On September 21, 2017, the Office of the Attorney-General issued Opinion No. 00422/2017/PFANEEL/PGF/AGU in response to the request for clarification made by the Executive Auctions Secretariat (SEL – Secretaria Executiva de Leilões) of the Brazilian Electricity Regulatory Agency (ANEEL – Agência Nacional de Energia Elétrica), regarding the applicability of Law No. 5.709/1971, which requires prior authorization from the National Institute of Colonization and Agrarian Reform (INCRA - Instituto Nacional de Colonização e Reforma Agrária) for the acquisition and lease of rural properties by foreign individuals or companies or by Brazilian companies under foreign corporate control. The specific inquiry is regarding the applicability of said legal requirement in connection with ANEEL Auction No. 01/2017, pursuant to which the rural properties of hydroelectric power plants São Simão, Jaguara, Miranda and Volta Grande shall be transferred to new concessionaires, which may be foreigners or companies under foreign corporate control.


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