Financial and Activity Report

Sustainability Report | 2010

Financial and Activity Report Sustainability Report | 2010 Sustainability Report | 2010 Financial and Activity Report 4 / 5

About the Sustainability Report and its structure 7 Index 1. Financial activity 13 1.1. Income and expenditure 14 1.2. Investments 16 1.3. Execution of the Contract-Programme 19 1.4. Special Investment Plans 25 1.5. European Union Funds 26 1.6. Contracts 30 1.7. Adif Shareholdings 32 2. 2010 Annual Accounts and Audit Report 39 2.1. Audit Report drafted by Adif’s Delegated Intervention 39 2.2. Annual accounts for the 2010 financial year 45 3. Key actions to develop the railway model 153 4. Action by activity area 157 4.1. High-Speed Network 157 4.2. Conventional Network 172 4.3. Traffic 174 4.4. Passenger Stations 178 4.5. Logistics Services 179 4.6. Assets and City Planning 180 4.7. Telecommunications and Energy 183 4.8. R&D&i Projects 185 4.9. Safety 187 4.10. Quality 188

APPENDICES I. Index of Tables 192 II. Index of Figures 193 Sustainability Report | 2010 Financial and Activity Report 6 / 7

About the Every year since 2006, Adif 2. Review of the Report, has drawn up its Sustainability prior to its publication by the Report in accordance with the departments and divisions Sustainability guidelines and principles laid to confirm that it accurately down in version G3.1 of the reflects the management of Report and Global Reporting Initiative (GRI) each of them, collating the for Application Level A+. quantitative and qualitative its format data. The Steering Committee The following steps have been also performs its own check to taken in compiling the report: ensure the spirit and corporate values of Adif are mirrored, 1. Capturing information as well as the quality of the on the GRI indicators, using contents. indicator sheets and general figures concerning initiatives In line with the GRI principles, and actions that bring value information on those issues and which have been set up considered material or throughout the year. . Each relevant for the business is department has contributed its included, beyond the economic content, previously captured framework, and adapted to and monitored in accordance the particular features as a with the company's information business. The report provides and management systems, accountability within the which are in turn audited by context of sustainability independent third parties. that marks the management Sustainability Report | 2010

focus and vision of responsible performance. The In addition, this report has been carried out according Report attempts to provide a thorough reflection to GRI guidelines achieving A+ application level and of Adif’s global activity in 2010, responding to all in line with regulation AA1000 APS. It has also been indicators required at the application level A and externally verified by KPMG Asesores, S.L. apart from recording the participation that its stakeholders the Environmental Volume. The verification report have had with regard to each figure given. is available in Volume 1 of the Adif’s Sustainability Report 2010: Strategy and Commitments, and The information in this Report is balanced, and includes the scope of work, the criteria employed, the includes achievements as well as future targets. works carried out, as well as the conclusion drawn To assist in making comparisons, we have during the process. tried to include a series of previous years in the quantitative figures, without prejudice to the information supplied in the previous year's report. We have also been guided by the accuracy of the data submitted and which are given in sufficient detail so as to comply with the expectations of the company's stakeholders. Clarity has also been of the utmost importance in drafting the report, avoiding cumbersome or ambiguous explanations. And to ensure reliability, the content of this report has been reviewed by all in-house departments and divisions that are responsible for managing the company's stakeholders. Financial and Activity Report 8 / 9

Structure 5. Transparency and dialogue with stakeholders For the fifth year running, Adif is publishing its Sustainability Report in a comprehensive way. 6. CSR at Adif: Strategies and results A series of four volumes outlines the company's performance from the economic, social and APPENDICES: Table of GRI Indicators, Table of environmental focal points, with accountability contents by stakeholders, Index of tables, Index of for the evolution and ongoing improvement in figures, Glossary of terms and External Auditing of complying with those commitments voluntarily the Report. accepted as well as Adif’s obligations as a public corporation. Volume 2. Financial and Activity Report

The full content of this report is as follows: About the Sustainability Report and its structure.

