Notice No. 5/GGBM/2006 of December 15 - Regulation of the Interbank Foreign Exchange Market and Revocation of Notice No. 13/GGBM/2005

Tuesday, December 26, 2006 I SERIES — Number 51 REPUBLIC GAZETTE OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE 2ND SUPPLEMENT NATIONAL PRESS OF MOZAMBIQUE NOTICE The matter to be published in the "Boletim da República" must be submitted in duly authenticated copy, one for each subject, which must contain, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República".

SUMMARY Ministry of Energy: Dispatch: Approves the model of contract for the supply of electrical energy between Electricidade de Moçambique and consumers. Bank of Mozambique: Notice No. 5/GGBM/2006: Approves the Regulation of the Interbank Foreign Exchange Market and revokes Notice No. 13/GGBM/2005, of November 14.

MINISTRY OF ENERGY DISPATCH Becoming necessary to define the terms under which Electricidade de Moçambique must carry out the supply of electrical energy, comprising distribution and marketing activities, to its consumers, under the powers conferred upon me by paragraph 3 of Article 47 and Article 132 of the regulation approved by Decree No. 42/2005, of November 29, I determine:

Article 1. The model of contract for the supply of electrical energy between Electricidade de Moçambique and consumers, attached to this Dispatch and forming an integral part thereof, is approved.

Art. 2 - This Dispatch enters into force immediately. Ministry of Energy, in Maputo, December 29, 2006. — The Minister of Energy, Salvador Namburete.

General Clauses of the Connection and Supply Contract Clause 1: Pre-conditions for the celebration of the connection and supply contract

1. The contract shall only be celebrated when the interested party cumulatively satisfies the following conditions: a) Payment of the Inspection Fee; b) Payment of the connection fee and other costs applicable to the establishment of the connection; c) Payment of the security deposit; if required; d) Payment of other fees legally fixed; e) Declaration of all their energy receivers.

2. As a way to simplify procedures, for new connections, EDM may charge a single value that includes the fees indicated above.

Clause 2: General Obligations of EDM The obligations of EDM include, among others, the following: a) Supply electrical energy with quality and regularity; b) Provide information to the client regarding energy use, whenever requested; c) Provide any other information related to this supply contract; d) Notify the client with due advance notice, through adequate means, notably by announcement in the local newspaper with the highest circulation or other adequate means of social communication when, for reasons of maintenance and network operation, it is necessary to proceed with the interruption of electrical energy supply; e) Ensure, in the inspection process, which precedes connection to the network, that the consumer's installation is adequate for the intended purpose and in accordance with applicable standards; f) Perform energy readings within the established deadlines; g) Comply with the provisions and regulations governing the activity of distribution and marketing of energy.

Clause 3: General Obligations of the Client The obligations of the client, in addition to others legally established, are the following: a) Ensure and facilitate that EDM representatives, duly identified, have free and safe access to the supply location, for works prior to connection, inspection, supervision, readings, and other related tasks; b) Provide the information required for billing purposes; c) Pay the invoice within the deadline established therein; d) Maintain their electrical installation in good condition of conservation and in accordance with current exploitation or use and safety standards; e) Include, in their electrical installation, adequate protection equipment; f) Conserve the energy measuring instruments placed in their installation and not violate the seals placed by EDM; g) Consume electrical energy without recourse to fraudulent means; h) Disconnect their receivers whenever there is an interruption of electrical energy supply; i) Comply with other obligations resulting from the electrical energy supply contract and applicable legislation.

Clause 4: Refusal of Connection

1. EDM may refuse connection until the interested party complies with the conditions established in Clause 1 and applicable legislation, which are prior to connection and supply of energy.

2. EDM may also refuse the supply of electrical energy: a) If the applicant does not have the capacity to pay for the requested consumption, due to declared insolvency or bankruptcy; b) If the applicant's electrical installations are inadequate for connection and supply of energy and while such situation prevails.

3. The reasons for the refusal of connection shall be communicated in writing to the applicant; the applicant may present a complaint to the Board of Directors of EDM. Regarding the decision of the Board of Directors of EDM, the applicant may appeal to CNELEC within a period of five days counted from the communication.

Clause 5: Security Deposit

1. EDM may request the client to pay the security deposit.

2. The security deposit shall be fixed based on the power to be contracted.

3. The security deposit shall be refunded to the client when the contract is terminated.

4. When it is a pre-payment system, a security deposit shall not be required.

Clause 6: Payment Conditions

1. The client undertakes to pay the total value of the invoice relating to energy consumption within the period indicated therein.

2. The client may, if they so wish, pay in advance the value of electrical energy consumption by deposit into their current account; in this case, the advance payment shall constitute a credit in favor of the client.

