15. Concessions and Rights on Infrastructure - 1,730,591 thousand euros

At 31 December 2012, this item amounted to 1,730,591 thousand euros (1,553,946 thousand euros at 31 December 2011) and includes the values of concessions received from the municipalities (237,330 thousand euros at 31 December 2012) and, pursuant to IFRIC 12, the aggregate amount of tangible infrastructures used for the management of the water service (1,496,731 thousand euros). 

The change of 176,645 thousand euros reflects opposing factors:

  • the increase in investments for the period of 219,132 thousand euros,
  • the decrease in amortisation/depreciation for the period of 79,708 thousand euros.

More specifically, Concessions (amounting to 237,330 thousand euros) refer to:

  • 199,195 thousand euros, representing the value of the thirty-year concession from Roma Capitale relating to water, treatment and sewerage plants of the ATO2 (including goodwill) of 212,410 thousand euros. This fresh water and water treatment concession was transferred from ACEA to ACEA Ato2 at the end of 1999, whilst the sewerage service concession was transferred between the same companies from 1 September 2002. The concessions are amortised over their residual terms. The value includes the sum of 571 thousand euros relating to the right deriving from the 2009 take-over of the integrated water service management in the municipality of Formello, previously entrusted to Crea Gestioni,
  • 3,236 thousand euros relating to Gori for the concession. That item decreased by 15,317 euros compared to last year due to the reclassification of instalments of integrated water service loans from that item to operating costs in compliance with the Area Authority’s General Meeting resolution of 27 October 2012,
  • 29,530 thousand euros relating to companies operating in Tuscany, including Acquedotto del Fiora.

This item also includes goodwill arising from consolidation representing goodwill attributable to integrated water service contracts and the A.R.I.A. Group, above all with regard to SAO (4,442 thousand euros).

 

Rights on infrastructure posted in the accounts amount to 1,493,261 thousand euros (1,287,675 thousand euros as at 31 December 2011) and include tangible infrastructures used for the management of the integrated water service. Values are broken down below by Company:

  • ACEA Ato2 986,440 thousand euros (861,572 thousand euros on 31 December 2011),
  • ACEA Ato5 52,190 thousand euros (47,273 thousand euros on 31 December 2011),
  • GORI for 58,752 thousand euros (57,726 thousand euros at 31 December 2011),
  • Acquedotto del Fiora 58,906 thousand euros (20,919 thousand euros at 31 December 2011),
  • Acque for 138,677 thousand euros (120,257 thousand euros at 31 December 2011),
  • Publiacqua for 146,340 thousand euros (136,134 thousand euros at 31 December 2011),
  • Umbra Acque for 35,814 thousand euros (29,662 thousand euros at 31 December 2011).

 

Investments relating to said item amounted to 214,469 thousand euros, made by the following:

  • ACEA Ato2 for 135,959 thousand euros referring primarily to:
    • Land and Buildings for 1,118 thousand euros and mainly refer to (i) extraordinary maintenance and construction of buildings at water centres (522 thousand euros), (ii) works belonging to sources (587 thousand euros) and (iii) compensation paid to purchase the land needed to build aqueducts,
    • Plant and Machinery for 73,721 thousand euros, relates to (i) the clean-up and enlargement of water and sewer pipes in the various municipalities, (ii) extraordinary maintenance at water centres (63,953 thousand euros) and (iii) work on treatment plants (9,769 thousand euros),
    • Industrial and commercial equipment: 17,064 thousand euros, regarding (i) new connections, following the completion of work carried out in the Municipality of Rome (7,516 thousand euros) and the various municipalities acquired (8,064 thousand euros), and (ii) the purchase of equipment for water and operating centres (1,483 thousand euros),
    • Fixed assets under construction amount to 42,649 thousand euros and refer to works currently being completed including (i) transportation plants (abstraction pipes and feeder mains totalling 23,512 thousand euros), (ii) water treatment plants (16,792 thousand euros), (iii) water and operating centres (596 thousand euros) and (iv) new connections (1,748 thousand euros)
    • Application software purchased for 912 thousand euros mainly relating to the NETA billing system project.
  • ACEA Ato5 for 6,541 thousand euros, relating to extraordinary maintenance on buildings at the various water centres and investments carried out on fresh water and sewer pipes in the various municipalities,
  • Acque for 23,194 thousand euros, referring to work on the distribution, sewer and water treatment network,
  • Publiacqua for 23,404 thousand euros relating to new connections, extraordinary maintenance and extensions and expansions of water pipelines, sewer networks and treatment plants. The main investments regard the distributary on the left bank of the River Arno (approximately 6,080 thousand euros), the southern distributary of Pistoia (approximately 640 thousand euros) and the Work Force Management project (approximately 1,400 thousand euros),
  • GORI for 3,463 thousand euros, incurred for extraordinary maintenance work on networks and plants, new meter installations and replacements and works planning and management for the start-up and implementation of works planned as part of the Area Plan; in particular, these costs are for planning activities, works management, the issue of authorisations and easements and all operational support activities carried out by AGS to assist in engineering activities,
  • Acquedotto del Fiora for 11,304 thousand euros,
  • Umbra Acque: 4,817 thousand euros.

 

The item Other movements includes:

  • + 20,820 thousand euros concerning Acea Ato2, relating to the future obligations assumed by ACEA Ato2 consisting of works financed by grants from 2012 to 2017, against the non-application of the penalties relative to the application of the MALL parameter decided upon by the Mayors’ Conference at its session of 17 April 2012 and due for the years until 2012. The commitment has a duration of six years (2012 - 2017) and an annual value of 3,470 thousand euros.
    Against the recognition of the 20,820 thousand euro concession right, the Group allocated a provision for charges of an equal amount, which was used in 2012 to cover investments made. The concession right is amortised for the residual duration of the concession and, therefore, in 2012 a portion of amortisation of 1,041 thousand euros was recorded,
  • the reduction in intangible assets posted by GORI (-15,151 thousand euros) relative to long-term costs where the costs relative to the loan instalments to be repaid to the municipalities were allocated; that reduction was caused by decisions made by the Authority’s General Meeting on 27 October 2012.

The following tables shows changes in this item by geographical area.

€ thousand  31.12.2011 Change in basis of consolidation Investments/ Acquisitions
LAZIO 1,121,266 0 142,373
TUSCANY AND UMBRIA 355,325 0 68,633
CAMPANIA 77,355 0 3,463
OVERSEAS 0 0 0
Total Concessions 1,553,946 0 214,469
 
€ thousand  Amortisation/depreciation Disposals and other movements 31.12.2012
LAZIO (47,032) 21,218 1,237,826
TUSCANY AND UMBRIA (29,860) 35,679 429,778
CAMPANIA (2,816) (15,013) 62,988
OVERSEAS 0 0 0
Total Concessions (79,708) 41,884 1,730,591