Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
Notes to the financial statements (continued)
for the year ended 30 June 2011
23. Commitments
group and Company Company
2011 2010
$000 $000
Capital expenditure
The capital expenditure committed to, but not recognised in, these financial statements at balance date was:
Buildings 488 97
Pipelines 63,463 10,722
Tanks, tunnels, roads and reservoirs 4,295 5,654
Other 35,018 19,602
Total capital expenditure commitments 103,264 36,075
Anticipated payment schedule:
Less than one year 79,636 25,121
One to two years 22,713 3,651
Two to five years 915 7,303
Total capital expenditure commitments 103,264 36,075
The commitments relate to the following projects:
Hobson Bay sewer replacement - 5,527
Wastewater treatment plant 4,109 15,793
Water treatment plants 10,253 1,712
Bulk supply meters 6,797 -
Expansion of the Waikato water treatment plant 11,156 -
South Western interceptor 13,019 -
Stage 1 Northern Waitakere wastewater 6,985 -
Other projects 50,945 13,043
Total capital expenditure commitments 103,264 36,075
Operating leases
Anticipated payments under non-cancellable operating leases:
Less than one year 3,159 2,411
One to two years 3,003 2,357
Two to five years 6,361 6,299
Beyond five years 49,288 49,859
Total lease commitments 61,811 60,926
The major lease commitment is a long-term lease of the land forming the water catchments areas, which expires in July 2092. The annual rental of
$510,000 has been included in these commitments at face value. Other leases include Newmarket office, parks, reservoirs and office equipment.
2011 Financial Report
24. Contingencies
The Bank of New Zealand has issued performance bonds of $400,000 for 2011 (2010: $400,000). The performance bonds are to support the
group’s obligations to Auckland Regional Council (now Auckland Council) for risks of environmental damage arising from the upgrade and
operations of the Mangere Wastewater Treatment Plant.
In the normal course of its business the group is exposed to claims, legal proceedings and arbitrations that may in some cases result in costs to
the group. The directors believe that these have been adequately provided for by the group within note 19, page 94 of these financial statements
and no additional material contingent liabilities requiring disclosure have been identified.
PAGE 104
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