Main events during the financial year

FLEMISH GOVERNMENT ASSIGNS AQUAFIN A KEY ROLE

In the Coalition Agreement for the new Flemish Government published at the beginning of October, Aquafin was put in charge of coordinating the asset management of the waste and stormwater networks across the whole of Flanders. This marked the acceptance of our proposal for achieving greater integration between the management of the municipal and supra-municipal infrastructure. We intend to achieve this partly by aligning the respective investments. We will also coordinate the actual asset management of the sewer infrastructure. We assess the state of the infrastructure and draw up maintenance and repair programmes based on up-to-date data for towns, cities and municipalities so that they can keep their systems in good condition. Aquafin is also taking the initiative to construct a measurement matrix for combined overflows together with the sewer operators and the Flemish Environment Agency. All proposals from Aquafin’s action plan aim to achieve maximum impact on the environment with the resources available.

2020 OPTIMISATION PROGRAMME ASSIGNED

Every year, the Flemish Government assigns a new Optimisation Programme to Aquafin for the continued development and optimisation of the supra-municipal treatment infrastructure. Last year, the OP2020 was assigned. This is worth a total of 230 million euros, of which 100 million euros are reserved for new supra-municipal projects and 130 million euros for projects under the Local Pact with the municipalities. These new orders help to fill up Aquafin’s order book.

A further 50 million euros were made available for investment and renewal programme overruns from programme years up to and including 2009. MOODY’S CONFIRMS LONG-TERM RATING

Moody’s annual rating visit, during which the company was examined from a financial and strategic point of view, took place in September Following an in-depth analysis, Moody’s confirmed Aquafin’s long-term rating of Aa2 with a stable outlook as well as the short-term rating of P-1.

SIGNATURE OF ELEVENTH EIB LOAN

At the end of 2019, the eleventh financing agreement was signed between the European Investment Bank (EIB) and Aquafin, for the sum of 100 million euros. Under this agreement, the EIB commits to a second loan of a further 100 million euros, creating a total framework agreement for 200 million euros. This brings the investments by the EIB to a total of 1.9 billion euros. The projects financed by this loan are subject to thorough screening by the EIB for their impact on and mitigation of the consequences of climate change. With a total impact rating of 51%, the EIB is presenting Aquafin as a showcase for the financing of waste water treatment infrastructure.

FLEMISH GOVERNMENT APPROVES CLOSURE OF 2017 FINANCIAL YEAR

In May 2019, the Flemish Government reached a final decision regarding the closure of the 2017 financial year. This decision has an impact on the recognition of both operating costs under the remuneration model and approval of invoices received after project completion for that year. Based on this decision, some 195 thousand euros (or 0.07% of the budget) were rejected. Aquafin had made provision for this amounting to 300 thousand euros.

MUNICIPAL CUSTOMERS

At the end of 2019, Aquafin had 106 Flemish towns, cities and municipalities as customers, either directly or via a joint venture with drinking water companies De Watergroep (Riopact) or water-link. Compared to the previous year, two municipalities have switched their sewer management to the company, which is now also their new drinking water supplier. Two more municipalities went into partnership with Aquafin in 2019.