Republic of Mozambique Official Gazette Supplement No. 50 of December 20, 2005

Tuesday, December 20, 2005
SERIES I - Number 50
OFFICIAL GAZETTE OF THE REPUBLIC
OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE SUPPLEMENT NATIONAL PRESS OF MOZAMBIQUE

NOTICE

The matter to be published in the "Official Gazette" must be submitted in a 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 "Official Gazette."

SUMMARY

Assembly of the Republic:
Law No. 7/2005:
Creates the Conversion Rate of the Circulating Metical to the Metical of the New Family.

Council of Ministers:
Decree No. 50/2005:
Grants in 2005 to all employees of the State apparatus and institutions subordinate, linked before November 1 of the past year, and to the Defense and Security Forces, the allowance of a salary known as the thirteenth month.

Decree No. 51/2005:
Approves the realization of the first phase of the Project "Rio Doce Mozambique — Integrated Development of Moatize".

Ministry of the Interior:
Ministerial Diploma No. 236/2005:
Grants Mozambican nationality, by reacquisition, to Maria Manuela Doutel Arez da Silva Luiz.

Ministerial Diploma No. 237/2005:
Grants Mozambican nationality, by naturalization, to Nehaben Arvind Ramanlal.

Ministerial Diploma No. 238/2005:
Grants Mozambican nationality, by naturalization, to Ramu Alias Arvind Ramanlal.

Ministerial Diploma No. 239/2005:
Grants Mozambican nationality, by naturalization, to Asmuclal Baguandas.

Ministerial Diploma No. 240/2005:
Grants Mozambican nationality, by naturalization, to Francisco Xavier Pó.

Ministerial Diploma No. 241/2005:
Grants Mozambican nationality, by reacquisition, to Abdul Satar Ussuman Abá Taib.

Ministerial Diploma No. 242/2005:
Grants Mozambican nationality, by reacquisition, to Jorge Demétrio José Costa Alface.

Ministerial Diploma No. 243/2005:
Grants Mozambican nationality, by reacquisition, to Jorge Humberto Beny Martins.

ASSEMBLY OF THE REPUBLIC
Law No. 7/2005 of December 20

Taking into account the current stage of development of our economy, characterized by stability in the general price level and a growing modernization of the national payment system, it is urgent to adapt the structure of the national currency to this reality, through the reduction of the number of digits of the Metical currently in circulation.

To achieve this objective, it is necessary to introduce an appropriate conversion rate.

In these terms, under the provisions of paragraph 1 of Article 179 of the Constitution, the Assembly of the Republic determines:

ARTICLE 1
(Definitions)
For the purposes of this Law, family is understood as the set of banknotes and coins of the Metical with common main characteristics.

ARTICLE 2
(Conversion Rate)

The Conversion Rate of the Circulating Metical to the Metical of the New Family is created.
The characteristics of the Metical of the New Family are decided by the Governor of the Bank of Mozambique, in accordance with the legislation in force.
The Conversion Rate referred to in number 1 enters into force on January 1, 2006.

ARTICLE 3
(Value of the Rate)
The conversion rate referred to in paragraph 1 of Article 2 of this Law is fixed at 1000 units.

ARTICLE 4
(Form of Conversion)
The value of the new family of the Metical is obtained by dividing the value of the Metical in circulation by 1000 units.

ARTICLE 5
(Written Designation)
The Governor of the Bank of Mozambique decides, by notice, the abbreviated written designation of the new family of the Metical, as well as its duration.

ARTICLE 6
(Entry into Force)
This Law enters into force on January 1, 2006.

Approved by the Assembly of the Republic, on November 24, 2005. — The President of the Assembly of the Republic, Eduardo Joaquim Mulémbwè, Promulgated on December 19, 2005.
Publish it.
The President of the Republic,
ARMANDO EMÍLIO GUEBUZA.

COUNCIL OF MINISTERS
Decree No. 50/2005 of December 20

Within the framework of the salary policy in force in the Country, the Government considers it necessary to apply, in the current year, an additional form of remuneration of an extraordinary nature.

