IFRIC 12, SIC 29, service concession arrangements disclosures

VINCI – Annual report – 31 December 2017

Industry: utilities, concessions, construction

  1. Concession intangible assets (extract)

12.2 Main features of concession and PPP contracts – intangible asset model

The main features of contracts for concession and PPP contracts operated by controlled subsidiaries are as follows:

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12.3 Commitments made under concession contracts – intangible asset model

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Contractual capital investment obligations for motorway concession companies (ASF group, Cofiroute) relate mainly to undertakings as part of multi-year master plans and the motorway stimulus plan implemented in the second half of 2015.

Progress with works by VINCI Autoroutes companies in 2017 led to a €509 million reduction in their commitments.

SCAGO’s investment commitments at 31 December 2017 related to the construction of a new airport at Notre-Dame-des-Landes (see Note N.32.2 “Concession for the Grand Ouest airport”).

The concession contract for Salvador de Bahia airport in Brazil includes renovation work on the airport terminal and existing runways, totalling €224 million.

The above amounts do not include obligations relating to maintenance expenditure on infrastructure under concession, for which provisions are set aside (see Note H.18.3 “Breakdown of current provisions”).

Collateral security connected with the financing of concessions

Some concession operating companies have given collateral security to guarantee the financing of their investments in infrastructure under concession. These break down as follows:

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  1. PPP financial receivables (controlled companies)

13.2 Main features of concession and PPP contracts – financial asset and/or bifurcated model

The main features of concession and PPP contracts operated by controlled subsidiaries (financial asset and/or bifurcated model) are as follows:

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13.3 Commitments made under concession and PPP contracts – financial asset and/or bifurcated model

Contractual investment, renewal or financing obligations

Under their concession and PPP contracts, Group subsidiaries undertake to make investments. Where the financial asset or bifurcated model applies, they receive a guarantee of payment from the concession grantor in return for their investment commitment. At 31 December 2017, the Group’s investment commitments with respect to concession and PPP contracts under the financial asset or bifurcated models amounted to €52 million (€4 million at 31 December 2016). The increase was mainly the result of the public-private partnership for the La Cotinière fishing port at Saint Pierre d’Oléron at VINCI Construction.

Collateral security connected with the financing of PPPs

Some companies have given collateral security to guarantee the financing of their investments relating to infrastructure under concession. This collateral amounted to €156 million at 31 December 2017 (€71 million at 31 December 2016), including Caraibus in Martinique for €71 million, Park Azur in Nice for €36 million and MMArena (Le Mans stadium) for €33 million. 

  1. Concession and PPP contracts of companies accounted for under the equity method

14.1 Main features of concession and PPP contracts of companies accounted for under the equity method

The features of the main or new concession or public-private partnership contracts operated by companies accounted for under the equity method are shown below:

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14.2 Commitments made under concession and PPP contracts of companies accounted for under the equity method

The commitments made under concession and PPP contracts of companies accounted for under the equity method are presented in Note E.10.3 “Commitments made in respect of associates and joint ventures”.

E. Investments in other companies (extract)

10.3 Commitments made in respect of associates and joint ventures

At 31 December 2017, Group funding commitments to equity-accounted companies (via capital or subordinated loans) amounted to €126 million (€333 million at 31 December 2016). They relate mainly to companies in the Concessions business, including Via 40 Express – the company holding the concession for the motorway between Bogotá and Girardot in Colombia – for which funding commitments amounted to €50 million at 31 December 2017 (€138 million at 31 December 2016).

Collateral security has also 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 2017 was €27 million and included shares in WVB East End Partners (the company holding the concession for the Ohio River Bridges – East End Crossing project in the United States) for €16 million and SMTPC (the holder of the concession for the Prado Carénage road tunnel in Marseille) for €10 million.

After the payment of shareholder contributions to LISEA in June 2017, real and personal security interests granted by the Group (in the form of €135 million of cash deposits and a €113 million bank investment guarantee) were released.

10.4 Investment commitments given by associates and joint ventures

At 31 December 2017, the Group’s share of investment commitments given by these companies amounted to €1,004 million (€1,142 million at 31 December 2016).

These commitments relate mainly to projects involving infrastructure under construction in the Concessions business, the Via 40 Express motorway between the cities of Bogotá and Girardot in Colombia (€270 million), sections 7 and 8 of the M11 motorway between Moscow and St Petersburg (€209 million), Santiago airport in Chile (€200 million) and the new section of the A7 motorway in Germany (€145 million).

The €138 million decrease in these commitments during the year was due to progress with works carried out on projects, such as the Regina bypass and the completion of the SEA high-speed rail line, partly offset by new investment commitments on projects recently won by the Group, particularly in Germany and Colombia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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