Annual Report 2010 - AdP

26. Provisions
31.12.2010 31.12.2009
Provisions - taxes 83,388 -
Provisions - legal proceedings 546,696 11,407,750
Provisions - work accidents 149,986 141,572
Provisions - other 12,631,656 15,516,906
13,411,726 27,066,228
26.1 Changes during the period
31.12.2009 Increases Reductions Reversals Reclass. Transf. For. Ex. Outside the 31.12.2010
conversion perimeter
Taxes - 83,388 - - - - - - 83,388
Legal proceedings 11,407,750 151,974 (27,954) (10,928,924) - - - (56,149) 546,696
Work accidents 141,572 8,414 - - - - - - 149,986
Other 15,516,906 3,010,622 2,157,139 (17,882,367) (1,973,246) 12,515,512 214 (713,124) 12,631,656
27,066,228 3,254,398 2,129,185 (28,811,291) (1,973,246) 12,515,512 214 (769,274) 13,411,726
Below, companies that contributed to the increase in provisions – other, in the amount of 3,010,622 euros:
31.12.2010
Águas do Algarve, S.A. 428,309
Águas do Norte Alentejano, S.A. 567,753
AdP Serviços, S.A. 552,130
Águas do Zêzere e Côa, S.A. 110,031
Empresa Geral do Fomento, S.A. 1,090,439
EPAL, S.A. 100,000
Resinorte, S.A. 161,960
Total 3,010,622
The item “other - increases” includes creation of provisions in the amount of 1,090,439 euros related to the negative performance
that occurred at the delegation of EGF - Maputo (947,000 euros) and the loss ensuing from the sale of shares of Resinorte to
AMAVE in accordance with the Constitution Decree-Law (243,440 euros).
Changes in the item “other,” decreases (2,157,139 euros), reversals (17,882,367 euros) and transfers (12,515,512 euros), result from
the sale of Águas de Moçambique and correspond to the cancellation of all provisions created in the past in order to face contingent
responsibilities and from the respective financial holding (with negative total equity).
The amount recorded under reclassification of other provisions in the amount of 1,973,246 euros can be explained by the fact that these
provisions are incorrectly classified at affiliate EPAL, which has reclassified this amount for impairment of customers and other debtors.
Reversal of the provision for legal proceedings was undertaken at EPAL, which ceased to be responsible for payment of any fines or
penalty interest associated with the underground tax in relation to previous years in the amount of 10,675,024 euros.
27. Pensions responsibilities
31.12.2010 31.12.2009
EPAL pension fund 12,640,738 15,602,126
EGF pension fund - -
Águas de Moçambique pensions provision - 110,351
12,640,738 15,712,477
Pension responsibilities at Águas de Moçambique do not have an associated pension fund. It is merely an accounting provision and
corresponds to a percentage of the total payroll. This company was sold on 31 December 2010.
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