Document:

Exhibit 4.14

FOURTH AMENDMENT TO THE CONTRACT TO ASSIGN THE OUTSTANDING
CREDIT BALANCE ON THE CRC (RESULTS COMPENSATION) ACCOUNT, SIGNED BETWEEN THE
STATE OF MINAS GERAIS AND COMPANHIA ENERGÉTICA DE MINAS GERAIS — CEMIG.

THE STATE OF MINAS GERAIS, through its State Finance
Office, with head office at Praça da Liberdade, Belo Horizonte, Minas Gerais,
CNPJ 18.715.615/0001-60, herein represented by its State Finance
Secretary Fuad Jorge Noman Filho, its State Development Secretary Wilson
Nélio Brumer, and its General Attorney José Bonifácio Borges de Andrada, and COMPANHIA ENERGÉTICA DE MINAS GERAIS — CEMIG,
a company with mixed State and private-sector stockholdings, with headquarters
in Belo Horizonte, Minas Gerais, at Avenida Barbacena 1200, CNPJ 17.155.730/0001-64,
herein represented by its Chief Executive Officer Djalma Bastos de Morais and
by its Chief Financial and Investor Relations Officer Mr. Flávio Decat de
Moura (hereinafter referred to as “CEMIG”),
the STATE and CEMIG hereinafter being referred to jointly
as “the Parties”, and each, individually, as a “Party”.

WHEREAS —

1.                                      Law
8631 of March 4, 1993, amended by Law 8727 of November 5, 1993, in
particular the provisions of Article 5, § 4, gave authorization for the
outstanding balance on the account known as the CRC (Results Compensation)
Account, after the offsetting specified in § 3 of the said Law, to be used,
under agreements with the public electricity service concession holders, by the
states, the Federal District and municipalities that hold stockholding control
in the said concession holders, for the purposes of offsetting debt owed to the
federal government by the said states, Federal District and municipalities;

2.                                      on May 31, 1995, under
the above legislation, the Parties signed the Contract for Assignment of the
Outstanding Credit Balance on the Results Compensation Account, by which CEMIG assigned to the STATE the remaining balance of the credits
on the now-discontinued Results Compensation Account received from the Federal
Government, in the amount of 852,851,282.9305 Fiscal Reference Units (UFIRs),
corresponding, on the date of the assignment, to R$ 602,198,290.88 (six hundred
and two million, one hundred and ninety eight thousand, two hundred and ninety
Reais and eighty eight centavos), to be amortized by the STATE in 204 (two hundred and four) monthly
consecutive installments, updated by the UFIR and remunerated at annual
interest of 6% (six per cent) after a grace period of 36 (thirty six) months,
guaranteed by funds of the States’ Participation Fund (FPE) (such Contract, as
amended by the three amendments referred to below, hereinafter being referred
to simply as “the CONTRACT”);

3.                                      on February 24, 2001
the Parties signed the First Amendment to the Contract for Assignment of the
Outstanding Credit Balance on the Results Compensation Account, to alter the
monetary correction indexor on the debtor balance, from the UFIR to the Special
Expanded National Consumer Price Index (IPCA-E), for the period of January through
October 2000, and to the 

 

 

General
Internal Availability Price Index (IGP-DI), in the months of November and December 2000;

4.                                      on October 14, 2002,
the Parties signed the Second Amendment to the Contract for Concession of the
Outstanding Credit Balance on the Results Compensation Account, to reschedule
the installments which were to become due as from January 1, 2003, and
establish the IGP-DI as the inflation indexing unit, with the possibility (at
that time) of passing through of the said credit by CEMIG to the federal
government or to the BNDES (National Development Bank), though this did not in
fact take place;

5.                                      on October 24, 2002 the
Parties signed the Third Amendment to the Contract to Assign the Outstanding
Credit Balance on the Results Compensation Account, to reschedule and
renegotiate the Installments past due and not paid, calculated on December 31,
2002, including interest and arrears charges on the overdue installments, with
interest of 12% (twelve per cent) per year and monetary updating by the
variation in the IGP-DI, to be paid in 149 (one hundred and forty nine) monthly
consecutive Installments, from January 2003 to May 2015;

6.                                      there is legislative
authorization for the STATE to pledge
in guarantee dividends or Interest on Equity payable to it by CEMIG, and it may do so with the respective retention, under
State Law 14247 of June 4, 2002, as amended by State Law 14384 of October 11,
2002;

7.                                      the debtor balance on the CONTRACT on December 31, 2004 is
R$ 2,941,599,110.03 (two billion, nine hundred and forty one million, five
hundred and ninety-nine thousand, one hundred and ten Reais and three
centavos);

8.                                      there is a need to
regularize the payment of the installments owed by the STATE to CEMIG,
and the Parties have an interest in ensuring that the debit of the STATE is paid in full, as calculated on December 31,
2004, by means of partial or total retention, in accordance with the present
instrument, of dividends or Interest on Equity becoming due for payment by CEMIG to the STATE;

9.                                      the draft of this
contractual amendment, and also the terms and conditions contained in it, have
been approved by the Board of Directors, in a meeting held on January 12,
2005, as per CEMIG Board Decision Statement
(CRCA)002/2006, duly homologated by the Extraordinary General Meeting of Stockholders
of CEMIG begun on December 30, 2005
and completed on January 12, 2006;

10.                                through CEMIG
Board Decision Statement (CRCA) 145./2004, of 22../11../2004, the Board of
Directors of CEMIG approved the CEMIG Strategic Plan for 2005—2035, 2004 Edition:  Bases for Renegotiation of the Results
Compensation Account Contract  (hereinafter
referred to simply as the “Strategic Plan”), which deals with the following:

a)              the criteria and assumptions
on which the forecasts made in the Strategic Plan were based;

 

 

b)             the renegotiation of the
debtor balance of the CRC Contract, in accordance with this present instrument;

c)              the amounts of capital
expenditure, including those necessary for the expansion planned by CEMIG,
and also the amounts to cover current investment; and

d)             the “New Dividend Policy”,
consisting of

(i)             obligatory distribution of
50% (fifty per cent) of net profit as dividends and Interest on Equity,
hereinafter referred to as “ordinary dividends”; and

