Infratek Report 2011

Contingent liability regarding Norwegian and Finnish employees

There is a contingent liability with respect to 59 employees of Infratek’s Finnish subsidiary Infratek Finland Oy, who were previously members of Fortum Pension Foundation, should they be made redundant by the company. In the event that they are made redundant, Infratek Finland Oy is obligated to compensate for any difference between estimated defined pension benefits according to the defined benefits based supplementary pension agreement and accrued pension entitlement under the mandatory service pension scheme. The size of the amount depends on whether or not the employee continues to accrue pension rights in the mandatory service pension scheme after their redundancy. This contingent liability is estimated at between EUR 6,000 and EUR 7,000 per employee per year. The amount cannot be calculated exactly until the ordinary pension period begins. As of 31 December 2011 the average age of these 59 employees was approximately 56.

Infratek Service AS, which was merged with Infratek Entreprenør AS in 2009, acquired 25 employees from Halden E-verk in 1992. These employees were transferred to KLP in 1992, but have earned pension rights in the Halden Kommunale Pensjonskasse. Since the acquisition, no demands concerning adjustment premiums or similar have been received from Halden Kommunale Pensjonskasse. On this basis, Infratek Entreprenør AS does not consider itself to have any liabilities linked to Halden Kommunale Pensjonskasse.

Bank and group guarantees

The Group purchases bank guarantees as security for certain liabilities. Per 31 December 2011, these bank guarantees amounted to NOK 117.0 million including NOK 30.2 million in tax deduction guarantees and NOK 86.8 million in project guarantees. Corresponding guarantees in 2010 were NOK 30.2 million and NOK 97.7 million, respectively.

Additionally, group guarantees adding up to a total of NOK 12.4 were made whereas the corresponding amount made last year was NOK 6.3 million.

NOTE 28	CONTIGENT LIABILITIES
Contingent liability regarding Norwegian and Finnish employees
There is a contingent liability with respect to 59 employees of Infratek’s Finnish subsidiary Infratek Finland Oy, who were previously members of Fortum Pension Foundation, should they be made redundant by the company. In the event that they are made redundant, Infratek Finland Oy is obligated to compensate for any difference between estimated defined pension benefits according to the defined benefits based supplementary pension agreement and accrued pension entitlement under the mandatory service pension scheme. The size of the amount depends on whether or not the employee continues to accrue pension rights in the mandatory service pension scheme after their redundancy. This contingent liability is estimated at between EUR 6,000 and EUR 7,000 per employee per year. The amount cannot be calculated exactly until the ordinary pension period begins. As of 31 December 2011 the average age of these 59 employees was approximately 56.

Infratek Service AS, which was merged with Infratek Entreprenør AS in 2009, acquired 25 employees from Halden E-verk in 1992. These employees were transferred to KLP in 1992, but have earned pension rights in the Halden Kommunale Pensjonskasse. Since the acquisition, no demands concerning adjustment premiums or similar have been received from Halden Kommunale Pensjonskasse. On this basis, Infratek Entreprenør AS does not consider itself to have any liabilities linked to Halden Kommunale Pensjonskasse.

Bank and group guarantees
The Group purchases bank guarantees as security for certain liabilities. Per 31 December 2011, these bank guarantees amounted to NOK 117.0 million including NOK 30.2 million in tax deduction guarantees and NOK 86.8 million in project guarantees. Corresponding guarantees in 2010 were NOK 30.2 million and NOK 97.7 million, respectively.

Additionally, group guarantees adding up to a total of NOK 12.4 were made whereas the corresponding amount made last year was NOK 6.3 million.

Income Statement Group