Thus, under the provisions of letter g) of paragraph 1 of Article 204 of the Constitution of the Republic, the Council of Ministers decrees:

Article 1. It is granted in 2005 to all employees of the State apparatus and institutions subordinate, linked before November 1 of the past year, and to the Defense and Security Forces, the allowance of a salary known as the thirteenth month, equivalent to the salary level in which the employee is integrated within the framework of Decree No. 64/98, of December 3, and the table in force.

Art. 2. In the case of employees not integrated into the Career and Remuneration System referred to in Article 1, the allowance will correspond to the base salary currently received.

Art. 3. This allowance is extended to foreign technicians in service in the State sectors, paid by the State Budget, without the right to salary transfer.

Art. 4. Payment is also extended to Pensioners and Rentiers of the Administration of the State Real Estate Park, paid by the State Budget.

Art. 5. The Minister of Finance will issue the necessary instructions for the application of this decree.

Approved by the Council of Ministers, on December 13, 2005.
Publish it.
The Prime Minister, Luísa Dias Diogo.

Decree No. 51/2005 of December 20

With the objective of boosting the economic growth of the Zambezi Valley region, thus creating new poles of development in the country, the Mozambican Government encourages the implementation of an integrated project, based on the rehabilitation and exploitation of the coal mines of Moatize as an anchor project.

In this sense, in November 2004, an agreement of principles for the implementation of the coal prospecting and research project, and a Memorandum of Understanding for the implementation of social projects, were signed between the Mozambican Government and the Brazilian company Companhia Vale do Rio Doce, which regulate the general framework guiding the implementation of the project and the fiscal and exchange regime applicable to it.

In these terms, under the combined provisions of letter f) of paragraph 1 of Article 204 and paragraph 1 of Article 210, of the Constitution of the Republic, and of Law No. 3/93, of June 24, Investment Law, the Council of Ministers decrees:

ARTICLE 1
(Approval of the Project)

The realization of the first phase of the project "Rio Doce Mozambique — Integrated Development of Moatize", hereinafter designated as "Project", is approved.
The project consists of the set of activities described in Article 2 of this Decree, with subsequent phases subject to the results of the feasibility studies in progress and to be concluded in the first phase.
The project will be implemented by the company named "Rio Doce Mozambique, Limitada", registered in Mozambique, which is associated with the Brazilian group of companies known as CVRD — Companhia Vale do Rio Doce.

ARTICLE 2
(Location and Object of the Project)
The project is located in the Municipality of Moatize, Tete Province, and has as its object the realization of the following activities:
a) Coal prospecting and research; b) Development of infrastructure associated with the activity referred to in letter a); c) Realization of studies to determine the possibilities of installation of other projects outside the mining scope, namely aluminum smelting, power plant, ferro-alloy factory, steel industry, cement factory, coke factory, charcoal factory, and bio-diesel production; d) Realization of social projects in accordance with the Memorandum of Understanding for the implementation of social projects, signed on June 15, 2005, between the Government of Mozambique and the project implementing company.

ARTICLE 3
(Special Fiscal and Customs Regime)