(ii)          distribution of
extraordinary dividends or Interest on Equity, every 2 (two) years, starting in
2005, whenever there is free cash available in excess of 5% (five per cent) of
annual cash flow, hereinafter referred to as “extraordinary dividends” (“the
New Dividend Policy”);

11.                                        the STATE will seek to exercise its power of control in
CEMIG in such a way as to orient
and allow the management of CEMIG
to make the execution of the Strategic Plan possible;

— the Parties hereby resolve to sign this Fourth Amendment to the
Contract for Assignment of the Outstanding Balance on the Results Compensation
Account (hereinafter “the Amendment”), subject to the following terms and
conditions:

CLAUSE ONE: THE DEBIT

The STATE
recognizes and declares, for the purposes of this instrument, subject to the
matters in the Sole Paragraph of this Clause, the debit owed by itself to CEMIG under the CONTRACT, as amended, in the total amount of
R$ 2.941.599.110,03 (two billion, nine hundred and forty-one million, five
hundred and ninety-nine thousand, one hundred and ten Reais and three
centavos), base date December 31, 2004, made up of the past due and unpaid
installments of the principal, and also the installments yet to become due, all
duly updated and augmented by contractual charges up to the base date
(hereinafter referred to simply as “the DEBIT”).

Sole paragraph: The debtor balance
identified in this clause is the subject of disagreement in relation to an
amount limited to R$ 115,670,291.40 (one hundred and fifteen million six
hundred and seventy thousand two hundred and ninety one Reais and forty
centavos). The  STATE and CEMIG undertake to resolve this disagreement within 90
(ninety) calendar days from the date of signature hereof, by means of
conciliation to be effected by the STATE
and CEMIG, there being deducted
any amount which comes to be recognized by the Parties as not payable, in a
valuation opinion approved by the STATE
and by the Board of CEMIG, with
proportional reduction in the value of the Installments specified in Paragraph
One of Clause Two hereof. If the conciliation is not achieved in the
above-mentioned period, the disagreement shall be submitted by both the Parties
to the Public Audit Board of the State of Minas Gerais, through a formal, and
specific, consultation.

CLAUSE TWO: MONETARY ADJUSTMENT,
INTEREST AND PAYMENT CONDITIONS

The STATE undertakes
to amortize and pay the DEBIT, duly
updated and augmented by the due interest, in accordance with the following
basic conditions:

a)              compliance with the
obligation for payment and consequent amortization and settlement of the

 

 

DEBIT shall take place, as
priority, by means of retention by CEMIG of the
amount of dividends and Interest on Equity payable to the STATE, as
provided for in Clause Three;

b)             the DEBIT
shall be updated in its monetary value, based on the monthly variation,
positive or negative, of the General Internal Availability Price Index (IGP-DI)
of the Getúlio Vargas Foundation, taking place from January 1, 2005 and up
to the date of its effective and entire settlement;

c)              on the balance of the DEBIT, updated, there shall be payable interest of 4.00961494016%
per half-year and
8.18% (eight point one eight per cent) per year, pro rata
tempore, capitalized half-yearly, on June 30 and December 31,
subject to the terms of Clause Six and other provisions of this instrument;

d)             the STATE shall settle the DEBIT, duly updated and augmented by the
interest payable, by June 30, 2035;

e)              to amortize the DEBIT, the STATE shall pay
to CEMIG (i) 61 (sixty-one)
half-yearly consecutive installments, becoming due by June 30 and December 31
of each year, the first starting from the first half of 2005, in accordance
with the amounts and timetable set out below (“the Installments”), until the
total settlement of the DEBIT, and (ii) the
entire debtor balance, if any, after the payments referred to above, on June 30,
2035.

Paragraph One: The amortizations referred
to in item (i) of sub-clause “e” of the head paragraph shall be effected, at each due
date, in accordance with the following amounts:

	
  INSTALLMENTS

  	
   

  	
  AMOUNT OF INSTALLMENT

  
	
  1 to 5

  	
   

  	
  R$29,415,991.10,

  
	
  6 to 10

  	
   

  	
  R$30,886,790.66,

  
	
  11 to 15

  	
   

  	
  R$33,828,389.77,

  
	
  16 to 20

  	
   

  	
  R$38,240,788.43,

  
	
  21 to 25

  	
   

  	
  R$41,182,387.54,

  
	
  26 to 29

  	
   

  	
  R$44,123,986.65,

  
	
  30 to 33

  	
   

  	
  R$47,065,585.76,

  
	
  34 to 37

  	
   

  	
  R$50,007,184.87,

  
	
  38 to 41

  	
   

  	
  R$52,948,783.98,

  
	
  42 to 44

  	
   

  	
  R$55,890,383.09,

  
	
  45 to 47

  	
   

  	
  R$58,831,982.20,

  
	
  48 to 50

  	
   

  	
  R$61,773,581.31,

  

 

 

 

	
  51 to 53

  	
   

  	
   

  	
  R$64,715,180.42,

  
	
  54 and 55

  	
   

  	
   

  	
  R$67,656,779.53,

  
	
  56 and57

  	
   

  	
   

  	
  R$70,598,378.64,

  
	
  58 to 60

  	
   

  	
   

  	
  R$73,539,977.75,

  
	
  61

  	
   

  	
   

  	
  R$76,481,576.84

  

 

Paragraph Two: The amount of each
Installment shall be monetarily updated, from January 1, 2005 up to the
date of its payment, based on the General Domestic Availability Price Index
(IGP-DI) inflation index of the Getúlio Vargas Foundation.

Paragraph Three: The maturity date of each installment
shall be automatically brought forward to the date on which CEMIG makes the payment of dividends and/or
Interest on Equity, within the respective half-year to which the installment
refers. In the event of there having taken place, in the said half-year, any
payment of dividends or Interest on Equity, either ordinary or extraordinary,
and if the payment of these takes place on different dates, the due date shall
be that of the last payment in the half-year period. There shall, however, be
retained, from each payment which comes to be made within the respective
half-year, in advance, the amount which, under this CONTRACT,
is to be retained of the amount payable by CEMIG to the STATE, as provided for in Clause Three.