3. Payment must be made at the counters of EDM or other locations indicated by the Company, and payment by bank transfer, direct debit, or deposit into the account to be indicated by EDM may be agreed with the client, in locations where such services are available.

Clause 7: Energy Metering

1. The meters used for energy measurement shall be supplied, installed, and inspected by EDM and shall be of the types approved by the competent entity and duly calibrated.

2. Meter readings shall be taken monthly, and the period between one reading and another may not exceed 34 days.

3. If during the usual reading time and on one of three consecutive days it is not possible to read the meter, due to the client's absence or fault or for other reasons beyond the will of the parties, and for this reason readings of more than one month accumulate, billing shall be estimated based on the average of the last three months.

4. In cases of estimated billing provided for in the previous paragraph, as soon as it is possible to proceed with the reading, necessary corrections shall be made, and debit or credit may be made to the client's current account, depending on the differences in readings recorded.

5. The client may request a precision test of the electrical energy meter to be performed by third parties, when they suspect it is defective, bearing the associated costs, unless it results that the meter is more than nominally defective, in which case the costs charged for the test shall be refunded to the client by EDM.

6. If the precision test of the meter proves that the meter is more than nominally defective, EDM shall correct previous readings according to the inaccuracy found and taking into account probable and reasonable consumption.

Clause 8: General Causes of Interruption of Electrical Energy Supply.

1. Electrical energy supply may be interrupted with prior notice for any of the following reasons: a) Maintenance reasons or other types of services; b) By fact attributable to the client; c) By agreement with the client; d) When there is an imperative need to perform switching or connection, repair, or maintenance works on the network, provided that all possibilities of alternative supply have been exhausted.

2. The interruption of supply in the cases provided for in letters a), c), and d), of paragraph 1 of this Clause, shall be made with a prior notice of at least 36 hours, without prejudice to the provision of point 3 of this Clause.

3. Supply may be interrupted without prior notice in the following cases: a) When there is a dangerous situation and while it prevails; b) For safety reasons; c) When it is the execution of emergency plans; and d) When there is a need to carry out works that require the immediate suspension of supply for reasons of safety of persons and property or when there is an urgent need to shed loads, automatically or manually, to guarantee the safety of the electrical system.

Clause 9: Interruption of Energy Supply by Fact Attributable to the Client

1. Energy supply may be interrupted, by fact attributable to the client, in the following cases: a) Failure to pay the invoice within the indicated deadline; b) Failure to pay for services, fees, or penalties of any nature imposed by EDM, within the indicated deadline; c) Impediment of access to measuring and control equipment, as well as to the installation, in cases where supervision is necessary; d) Impossibility of collecting indications from measuring equipment for reasons attributable to the client; e) Failure to celebrate the electrical energy supply contract in cases of alienation or assignment of the energy use installation; f) When the client's installation causes disturbance that affects the technical quality of supply to other network users; g) Alteration of the electrical installation without approval of EDM or the competent entity; h) Impediment to the installation of power control equipment; i) Fraudulent consumption of electrical energy, notably by violating or tampering with measuring or protection devices; j) Supply of energy to third parties; k) Non-compliance with other obligations resulting from applicable legislation, notably regarding safety of persons and property.

2. The interruption of energy supply, in the situations provided for in the previous paragraph, shall be preceded by a prior notice of at least eight days, except in the cases provided for in letters f), i), and k), where interruption may be made without prior notice for the purposes of this point. Considered to have been made prior notice when: a) The written notice of cut-off, indicating the amount in debt, has been delivered to the client's address, indicated in the electrical energy supply contract, regardless of signature attesting to receipt; or b) When, solely due to the client's fault, the cut-off notice was not delivered to the above address or was not received in due time.

3. Reconnection, in any of the circumstances, may only occur within a period of 48 hours when the causes that led to the interruption have ceased, after payment of the respective reconnection fee or other values due and fixed in accordance with the law.

4. Clients may opt for the urgent reconnection service, to be carried out within a maximum period of 4 hours upon payment of the value established for this purpose and satisfaction of the other conditions provided for in the previous paragraph.

5. EDM shall not proceed with the interruption of electrical energy supply on Fridays, Saturdays, Sundays, holidays, and the day immediately preceding a holiday, except in the cases provided for in paragraph 3 of Clause 8 and letters f), i), j), and k), of paragraph 1 of this Clause.

Clause 10: Celebration of New Contract

1. The client whose contract has been terminated on the basis of any of the facts referred to in Clause 15 may celebrate a new contract under the same conditions as the previous one.