Volume 1. Strategy and Commitments 1. Financial activity

About the Sustainability Report and its structure. 2. Auditors’ report and annual accounts 2010

1. Message from the Chairman 3. Basic actions to develop the railway model

2. Adif’s profile and operating framework 4. Action by activity area

3. CSR and sustainability at Adif APPENDICES: Index of Tables, Index of Figures.

4. Management integrity and extension of CSR Sustainability Report | 2010

Volume 3. Environmental Report Volume 4. Social Memory

About the Sustainability Report and its structure. About the Sustainability Report and its structure.

1. Presentation of the environmental report 1. Commitment to rail system safety

2. Adif’s commitment to the environment 2. Increased sense of pride of belonging to Adif 3. Environmental Balance 3. Bringing value to society and local 4. Environmental management communities: cohesion, development and well-being 5. Environmental Performance APPENDICES: Index of Tables, Index of Figures 6. Environmental expenditures and investments

7. Adif’s contribution to environmental sustainability of transport

APPENDICES: Profile of the report and scope limitations, Index of GRI content, Index of Tables, Index of Figures, list of sources used, Glossary of Terms, Declaration of Verification and Questionnaire to suggest improvements. Financial and Activity Report 10 / 11

The Report is available online at the Adif corporate adif.es). For any additional information, inquiry, website (www.adif.es) and on the in-house suggestions for improvement or comments, you may corporate communications portal Inicia (http://inicia. contact:

Volumes 1,2 and 4 Volume 3 Corporate Reputation and Brand Department Quality Assurance and Environment Department C/ Sor Ángela de la Cruz, 3 – 1ª planta Paseo del Rey, 30 28020 () 28008 Madrid (Spain) Telephone: 00 34 91 774 44 89 Telephone: 00 34 91 540 38 00 e-mail: [email protected] e-mail: [email protected] Sustainability Report | 2010 Financial and Activity Report 12 / 13

Firstly, in terms of financial growth and competitiveness. performance, Adif’s primary Furthermore, rail transport responsibility is management saves indirect economic efficiency and transparency in costs for society: pollution, accountability, regarding citizens greenhouse gas emissions, and and administrations, even more accident rate, etc. 1 so given its special nature. Therefore, Adif’s activity In that sense, one of our strategic focuses on achieving maximum Financial goals is to strike economic reliability, availability and balance and fully cover operating safety in rail infrastructure Activity costs. This economic and financial with maximum quality, sustainability is the foundation environmental respect and to guarantee the profit that our economic efficiency. activity entails, because our contribution to the country’s The following information economic and social development shows Adif’s economic data is our second most important highlighting the 2009-2010 responsibility from an economic trend. point of view.

Clearly, improving a country’s transport infrastructure has an effect on its economic Sustainability Report | 2010

1.1. Income and expenditure

The attached table shows the Profit and Loss Account for the year and its comparison with the previous year:

Table 1: 2010 Profit and Loss Account

2010 2009 Variation Variation Item (millions €) (millions €) (millions €) (%) Net business turnover 1,999.8 1,963.0 36.8 1.9 Work executed implemented by the company for its 24.2 21.6 2.6 12.0 fixed assets Other Operating Income 604,9 573,8 31,1 5.4 Exceptional Results 194.0 69.8 124.2 177.9 Operating income 2,869.6 2,717.1 152.5 5.6

Raw materials and other supplies -157.2 -145.3 -11.9 8.2 Staff costs -710.5 -674.5 -36.0 5.3

Net provisions for fixed asset depreciation -217.1 -202.9 -14.2 7.0

Variation in traffic provision 6.6 4.9 1.7 34.7 Other operating expenditure -1,608.8 -1,624.2 15,3 -0.9 Operating expenditure -2,687.0 -2,642.0 -45.0 1.7

Operating result 182.6 75.1 107.5 143.1

Financial income 79.1 102.4 -23.3 -22.7 Financial expenditure -116.2 -111.3 -4.9 -4.4

