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Commission Decision of 22 June 2005 on the aid measures implemented by the Netherlands for AVR for dealing with hazardous waste (notified under document number C(2005) 1789) (Only the Dutch version is authentic) (Text with EEA relevance) (2006/237/EC)

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Changes over time for: Commission Decision of 22 June 2005 on the aid measures implemented by the Netherlands for AVR for dealing with hazardous waste (notified under document number C(2005) 1789) (Only the Dutch version is authentic) (Text with EEA relevance) (2006/237/EC) (Annexes only)

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ANNEX IU.K.+E.U.METHODOLOGY USED FOR DETERMINING THE OPERATING BUDGET DEFICITS

The methodology to determine the budget deficits in advance was developed by an independent consultant at the request of the Ministry for Housing, Spatial Planning and the Environment. It is dated 16 April 2002.

The methodology is based on a detailed assessment of the budgets for 2002 and subsequently makes extrapolations for 2003, taking into account all known factors that can be expected to affect the actual outcome for 2003. For later years, the same procedure would be followed, on each occasion for a two-year period. Owing to unexpected developments and the potential closure of the second RDF, AVR and the Dutch authorities agreed to have only a one-year budget for 2004.

The 2002 budget is based on estimated revenues, historical ratios for variable costs and estimates for other costs. The investment budget for 2002-16 and the specific investments planned for 2002 are also taken into account.

On basis of this budget, a forecasting model was built, including income statements, balance sheets and cash flow statements. The most important assumptions underlying the forecasting model are as follows:

  • The scenario chosen assumes that approximately 85 000 tonnes can be processed annually (with some downtime due to recurring exceptional events being taken into account), resulting in estimated revenues of €30,5 million.

  • Exceptional events are not accounted for separately in the model, it being assumed that they form part of the assumed recurring exceptional events.

  • For depreciation and cost allocation, the estimates for 2003 differ from those for 2002. As of 2003, revenues and costs will rise by 3,5 %. An increase in efficiency is also taken into account.

  • The old tangible fixed assets are valued at zero since they are not economically viable without the aid. They are not, therefore, included in the rental charged by AVR Chemie to AVR Nuts; this rental charge will include all AVR's other costs, excluding additions to the C2 provision (as this relates to the past) and including a 5 % mark-up for tax purposes.

  • AVR Holding will provide AVR Chemie and AVR Nuts with substantial finance for which interest will be charged at a rate of 4,891 % (in 2002 and 2003).

  • Cost allocations by AVR Holding are included; they total €4,3 million for 2002. For 2002 and 2003, these allocations include €400 000 for commercial costs which will not recur after 2003.

  • A service contract lays down the conditions for the supply of services between AVR's various subsidiaries. Transfer prices are based mostly on cost prices calculated according to the activity-based costing method and also on market prices.

  • No provisions are made for demolition costs since their payment is guaranteed by AVR (70 %) and the State (30 %).

  • No provisions are made for personnel layoffs since the business continues and the financial exposures for any future layoffs remain at operator level. The State cannot be liable for any future layoff costs in the event of the activities of AVR Nuts being terminated. The State will never be held liable for severance payments that may be payable in the event of future layoffs resulting from the cessation of activities and/or the discontinuation of the agreement with AVR.

  • AVR Holding is liable for negative results and for the effects of not meeting certain quality, safety and environmental requirements, account being taken of changing environmental requirements (one defined exception was made and this can be discussed with the State).

  • There were special provisions for possible upward adjustment of the aid for three specific situations concerning: 1. the permissible temperature in the afterburning chamber; 2. potential economies from the use of secondary fuels for which an experiment was to be carried out; and 3. the legal question whether or not excise duty was to be paid on oil-containing waste.

    Profit and loss2002 predetermined2003 predetermined2003 actual2004 predetermined
    Revenue from RDF waste29,330,422,815,9
    Revenue from C2 waste0,50,51,21,2
    Revenue from steam0,60,70,70,4
    Total revenue30,531,624,717,5
    Materials and energy3,83,93,02,4
    Deposit of remaining materials2,02,11,21,0
    Processing/storage2,02,11,80,5
    Transport costs0,20,20,30,2
    Total variable costs8,08,26,44,1
    Personnel costs3,84,04,23,6
    Third-party personnel0,30,30,70,4
    Maintenance7,88,17,06,0
    Layoff provision0,70,2
    Operational provisions
    General expenses0,60,62,40,8
    Total direct fixed costs12,512,915,011,0
    Costs charged by AVR Holding4,34,02,83,6
    Other indirect costs5,45,63,93,8
    Total indirect fixed costs9,89,66,77,4
    Rental charged by AVR Chemie 2,0 3,5 3,7 3,1
    Depreciation 0,1 0,2 0,2 0,5
    Interest costs 0,2 0,0 0,6 0,3
    Operating deficit 1,6 2,9 7,8 8,9

