Sector:

Railway transportation

Name of Agreement:

Leasing contract
http://www.antt.gov.br/concessaofer/contratos/mrs_arrendamento.pdf

Type of Agreement:

Leasing of the operational goods (listed in the Annexes) to be used in providing the service of railway transportation in the Southeast railroad object of concession

Region (if known):

Latin America

Year of Agreement/ Draft:

1996

Principal Author(s) (firm and contact person):

MRS Logistica (as lessee) – Armando Galhardo Nunes Guerra Junior (director) and RFFSA (the federal railway net, as lessor)

Annotated by:

Luiz Henrique Alcoforado, LEGPS 

Purpose and Context:

Leasing for the purpose of providing the service of railway transportation object of the concession to which the leasing is expressly and directly linked.  

Circumstances where this contract may be appropriate:

Drafted for common law/ civil law jurisdiction:

Civil law.

Main Features:

• Prohibition of transfer w/o the authorization of the lessor.
• Duration: 30 yrs
• Payment by the lessee of the amount of R$840m (approx. US$548m in 2008).
• Obligations and rights of lessee
• Lease will terminate with the act that extinguishes the concession with the transfer of the leased goods to the then designated operator

Possible additional provisions that it might be appropriate to include:

Provisions that may not be advisable to replicate/ may need further thought:

Provisions of wider general use:

Experience Since Coming Into Force (including any amendments)/ if draft form, whether it has been applied:

Tracking Number:

 Brazil Railways Lease.pdf