The Project comprises:

Component 1: Replacing not less than 129,000 existing lamps with light-emitting diode (“LED”) technology in the public lighting system;

Component 2: Building a solar photovoltaic plant with a generation capacity of not less than 100MW;

Component 3: Project preparation and management.

The Project will reduce the energy consumption of the public lighting in the FD by approximately 13% through replacement of existing sodium and metallic vapor lamps with LED lamps. The Project will also provide a solar energy generation facility that will produce electricity in the amount equivalent to around 12% of the electricity consumption of the public sector in the FD.

Companhia Energética de Brasília (“CEB”) will take the overall responsibility for the implementation of the Project. A project management office will be established within CEB, under the responsibility of CEB’s CEO and the Director for Planning and Risk Management. Day-to-day implementation activities for Component 1 will be carried out by CEB Iluminação Pública e Serviços S.A. under the guidance of CEB. Construction of Component 2 will be done by CEB, while operations and maintenance – by CEB Participações S.A.

The implementation period of the Project is planned for 3 years.

The Project has been classified as Category B in accordance with the NDB Environment and Social Framework (“NDB ESF”).

Key environmental and social (“E&S”) impacts are associated with site clearing and vegetation suppression for solar PV plant, disposal of replaced luminaires containing hazardous substances, and occupational health and safety risks during project implementation.

Adherence to country systems and implementation of E&S management plans, including the E&S Impact Management Plan, will minimize and mitigate these impacts. Upon successful implementation of these plans, the Project will meet the requirements of the NDB ESF.

The Project is to be financed by a NDB loan and counterpart funding from CEB.