Financial results -42.2 -7.4 -34.8 470.3

Results from ordinary activities 140.4 67.7 72.7 107.2

Corporate tax 0.4 0.4 0.0 0.0

Result for the year 140.8 68.1 72.7 106.8 Financial and Activity Report 14 / 15

As well as the railway tariffs regulated by the under the other operating income heading. Also, the O.M.FOM/898/2005 and the passenger railway exceptional results figure stands out owing to the transport safety fee, the net turnover heading application of the ruling in the National High Court includes income from the Government’s network on non-deductible Input VAT by RENFE (2001 to administration and from investment for renewal 2004) and GIF (2001). and improvements of this network, from economic contributions from the Spanish Government, which In 2009, staff costs have increased, partly owing appear in the Contract-Programme signed with to the amortisation of future commitments arising Adif. Regarding the year 2009, we must highlight from the Redundancy Scheme 2006-2010. Fixed the increase in revenue from the administration in asset depreciation costs have also increased, as did the Government’s rail network, albeit with a parallel the use of the geometric progressive depreciation of increase in expenditure arising from the activities of 3% annually due to the rise in investments activated this administration. in 2010. On the contrary, there has been a decrease in other operating expenses as a result of the Revenue from rail tariffs is similar to last year due to austerity plan established for external costs. the full operation of the Madrid-Cuenca-Albacete- high-speed line at the end of 2010. The The drop in financial assets, current account overall decline in economic activity has resulted in a balances and financial investments, and increase decline in commercial leasing income, income from in indebtedness explain the changes in financial services and other rail operators that are included revenues and costs compared to the previous year. Sustainability Report | 2010

1.2. Investments Table 3: Investments in 2009 according to nature The investments carried out during the 2010 financial year, Input VAT inclusive, are included in the following Amount tables: Nature (millions €) Track bed 2,738.5 Track 871,2 Table 2: Investments in lines and works Electrification 322.7 Telecommunications installations 100.7 Amount Safety installations 498.5 Lines (millions €) Stations 406.7 High-speed lines 4,084.3 Equipment and other actions 451.3 Madrid-Levante 1,367.8 Total 5,389.6 Madrid-French Border 885.1 Venta de Baños-Palencia-León-Asturia 245.8 Pajares line 223.1 Vitora--San Sebastián 211.7 --Vitoria 205.2 Bobadilla-Granada 183.5 Almería- region 169.9 Atocha-Chamartín connection 131.2 High-speed stations 220.7 Other investments 240.3 Contract-programme and agreements 1,067.7 Ourense-Santiago 324.3 Others 743.4 Other own assets 237.6 Total 5,389.6 Financial and Activity Report 16 / 17

Total investment decreased 6% compared to last year.

Regarding high-speed lines under construction, the implementation rate of the projects since the start on 31 December 2009, are included in the following table:

Table 4: Project implementation rate

Commissioned Completed Completed Lines (million €) (million €) (%) Madrid-French Border 12,569.9 11,426.7 90.9 Madrid-Levante 9,129.4 7,736.0 84.7 Madrid-Valladolid 4,489.1 4,442.0 99.0 Córdoba-Málaga 2,711.3 2,644.4 97.5 Variante Pajares 2,632.6 2,517.4 95.6 Ourense-Santiago 2,113.8 1,698.8 80.4 Vitoria-Bilbao-San Sebastián 1,029.5 503.4 48.9 Valladolid-Burgos-Vitoria 737.5 266.7 36.2 Bobadilla-Granada 737.3 406.8 55.2 Venta de Baños-Palencia-León- 623.6 325.9 52.3 Atocha-Chamartín connection 591.6 182.5 30.8 Almería-Murcia region 494.0 194.6 39.4 High-speed stations 851.7 806.3 94.7 Other investments 1,551.8 696.5 44.9 Total 40,263.1 33,848.0 84.1 Sustainability Report | 2010

Excluding high-speed lines being built, distribution of investment in 2010 by railway corridors is as follows:

