TAV IT

TAV AIRPORTS HOLDING AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Euro unless otherwise stated)
39. COMMITMENTS, CONTINGENCIES AND CONTRACTUAL OBLIGATIONS
Commitments and contingencies
31 December 2008 31 December 2007
Letters of guarantee given to DHMİ 113,807,149 109,376,794
Letters of guarantee given to third parties 69,186,805 32,600,749
Letters of guarantee given to Tunisia government 68,881,100 68,881,100
Letters of guarantee given to Macedonia government 6,000,000 -
257,875,054 210,858,643
The Group is obliged to give 6% of the total rent amount of USD 152,580,000 as a letter of guarantee according to the rent
agreement made with DHMİ. The total obligation has been provided by the Group.
The Group is obliged to give a letter of guarantee at an amount equivalent of EUR 52,600,000 (Tunisian Dinar “TND” 96,831,340)
to the Ministry of Transport and EUR 16,281,100 to OACA according to the BOT agreement signed with OACA in Tunisia. The total
obligation has been provided by the Group.
Majority of letters of guarantee given to third parties includes the guarantees given to customs and some customers.
Contractual obligations
TAV İstanbul
TAV İstanbul is bound by the terms of the Concession Agreement made with DHMİ. If TAV İstanbul does not follow the rules and
regulations set forth in the Concession Agreement, this might lead to the forced cessation of TAV İstanbul’s operation.
DHMİ may terminate the Concession Agreement if the ownership of interest of TAV and founding partner in TAV İstanbul falls below
49% during the first three years of the concession period.
At the end of the contract period, TAV İstanbul will be responsible for one year for the maintenance and repair of the devices,
system and equipment supplied for the contractual facilities. In case the necessary maintenance and repairs are not made, DHMİ
will have this maintenance and repair made, and the cost will be charged to TAV İstanbul.
Pursuant to the provisions of this agreement, the contractual obligations of TAV İstanbul include the rental of the above
mentioned facilities for a period of fifteen and a half years beginning on 3 July 2005; the operation of the facilities in compliance
with international norms and standards within the rental (operation) period; the performance of periodic repair and maintenance
activities on the facilities and the transfer of the facilities in question including the supporting systems, equipment, furniture and
fixtures in a proper and usable condition to DHMİ upon the expiry of the rental period.
In the case where TAV İstanbul as the lessee performs a delayed and/or incomplete rent payment to the DHMİ, TAV İstanbul is
charged a penalty of 10% of the rent amount to be paid. TAV İstanbul is then obliged to perform the payment latest within five
days. Otherwise, DHMİ shall be entitled to terminate the rent agreement. TAV İstanbul is not entitled to claim the rent payments
performed to DHMİ prior to the termination of the contract.