Commitments and contingencies

Corporate liens, sureties and guarantees

These amounted to 467,604 thousand euros. Worthy of mention are:

  • 268,161 thousand euros in the form of corporate guarantees and back-to-back bank guarantees issued in favour of AceaElectrabel Trading (177,324 thousand euros) and AceaElectrabel Elettricità (90,412 thousand euros) within the context of the Master Agreement between ACEA and Electrabel. In addition, the back-to-back guarantee issued in favour of AceaElectrabel (425 thousand euros) for the lease of the new headquarters and the guarantees issued on behalf of AceaElectrabel Produzione for contractual obligations for the supply of wind farm turbines and the Ministry of productive activities for the costs of dismantling the Leinì plant;
  • 53,666 thousand euros in the form of a bank guarantee issued by ACEA to Cassa Depositi e Prestiti in relation to refinancing of the loan issued to ACEA Distribuzione. This is a sole guarantee giving the lender first claim and covering all obligations linked to the original loan (493 million euros). The sum of 53,666 thousand euros refers to the guaranteed portion exceeding the loan originally disbursed (439 million euros);
  • 2,844 thousand euros regarding a surety issued in favour of ACEA Ato5 as required by art. 31 of the Technical Regulations. The surety was issued by Banca di Roma, acting as the treasury bank, in favour of the Authority for ATO 5 – Southern Lazio and Frosinone. The value of the surety is calculated on the basis of 10% of the three-year average of revenues. ACEA has counter-guaranteed Banca di Roma via the issue of a letter of patronage amounting to 2,675 thousand euros;
  • a surety of 7,747 thousand euros issued by ACEA Ato2 to the Area Authority, guaranteeing the correct fulfilment of the obligations undertaken as part of the concession agreement. This surety runs out on 6 August 2007 and is renewable;
  • a surety of 3,425 thousand euros issued by ACEA with regard to the selection of a partner for Publiacqua in the Municipality of Firenze.
  • 1,471 thousand euros issued by ACEA and Aquaser to guarantee the credit line granted by MPS to Solemme.
  • 3,783 thousand euros issued in favour of Eall and Terna as a guarantee for the hedging of direct and indirect risks and charges deriving from works that the latter will have to carry out for the connection to the national grid of the waste-to-energy plant being enlarged.

Sureties issued also include those issued by ACEA to Sidra S.p.A., totalling 6,830 thousand euros, in relation to a contract to carry out a “Project to repair water leaks in the Catania distribution network” and sureties amounting to 5,165 thousand euros issued to the Sarnese Vesuviano Area Authority in order to take part in the tender process to select a partner to take an interest in G.O.R.I S.p.A..

Liens granted to banks

IPSE 2000

Such liens amount to 1,763 thousand euros and regard the cash collateral established in order to guarantee the undertakings given by the strategic shareholders of IPSE 2000. As of December 2002, payments have been made into the relevant term deposit. The lien was granted to Unicredit S.p.A. (replacing MCC S.p.A. for the corporate transactions completed within the banking Group in the meantime) and the deposits accrue interest at the 3-month Euribor less 3 basis points per annum.

In December, Unicredit communicated payment at maturity of the tenth and last instalment for the UMTS licence and asked the Ministry of Economy and Finance to issue the release of the guarantee granted in due course by MCC to IPSE 2000. As a result of said communication, the residual provision for risks set aside in previous years was released.

VOGHERA ENERGIA

In respect of disbursement of the medium/long-term loan, with an original value of 60.8 million euros (the ACEA Group’s share), Voghera Energia has pledged to lenders its bank current accounts (2,289 thousand euros) as collateral security for the loan.

Moreover, in respect of the above loan, the shareholders have granted the banks a lien on their shares in the company. In the case of AceaElectrabel Produzione, this lien amounts to 37.4 million euros, corresponding to 37,360,000 shares.

LONGANO EOLICA

In respect of execution of the medium/long-term loan of 3.9 million euros (the ACEA Group’s share) in September 2007, Longano Eolica has pledged its bank current accounts to lenders (673 thousand euros) as collateral security for the loan.

Moreover, in respect of the above loan, the shareholders have granted the banks a lien on their shares in the company. In the case of AceaElectrabel Produzione, this lien amounts to 1.071 million euros, corresponding to 1,071,000 shares.

TIRRENO POWER

Following the execution, on 21 June 2007, of the Term and Revolving Facilities Agreement between Tirreno Power and the banks, by which all other previous agreements were cancelled, Tirreno Power’s shareholders (Eblacea and Energia Italiana) granted the banks a lien on all their shares in the company (45,565,000).
On 10 December 2009, the lien was issued after conditions set out in the contract were met, i.e. a leverage ratio lower than 4.00 and entry into operation of the Naples plant.