Table 5: Distribution of investment by railway corridors

Own Contract-prog Total assets and agreements (millions Railway corridor (millions €) (millions €) €) Corridor 0. High-speed 32.7 4.3 37 Corridor 1. Madrid Chamartín-Irún-Hendaya 24.8 68.6 93.4 Corridor 2. Madrid Chamartín--Lérida--Cerbere 23.5 276.1 299.6 Corridor 3. Madrid Chamartín-Valencia-San Vicente de Calders 38.3 74.6 112.9 Corridor 4. Alcázar de San Juan-Córdoba-Sevilla-Cádiz 27.5 209.1 236.6 Corridor 5. Madrid Atocha-Cáceres- 2.3 6.9 9.2 Corridor 6. Venta de Baños-León-Orense-Vigo 15.9 61.6 77.5 Common to several corridors or not assignable to corridors 72.5 42.2 114.7 TOTAL 237.6 743,4 981.0

And distribution by type of network: Table 6: Distribution of investment by type of network

Contract-prog Total Own assets and agreements (millions Type of network (millions €) (millions €) €) Cercanías 45.2 267.7 312.9 Network A 43.0 211.7 254.8 Network B 1.9 45.4 47.3 Network C 0.3 10.6 10.8 General network 87.2 429.3 516.5 Network A 56.0 214.4 270.3 Network B 12.8 158.5 171.3 Network C 18.4 56.4 74.9 High speed network 32.7 4.3 37.0 Common or not assignable 72.5 42.2 114.7 TOTAL 237.6 743.4 981.0 Network A 99 426.1 525.1 Network B 14.7 203.9 218.6 Network C 18.7 67.0 85.7 High speed network 32.7 4.3 37.0 Common to several corridors or not assignable to corridors 72.5 42.2 114.7 TOTAL 237.6 743.4 981.0 Financial and Activity Report 18 / 19

1.3. Execution of the Contract-Programme

The table below shows the important management data for the 2010 financial year, comparing forecasts with actual results.

Table 7: Contract-Programme execution Summary (Data in million €)

Contract- programme Data forecast Real Difference

Adif result (1) -109.0 66.7 -175.7 Conventional network result (1) 60.3 3.6 56.7 Adif Staff (at the end of 2010, in no. of people) 13,349 13,761 -41.2 Cost of ERE (redundancy procedure) 73.9 76.6 -2.7 Investments in the Conventional Network (2) 578.1 621.6 -43.5 Investments in the Conventional Network accumulated 2007-2010 (2) 2,121.8 2,167.6 -45.8 Investments in the MADRID – high-speed line OURENSE – 550.2 324.3 225.9 SANTIAGO section (2) Investments in the MADRID – GALICIA high-speed line OURENSE – 1,715.2 1,408.0 307.2 SANTIAGO section accumulated (2)

(1) Results obtained following GAP 1990 criteria (2) Settlement data, VAT included and SEITTSA expenditure % deducted

Results etc. causes significant differences in results for the year 2010. Adif’s profit is 66.7 million euros The Contract-Programme provides a negative when the total result is recalculated according result of €109.0 million for the 2010 accounting to the 1990 GAP, improving the forecasts of the period, having actually generated a profit of Contract-Programme. Also, the comparison must €140.8 million. Although it should be noted that all take into account the outstanding results derived financial and accounting information on the basis from the decision of the National High Court on the of which the Contract-Programme was drawn settlement of VAT in the years 2001 to 2004. up was based on the 1990 General Accounting Plan, since 2008 the annual accounts have been In addition to Adif’s total result, the Contract- prepared in accordance with the New Accounting Programme establishes the result of the Government- Plan (Royal Decree 1514/2007 of 16 November). owned network management consisting of The different accounting treatment between Infrastructure Maintenance, Traffic and Traffic Safety. the two plans with regard to the provisions, ERE According to GAP 1990 criteria the total result of the (redundancy procedure) costs, the extraordinary, management is €3.6 million. Sustainability Report | 2010

Human resources plan 2010 was 13,761 people, 412 more than established in the Contract-Programme and the Redundancy The Contract-Programme commitments for Adif Procedure cost was €76.6 million, higher than include adaptation of the workforce to management expected by €2.7 million. needs and goals through a Human Resources Plan. The basic instrument of this plan is the 2006-2010 Implementation of Assigned Investments Redundancy Procedure (ERE) approved by the Labour Department. In turn, the goals outlined The table summarises the economic planning of in Adif’s 2006-2010 Strategic Plan entail the assigned investments in the various accounting containment of labour expenses and improvement of years of the Contract-Programme. productivity, among others. The final staff count for

