Annual Report 2010 - AdP

Order no. 6132, of the General Directorate of Treasury and Finance, of 6 August 2010, which determines the following formalities
should be complied with for service provision contracts equal to or in excess of €125,000 (one hundred and twenty-five
thousand euros):
• Prior to adjudication, the contracting requirement should be stipulated both in terms of the economic point of view, such as
the lack of internal solutions, as well as setting out the respective objectives to be obtained,
• The results obtained should be subject to evaluation,
• Any overruns in either the timeframe for implementation or the budget are to be duly justified.
In addition to the above, in procedures undertaken in 2010 relative to establishing contracts under the auspices of the Code of Public
Contracting, group companies, in accordance with individualised reporting submitted to AdP - Águas de Portugal, SGPS, S.A., duly
took into full consideration the norms stipulated by the Code of Public Contracting as approved by Decree Law no. 18/2008, of 29
January, with the contents conferred under Law no. 59/2008, of 11 September, by Decree Law no. 278/2009, of 2 October and by
Law no. 3/2010, 27 April.
12.4. Compliance with maximum limits of additional debt defined for 2010 in the PEC program approved by Resolution of the
Republic Parliament no. 29/2010, of 12 April and specified in Ministerial Order no 510/10-SETF, of 1 June, and communicated
by Circular Order no. 4348, 1 June 2010, from the General Directorate of Treasury and Finance
Through Ministerial Order no. 896/10 SETF, of 26 August, the AdP Group was exempted on an exceptional basis from the
maximum additional debt limits defined for 2010 in the PEC program approved by Resolution of the Republic Parliament no.
29/2010, of 12 April and specified in Ministerial Order no 510/10-SETF, of 1 June.
12.5. Implementation of Stabillity and Growth Pact measures (membership of the National Public Procurement System)
AdP Serviços Ambientais represents the shared services AdP Group company, running a centralised operational structure,
optimising and rationalising the acquisition of goods and services within the scope of AdP Group company activities. Within
this framework, a relational model provides a standardised list of goods and services that are acquired through the AdP Serviços
Procurement and General Support Directorate. This business model with centralised procurement has ensured high levels of
efficiency and savings estimated to total between 10% and 25%.
12.6. Compliance with the provisions of art. 12 of Law no. 12-A/2010 - reduction of managerial remuneration by 5%
AdP SGPS ensured full compliance with the provisions of article 12 of Law 12-A/2010, of 30 June, reducing AdP Group manager
remuneration by 5%.
12.7. Compliance with that stipulated by Law no. 12-A/2010 on the Principle of State Treasury Unity
Since its foundation, AdP SGPS has taken on responsibility for coordinating and obtaining the financing necessary to meeting the
needs of group companies constantly within the framework of maintaining financial structural equilibrium from a consolidated
perspective as the final objective. Correspondingly, and in order to ensure group financing, and in particular that of the multimunicipal
systems:
• Monitored companies in their relationships with the Cohesion Fund;
• Carried out negotiations with the EIB;
• Planned the accessing of capital markets in 2003 and completing the issuing of long term debt in 2005 with three further
operations in 2007.
Complementing this medium and long term framework, AdP SGPS also centralised negotiations with the banking system over the
obtaining of short term financing, reducing the capacity for the banks to individually penalise any particular group company whether
in terms of costs or in terms of credit caps. This question is particularly relevant given that some group companies face challenging
financial positions that would otherwise render the access to credit impossible.
Similarly, the fact that AdP SGPS centrally manages the negotiation of lines and retaining some temporary and cyclical surpluses has
enabled the group to get through the financial crisis that first broke in 2008 in a relatively smooth fashion. A significant part of the
group negotiation capacity derives from the volume of its short term financial assets when compared with the volume of debt and
capacity to access already approved EIB credit lines.