Annual Report 2010 - AdP

A significant percentage of the applications submitted by the AdP Group in 2009 were based upon the signing of protocols for
entering into partnerships for the downstream organisation of a vast range of municipalities. However, for a range of reasons, it did
not prove possible to bring together the conditions necessary to advance in some regions while there were also other municipalities
that did not confirm their interest regarding the projects under negotiation. In such cases, POVT moved to issue notification of the
“non-acceptance” of the application within the scope of its competences as the management authority.
In articulation with the strategic guidelines defined for PEAASAR II, setting down the principle to be followed by the AdP Group as
“fostering the outsourcing of multi-municipal system operational activities and maintenance”, 2010 saw the implementation of the
Strategic Plan for Multi-municipal Water Supply and Wastewater Sanitation System Operational and Maintenance Services –
PESOMAS 2006-2015.
Taking into consideration the monitoring of the strategic implementation of outsourcing operations and maintenance services for
aggregate UNA-PD public water supply and wastewater sanitation systems, throughout 2010, systematically carried out by each
management entity, the tenders due for launch over the short and medium term were reviewed, discriminating their scope and the
nature of the service provision to be contracted, the forecast duration as well as the estimated costs involved. Furthermore, the
evaluation of service quality was regularly subject to evaluation across the technical, juridical/administrative and financial facets so as
to identify aspects susceptible to improvement in future contracts.
Finally, mention should be made that, in order to determine a quantitative measurement of service efficiency and effectiveness
provided by the management entities, UNA-PD is now equipped with a system of performance indicators, which integrate those
adopted by the regulator ERSAR, in conjunction with a set of complementary and broader reaching indicators.
The group of companies that comprise UNA-PD closed 2010 with a consolidated net profit (taking into account the respective
percentages owned) of €24.1 million, up by the amount of € 5.5 million (+ 29.8%) on the previous financial year.
Contributing towards this result was the strong operational result of € 89.9 million that more than offset the negative behaviour of
financial results that recorded a loss of € 40.7 million.
This advance in UNA-PD operational results, rising by 33.8% on 2009, is essentially explained by the increase in the gross margin by
around 8.9%.
The performances of Águas do Noroeste and Águas de Trás-os-Montes e Alto Douro stand out from the remainder for turning in
the largest operational results, € 13.278 thousand and € 10.516 thousand, respectively.
The positive contribution made by investment grants, now including the operational results in accordance with the new international
norms of financial reporting (IFRS), took effect across the majority of the companies although with greatest impact at Sanest (€ 7.3
million), Águas de Trás-os-Montes e Alto Douro (€ 6.7 million) and Águas do Douro e Paiva (€ 5.8 million).
The negative value recorded in the financial results item in 2010 and its worsening on the 2009 result, surging by 64.1%, reflects the
growing recourse to bank debts by companies as a means of financing ongoing investments given the significant delays experienced
in the settlement of grants approved within the framework of European Union funding.
Águas de Trás-os-Montes e Alto Douro and Águas do Noroeste are the two companies most exposed in these terms. In addition,
only Simdouro, Sanest and Águas de Santo André return positive financial results.
The unfavourable evolution of the financial structure indicator reveals an increase in the debts of the UNA-PD companies in relation
to previous years.
An assessment of the economic and financial situation of the managing companies of the multi-municipal systems, as well as their
evolution over the past three years, is shown in the following table.