    Costs incurred by AVR Holding and partially included in the budget include costs for security, canteen, administration, common facilities, management and ICT. The costs charged by AVR Holding are based on detailed estimates.

ANNEX IIU.K.+E.U.POINTS TO BE INCLUDED IN THE EX POST VERIFICATION OF THE ABSENCE OF OVERCOMPENSATION

Operating budget 2004, 2005 and 2006U.K.+E.U.

  • Actual revenue and actual costs

Compensation for agreed investments not yet written offU.K.+E.U.

  • Verification of direct link to the SGEI for each of the investments

  • Any proceeds from sales of the assets concerned and any benefits from continued use for other purposes

Compensation for costs due to earlier closureU.K.+E.U.

  • Actual cost of early dismissal: indication of the full or part-time employment of the person concerned in relation to the SGEI, actual payments for the employees concerned, actual duration of the payments for redeployment within or outside AVR

  • Recurrent fixed costs: general RDF costs: verification whether failed coverage (gemiste dekkingen) is appropriate and has not been met by other means; verification of actual accounting, legal and banking cost; verification of actual costs for other elements

  • Recurrent fixed costs: security, canteen, purchasing, administrative facilities at Professor Gerbrandyweg: actual costs of transporting electricity based on the actual date on which the facility with Eneco was ended or bought back; costs forgone of rent for offices, etc., taking account of any proceeds from actual re-use; verification whether failed coverage for purchasing function for restaurant, warehouse and security is appropriate and has not been met by other means

  • Recurrent fixed costs: ICT infrastructure: verification whether missed coverage for ICT infrastructure has not been met by other means

  • Recurrent fixed costs: personnel costs: actual costs of central telephone function and leased lines

  • Recurrent fixed cost: rent/lease of equipment: actual missed coverage of specialised trucks and forklift trucks and actual proceeds from sales or alternative use within AVR

  • Recurrent fixed cost: other overheads: actual costs and actual reduction in costs of maintenance and cleaning contracts

  • Recurrent fixed costs

GuaranteeU.K.+E.U.

  • Verification of actual removal and decontamination costs for the installations directly used for the SGEI

The verification includes a calculation showing that the aid does not lead to a higher rate of return than the return on Dutch government bonds plus 2 percentage points.

ANNEX IIIU.K.+E.U.Information regarding the implementation of the Commission decision in Case C 43 2003 - Netherlands, operating aid in favour of AVR for dealing with hazardous waste

1.Calculation of the amount to be recoveredU.K.+E.U.

1.1Please provide the following details on the amount of unlawful state aid that has been put at the disposal of the recipient:U.K.+E.U.

a
(°)

Date(s) on which the aid or individual instalments of aid were put at the disposal of the recipient; if the measure consists of several instalments and reimbursements, use separate rows.

b

Amount of aid put at the disposal of the recipient (in gross grant equivalent)

Date(s) of paymentaAmount of aidbCurrencyIdentity of recipient
AVR IW

Comments:

1.2Please explain in detail how the interest payable on the amount of aid to be recovered will be calculated.U.K.+E.U.

2.Recovery measures planned and already takenU.K.+E.U.

2.1Please describe in detail what measures have been taken and what measures are planned to bring about an immediate and effective recovery of the aid. Please explain what alternative measures are available under national law to effect recovery. Where relevant, please indicate the legal basis for the measures taken/planned.U.K.+E.U.

2.2By what date will the recovery of the aid be completed?U.K.+E.U.

3.Recovery already effectedU.K.+E.U.

3.1Please provide the following details of aid that has been recovered from the recipient:U.K.+E.U.

a
(°)

Date(s) on which the aid was repaid.

Date(s)aAmount of aid repaidCurrencyIdentify of recipient
AVR IW

3.2Please attach supporting documents for the repayments shown in the table at point 3.1.U.K.+E.U.

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