Table 8: Contract-programme assigned investment 2007/2010 (Millions € including 2% management and VAT)

Expected commissioned investment

Total Commissionings 2007 2008 2009 2010 (up to 2010) Others 1st Commissioning (27/06/07) 413.2 426.6 383.5 300.2 1.523.5 2nd Commissioning (16/10/07) 19.9 83.0 84.8 41.6 229.2 3rd Commissioning (17/12/07) 46.8 11.0 43.9 30.8 132.4 4th Commissioning (02/12/08) 30.9 138.5 169.4 5ª Commissioning (30/12/2009) 0.2 64.7 64.9 254.5 6ª Commissioning (30/12/2010) 2.3 2.3 152.4 Total Commissioning 479.9 520.6 543.3 578.1 2.121.8 406.8 0.25% SEITTSA Management 1.2 1.3 1.4 1.4 5.3 Total expected contract programme (*) 2,127.1

(*) Includes 0.25% SEITTSA management Financial and Activity Report 20 / 21

On 31 December 2010 the aggregate amount a forecast that exceeds by €304.7 million the of investments made in the government- amount of assessments in the period. This owned conventional network, according to the investment does not require specific authorisation assessments filed with the Contract-Programme in order to be an individual building site identified Monitoring Committee, amounted to €2167.6 clearly in the Contract-Programme. million, down €45.8 million with respect to the accrued number established in the Contract- Service Delivery Indicators Programme (excluding the 0.25% for SEITTSA management). In turn, Clause 6.1.5 of the Contract- The Contract-Programme provides a service Programme states that given the multi-year nature delivery monitoring programme, whose of the investments, investment commitments quantification is based on a series of indicators are authorised for periods after 2010, which will relating to comfort, reliability and availability of eventually be incorporated into a future Contract- rail infrastructure facilities, and their impact on Programme, for a maximum €1 Billion, as long as traffic in terms of accident rate and punctuality. they are considered as expenses pending on 31 These indicators assess the effective delivery of December 2010. the service, and they are therefore not defined for cases where there in no traffic on one line, Moreover, with regard to the Madrid-Galicia high- regardless of the cause behind the closure. speed line, the Ourense-Santiago section, the investment foreseen for 2007-2010 is €1712.7 The following table shows estimates and actual million (excluding 0.25% for SEITTSA management), figures for these indicators for 2010. Sustainability Report | 2010

Table 9: Service delivery indicators

Expected in Real Global situation table – service delivery indicators ST 2010 31/12/2010 Percentage of the line graded as good + acceptable Network A1 65.70 71.30 Comfort Line quality Network A2 58.00 64.30 Network B 54.10 64.00 Networks A1 + A2 Reliability No. of incidents affecting traffic 4,119 4,074 (Imputable a Adif) Madrid y Barcelona cercanías No. of incidents affecting traffic 858 1,200 Networks A1 + A2 Total hours out of service 10,989 12,976 Availability Not affecting traffic 14,600 15,035 (Attributable to Adif) Madrid y barcelona cercanías Total hours out of service 1,662 2,791 Not affecting traffic 1,688 2,008 Accident rate Train accidents 25 13 % Trains not on time Long distance (Arrival > 10 min.) 2.00 0.98 (Arrival > 5 min.) 4.00 1.37 (Arrival > 5 min.) 1.50 1.55 Punctuality (Attributable to Adif) Altaria (Arrival > 5 min.) 2.50 1.31 Cercanías (Arrival > 3 min.) 0.50 0.64 Media distancia (Arrival > 5 min.) 1.25 1.95 Freight (Restricted Punctuality) 1.30 1.30 (*) Arrival>60 min.