Paragraph Four: The monetary updating and
the interest payable under this Amendment shall be calculated on the daily
debtor balances of the DEBIT, pro rata tempore, with the monetary updating being calculated monthly and the
interest being capitalized

six-monthly.

Paragraph Five: In the event of the IGP-DI
being abolished, the index which replaces it shall be applied, or another
officially recognized monetary updating index which best reflects the loss of
purchasing power, or any other index which may be agreed between the Parties.

CLAUSE THREE: RETENTION OF DIVIDENDS AND INTEREST ON EQUITY

For payment of the DEBIT,
in accordance with Clause Two, the Parties recognize that the STATE:

a)                  currently has a stockholding
of 22.23% (twenty two point two three per cent) in CEMIG which, based on distribution of 50% (fifty per cent) of
the net profit as dividends or Interest on Equity and retention of the
percentage specified in Paragraph Two, sub-clause “a” below, corresponds, on
today’s date, to a percentage of 7.23% (seven point two three per cent) on net
profit; and

b)                 intends to use the amounts
arising from the flow of dividends or Interest on Equity to which it is
entitled as a stockholder of CEMIG,
taking into account the New Dividend Policy and the changes to the Bylaws of CEMIG, to guarantee the payment of the
Installments and of the balance of the DEBIT.

 

 

Paragraph One: By means of this Amendment,
and for the full purposes of law, the STATE
hereby irrevocably authorizes CEMIG
to retain amounts from the STATE’s
entitlement to dividends and/or Interest on Equity receivable from CEMIG for the payment of the Installments
and the balance of the DEBIT, plus
the interest owed and duly adjusted, subject to the provisions of this
instrument.

Paragraph Two: Of the distribution, as
ordinary dividends and Interest on Equity, of 50% (fifty per cent) of net
profit, CEMIG shall, unless
otherwise provided for in this instrument, proceed as follows:

a)                     CEMIG shall retain 65% (sixty five per cent) of the total of
the ordinary dividends and Interest on Equity to which the STATE is entitled (hereinafter “the Amount
Retained”) and apply the entire Amount Retained as follows:

a.1) for settlement of any Installment past due and
not fully paid, in order of the past chronological order of due dates;

a.2) for settlement of the Installment relating to the
half-year in which the ordinary distribution of profit or Interest on Equity
takes place;

a.3) for anticipated settlement of up to a maximum of
2 (two) Installments, being those immediately subsequent to the half-year in
which the ordinary distribution of earnings or Interest on Equity takes place,
subject to the provisions of Clause Four; and

a.4) for the amortization of the balance of the DEBIT, augmented by the interest due and duly adjusted,
without there being any change to the amount or due date of the Installments
yet to become due, or subsequent ones, which shall continue to be owed in
accordance with the terms of Clause Two, except those referred to in item a.3
above.

b)                 CEMIG shall pay to the STATE the remaining 35% (thirty five per
cent) of the amount of the ordinary dividends and Interest on Equity.

Paragraph Three: Without prejudice to the
retention of the Amount Retained under Paragraph Two, if the retention of the
ordinary dividends and Interest on Equity is insufficient to settle the
respective Installment, CEMIG
shall proceed to retain, starting on January 1, 2008, up to 65% (sixty
five per cent) of all and any amount of extraordinary dividends or Interest on
Equity to which the STATE may be
entitled, for the settlement of any Installment, up to the amount necessary for
its settlement, after due monetary correction.

Paragraph Four: If the retention of the
ordinary and extraordinary dividends and/or Interest on Equity in the manner
specified in Paragraphs Two and Three above is insufficient for total
settlement of any Installment, CEMIG  shall proceed automatically to retain the
totality of all and any dividends and Interest on Equity, ordinary or
extraordinary (including the percentage specified in Paragraph Two, sub-clause “b”),
to which the STATE is entitled, starting from
the six-month period immediately following that of the Installment which is
past due and has not been fully settled, up to the full settlement of such
Installment, duly adjusted in monetary terms, and the interest due on any
debtor balance shall be added to the total of the DEBIT.

Paragraph Five: Without prejudice to the
retention of the Amount Retained, in accordance with the Paragraphs above and
any other provision hereof, and provided that default has not yet been
characterized 

 

 

 

under Clause Seven, after the settlement of all the
Installments that are past due and have not been fully settled, the retention
specified in Paragraphs Three and Four shall be immediately suspended, and shall
again be applied only to the 65% (sixty five per cent) of the ordinary
dividends and Interest on Equity, in accordance with Paragraph Two, sub-clause “a”.

Paragraph Six: If there is a reduction in the share
held by the STATE in the
registered capital of CEMIG and,
as a result, in the ordinary dividends and/or Interest on Equity to be paid by CEMIG to the STATE,
the percentage defined in Paragraph Two, sub-clause “a” shall automatically be
adjusted upward (with
the corresponding reduction of the percentage specified in Paragraph Two,
sub-clause “b”), in such a way that the “Amount Retained” shall correspond at
all times to at least 7.23% (seven
point two three per cent) of the net profit of CEMIG.

Paragraph Seven: If CEMIG assigns the credits made up of the
Installments payable by the STATE,
which may also be an assignment to one
or more Credit Receivables Investment Funds, provided that all the terms and
conditions of this instrument are preserved, the  STATE hereby authorizes CEMIG to make the payment of the
Installments, in the proportion of the credit assigned, directly to the
assignee, using amounts retained in accordance with this Clause Three.

CLAUSE FOUR: EARLY AMORTIZATION AND
OTHER AMORTIZATIONS

The Parties agree that early amortization of an
Installment or Installments may only take place in the following events and
provided there is no Installment which is past due and has not been fully
settled:

a)              the STATE may effect early amortization of up
to a maximum of 2 (two) Installments, by application of the balance of the
Amount Retained in excess of the amount of the Installments that are past due,
as specified in Paragraph Two, sub-clause “a.3”, of Clause Three, provided the
number of installments thus amortized early does not exceed, at any time, a total
of 2 (two) Installments; or

b)             the STATE may carry out early amortization of
up to a maximum of 3 (three) Installments, with its own funds, not arising from
the retention of ordinary or extraordinary dividends and/or Interest on Equity,
provided that the number of Installments thus amortized early does not exceed
at any time a total of 3 (three) Installments.