To carry out the activities referred to in letters a), b), and c) of Article 2 of this Decree, the project implementing company, its contractors, and subcontractors are granted the following incentives:
a) Exemption from the payment of Customs Duties due on the importation of equipment, appliances, materials, spare parts, and vehicles for prospecting, research, or mining exploration in accordance with the Code of Fiscal Benefits, approved by Decree No. 16/2002, of June 27; b) Exemption from the payment of Value Added Tax and Specific Consumption Tax, in accordance with the provisions of the VAT and ICE Codes, approved by Decrees No. 51/98 and 52/98, both of September 29, on the importation of the goods referred to in the previous letter; c) Authorization for temporary importation of equipment, appliances, utensils, tools, and machinery, upon provision of a guarantee, namely the "Term of Responsibility"; d) Exemption from Income Tax resulting from the application of capital (flat rate) as third-party financing; e) Reduction of the withholding tax rate, established in Article 77 of the Code of Corporate Income Tax (IRPC), to 5%, applicable to income concerning services acquired from foreign suppliers, legal entities, destined for the project; f) Exemption from the payment of Stamp Duty (SISA) in the transfer of property from the State in favor of the society and a 50 percent reduction in the SISA rate on the acquisition of real estate, when exclusively destined for the implementation of the project;
For the realization of the social projects referred to in letter d) of Article 2 of this Decree, the project implementing company, its contractors, and subcontractors are granted the following incentives:
a) Exemption from the payment of Customs Duties due on the importation of equipment, appliances, materials, spare parts, and vehicles contained in class K of the Customs Tariff in force; b) Exemption from the payment of Value Added Tax and Specific Consumption Tax, in accordance with the provisions of the VAT and ICE Codes, approved by Decrees No. 51/98 and 52/98, both of September 29, on the imports referred to in the previous letter.
The exemptions provided for in the previous number of this article shall be guaranteed to the project and implemented in observance of the procedures approved by Ministerial Diploma No. 214/98, of the Ministers of Planning and Finance and of Industry and Commerce, of December 16.

ARTICLE 4
(Exchange Regime)

A special exchange regime is granted to the project, for opening and movement abroad of accounts that have as their purpose:
a) To proceed to the payment of investment expenses, including contractors; b) To guarantee the payment of loans, interest, and operational costs; c) To make payments to insurance companies or their agents.
The other exchange operations shall be carried out in observance of Law No. 3/96, of January 4, Exchange Law, and other applicable legislation.

ARTICLE 23
(Implementation, Control, and Monitoring of the Project)

The project shall be implemented under the provisions of Law No. 14/2002, of June 26, Decree No. 28/2003, of July 9, Mining Law and its Regulation, respectively, and the Code of Fiscal Benefits, approved by Decree No. 16/2002, of June 27, and this decree, combined with the Agreement of Principles for Prospecting and Research and, also, the Memorandum of Understanding for the Implementation of Social Projects, signed between the Mozambican Government and the company Companhia Vale do Rio Doce.
The control and monitoring of the implementation of the project shall be ensured by the Ministry of Mineral Resources, through the Inter-Ministerial Commission created for this purpose or in another manner, in the terms determined by the Minister of Mineral Resources.

ARTICLE 6
(Validity)

The Project is governed by the terms of this Decree until the conclusion of the works provided for, within the framework of the realization of the feasibility studies and the implementation of the social projects, as recommended in clause 11 of the Memorandum of Understanding for the Implementation of Social Projects, signed between the Government of the Republic of Mozambique and Rio Doce Mozambique, Limitada, whose completion is expected for November 2006.
Should there be an extension of the deadline for the works referred to in the previous number, the validity of this Decree shall also be extended for an identical period.

Approved by the Council of Ministers, on December 13, 2005.
Publish it.
The Prime Minister, Luísa Dias Diogo.

MINISTRY OF THE INTERIOR
Ministerial Diploma No. 236/2005 of December 20

The Minister of the Interior, verifying that the provisions of Article 14 of Decree No. 3/75, of August 16, combined with Article 16 of Law No. 16/87, of December 21, have been complied with, and using the faculty granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by reacquisition, to Maria Manuela Doutel Arez da Silva Luiz, born on May 5, 1960, in Beira.

Ministry of the Interior, in Maputo, November 23, 2005 — The Minister of the Interior, José Condugua António Pacheco.

Ministerial Diploma No. 237/2005 of December 20

The Minister of the Interior, verifying that the provisions of Article 14 of Decree No. 3/75, of August 16, have been complied with, and using the faculty granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by naturalization, to Nehaben Arvind Ramanlal, born on November 15, 1974, in Surat-India.

Ministry of the Interior, in Maputo, November 23, 2005. — The Minister of the Interior, José Condugua António Pacheco.

Ministerial Diploma No. 238/2005 of December 20

Mozambican nationality is granted, by naturalization, to Ramu Alias Arvind Ramanlal, born on June 8, 1945, in India.