VINCI – Annual report – 31 December 2021
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.
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), Gefyra, section 1 of the Moscow–St Petersburg motorway, 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 2021, acquisitions of concession intangible assets amounted to €753 million. They included investments by the ASF group for €310 million (€253 million in 2020), by Cofiroute for €174 million (€174 million in 2020), by Arcos for €57 million (€107 million in 2020) and by VINCI Airports for €111 million (€247 million in 2020).
Concession intangible assets include assets under construction for €1,307 million at 31 December 2021 (€1,697 million at 31 December 2020). These relate to VINCI Autoroutes subsidiaries for €959 million (including ASF for €388 million, Cofiroute for €371 million and Escota for €169 million) and VINCI Airports for €343 million.
At 31 December 2021, concession intangible assets relating to certain VINCI Airports assets were tested for impairment, leading to €68 million of impairment, mainly concerning an airport in Cambodia.
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. In 2021, progress with works by VINCI Autoroutes companies led to a €307 million reduction in their commitments to €1,157 million at 31 December 2021.
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.
Collateral security 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:
15.2 Companies accounted for under the equity method
Contractual investment obligations
At 31 December 2021, the Group’s share of investment commitments given by these companies amounted to €1,362 million (€344 million at 31 December 2020). They relate mainly to projects involving infrastructure under construction at VINCI Highways, including the Vía 40 Express motorway between the cities of Bogotá and Girardot in Colombia for €241 million (€261 million in 2020).
The €1,018 million increase in 2021 relates to contract wins for three new projects: the motorway in Kenya connecting Nairobi with Mau Summit for €696 million, the D4 motorway in the Czech Republic between Prague and South Bohemia for €224 million, and the B247 federal road in Germany for €133 million.
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 2021 was €36 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, SMTPC (the holder of the concession for the Prado Carénage road tunnel in Marseille) for €10 million and Synérail (the PPP contract for the GSM-Rail system, under the Global System for Mobile Communications – Railway standard) for €10 million.
Cobra IS has entered into a €191 million corporate guarantee agreement with the banks financing four high-voltage line projects in Brazil.
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 2021, those commitments amounted to €55 million (€32 million at 31 December 2020). They mainly concern the D4 motorway project in the Czech Republic (€26 million) as well as a section of the A7 motorway (€13 million) and the new B247 federal road (€11 million), both in Germany.
Accounts examples 