Cofinance

All those participating of the sharehodlers´ assets of SVS a.s. in the year 2007 were briefed by an alternative of acquistion of water property based on the principle of inclusion of purchase price with monetary investment exclusive of the basic capital. The development of objectives is undermentioned in The Principle of Acquisition of Water Property from shareholders of SVS a.s. and it was approved by Executive board of the company on 25 July 2007.

The principles have governed since 1 January 2008 and have respect to the property whose shareloder´s application was filed and the construction began after date 27 July 2007.

The Principle of Acquisition of Water Property from shareholders of SVS a.s.

1. An object of acquisiton of property
   The principles are related to the water property (serving the human purposes and public use) which build up the shareholder of SVS a. s. in its territory and the building-up is in accordance with the development plans of joint-stock company.

2. Financial contribution
   The shareholder of SVS a. s. is allowed to get the financial contribution from SVS a.s. on the basis of approved Application for cofinancing. The financial contribution is equal to the difference originated after the inclusion of an obligation in the rate of purchase price for the water property with the obligation by virtue of express assumpsit in the amount of shareholder´s extra pay into the shareholder´s capital of SVS a. s.

3. The rate of extra pay into the shareholders´ capital
   Obligation of SVS a. s. in an amount of purchase price is equal to the value of water property; this was defined on the basis of expert´s report. The demand of SVS a. s. in the rate of extra pay into the shareholders´capital except the basic capital is defined as the difference between the purchase price and the calculation of expected financial benefits from the investment.

4. Acquisiton of property and its principle
   On the basis of approved Apllication for cofinancing the shareholder (investor) and SVS a. s. will sign up the contract about the rate of extra pay into the shareholders´ capital. At the same time the water property purchase agreement will be concluded between the same bargainors. By this SVS a. s. will have the engagement with the shareholder in the amount of purchase price. This obligation will be counted together with the demand in the rate of extra pay into the shareholders´ capital. The difference after the ringing up will represent the engagement of SVS a. s. with the shareholder. This will be defrayed at the stated time (financial contribution).

5. Approval procedure
   The decision on conclusion of an extra pay contract must be authorized by shareholder´s council and the executive board of SVS a. s. If the rate of extra pay into the shareholders´ capital is higher than 50 million CZK the contract must be also authorized by the supervisory board of SVS a. s.

6. The rate of financial contribution
   The rate of financial contribution appeared from the calculation of expected revenue from the building investment and it is yearly updated depending on water rate development, or more precisly on sewage charge development.

7. Expected revenue control
   Expected revenue which are couched in the financial contribution will be again under discussion of SVS a. s. in accordance with the real number of inhabitants who are newly appendanted to the water tap or sewerage.

8. Quantification and concretization
   The key principles setting is included in this material as the insert No. 1. The concrete procedures of principle implementation including the contract documentation are regulated by the internal rules of SVS a. s. procedure.

9. Final disposition
   According to these principles the acqusition of water property is possible only at that time if the shareholder filed the petition after 31 December 2007 and the start construction was as well after this date. The application of these priciples is included in Insert No. 2.

Insert No. 1–Key factors and parameters for acquisition of water property from shareholders of SVS a. s.

                   - addition No. 1 to the insert No. 1 for the year 2009

Insert No. 2 – The application for construction cofinancing ( in PDF) / (v DOC)

                      Information necessary to fulfill the form "Application for construction cofinancing"

                      List of sewer connections - properties 


An expert´s report (made only by an expert with official stamp ) is absolutely needful for building final acceptance. 

The list of experts (choose the subject field EKONOMIKA p/Economic and futher subfield Ceny a odhady /Prices and Evalutaions), choice can be restricted to a selection of relevant district.