A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Management Report of the Board of Directors - Financial Year 2008
financial crisis may negatively affect the company’s
results.
AEDL - Auto-Estradas do Douro Litoral, S.A. is a company
in which “TEIXEIRA DUARTE - Engenharia e Construções,
S.A.” holds 18% of its capital stock and which signed the
Douro Litoral concession contract with the Portuguese State
at the end of December 2007.
Said concession contract will last 27 years and envisages
the design, project, construction, increase of the number of
lanes, financing, preservation and running of the highway
links and associated road links, called “Concessão Douro
Litoral” (Douro Litoral Concession), along a total of 129Km,
of which 78Km include toll-gates.
LUSOPONTE - Concessionária para a Travessia do Tejo,
S.A. is a company exclusively dedicated to the management,
under a concession scheme, of the two Road crossings over
Tagus River, in the region of Lisbon, and in which “TEIXEIRA
DUARTE - Engenharia e Construções, S.A.” holds a 7.5% of
the capital stock.
The Company’s performance was relatively stagnant during
the year under review, having recorded a 0.6% decrease in
profit before tax, achieving EUR 16,987 thousand compared
to EUR 17,093 thousand in 2007.
Basically due to the economic crisis in Portugal, for the third
consecutive year there was an overall reduction of the traffic
in the two bridges under concession, representing a 1.2%
decrease compared to the previous year.
Even so, a strong cost control policy at all levels allowed a
minimum deviance in relation to the budget and a net profit
after tax of EUR 12,441 thousand, 1% below the one
reported for 2007.
TDHOSP - Gestão de Edifício Hospitalar, S.A.,
incorporated on 24 th January 2008, is 100% owned by
“TEIXEIRA DUARTE - Engenharia e Construções, S.A.” and
is dedicated to the management of the new Cascais Hospital
for a period of 30 years, envisaging the design, project,
construction, financing, preservation and maintenance
activities.
The management contract was signed on 22 nd February 2008
with the Regional Health Administration and with “HPP –
Parcerias Cascais, S.A.”. The Hospital construction
commenced on the same date and is expected to be
completed in a period of 24 months.
The construction is under the responsibility of “Teixeira Duarte
- Engenharia e Construções, S.A.”, while the maintenance of
the future building shall be performed by “TDGI – Tecnologia
e Gestão de Imóveis, S.A.”.
In July 2008, the Court of Auditors issued a document in
which it informed that it had refused to approve the
contract. This temporary decision slowed down the pace of
the works in the months of August, September and October,
in order to promote an approximation of the construction
volume to that established in the Work Schedule under the
contract.
On 8 th October 2008, an amendment to the management
contract was signed, which made up for the underlying
reserves that had led to the refusal of its approval, allowing
its concession on 4 th November of the same year.
TDHOSP, S.A. has developed its activity for the purpose of
guaranteeing that the works are carried out according to
schedule, coordinating the various parties involved so as to
create the conditions for an excellent performance within the
future building management phase.
Despite the difficulties generated by the lack of definition as
to the characteristics of the clinical equipment required for
the preparation and execution of the contract job works, it
has progressed at good pace and the works completion rate
is 20.0%, while in accordance with the contract schedule it
should be 18.2%.
TDHOSP, S.A. started the ISO 9001 quality certification
process, although the certification of the Company’s
overall activity will only be possible after the
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