2. The celebration of the new contract should only occur when the client, in addition to normal conditions, fully complies with the obligations arising from the previous contract, notably arrears, fines, or other charges.

Clause 11: Complaints Regarding Billing

1. The client has the right to complain about the invoice presented until the deadline for its payment.

2. The presentation of the complaint does not suspend the deadline for payment of energy debts.

3. Until the clarification of the referred complaint by EDM, the client is only obliged to pay the average of the invoices relating to the consumption of the three months preceding the complained invoice.

4. If the investigation reveals that the complaint is well-founded, due corrections shall be made.

Clause 12: Duration of the Contract The supply contract is celebrated for an indefinite period, unless it is agreed with the client that it is celebrated for a determined period.

Clause 13: Assignment of Contractual Position and Change of Consumer

1. The client may only transfer their position in the electrical energy supply contract to third parties after obtaining written consent from EDM.

2. In the case provided for in the previous paragraph, the assigning client is obliged to communicate the fact to EDM within a period of 15 days relative to the date expected for the assignment, indicating the name or firm and the domicile of the new consumer. The same procedure shall be observed in the case of change of name, firm, or corporate denomination.

3. The new consumer is obliged to celebrate a new energy supply contract within a period of 15 days counted from the date of receipt of the notice made for this purpose.

4. EDM may suspend the supply of energy if the new consumer does not celebrate a new contract within the period fixed in the previous paragraph.

5. EDM may not consent to the assignment if there is any pending debt.

6. The assigning client and the new consumer are jointly and severally liable to EDM for the payment of charges relating to the period prior to the assignment of the contractual position.

7. In the case of alienation of real estate or infrastructures benefiting from electrical energy supply by EDM, under a contract or via judicial means, the purchaser must celebrate a new contract with EDM, and the regime provided for in the previous paragraphs of this Clause shall apply.

Clause 15: Indemnities

1. EDM is solely responsible for the operation of the service subject of this contract, carrying out exploitation and management at its exclusive cost and risk.

2. All civil and criminal liability is reserved: a) In cases of force majeure; b) In cases of fault or negligence of the injured party, duly proven; c) In cases where the accident is attributable to third parties; d) Regarding losses, damages, or disasters resulting from the very nature of the installation.

3. Force majeure is understood as any unforeseeable fact and outside the control of the affected party, not caused by them and which has caused loss, damage, or non-compliance, including notably floods, storms, tsunamis, earthquakes, fire, acts of war, insurrections, public agitation, strike, or labor disturbance.

4. EDM is not responsible for damages or losses resulting from the lack of conservation of the client's installation or its alteration after inspection and approval or for use for purposes not foreseen, without due authorization.

5. The client is obliged to indemnify EDM for losses suffered by it as a consequence of violation of contractual obligations.

Clause 16: Termination of the Contract

1. EDM may unilaterally terminate the contract based on any of the following facts: a) Systematic failure to pay for energy consumption, as well as any fees, fines, or charges relating to services rendered; b) Systematic impediment of access to electrical installations without legal grounds or aggression towards their duly identified agents in service; c) Fraudulent consumption of electrical energy, in a systematic manner; d) Any other fact that constitutes a serious violation of contractual clauses.

2. Termination shall be made by simple letter or written communication to the client in which the reasons for termination are specified.

3. Termination shall take effect 90 days after communication, when it concerns clients with contracted power superior to 39.6 KVA, and 30 days for other cases.

Clause 17: Dispute Resolution

1. Disputes resulting from the interpretation and application of this contract shall be resolved through negotiation.

2. In the impossibility of a negotiated solution, without prejudice to recourse to other means provided by law, disputes shall be resolved judicially, with the competence of courts determined according to procedural rules.

BANK OF MOZAMBIQUE Notice No. 5/GGBM/2006 Having the need to adapt the criteria for the adherence of commercial banks to the Interbank Foreign Exchange Market, the Bank of Mozambique, using the powers conferred upon it by paragraph 1 of Article 21 of Law No. 1/92, of January 3, Organic Law of the Bank of Mozambique, determines:

1. The Regulation of the Interbank Foreign Exchange Market, attached, is approved, which forms an integral part of this Notice.

2. This Notice enters into force on the date of its publication and revokes Notice No. 13/GGBM/2005, of November 14.

3. Doubts that arise in the interpretation and application of this Notice must be submitted to the Markets Department of the Bank of Mozambique.

Maputo, December 15, 2006. — The Governor, Ernesto Gouveia Gove.

Regulation of the Interbank Foreign Exchange Market CHAPTER I (General Provisions)

ARTICLE 1 (Concepts and Objectives)

1. The Interbank Foreign Exchange Market, hereinafter designated MCI, is a segment of the foreign exchange market, in which the Bank of Mozambique and authorized institutions buy and sell foreign exchange, under the terms provided for in this Regulation.

