Chapter 06

ARTICLE 29 (Right of land use and protection Area)

01 The concession for supplying electric energy is subject to authorization access and utilization under the provisions of land areas  approved necessary for the execution of works and adequate exploration of the concession, through the payment of taxes and compensations that may be deemed necessary and subject to abide by the procedures required under the terms of the Law on Land, its Regulation and further applicable legislation to assigning the right of use and profit of land, as well as the expropriation under the terms of the following article. 

02 The concessionaire is responsible, under the terms of the applicable law, for obtaining the constitution and demarcation of the respective servitude or protection area concerning the electric installations.

03 The concessionaire may demand the flattening of plantations and property that may hinder the way through for the transmission lines or its exploration, however, without prejudice to the provisions of the previous numbers.

 

ARTICLE 30 (Expropriations)

01 The granting of the concession is bound to a prior expropriation and to the payment of a just compensation, subject to legal terms if there are utility need reasons or public interest, generation, transmission or electric power distribution entails the utilization, occupation, damage or destruction of fixed assets and their respective rights or limited to and imposition of duties over the respective existing rights.  

02 The expropriation as provided for in the previous number is subject to satisfy the following requirements:

  1. the concessionaire or applicant of a concession must have undertaken legal effort in order to acquire the right of use and benefit from land or other fixed assets in question, through a settlement with the bearer of the right or the owner of the good;
  2. the purchase of fixed assets or rights on a fixed asset proves to be of public use and necessary for the legalization of a project electric energy supply; 
  3. the right or expropriated fixed asset does not happen to be used for a purpose other than the one that determined its expropriation. 

A declaration of public purpose is issued under the provisions of this article.

03 If a fixed asset or its respective right is not used for the purpose to which it was expropriated, it reverts on behalf of the user or original owner, and the latter not being bound to pay off the compensation paid. 

04 It is incumbent to the Council of Ministers to issue, over the expropriation proposals, the declaration of public purpose with regard to new construction projects of electric facilities by private sector individuals according to the provisions of this article and further proceeding of the applicable law.

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