VINCI – Annual report – 31 December 2022
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, the call for tenders for which has been issued.
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 concession asset 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
In 2022, acquisitions of concession intangible assets amounted to €777 million. They included investments by the ASF group for €323 million (€310 million in 2021), by Cofiroute for €181 million (€174 million in 2021), by VINCI Airports for €119 million (€111 million in 2021), by Cobra IS for €87 million and by Arcos for €17 million (€57 million in 2021).
Scope effects relate to the acquisition of Mexican airport operator OMA.
Concession intangible assets include assets under construction for €1,620 million at 31 December 2022 (€1,307 million at 31 December 2021). These relate to VINCI Autoroutes subsidiaries for €1,204 million (including ASF for €417 million, Cofiroute for €552 million and Escota for €234 million) and VINCI Airports for €407 million including Belgrade Airport for €247 million).
At 31 December 2022, concession intangible assets relating to certain VINCI Airports assets were tested for impairment, leading to the recognition of an impairment loss totalling €45 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;
- MMArena (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).
Their change during the period and their breakdown by maturity are as follows:
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’ undertakings amounted to €1,409 million at 31 December 2022, and the increase related mainly to the planned Montpellier western bypass in an amount of €341 million.
The increase in these undertakings also reflects investments to be made in OMA’s airports in Mexico and Manaus airport in Brazil, along with VINCI Highways’ undertaking to acquire 55% of Entrevias, a motorway concession operator in the state of São Paulo in Brazil. Cobra IS’s investment obligations mainly concern the Villocano Energy project in Ecuador and the Dunas project in Brazil.
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”).
Where the financial asset or bifurcated model applies, subsidiaries receive a guarantee of payment from the concession grantor in return for their investment commitment.
Security interests connected with financing
Collateral security (in the form of pledges of shares and mortgages on land and buildings) is generally granted to secure financing arranged within subsidiaries, and breaks down as follows:
Other security interests related to the funding of concession projects have been granted in an amount of €107 million.
15.2 Companies accounted for under the equity method
Contractual investment obligations
At 31 December 2022, the Group’s share of investment commitments given by these companies amounted to €1,004 million (€1,362 million at 31 December 2021). They relate mainly to projects involving infrastructure under construction at VINCI Highways, including Rift Valley (motorwayin Kenya connecting the cities of Nairobi and Mau Summit) for €568 million, Via Salis (D4 motorway in the Czech Republic between Prague and South Bohemia) for €162 million, Vía 40 Express (motorway between the cities of Bogotá and Girardot in Colombia) for €126 million and the B247 federal road in Germany for €106 million. The €358 million decrease in these commitments is due to progress with works on these projects.
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 2022 was €40 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 €12 million, SMTPC (the holder of the concession for the Prado Carénage road tunnel in Marseille) for €11 million and Synérail (the PPP contract for the GSM-Rail system, under the Global System for Mobile Communications – Railway standard) for €8 million.
In addition, €164 million of corporate guarantees were granted, including those granted by Cobra IS to the banks financing four high-voltage line projects in Brazil for €121 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 2022, those commitments amounted to €67 million (€55 million at 31 December 2021). They mainly concern the D4 motorway project in the Czech Republic (€27 million) the project for the new B247 federal road in Germany (€11 million), and Pudahuel airport in Chile (€22 million).
Accounts examples 