(*) Restricted Punctuality = Arrival with a delay of 60 minutes or less, for trains that left their stations of origin with a delay of 15 minutes or less Financial and Activity Report 22 / 23

2007-2010 Balance Sheet with the extension of the Redundancy Procedure until 31 December 2011 or until the maximum authorised Adif’s results in the different years of the Contract- amount of recruitments of 2,500 workers has been Programme have been better than those forecast, reached. although it should be noted that the introduction of the New General Accounting Plan and the The total investment settlements in 2007-2010 outstanding results derived from the rulings of exceeded those forecast in the Contract-Programme the National High Court on the settlement of VAT by €45.8 million, while in the Ourense-Santiago HSL for various years for Renfe and GIF, distort the it has been lower than expected by €304.7 million. comparison. Thus, the consolidated balance sheet at 31 December 2010 of the investments in the Contract-Programme In the field of HR, there is a slight excess of the staffing will be €258.9 million lower than that forecast. The objectives for 2009 and 2010, which is to be corrected table below details the figures by years:

Table 10: Investments covered in Contract-Programme (Millions of €. Including 2% management and VAT. Excluding SEITTSA contributions)

Conventional network 2007 2008 2009 2010 TOTAL Contract-Programme 479.9 520.6 543.3 578.1 2.121,8 Payments 484.9 539.4 521.8 621.6 2,167.7 Ourense-Santiago 2007 2008 2009 2010 TOTAL Contract-Programme 439.2 329.5 393.7 550.2 1,712.7 Payments 328.9 365.6 389.2 324.3 1,408.0 Total contract-programme 2007 2008 2009 2010 TOTAL Contract-Programme 919.1 850.1 937.0 1,128.2 3,834.5 Payments 813.8 905.0 911.0 945.9 3,575.6 Sustainability Report | 2010

Finally, below is a breakdown of investments in the conventional network by nature.

Table 11: Investments in conventional network breakdown by nature (Millions of €. Including 2% management and VAT. Excluding SEITTSA contributions) Breakdown by nature 2007 2008 2009 2010 TOTAL Cercanías, stations and network 0.5 9.2 16.2 75.6 101.6

Improvement in safety and 35.1 75.9 74.4 75.0 260.4 functionality

Renewal and modernisation of assets 22.3 10.7 58.0 39.7 130.6

Renewal, renovations and other track 67.7 155.7 223.7 257.3 704.4 actions

Suppression/protection of 46.0 52.0 57.2 53.0 208.1 level crossings

Urgent investment programmes 316.3 249.5 137.2 154.4 857.4

Promotion of freight rail transport 7.1 16.9 23.9

Adjustments (assistance, etc.) -3.1 -13.6 -51.9 -50.2 -118.8

Total contract-programme investment 484.9 539.4 521.8 621.6 2,167.7 Financial and Activity Report 24 / 25

1.4. Special Investment Plans Additionally, on 7 October 2008, the Ministry of Development, SEITTSA and Adif signed a second In addition to the Contract-Programme, other agreement to carry out actions to improve the investment programmes on the conventional government-owned network in , in network were assigned to Adif: pursuance of the third additional provision of the Law 6/2006, which amends the Statute of Economy and Employment Stimulation Plan Autonomy of Catalonia, for the modernisation of suburban and regional Cercanías stations and the By means of the Resolution dated 25 February replacement and improvement of lines. Adif will 2009, the State Secretariat for Infrastructure invite tenders for works contracts worth less than assigned Adif projects to maintain and improve €1.5 million and for the drafting of projects and safety and to clear and protect level crossings in management of works to be carried out by this the conventional network, in the application of company. At the end of 2010 they were awarded Royal Decree Law 8/2009, by means of which a contracts amounting to €54,519 thousand, of which special government fund is created to stimulate 65% have been completed. the economy and employment. At the end of 2010, contracts of entrusted investments amounting to Pursuant to the third additional provision of the €65.146 thousand had been awarded, more than Organic Law 6/2006 which amends the Statute of 99% being completed. Autonomy of Catalonia, on 24 February 2009, the State-Regional Government Bilateral Commission Investment for the improvement of the agreed that Adif will finance investments for works Cercanías network and the government- intended to give continuity to the Figueres-Perpignan owned Railway Network in Catalonia concession up to Barcelona, logistics facilities, accessibility and station improvement investments, On 6 June 2007 the Ministry of Development, safety and infrastructure improvement investments, SEITTSA and ADIF signed an agreement for the railway line and conventional network facilities. implementation of measures designed to improve At the end of 2010 they were awarded contracts the Cercanías network in Catalonia. The investment amounting to €59,034 thousand, of which 54% have target of this agreement is financed out of been completed. SEITTSA’s own funds and in its construction Adif will hire the necessary technical support for project Station Modernisation Plan drafting and construction management. SEITTSA will be responsible for the call for tenders for the Royal Decree 8/2009 establishes a special loan for work contracts. The most noteworthy actions the aforementioned Plan to be implemented by Adif include the La Sagrera/Meridiana Cercanías station. including various measures to refurbish multi- At the end of 2010 Adif was awarded contracts operator stations, commuter and logistics services, amounting to €7,501 thousand of which 64.5% in addition to rail accesses in Madrid. At the end of have been completed. 2010, contracts of entrusted investments amounting to €69,801 thousand had been awarded, of which 93.5% had been completed. Sustainability Report | 2010

