Fund's assets shall be formed by the contribution of goods and rights made by the quota-holders, through the payment-in of quotas and the income obtained from its management.

§ 3º The goods and rights transferred to the Fund shall be appraised by a specialized firm, which shall submit a reasoned report indicating the appraisal criteria adopted and accompanied by the documents relating to the appraised goods.

§ 4º The payment-in of quotas may be made in cash, public debt securities, alienable real estate, movable goods, including shares of federal mixed-capital companies in excess of those necessary to maintain control by the Federal Union, or other rights with patrimonial value.

§ 5º The FGP shall be liable for its obligations with the goods and rights forming part of its assets, with the quota-holders not being liable for any obligation of the Fund, except for the payment-in of the quotas they subscribe.

§ 6º The payment-in with goods referred to in § 4º of this article shall be made independently of bidding, upon prior appraisal and specific authorization of the President of the Republic, on a proposal from the Minister of Finance.

§ 7º The contribution of special-use or common-use goods to the FGP shall be conditional on their individualized de-affectation.

§ 8º The capitalization of the FGP, when made through budgetary resources, shall be carried out by specific budgetary action for this purpose, within the scope of Federal Union Financial Charges. (Wording given by Law 12,409, of 2011)

§ 9º (VETOED) (Added and vetoed by Law 12,766, of 2012)

Art. 17

The FGP shall be created, administered, managed and judicially and extrajudicially represented by a financial institution controlled, directly or indirectly, by the Federal Union, in compliance with the rules referred to in item XXII of art. 4º of Law 4,595, of December 31, 1964.

§ 1º The bylaws and the regulation of the FGP shall be approved in a meeting of the quota-holders.

§ 2º The representation of the Federal Union in the meeting of the quota-holders shall take place pursuant to item V of art. 10 of Decree-Law 147, of February 3, 1967.

§ 3º It shall fall to the financial institution to deliberate on the management and disposal of the goods and rights of the FGP, ensuring the maintenance of its profitability and liquidity.

Art. 18

The bylaws and regulation of the FGP shall deliberate on the policy for granting guarantees, including with respect to the relationship between the Fund's assets and liabilities. (Wording given by Law 12,409, of 2011)

§ 1º The guarantee shall be provided in the form approved by the meeting of the quota-holders, in the following modalities:

1. surety, without benefit of order for the surety provider;
2. pledge of movable goods or of rights forming part of the assets of the FGP, without transfer of possession of the pledged thing before the execution of the guarantee;
3. mortgage of real estate of the FGP's assets;
4. fiduciary disposition, with direct possession of the goods remaining with the FGP or with a fiduciary agent contracted by it before the execution of the guarantee;
5. other contracts that produce a guarantee effect, provided they do not transfer ownership or direct possession of the goods to the private partner before execution of the guarantee;
6. guarantee, in rem or personal, tied to an earmarked patrimony constituted as a result of the segregation of goods and rights belonging to the FGP.

§ 2º The FGP may provide counter-guarantees to insurers, financial institutions and international organizations that guarantee the performance of the monetary obligations of the quota-holders in public-private partnership contracts.

§ 3º Settlement by the public partner of each installment of debt guaranteed by the FGP shall result in proportional release of the guarantee.

§ 4º The FGP may provide a guarantee by contracting instruments available on the market, including to supplement the modalities provided in § 1º. (Wording given by Law 12,766, of 2012)

§ 5º The private partner may call on the FGP in cases of: (Wording given by Law 12,766, of 2012)

1. liquid and certain credit, in an enforceable instrument accepted and not paid by the public partner after 15 (fifteen) days counted from the maturity date; and (Added by Law 12,766, of 2012)
2. debts contained in invoices issued and not accepted by the public partner after 45 (forty-five) days counted from the maturity date, provided there has been no express rejection by reasoned act. (Added by Law 12,766, of 2012)

§ 6º Settlement of debt by the FGP shall result in its subrogation in the rights of the private partner.

§ 7º In case of default, the goods and rights of the Fund may be subject to judicial attachment and disposal to satisfy the guaranteed obligations.

§ 8º The FGP may use part of the Federal Union's quota to provide a guarantee to its special funds, autarchies, public foundations and dependent state-owned enterprises. (Added by Law 12,409, of 2011)

§ 9º The FGP is required to honor invoices accepted and not paid by the public partner. (Added by Law 12,766, of 2012)

§ 10. The FGP is prohibited from paying invoices expressly rejected by reasoned act. (Added by Law 12,766, of 2012)

§ 11. The public partner shall inform the FGP about any rejected invoice and the reasons for the rejection within 40 (forty) days counted from the maturity date. (Added by Law 12,766, of 2012)

§ 12. The absence of express acceptance or rejection of an invoice by the public partner within 40 (forty) days counted from the maturity date shall imply tacit acceptance. (Added by Law 12,766, of 2012)

§ 13. Public officials who contribute by act or omission to the tacit acceptance referred to in § 12 or who reject an invoice without justification shall be held accountable for the damages they cause, in accordance with the civil, administrative and criminal legislation in force. (Added by Law 12,766, of 2012)

Art. 19

The FGP shall not pay earnings to its quota-holders, but each of them is assured the right to request the total or partial redemption of its quotas, corresponding to the assets not yet used for granting guarantees, with the liquidation being made based on the patrimonial situation of the Fund.