Sole paragraph: In the
event that CEMIG carries out any
amortization, redemption or repurchase of shares, any reduction of capital or
any other transaction which results in distribution or payment to stockholders,
other than distribution of dividends or payment of Interest on Equity, the
totality of the amounts to which the STATE
is entitled shall be wholly and automatically used in the amortization of the
balance of the DEBIT, in the manner specified in Clause Three, Paragraph Two,
sub-clauses “a.1”, “a.2”, “a.3” and “a.4”, subject also to the provisions of
sub-clause “b” of this Clause.

 

 

CLAUSE FIVE: COMPLIANCE WITH THE STRATEGIC
PLAN AND THE CONTRACT

For the purposes of ensuring the total payment of the DEBIT to CEMIG,
under the terms of this Amendment, and as part of its obligations hereunder,
the STATE undertakes, subject to the legislation in force, to exercise its power of
control in  CEMIG in such a
way as:

a)                  to propose the maintenance
of, and maintain, in the bylaws of the wholly-owned subsidiaries of CEMIG, the distribution and payment to CEMIG, as dividends and/or Interest on Equity,
of the total of the net profit made by the said subsidiaries, after the
retention of the amounts allocated to the legal reserves and to the capital
expenditure approved under the Strategic Plan, subject to the availability of
free cash in the respective subsidiary;

b)                 to propose the maintenance
of, and to maintain, in the Bylaws of CEMIG, (i) the
distribution and payment of 50% (fifty per cent) of net profit, as dividends or
Interest on Equity, in 2 (two) six-monthly
parts, the first by June 30 and the second by December 31, of each
year; and (ii) the provisions in relation to the management of CEMIG contained in Clause 11 of the Bylaws,
with the drafting approved by the Extraordinary General Meeting of Stockholders
begun on December 30, 2005 and completed on January 12, 2006.

c)                  to submit
to prior approval by the Board of Directors of CEMIG and, subsequently, to approval by the General Meeting of
Stockholders of CEMIG, any
alteration to the CONTRACT, as
amended by the present Amendment;

Paragraph One:  The Parties recognize that the renegotiation
of the DEBIT in the form of this
Amendment took into account the Strategic Plan and the New Dividend Policy
therein specified, and also the establishment of targets for the management of CEMIG, in accordance with the provisions of
the bylaws referred to in sub-clause “b” of the head paragraph of this Clause.
In this respect, and as long as the State has fulfilled its commitments
specified in this Clause Five, if an extraordinary event occurs that is
unpredictable and beyond the control of the Parties, and results in reduction
of the profit of CEMIG and
consequent reduction of the payment of dividends and Interest on Equity, in
such a way that 100% (one hundred per cent) of the retention by CEMIG of the ordinary and/or extraordinary
dividends and interest on equity which are payable to the STATE, in accordance with the provisions of
Paragraph Four of Clause Three, is insufficient for the full payment of the
Installments, the Parties, in a spirit of mutual cooperation and in obedience
to the final period for settlement of the DEBIT
and the financial charges originally agreed, hereby agree to negotiate in good
faith the rescheduling of the Installments affected by the respective events,
taking into account the Strategic Plan. When the existence of the circumstances
referred to in this Paragraph One has been characterized, unless the parties
reach an agreement about the rescheduling of the Installments affected, all the
provisions hereof shall remain valid and in full effect (including the
retention of all the dividends and interest on equity payable to the State),
except that the number of Installments provided for in the head paragraph of
Clause Six and in sub-clause “b” of Clause Seven shall be, for the specific
purposes of such an eventuality, and without the possibility of accumulation
(even if a new event occurs), augmented by 1 (one) Installment, increasing to 4
(four) and 6 (six) Installments, respectively.

Paragraph Two: The
provisions relating to the management of CEMIG
contained in the bylaws referred to in sub-clause (b), sub-item (ii), of this
Clause Five, which aim to ensure compliance with the guidelines and targets
necessary for adequate generation of the profits of CEMIG and the payment of the DEBIT
in the form specified in this Amendment, shall not be changed, other than in an
extraordinary situation arising from a future situation in the economy which
clearly justifies and calls for alteration of any of these provisions, as and
when such situation is identified by the Board of Directors of CEMIG in terms of this Paragraph Two and
provided that the alteration of any of these provisions, in such a situation, (i) is
limited to what is strictly necessary for adaptation to the new situation, (ii) maintains
and makes possible 

 

 

 

maintenance of the projections of CEMIG’s profits in such a way as to ensure
the conditions for the full payment of the DEBIT
by the STATE in the manner
specified in this Amendment, (iii) obeys the principles that support the
renegotiation of the DEBIT in the
form of this Amendment and, cumulatively, (iv) is approved by the Board of
Directors of CEMIG, after hearing
of the opinions of an independent audit, and also of CEMIG’s independent auditors, as a condition for submission of
the change to the general meeting of stockholders of CEMIG.

CLAUSE SIX — INCREASE IN THE
INTEREST RATE

In the event that the STATE
does not pay on time and in full 3 (three) successive Installments, whether or
not there has been retention of the totality of all or any ordinary and
extraordinary dividends and/or Interest on Equity due to the STATE under Paragraph Four of Clause Three,
or if its default becomes characterized under Clause Seven, the interest rate applicable
to the balance of the DEBIT
shall be changed, automatically, to 0.797414 per month, corresponding to an
effective rate of 10% (ten per cent) per year, in replacement of the interest
rate specified in sub-clause “c” of the head paragraph of Clause Two.

Sole paragraph: The
increase in the interest rate shall be in effect as from the first day of the
six-month period following the six-month period to which the third Installment
not fully paid refers and may be reduced again to the interest rate specified
in sub-clause “c” of the head paragraph of Clause Two (without prejudice to the
amount of interest accumulated at the higher rate in the period in which it is
in effect) if the STATE settles all and any
Installment that is past due and unpaid in full before its default has been
characterized in accordance with Clause Seven.

