On November 6 2015 the Secretariat of Ports (SEP) issued Ordinance 499, relating to adjustments of the financial balance of port lease agreements.

The new rule lists the situations in which adjustments can be sought – for example, where:

  • a risk assumed by the granting authority materialises;
  • the lessee defaults on its contract and this affects the financial balance of the contract; or
  • a financial impact arises from a contract extension.

The ordinance also establishes that if a lessee requests an adjustment, it must present:

  • a financial imbalance report;
  • its investment plan (when applicable); and
  • a technical, economic and environmental feasibility study.

Chapter IV of the ordinance lists the attributions of each public office involved in the analysis of adjustments – that is, SEP, the Agency of Waterways Transportations and the port authority of the public port.

Finally, any ongoing proceedings for adjustments must be adapted to comply with the new ordinance.

For further information on this topic please contact Godofredo Mendes Vianna at Kincaid | Mendes Vianna Advogados by telephone (+55 21 2276 6200) or email (godofredo@kincaid.com.br). The Kincaid | Mendes Vianna Advogados website can be accessed at www.kincaid.com.br.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.