DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
35. CONTINGENT LIABILITIES AND COMMITMENTS
LEGAL ACTIONS
In 2010, the Group established a provision for legal actions estimated to be ruled against HEP d.d..
The Group has long-term financial investments in the territory of Bosnia and Herzegovina, and Serbia which
in 1994 had a historical cost of HRK 1,243,970 thousand. At the time of the transformation of the Company into a
joint stock company in 1994, this amount was excluded from the net asset value.
OPERATING COMMITMENTS
As at 31 December 2010, as part of its investing activities, the Group has concluded contracts under which the construction
of a number of significant facilities and other investments has commenced but has not been completed.
The unrealised contract value for most significant projects amounts to approximately HRK 1,986,175 thousands
(2009: HRK 2,163,949 thousand).
Most significant investments refers to investments in HEP Proizvodnja d.o.o., HEP Operator prijenosnog sustava
d.o.o. and HEP Operator Distribucijskog sustava d.o.o
ENVIRONMENTAL MATTERS
The principal activities of the Group are generation, transmission and distribution of electricity, and the control of
the electric power systems.
In addition to these main activities, the HEP Group deals with the production and distribution of thermal power
through the district heating systems in Zagreb in Osijek, and the distribution of gas in Osijek and Đakovo. These
principal business activities can have inherent effects on the environment in terms of emissions into soil, water and
air. The environmental effects of the Company’s and Group’s activities are monitored by local management and
environmental authorities.
Croatia requested membership to the European Union. As part of the succession process environmental regulations
similar to those at other EU countries might be introduced in Croatia. Such environmental regulations might
have an impact on environmental liabilities for the Group.
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HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS