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Consolidated financial statements at 31 December 2011
Ferrovial S.A. and Subsidiaries
As a result of the maturity date, the feasibility of the project is currently dependant on a possible agreement between all the parties
involved which will make it possible to restore its economic and financial equilibrium. At 31 December 2011, Ferrovial had recognised a
provision in full for the investment in the aforementioned project.
As regards the M-203 toll road, operated by Sociedad Concesionaria de la Comunidad de Madrid, construction of which has been put
on hold for several years, and which is also exposed to the risk of expropriation cost overruns, the Madrid Department of Transport
and Infrastructure, through a Resolution of the Directorate-General of Roads of 9 July 2010, initiated proceedings to modify the
concession arrangement and restore its economic and financial equilibrium. To this end, on 26 October 2010 the concession operator
submitted a rebalancing application to the Department containing the technical design for the modification of the route required by the
grantor. The Procurement Division of the Madrid Autonomous Community Government approved the change to the project and the
restoration of the economic and financial balance of the concession on 25 October 2011. The change to the concession arrangement
was formally executed on 16 December 2011. The construction work that will link the M-203 road to the R-3 road is not due to
commence until the agreement with the Spanish Ministry of Public Works (currently in progress) is entered into.
Claims of Promociones Habitat, S.A. in connection with the agreement for the purchase of Ferrovial Inmobiliaria, S.A.
Certain claims have been filed by Promociones Habitat, S.A. in relation to the guarantees provided under the agreement for the
purchase of Ferrovial Inmobiliaria, S.A., pending resolution or payment, a provision for which has been duly recognised in the financial
statements.
BAA
In 2011 BAA Limited ("BAA") was notified of the decision handed down by the UK Competition Commission dated 19 July 2011,
whereby it dismissed the arguments of the former relating to the substantial change in circumstances since the publication of the
Commission's decision in March 2009 and obliged BAA to sell Stansted Airport and either Glasgow Airport or Edinburgh Airport.
In February 2012, as discussed in Note 38 on events after the reporting period, the UK Competition Appeal Tribunal rejected the latest
appeal filed by BAA in relation to the request by the Competition Commission to sell Stansted Airport. BAA is currently analysing other
possible alternatives.
Other litigation
In addition to the above-mentioned litigation, various Group companies are involved in a number of lawsuits in the ordinary course of
business, as listed below:
- Claims relating to defects in construction projects performed or services rendered.
- Claims for third-party liability in connection with the use of the Group’s assets or the actions of the Group’s employees, the most
significant of which relate to road accidents on the toll roads managed by the Group.
- Employment-related claims.
- Environmental claims.
- Tax claims.
Certain of the above-mentioned risks are covered by insurance policies (third-party liability, construction defects, etc.), and based on
the estimates of the Group's legal advisers, no contingent liabilities will arise which might have a significant impact on the consolidated
financial statements.
b) Bank guarantees
At 31 December 2011, the Group companies had provided guarantees totalling EUR 4,240 million (EUR 4,334 million in 2010).
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 78