CLAUSE SEVEN: DEFAULT

Any of the
following events shall characterize default by the STATE, independently of any advice or notification:

a)                   if the STATE at its initiative and without being
obliged to comply with any new rule of federal legislation (i) allows
the reduction of the distribution and payment to CEMIG of dividends or interest on equity of the wholly-owned
subsidiaries of CEMIG, as
specified by sub-clause “a” of Clause Five, (ii) reduces the distribution
and payment of 50% (fifty per cent) of the net profit of CEMIG as dividends and Interest on Equity,
or (iii) ceases to obey the provisions of Paragraph Two of Clause Five in
relation to the commitment and matters specified in sub-clause “b”, item (ii) of
Clause Five;

b)                  if the STATE ceases to make the payments in timely
fashion and in full of 5 (five) consecutive Installments, independently of
whether or not either of the following has occurred: (i) retention of the
totality of all and any ordinary or extraordinary dividends or interest on
equity payable to the STATE, in
accordance with Paragraph Four of Clause Three; or (ii) increase in the
interest 

 

rate under Clause Six; or

c)                   if the STATE ceases to make full payment of any
amount due under this instrument and the sum of the amount owed is equal to or
more than 4 (four) times the value of the first Installment not aid in full,
adjusted in accordance with Paragraph Two of Clause Two, or

d)                  the STATE
fails to comply with the provisions of Clause Five, sub-clause “c”, or in any
way prevents CEMIG from making the retentions
specified in Clause Three or in the Sole Paragraph of Clause Four.

CLAUSE EIGHT: MEASURES IN THE
EVENT OF DEFAULT; EARLY MATURITY; CHANGE IN FINANCIAL CHARGES

In the event that the STATE defaults, under Clause Seven,
independently of whether CEMIG
takes any steps at any time, the following shall be obeyed, without prejudice
to any other right of CEMIG or action:

a)              the amount
of the DEBIT, including the Installments,
shall continue to be updated by the positive or negative variation of the
General Domestic Availability Price Index (IGP-DI) and to suffer the effect of
interest, in the manner specified herein, subject to sub-clause “b” below;

b)             in
substitution of the remunerative interest rate specified in Clause Six, arrears
interest of 0.948879% per month shall automatically come into effect,
corresponding to an effective rate of 12% (twelve per cent) per year, starting
from the date of characterization of the default;

c)              CEMIG shall continue to retain the Amount Retained, and also the
totality of all and any ordinary or extraordinary dividends or Interest on
Equity, or other amounts resulting from amortization, redemption or repurchase
of debentures, shares or reduction of capital payable to the STATE, until the full payment of the totality of the DEBIT, augmented by the interest
payable, and duly corrected in monetary terms. The retention shall not under
any circumstances cover amounts relating to revenues of the STATE of a tax nature;

d)             CEMIG may declare early maturity of the totality of the DEBIT, augmented by the interest payable, duly updated in monetary
terms, and also demand, charge and collect from the STATE, through the courts or
otherwise, the amounts payable by the STATE,
including the total of the debtor balance.

CLAUSE NINE: PERIOD OF
VALIDITY

The CONTRACT
shall be valid until June 30, 2035, and may be settled early, if the value
of the Amounts Retained which exceed the amount of the respective Installments,
plus any other amount which becomes payable to CEMIG
under this instrument, have been sufficient for the early settlement of the 

 

balance of the DEBIT, plus the interest payable and due monetary correction.

Paragraph One: If the
concession contracts for provision of public electricity distribution service
of the respective wholly-owned subsidiary of CEMIG
are not extended from 2016, the Parties shall renegotiate the balance of the DEBIT, subject to preservation of the limit-date of June 30,
2035 for its full payment.

Paragraph Two: If for
any reason the CONTRACT is terminated or
extinguished without the debtor balance owed by the STATE
having been settled in full, for as long as the settlement of the debtor
balance, including the interest due and monetary correction, is not
renegotiated between the Parties, CEMIG shall
retain the totality of the ordinary or extraordinary dividends and/or Interest
on Equity payable to the STATE,
independently of notice or any other measure.

Paragraph Three: If the STATE
decides to dispose of shares that represent the
control of CEMIG, it must
include in the respective public offer, or equivalent, and in all the other
instruments of disposal, a Clause which obliges the acquiring Party to settle,
at sight, the balance of the DEBIT,
augmented by
the due interest and duly corrected in monetary terms, as a condition for the
acquiring Party to acquire control, and in this event the balance of the DEBIT
shall be considered to have matured early, without requirement for any advice
or notice.

Paragraph Four: The Parties state and acknowledge that,
between the Parties, the effects of this Amendment shall be backdated to govern
the first half of 2005.

CLAUSE TEN: BUDGETARY
ALLOCATION

The expenses arising from this Amendment shall be borne by
general budget funding allocation General State

Expenses - 1911 28 843 002 7 886 0001, of the budget of the STATE currently in force, Law 15460 of January 15,
2005, and those of the subsequent business years by the budget allocations
which are set in the respective budgets.

CLAUSE
ELEVEN: TRANSITORY PROVISIONS RELATIVE TO THE DEDUCTIONS

In 2005, there shall be deducted from the respective Amounts
Retained funds to be allocated for the subscription, by the STATE, of non-convertible debentures in CEMIG, the purpose of which is to finance
construction of the Irapé hydroelectric plant, under Article 1 of State
Law 13954 of July 20, 2001, plus an additional subscription of
R$ 30,000,000.00 (thirty million Reais) in 2 (two) six-monthly
Installments of R$ 15,000,000.00 (fifteen million Reais) each, in the year
of 2006, the addition of which shall depend on legislative authorization.

Sole paragraph: All the amounts, including
principal and/or interest, payable to the STATE
under the above-mentioned debentures shall, at the date of their respective
maturity, redemption or payment, be applied totally and automatically in the
amortization of the balance of the DEBIT, in the
form specified in Clause Three, Paragraph Two, Sub-clauses “a.1”, “a.2”, “a.3”
and “a.4”, subject also to the provisions of Sub-clause “b” of Clause Four.

