VINCI – Annual report – 31 December 2024
Industry: utilities, concessions, construction
12. Details of the main contracts in Concessions
Details of the main contracts in the Concessions business are set out by business line in the table below.
(*) Remuneration is based on the pricing law as defined in the concession contract, and price increases must be validated by the grantor.
(**) Remuneration comes from both users and from airlines. Airport fees are generally regulated.
(***) The concession contract was terminated on 24 October 2019 on the grounds of public interest. The termination is due to take effect no later than the signing date of the new concession contract. With regard to the IFRS 10 criteria, it was considered that the Group no longer had exclusive control over the concession company.
FC: Full consolidation; EM: Equity method.
FC: Full consolidation; EM: Equity method.
Certain contracts may benefit from investment grants from the grantor. This relates mainly to contracts under the financial asset model, but also certain contracts with traffic level risk (Arcour – A19, LISEA and Consortium Stade de France).
As a general rule, when the contracts end, the concession infrastructure is returned to the grantor for no consideration. In the event that the contract is terminated or the asset under concession is bought out early by the grantor, compensation is payable to the concession holders. Its amount is determined in accordance with contractual or statutory provisions.
13. Concession intangible assets
(*) Including the concessions of Cobra IS.
(**) Including capitalised borrowing costs.
Concession intangible assets added to the portfolio in 2024 mainly consisted of:
- the right to operate the Northwest Parkway section of the Denver ring road until 2106, at a cost of €1,266 million;
- the balance of the upfront fee paid to the grantor for the 30-year extension of the airport concession contract in the Dominican Republic at a cost of €423 million (total payment of €701 million, of which €278 million had already been recognised at 31 December 2023).
In 2024, acquisitions of concession intangible assets amounted to €1,206 million (€1,016 net of grants received). They included investments by the ASF group for €439 million (€380 million in 2023), by VINCI Airports for €379 million (€377 million in 2023), by Cofiroute for €51 million (€152 million in 2023) and by Cobra IS for €92 million (€38 million in 2023).
Concession intangible assets include assets under construction for €1,912 million at 31 December 2024 (€2,044 million at 31 December 2023). These relate to VINCI Autoroutes subsidiaries for €883 million (including Escota for €417 million, ASF for €371 million and Cofiroute for €93 million) and VINCI Airports subsidiaries for €442 million (of which the company operating Belgrade airport for €186 million).
14. PPP financial receivables (controlled companies)
The main PPP contracts operated by Group subsidiaries are presented on the asset side of the consolidated balance sheet for their part at more than one year under “Other non-current financial assets” and concern the following:
- Caraibus (right-of-way public transport system in Martinique): this contract is recognised under the financial asset model;
- Stade Marie-Marvingt (Le Mans stadium in France) and Park Azur (business complex for car rental firms at Nice-Côte d’Azur airport in France): both contracts are recognised under the bifurcated model (intangible asset and financial asset).
15. Off-balance sheet commitments in Concessions
15.1 Companies controlled by the Group
Contractual investment and renewal obligations
Contractual investment obligations of motorway concession companies consist mainly of undertakings made under concession contracts, multi-year master contracts as part of the 2015 motorway stimulus plan and the motorway investment plan approved in 2018. VINCI Autoroutes’ investment undertakings amounted to €1,075 million at 31 December 2024 (€1,242 million at 31 December 2023). The decrease in these undertakings during the period was due to progress with works by the concession companies concerned.
The investment undertakings of Aerodom, which holds concessions for six airports in the Dominican Republic, correspond to investments due to be made until 2060, the year in which the term of the concession contract now ends. The balance of the payment due in return for changing the end of the concession period from 2030 to 2060, which appeared under off-balance sheet commitments at 31 December 2023 in an amount of €450 million, was paid during the year.
In addition to those undertakings, bank and parent company investment guarantees in the total amount of €143 million were given in relation to concession projects at 31 December 2024.
The above amounts do not include obligations relating to maintenance expenditure on infrastructure under concession, in respect of which specific provisions based on maintenance plans are set aside (see Note H.19.3, “Breakdown of current provisions”).
Security interests connected with financing
Collateral security (in the form of pledges of shares and mortgages on land and buildings) is generally provided to secure financing granted to subsidiaries, and breaks down as follows:
Other security interests related to the funding of concession projects have been granted in an amount of €912 million, the vast majority of which concern Lima Expresa in Peru and Northwest Parkway in Denver, in the US state of Colorado.
15.2 Companies accounted for under the equity method
Contractual investment obligations
At 31 December 2024, the Group’s share of the investment undertakings made by these companies amounted to €445 million as opposed to €927 million at 31 December 2023. The decline in these commitments is mainly due to the suspension of the Rift Valley project in Kenya, partially offset by new commitments undertaken for Budapest airport in 2024.
Collateral security connected with financing
Collateral security has been granted in the form of pledges of shares in companies accounted for under the equity method. The net carrying amount of the shares pledged at 31 December 2024 was €125 million (€34 million at 31 December 2023) and included shares in Olympia Odos (the company operating the toll motorway currently connecting Elefsina, Corinth and Patras in Greece) for €74 million, SMTPC (the holder of the concession for the Prado Carénage road tunnel in Marseille) for €26 million, and WVB East End Partners (the company holding the concession for the Ohio River Bridges – East End Crossing project in the United States) for €15 million.
In addition, €114 million of corporate guarantees were granted, including those granted by Cobra IS to the banks financing high-voltage line projects in Brazil for €70 million.
Funding commitments
The Group has made commitments to provide funding (capital and/or subordinated loans) to companies accounted for under the equity method. At 31 December 2024, those commitments amounted to €47 million (€54 million at 31 December 2023). They mainly concern the D4 motorway project in the Czech Republic (€26 million) and the B247 federal road project in Germany (€11 million).
Accounts examples 