Art. 20

Dissolution of the FGP, deliberated by the meeting of the quota-holders, shall be conditional on the prior settlement of all guaranteed debts or release of the guarantees by the creditors.

Sole paragraph. Once the FGP is dissolved, its assets shall be apportioned among the quota-holders, based on the patrimonial situation at the date of dissolution.

Art. 21

The constitution of an earmarked patrimony is permitted, which shall not commingle with the rest of the FGP's assets, being tied exclusively to the guarantee by virtue of which it was constituted, and shall not be subject to attachment, sequestration, garnishment, search and seizure or any act of judicial restriction arising from other obligations of the FGP.

Sole paragraph. The constitution of the earmarked patrimony shall be made by registration at the Title and Document Registry or, in the case of real estate, at the corresponding Real Estate Registry.

Art. 22

The Federal Union may only enter into a public-private partnership when the sum of continuing-character expenses derived from the set of partnerships already contracted has not exceeded, in the previous year, 1% (one percent) of the net current revenue of the fiscal year, and the annual expenses of the contracts in force, in the 10 (ten) subsequent years, do not exceed 1% (one percent) of the net current revenue projected for the respective fiscal years.

Chapter VII Final Provisions

Art. 23

The Federal Union is authorized to grant an incentive, pursuant to the Incentive Program for the Implementation of Projects of Social Interest, PIPS, established by Law 10,735, of September 11, 2003, to investments in funds, created by financial institutions, in credit rights arising from public-private partnership contracts.

Art. 24

The National Monetary Council shall establish, pursuant to the relevant legislation, the guidelines for granting credit for financing public-private partnership contracts, as well as for the participation of closed supplementary pension entities.

Art. 25

The Secretariat of the National Treasury shall issue, pursuant to the relevant legislation, general rules on the consolidation of public accounts applicable to public-private partnership contracts.

Art. 26

Item I of § 1º of art. 56 of Law 8,666, of June 21, 1993, shall be in force with the following wording:

"Art. 56 .....................................................................................
§ 1º ..........................................................................................
I, cash deposit or public debt securities, which must have been issued in book-entry form, by registration in a centralized settlement and custody system authorized by the Central Bank of Brazil and appraised at their economic values, as defined by the Ministry of Finance;
......................................................................................." (NR)

Art. 27

Credit operations carried out by public enterprises or mixed-capital companies controlled by the Federal Union may not exceed 70% (seventy percent) of the total financial resource sources of the special purpose entity, with this share not exceeding 80% (eighty percent) for the areas of the North, Northeast and Center-West regions where the IDH (Human Development Index) is below the national average.

§ 1º Credit operations or capital contributions cumulatively carried out by the following may not exceed 80% (eighty percent) of the total financial resource sources of the special purpose entity, or 90% (ninety percent) in the areas of the North, Northeast and Center-West regions where the IDH is below the national average:

1. closed supplementary pension entities;
2. public enterprises or mixed-capital companies controlled by the Federal Union.

§ 2º For purposes of this article, financial resource sources mean credit operations and capital contributions to the special purpose entity.

Art. 28

The Federal Union may not grant a guarantee or make a voluntary transfer to the States, the Federal District and the Municipalities if the sum of continuing-character expenses derived from the set of partnerships already contracted by those entities has exceeded, in the previous year, 5% (five percent) of the net current revenue of the fiscal year, or if the annual expenses of the contracts in force in the 10 (ten) subsequent years exceed 5% (five percent) of the net current revenue projected for the respective fiscal years. (Wording given by Law 12,766, of 2012)

§ 1º The States, the Federal District and the Municipalities that contract undertakings through public-private partnerships shall send to the Federal Senate and to the Secretariat of the National Treasury, prior to contracting, the information necessary for compliance with the provisions of the caput of this article.

§ 2º In the application of the limit provided in the caput of this article, expenses derived from partnership contracts entered into by the direct public administration, autarchies, public foundations, public enterprises, mixed-capital companies and the other entities controlled, directly or indirectly, by the respective entity shall be counted, except for non-dependent state-owned enterprises. (Wording given by Law 12,024, of 2009)

§ 3º (VETOED)

Art. 29

The penalties provided in Decree-Law 2,848, of December 7, 1940, the Criminal Code, in Law 8,429, of June 2, 1992, the Administrative Improbity Law, in Law 10,028, of October 19, 2000, the Fiscal Crimes Law, in Decree-Law 201, of February 27, 1967, and in Law 1,079, of April 10, 1950, shall apply, where applicable, without prejudice to the financial penalties provided contractually.

Art. 30

This Law enters into force on the date of its publication.

Brasília, December 30, 2004; 183rd of Independence and 116th of the Republic.

LUIZ INÁCIO LULA DA SILVA
Bernard Appy
Nelson Machado

This text does not replace the one published in the Official Federal Gazette of December 31, 2004.