 

CLAUSE TWELVE: IRREVOCABILITY

The present Amendment has been duly authorized and signed by
the Parties, and constitutes a perfect legal transaction and is irrevocable.
Any alteration to the CONTRACT, as
amended by this Amendment, must obey the provisions of this instrument.

CLAUSE THIRTEEN: SUCCESSION AND ASSIGNMENT

The CONTRACT, as
amended by this Amendment, is signed and agreed irrevocably, and binds the
Parties and those who for any reason are their successors. None of the Parties
may assign its rights or obligations under the CONTRACT, as
amended by this Amendment, by means of stockholding reorganization or
otherwise, other than in the circumstances provided for by Paragraph Seven of
Clause Three.

CLAUSE FOURTEEN: RATIFICATION

All the clauses, items and conditions of
the CONTRACT which have not been
altered by the present Amendment and which do not conflict with the terms of
this Amendment remain in full force and effect.

CLAUSE FIFTEEN — NOVATION

Omission or delay by any of the Parties in exercising any
of their rights shall not constitute waiver or novation, nor prejudice future
exercise of the same right.

CLAUSE SIXTEEN — JURISDICTION

The
place of jurisdiction of the CONTRACT is the legal district of Belo Horizonte, in the
Brazilian State of Minas Gerais, any other being hereby waived.

Being agreed and contracted the Parties
sign this present Amendment in 3 (three) copies of equal form and content, for
a single legal effect, in the presence of the witnesses named below, who also
sign.

Belo Horizonte, January 23, 2006

(Signed
by)

STATE OF MINAS GERAIS;

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

COMPANHIA ENERGÉTICA DE MINAS GERAIS —
CEMIG;

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

WITNESSES: Name —
Identity Card Number; Name — Identity Card Number;

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RG:

  	
   

  	
   

  	
   

  	
  RG:Exhibit 4.15

Announcement of start of public
distribution of Senior Units in

THE CEMIG CRC
RECEIVABLES FUND

(CEMIG - FUNDO DE INVESTIMENTO EM DIREITOS CREDITÓRIOS
CONTA CRC)

Issuer

Risk rating of
the Senior Units

by Fitch
Ratings: A- (bra)

BANCO ITAÚ BBA S.A., a financial institution
with head office at  Av. Brigadeiro Faria
Lima, nr. 3400, 4o andar , São Paulo, São Paulo State, registered in the
CNPJ/MF under No. 17.298.092/0001-30 (“the Lead Manager”) and
BANCO BRADESCO S.A., a financial institution
with head office at the “Cidade de Deus” Administrative Center, Vila Yara,
Osasco, São Paulo State, registered in the CNPJ/MF under No. 60.746.948/0001-12
(herein, “Joint Manager”)(when referred to jointly, “the Offering
Managers”), hereby inform the public of the beginning of public
distribution of 900,000,000 (nine hundred million) Senior Units issued by CEMIG
— FUNDO DE INVESTIMENTO EM DIREITOS CREDITÓRIOS CONTA CRC (“the
Fund”, “the Senior Units, and “the Offering”), administered
by Intrag Distribuidora de Títulos e Valores Mobiliários Ltda., a limited company operating as a financial institution, with head
office at Praça Alfredo Egydio de Souza Aranha 
100, Torre Itaúsa, São Paulo, São Paulo State, registered in the CNPJ/MF
under No. 62.418.140/0001-31 (“the Administrator”), with unit
issue value of R$ 1.00 (one Real) (“the Issue Unit Value”), making
up a total of:

 

 

R$ 900,000,000.00

The Senior Units’
ISIN Code: BRFCMGCTF005

The
Fund will issue a single series of Senior Units, the subject of this Offering,
and 760,125,012 (seven hundred and sixty million, one hundred and twenty five thousand
and twelve) subordinated units (“the Subordinated Units”) (when jointly
with the Senior Units, “the Units”), which shall be subscribed and fully
paid up solely by Companhia Energética de Minas Gerais — Cemig (“the Issuer”).

 

The
objective of the Fund is to provide to its Unit Holders, subject to the
investment policy, which governs composition and diversification of the
portfolio and is defined in the Regulations of the Fund, growth in value of
their Units by means of acquisition by the Fund of (i) Credit Receivable
Rights, on a permanent basis, with co-guarantee and other obligations assumed
by the Issuer up to the expiry of the initial period of 10 (ten) years from the
Date of Issue of the Senior Units (“the Initial Period”), arising from
the Contract to Assign the Outstanding
Balance on the CRC (Results Compensation) Account,) signed between
the Issuer and the State of Minas Gerais (“the Assigned Debtor”) on May 31,
1995, as amended afterwards (“the CRC Contract”), together with all the
rights, inflation correction, increases, privileges, preferences, prerogatives
and actions thereto related, including the guarantees which assure them — all
in accordance with the terms of the CRC Contract; and (ii) financial
assets.

 

The Fund
was constituted as a closed-condominium fund, and its period of duration is
(thirty) years, from the Date of Issue of the Units (“the Period of Duration”),
subject to the provisions of the Regulations, which were registered at the 6th Securities and Documents Notary’s Office of
the city of São Paulo, São Paulo State, on January 19, 2006, under No. 1325548.
The fund is governed by the provisions of its Regulations, by Instruction
356/2001, as amended by Instruction 393/2003, of the Brazilian Securities
Commission (CVM — Comissão de Valores Mobiliários)
(respectively “CVM Instruction 356” and “the CVM”), and other
applicable provisions of law and regulations.

 

1. Characteristics of the Offering
and the Fund

1.1. The Offering

The
Lead Manager was contracted by the Administrator to carry out the Offering
exclusively in the Brazilian market, under the regime of firm guarantee of
placement in the over-the-counter market. The Joint Manager was the institution
sub-contracted by the Lead Manager to carry out the Offering.

1.2. Target public

The target public of the Offering is:
qualified investors.

