In 2009 provision for esop represents the excess of

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In 2009, provision for ESOP represents the excess of the carrying value of Maynilad’s shares held by DMWC that will be issued to Maynilad’s employees in compliance with Maynilad’s concession agreement over the amounts to be paid by Maynilad to DMWC. The transfer of the shares was completed in 2010 and as discussed in Note 4, the transaction was accounted as a sale of non-controlling interest and any gain or loss is recognized to equity, hence the provision was reversed in 2010 (see Notes 4 and 20). Retention payable is the amount withheld (equal to 10.0% of the contract price) by the Company until the completion of the construction of a specific project.
- 85 - *SGVMC214233* 17. Provisions Movements in this account follow: December 31, 2010 Warranties and Guarantees (see Note 34) Heavy Maintenance Other Provisions Total (In Thousands) Balance at the beginning of year P =516,323 P =415,827 P =1,353,788 P =2,285,938 Additions (see Notes 24 and 29) 61,502 260,722 322,224 Payments (80,636) (31,027) (111,663) 516,323 396,693 1,583,483 2,496,499 Less current portion 516,323 88,350 1,583,483 2,188,156 P = P =308,343 P = P =308,343 December 31, 2009 Warranties and Guarantees Heavy Maintenance and Others Other Provisions Total (In Thousands) Balance at the beginning of year P=461,476 P=170,275 P=985,962 P =1,617,713 Additions (see Notes 24 and 29) 54,847 229,083 411,098 695,028 Accretion of interest (see Note 28) 16,469 16,469 Payments (43,272) (43,272) Balance at end of year 516,323 415,827 1,353,788 2,285,938 Less current portion 516,323 1,353,788 1,870,111 P=– P=415,827 P=– P=415,827 Provisions include estimated expenses related to the concluded and ongoing debt settlement negotiations and certain warranties and guarantees extended by MPC in relation to debt for asset swap arrangements entered in prior years. Certain warranties and guarantees are secured by Pacific Plaza Tower (PPT) condominium units and BLC shares (see Notes 9 and 10). Provision for heavy maintenance pertains to the contractual obligations of MNTC to restore the service concession assets to a specified level of serviceability. MNTC recognizes provision as the obligation arises which is a consequence of the use of the roads and therefore it is proportional to the number of vehicles using the road and increasing in measurable annual increments. Other provisions consist of claims and potential claims against a subsidiary and estimated liabilities for certain fees under the STOA and Operation and Maintenance Agreement entered into by MNTC. Other provisions includes the accruals that were reclassified from accrued expenses to conform with 2010 presentation as discussed in Note 16.
- 86 - *SGVMC214233* 18. Service Concession Fees Payable This account consists of: 2010 2009 (In Thousands) Service concession fees payable P =9,130,225 P=10,280,140 Less current portion 1,179,026 1,208,467 P =7,951,199 P=9,071,673 Concession fees relate to and arise from Maynilad’s service concession agreement and are denominated in various currencies. These are payable monthly following an amortization table up to the end of concession period and are noninterest-bearing.

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