2. Authorized institutions carry out between themselves operations of buying and selling foreign exchange, aiming to balance the needs and surpluses of foreign currency.

3. The Bank of Mozambique may intervene in the MCI through the purchase or sale of foreign exchange, bilaterally or multilaterally.

ARTICLE 2 (Requirements for adherence to MCI) The requirements for adherence to MCI are: a) Be a commercial bank authorized to operate in Mozambique; b) Quote firm, during the market operating period, for purchase and sale, in the minimum amount of USD 50,000 (fifty thousand United States dollars); c) Possess the Bank of Mozambique's computer application - MeticalNet, foreign exchange module; d) Possess technical-professional capacity and technological infrastructure, which obeys internationally acceptable standards, for settlement of operations with the exterior; e) Strictly observe all current regulations on foreign exchange operations, notably regarding external payments and receipts and provision of statistical information; f) Subscribe to the Code of Conduct of the Interbank Foreign Exchange Market.

ARTICLE 3 (Procedures for adherence to MCI)

1. Applications for adherence to MCI must be submitted to the Bank of Mozambique, by letter addressed to the Markets Department.

2. The Markets Department must communicate the decision on the applications, within a maximum period of 10 business days counted from the date of receipt of the application.

3. Commercial banks that on the date of entry into force of this Regulation are participants of the market are considered automatically authorized to participate in the MCI, unless a manifestation of will to the contrary, within a period of 5 business days counted from the aforementioned date.

ARTICLE 4 (Minimum Amount of MCI Operations)

1. The minimum amount of bilateral operations of the MCI, in which the Bank of Mozambique participates as counterparty, must not be less than USD 50,000 (fifty thousand United States dollars).

2. In multilateral intervention operations (foreign exchange auctions) that the Bank of Mozambique carries out in the MCI, the minimum amount is USD 250,000 (two hundred and fifty thousand United States dollars), except in cases of apportionment resulting from foreign exchange auctions.

ARTICLE 5 (Currency of Transaction)

1. The currency of transaction in operations where the Bank of Mozambique is counterparty shall be the United States Dollar (USD).

2. In transactions where the Bank of Mozambique is not counterparty, other currencies different from USD may be used, as agreed between the parties.

ARTICLE 6 (Bank Quotations)

1. The Bank of Mozambique makes available online, through the computer application - Foreign Exchange Module, a window where participating institutions register daily their buying and selling exchange rates of USD/MZM.

2. Participating institutions may update their exchange rates throughout the day. The buying exchange rate of each institution may not be higher than the global average rate of buying quotations of the system, calculated at the end of the previous business day plus a percentage margin to be defined by the Bank of Mozambique and disseminated through the Market Operations System (SOM).

3. The maximum spread between the buying and selling prices of foreign exchange, quoted under the terms of paragraph 1 of this Article, is stipulated by the Bank of Mozambique and communicated to participating institutions through the SOM.

4. The first quotations each day must be entered into the Meticalnet foreign exchange module at 8:30 hours.

5. After the realization of an MCI operation, participating institutions must adjust, in conformity, their quotations in the Bank of Mozambique's computer application, following the instructions that must be issued through the SOM.

ARTICLE 7 (Operating Hours of MCI) The MCI operates uninterruptedly, on all business days, from 8:30 hours to 15:30 hours.

CHAPTER II (Purchase and sale of foreign exchange between participating institutions)

ARTICLE 8 (Purchase and sale of foreign exchange)

1. Participating institutions may carry out between themselves operations of buying and selling foreign exchange.

2. Participating institutions undertake to practice firm quotation, under the terms of letter b) of Article 2 of this Regulation, in at least one daily operation, if called to transact.

3. For amounts above USD 50,000 (fifty thousand United States dollars), as well as for transactions denominated in other currencies, participating institutions may freely negotiate the exchange rate to be practiced in a specific operation.

4. The operations referred to in paragraph 1 of this Article may be carried out with or without guarantees.

5. If carried out with guarantees, on the date of execution, the buying bank must proceed to the delivery of titles for the current value, corresponding to the counter-value of the operation, according to the formula contained in the annex to this Regulation.

6. If the selling bank requires the presentation of guarantees to the buying bank, such is an indispensable requirement for the realization of the transaction in question.

7. The titles given as guarantee must be the same ones used in the Interbank Money Market operations and possess a maturity date equal to or superior to the value date of the operation.

8. Having payment of the counter-value, on the value date of the operation, the titles are returned to the buying bank of foreign exchange.

9. Not having payment of the counter...