Only the following may acquire Senior
Units of the Fund: investment funds classified as “fixed income” and “multi-market”,
under Sub-item II of Clause 91 of CVM Instruction 409/04 that are qualified to
acquire units issued by credit receivables investment funds, and those
investors considered as qualified under CVM Instruction 409/04, that is to say:
(i) financial institutions; (ii) insurance companies and annuity
capitalization companies; (iii) open and closed complementary private
pension plan organizations; (iv) individuals or legal entities that have
financial investments in excess of R$ 300,000.00 and which additionally
attest in writing, in a document of their own drafting, that they are qualified
investors; (iv) investment funds destined exclusively for qualified
investors; and (v) portfolio managers and securities consultants
authorized by the CVM, in relation to their own funds.

1.3. Registration of the Offering

The Fund and the distribution of its
Senior Units were registered with the CVM on January 20, 2006,
under No. CVM/SRE/RFD/2006/004.

1.4. Date of Issue

The Date of Issue shall be the first
paying-in date of the Senior Units.

1.5. Quantity of Senior Units under the
Offering

The
single series of Senior Units shall consist of a total of 900,000,000 (nine
hundred million) Senior Units, which are book-entry securities and maintained
in a deposit account in the name of their respective holders, corresponding to
pure fractions of the net assets of the Fund (“the Net Assets”).

 

 

1.6. Unit value of the Issue

The Unit value of the issue is R$ 1.00 (one Real)
on the Issue Date.

1.7.
Parameters of Return of the Senior Units

The Fund shall seek to achieve, for its Senior Units, a Parameter of
Return corresponding to 100% (one hundred per cent) of
the variation in the DI Rate, plus a coupon of fixed interest at 1.70% (one
point seven zero per cent) per year, on the 252 business days basis. The
Parameter of Return does not represent nor should it be considered to be, in
any circumstance whatsoever, a promise, obligation, guarantee or suggestion of
return by the Manager to the Senior Unit Holders. The holders of the Senior Unit
shall not under any circumstances be entitled, at the time of amortization or
redemption of their Senior Units, to remuneration in excess of the Parameter of
Return, which represents the maximum limit of remuneration possible for the
Senior Unit Holders. There is no predetermined Parameter of Return for the
Subordinated Units.

1.8.
Dates of Amortization

During the
Initial Period, the Senior Units shall be amortized in 20 (twenty) six-monthly
installments, in up to 2 (two) business days from the respective Dates of
Programmed Payment (that is to say, June 30 and December 31), or, if
these are not business days, the respective immediately following business days (“the
Amortization Dates”), provided at all times that the Net Assets so permit, and
the 20th Amortization Date shall be
the Date of Redemption of the Senior Units.

The Senior Units may be
the subject of Extraordinary Amortization in accordance with Clause 38 of the
Regulations.

1.9. Redemption Date

The redemption date of the Senior Units shall be December 31,
2015 (“the Redemption Date”).

 

 

The Senior Units may be the subject of early
redemption if a Liquidation Event, as described in Clause 49 of the
Regulations, occurs.

1.10. Requirements for constitution and
functioning of the Fund

Within 90 (ninety) days of the Date
of Issue of the Units, the Fund shall allocate at least 50% (fifty per cent)
and a maximum of 100% (one hundred per cent) of its Net Assets in Credit
Receivable Rights.

1.11. Investment policy, composition and
diversification of the portfolio of the Fund

The
investments of the Fund in Credit Receivable Rights and financial assets shall
be subordinated to the requirements for composition and diversification as
established by the regulatory rule in effect, subject at all times to the
provisions of Chapter 6 of the Regulations. The Fund shall allocate a minimum
of 50% of its Net Assets in Credit Receivable Rights, and the remaining balance
may be maintained in cash (Brazilian currency) or invested in financial assets
authorized by the Regulations. The table below summarizes the possible types of
investment and the limits of composition of the portfolio of the fund:

 

 

	
  Composition of the portfolio and maximum percentage in relation to Net Assets

  	
   

  	
   

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a)

  	
   

  	
  Credit
  Receivable Rights

  	
   

  	
  50%

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b)

  	
   

  	
  Cash
  (Brazilian currency)

  	
   

  	
  0%

  	
   

  	
  50%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c)

  	
   

  	
  Public
  securities issued by the Brazilian National Treasury or Brazilian Central
  Bank

  	
   

  	
  0%

  	
   

  	
  50%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d)

  	
   

  	
  Commitment transactions having
  Authorized Institutions as counterparty, and public securities issued by the
  Treasury or the Central Bank as underlying source of value.

  	
   

  	
  0%

  	
   

  	
  50%

  
									

 

The Fund is
prohibited from: (a) acquiring assets or investing funds in equities or
instruments linked to exchange rate variation; (b) carrying out
transactions in any derivatives market; and (c) day trading, defined as
transactions begun and ended on the same day, whether or not the Fund
previously held or holds a position in the asset concerned.

For further
information on the investment policy, composition and diversification of the
portfolio of the Fund, see Chapter 5 of the Regulations.

1.12. Unit Holders’ right to vote

Each
holder of a Senior Unit has the right to one vote at the General Meetings of
the Fund. The Subordinated Units shall have the right to vote restricted to the
matters specified in Chapter 17 of the Regulations.

1.13. Period of placement of the Offering

The
Senior Units shall be distributed by the Offering Managers within a maximum of
180 (one hundred and eighty) calendar days from the date of obtaining
registration of the public distribution of the Senior Units (“the Placement
Period”).

 

 

1.14. Subscription of the Senior Units
during the Placement Period

At the time of subscription of the
Units in the primary market, each Unit Holder shall sign the respective
subscription and paying-in slip (which shall also be signed by the
Administrator), the declaration of Qualified Investor Status, and the Statement
of Risk Acknowledgement and acceptance of the Regulations.

1.15.
Paying-in date

The
Units can be  fully paid from January 26,
2006 on, through electronic transfer (TED) to the
current account of the Fund, indicated by the Administrator.

1.16. Paying-in of the Senior Units

The Units shall be issued for their
Issue Unit Value on the Date of Issue, or on the date on which the funds are
made available to the Fund by the Qualified Investors (Unit Value on T + 0).

1.17.
Minimum investment value

The
minimum individual investment value per Qualified Investor interested in
acquiring Senior Units in the Offering shall be R$ 25,000.00 (twenty five
thousand Reais).

