Annual Report 2010 - AdP

52. Subsequent events
In February 2011, AdP Group received from the Grantor (Ministry of the Environment and Territorial Planning) a letter requesting
that AdP - Águas de Portugal, SGPS, S.A., in the capacity of majority shareholder of the entities that manage the multi-municipal
systems of supply, sanitation, and recovery and treatment of waste, promote the necessary studies and submit to the Grantor a
proposal to revise the concessions contracts in relation to which changes have been made that have a relevant impact on the financial
balance of the concessionaires.
Also in February, AdP SGPS, S.A received a joint order from the Ministry of Finance and the Environment stating that:
“- A AdP - Águas de Portugal, SGPS, S.A., via its affiliate AdP Energias - Energias Renováveis e Serviços Ambientais, S.A., should initiate
the necessary procedures for constructing and implementing an Energy Recovery Plant for WTP muds and WDF, keeping the
responsible ministries responsible for the shareholder function informed.
“- A AdP - Águas de Portugal, SGPS, S.A., via its affiliate AdP Energias - Energias Renováveis e Serviços Ambientais, S.A., shall guarantee
the participation of the partner or partners of the private sector in the project for constructing the ERP, complying with the
necessary and essential conditions of equality, competition and transparency.
“- A AdP - Águas de Portugal, SGPS, S.A., via its affiliate AdP Energias - Energias Renováveis e Serviços Ambientais, S.A., implements
the necessary conditions to guarantee that there is no cross-subsidization between the activities for managing waste, managing
water and managing wastewater.
“- A AdP - Águas de Portugal, SGPS, S.A., via its affiliate AdP Energias – Energias Renováveis e Serviços Ambientais, S.A., shall guarantee
the sustainability of the project and the return on invested capital shall reflect the underlying risk and said risk shall be duly assessed.
- A AdP - Águas de Portugal, SGPS, S.A., through affiliate AdP Energias – Energias Renováveis e Serviços Ambientais, S.A., shall submit
studies regarding the economic and financial feasibility of the project, along with the business plan of the Company to be created for
the purpose of prior authorization from the ministry, which must be granted under the law and such studies must be duly incorporated
into the plan of activities and budget of AdP for 2011 and within the debt control limit policies stipulated in the SGP 2010-2013.”