ÖBB Annual Report 2023

Consolidated Financial Statements 302 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 84 ÖBB-Infrastruktur AG bears the costs for the fulfilment of its tasks. The federal government provides, for this purpose, – a grant to ÖBB-Infrastruktur AG pursuant to Section 42 (1) Federal Railways Act at their request, in particular for the operation of the railway infrastructure and its provision to users, to the extent and provided the revenues to be generated by the users of the railway infrastructure under the respective market conditions are not sufficient to cover the expenses incurred in the course of economical and efficient management, and – pursuant to Section 42 (2) Federal Railways Act, grants for the maintenance, planning and construction of rail infrastructure. Two separate agreements, each with a term of six years, are to be concluded between the Federal Ministry for Climate Protection, Environment, Energy, Mobility, Innovation and Technology (BMK) in agreement with the Federal Ministry of Finance (BMF) and ÖBB-Infrastruktur AG regarding the grants pursuant to Section 42 (1) and (2) Federal Railways Act, in which the object of the grant, the amount of the grants to be awarded for it, the general and special grant conditions and the payment modalities are to be stipulated. The Schieneninfrastruktur-Dienstleistungsgesellschaft mbH (SCHIG) monitors the compliance with the obligations assumed by ÖBB-Infrastruktur AG in the grant agreements pursuant to Section 42 Federal Railways Act. Monitoring refers to the economical, efficient and appropriate use of funds in the planning, construction, maintenance, provision and operation of a need-related and safe rail infrastructure. The framework plan 2024 to 2029 was endorsed by the Republic of Austria in the Council of Ministers on 18.10.2023 and submitted to the Supervisory Board of ÖBB-Infrastruktur AG on 27.11.2023. Financing of the infrastructure The grant agreement pursuant to Section 42 (2) Federal Railways Act is based on the business plan to be prepared by ÖBB- Infrastruktur AG pursuant to Section 42 (6) Federal Railways Act. One component of the business plan is the six-year framework plan to be drawn up by ÖBB-Infrastruktur AG pursuant to Section 42 (7) Federal Railways Act, which must contain the funds for maintenance (in particular repair and reinvestment) and for expansion investments on an annual basis. The business plan and framework plan are to be supplemented annually by one year each and adjusted to the new six-year period. The grant agreement 2022 to 2027 stipulates that the share to be assumed by the federal government for expansion investments and reinvestments in accordance with the framework plan 2022 to 2027 (with the exception of the Brenner Base Tunnel) amounts to 80% of the annual capital expenditure, for which grants are paid in the form of an annuity spread over 30 years. The Brenner Base Tunnel project receives a 100% subsidy from the federal government in the form of an annuity spread over 50 years. The long term financing rate of ÖBB-Infrastruktur AG currently in effect is used as the interest rate. The share to be assumed by the federal government for expansion investments (excluding the Brenner Base Tunnel) and reinvestments will be continuously reviewed and, if necessary, adjusted to current requirements for future grants. The federal government also provides a subsidy for inspection and maintenance, fault clearance and repair of the rail infrastructure operated by ÖBB-Infrastruktur AG. The amount of the grant is determined taking into account the liquidity requirements on the basis of the business plan of ÖBB-Infrastruktur AG, the specified limit of the total grant according to Section 42 Federal Railways Act and the achievement of the targets (performance and output targets) according to the grant agreement pursuant to Section 42 (1) Federal Railways Act. Changes in the functionality and/or scope of the rail infrastructure operated by ÖBB-Infrastruktur AG will result in an increase or decrease of the subsidy. ÖBB-Infrastruktur AG must therefore reach an agreement with the Federal Ministry of Transport, Building and Urban Affairs and the Federal Ministry of Finance before making such changes. In 2023, a grant of approx. EUR 1,316.3 million (py: EUR 1,260.4 million) was provided for expansion and reinvestment as well as utilisation fees on the basis of the valid grant agreement for 2022 to 2027 pursuant to Section 42 (2) Federal Railways Act. Approx. EUR 441.5 million (py: EUR 430.7 million) was granted for inspection, maintenance, fault clearance and repairs. ÖBB-Infrastruktur AG has contributed approx. EUR 150.0 million (py: approx. EUR 100.0 million) to BBT SE for the construction costs of the Brenner Base Tunnel. The payments contractually agreed with the state of Tyrol in the course of the share acquisition and the payments made by the federal government to ÖBB-Infrastruktur AG in connection with the cross-financing of roads amounted to approx. EUR 55.0 million (py: approx. EUR 69.7 million). Operation of the infrastructure and apprenticeship costs ÖBB-Infrastruktur AG is required to submit an annual rationalisation and savings plan with a forecast to the Federal Ministry of Transport, Innovation and Technology and the Federal Ministry of Finance.