1.18. Distribution and trading of the Senior Units

The Senior Units shall be registered
for trading, in the secondary market with an entity that participates in the
organized over-the-counter market, subject to the responsibility of the
Offering Managers to ensure that only Qualified Investors acquire Senior Units
in the Fund.

2. The Credit Receivable Rights

The Credit Receivable Rights acquired
by the Fund are the credit rights arising from the Assignment of Credit Rights
under the CRC Contract, for the period thereof and on the conditions
established in the CRC
Contract. The Credit Receivable Rights consist of all and any
rights, inflation or monetary correction, additions, privileges, preferences,
prerogatives and actions thereto related.

 

 

3. Administrator

3.1. Functions

The Fund is administered by Intrag Distribuidora de Títulos e Valores
Mobiliários Ltda. The Administrator shall administer the Fund in
compliance with its obligations with the diligence and rectitude which any
active and proper man should employ in the conduct of his own business,
practicing all its acts in strict obedience to the law, the regulatory rules,
especially those of the CVM, of the Regulations and of the decisions of the
General Meeting of the Fund, and the duties of diligence, loyalty, information
to the Unit Holders and defense and preservation of their rights.

For further information in
relation to the Administrator and its functions see the Prospectus and Chapter
3 of the Regulations.

3.2 Remuneration of the Administrator

	
  Administration fee:

  	
   

  	
  The administration fee is
  composed of: (i) a fixed sum of R$1,900.00/month (one thousand, nine
  hundred Reais per month), updated annually by the variation in the IGP-M
  Inflation Index, plus the greater of either (i) 0.04% (four hundredths
  of one per cent) per year on the Net Assets of the Fund, or
  (ii) R$25,000.00 (twenty five thousand Reais), per month, updated
  annually by the variation in the IGP-M Inflation Index. The administration
  fee will be calculated on the basis of a year of 252 (two hundred and
  fifty-two) business days, and provisioned daily, based on the Net Assets of
  the immediately prior business day, and shall be paid on or before the 5th business
  day of each calendar month

  
	
   

  	
   

  	
   

  
	
  Entrance fee:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Exit fee:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Performance fee:

  	
   

  	
  None

  

 

4.
Custodian and Recording Agent

The
Administrator has contracted Banco Itaú S.A., a financial institution with head
office at Praça Alfredo Egydio de Souza Aranha 100, Torre Itaúsa, to provide
the services of stockholder book entry, the functions of Controller of the
Fund, financial settlement, and custody of the assets of the Fund, including
the services referred to by Clause 38 of CVM Instruction 356.

 

 

5. Auditing Company

The
Auditing Company is KPMG Auditores Independentes or its successor in the
exercise of its functions, being responsible for the review of the financial
statements and the accounts of the Fund and for analysis of its situation and
the activity of the Administrator.

6. Risk
Rating Agency

The Senior
Units of the Fund shall have their risk rating attributed by Fitch Ratings
Brasil Ltda., a specialized risk rating agency contracted by the Fund. The risk
classification of the Senior Units shall be reviewed quarterly and disclosed to
the Unit Holders in the manner provided for in the Regulations.

7. Criteria for disclosure of information to
the Unit Holders

The acts,
facts, decisions or subjects related to the interests of the Unit Holders shall
be disclosed by means of a published announcement, in the form of a notice, in
the newspaper Gazeta Mercantil,
or, if this should be impossible, in a vehicle of equivalent circulation and
reach.

8. Other information

The
terms and expressions, in singular or plural, used in this present Announcement
and not herein defined have the meaning attributed to them by the Regulations.

Further
explanations in relation to the Offering, and copies of the Regulations and the
Prospectus may be obtained from the Offering Managers, the Administrator and/or
the CVM, at the following addresses:

Companhia Energética de
Minas Gerais — Cemig

Avenida Barbacena, 1200

Belo Horizonte, MG, Brazil

www.cemig.com.br

 

Banco Itaú BBA S.A.

 

 

Avenida Brigadeiro Faria Lima, 3400,
5th Floor

São Paulo, SP, Brazil

www.itaubba.com.br

 

Banco Bradesco S.A.

Avenida Paulista, 1450 — 3rd Floor

São Paulo, SP, Brazil

www.shopinvest.com.br

 

Administrator:

Intrag
Distribuidora de Títulos e Valores Mobiliários Ltda.

Praça
Alfredo Egydio de Souza Aranha, 100, Torre Itaúsa

São
Paulo, São Paulo, Brazil

Custodian and Recording Agent:

Banco
Itaú S.A.

Praça
Alfredo Egydio de Souza Aranha, 100, Torre Itaúsa

The Securities Commission (CVM)

Rua Sete de Setembro, 111 — 5th Floor

Rio de Janeiro, RJ, Brazil

or

Rua Líbero Badaró 471, 7th Floor

São Paulo, SP, Brazil

www.cvm.gov.br

 

investment in the fund
subjects the investor to risks, as described in the sector of the prospectus
entitled “risk factors”.

 

 

investments
in the fund referred to in the prospectus and the regulations present risks to
the investor. even if the administrator maintains a risk management system,
there is no guarantee of complete elimination of the possibility of losses for
the fund and for the investor. any return obtained in the past by investors in
investment funds of this nature does not represent a guarantee of future
returns.

the
investments made in the fund do not have the guarantee of the issuers, nor of
the administrator, nor of their respective related parties, nor of any
mechanism of insurance, nor of the credits guarantee fund (fgc).

the
content of this notice is in accordance with the regulations and the
prospectus, but does not replace them. before deciding to acquire units,
potential investors should read the prospectus and the regulations carefully,
with special attention to the provisions relating to the objective, investment
policy, composition and diversification of the portfolio of the fund, and the
description of the risk factors to which it is exposed.

The Fund and the distribution of its Senior Units were registered with
the CVM on January 20, 2006, under
No. CVM/SRE/RFD/2006/004.

The CVM  does not guarantee the
truth of the information provided, nor does it make any judgment on the quality
of the Fund, the Administrator or the Units of the Fund.

The Offer shall begin on today’s date, that is, January 26, 2006.

 

	
  Lead Manager

  	
   

  	
  Joint Manager

  	
   

  	
  Administrator

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