1.5. European Union Funds 2000-2006 Programming period

Adif’s projects receive EU funds to co-finance a) Cohesion Fund studies, design and construction of high-speed lines (Cohesion Fund, ERDF and RTE) and the construction EC Regulation no. 1164/94 of the EU Council or improvement of the Government’s network creates a Cohesion Fund to finance projects that (ERDF). contribute towards the goals set in the EU Treaty, in environmental and trans-European transport network sectors in Member States that comply with certain requirements, which include Spain.

Until the end of 2010, financial aid from the Cohesion Fund was received according to the following table:

Table 12: Financial Aid from the Cohesion Fund

Eligible cost Granted aid Charges Line (millions €) (millions €) % Aid (millions €) % Charges Madrid-Frontera Francesa 4,691.0 3,389.3 72.25 3,209.3 94.7 - Madrid- 2,923.7 2,112.3 72.25 2,098.0 99.3 - Lleida-Frontera Francesa 1,767.3 1,277.0 72.25 1,111.4 87.0 Madrid-Valladolid 1,851.5 1,573.8 85.0 1,318.3 83.8 Madrid-Levante 718.2 574.6 80.0 496.3 86.4 Total 7,260.7 5,537.7 76.3 5,023.9 90.7 Financial and Activity Report 26 / 27

b) European Regional Development Fund The following table shows the situation at the end (ERDF) of 2010 of the aid received for the conventional network, the percentage of aid stands at 50% of the The ERDF finances a percentage of the eligible eligible cost and the accumulated charges at the end cost of Adif’s projects included in the Operational of 2010 represent 95% of the aid: Programmes in the different Autonomous Regions.

Table 13: ERDF aid (*)

Operational programme Eligible cost Aid granted Total charged 125.0 62.5 59.4 Asturias 41.7 20.9 19.8 Castilla y León 70.9 35.5 33.7 Extremadura 150.4 75.2 71.4 Galicia 254.1 127.0 120.7 Murcia 130.7 65.3 62.1 Valencia 77.9 38.9 37.0 Total 850.7 425.3 404.1 (*) Millions €

And for the construction of high-speed lines:

Table 14: ERDF funding for the construction of High speed lines (*)

Operational Eligible Total % Project Aid % Aid programme cost charged charged Andalusia Córdoba-Málaga HSL 1,734.2 953.8 55 832.8 87.3 Asturias León-Asturias HSL 215.7 107.9 50 42.3 39.2 Madrid-Valladolid HSL 322.1 193.3 60 169.4 87.6 Castilla y León León-Asturias HSL 473.3 284.0 60 284.0 100 Castilla La Mancha Madrid-Toledo HSL 157.3 102.2 65 63.8 62.4 Murcia Levante HSL 56.9 28.5 50 23.8 83,5 Valencia Levante HSL 198.8 99.4 50 94.4 95.0 Total 3,158.3 1,769.1 56 1,510.4 85,4 (*) Millions € Sustainability Report | 2010

c) TEN Funds The intervention of the EU under art. 158 of the Treaty aims to increase the economic and social EU funding for common interest projects in the cohesion of the European Union with a view to the field of trans-European transport infrastructure, harmonious, balanced and sustainable development telecommunications and power granted to Adif until thereof. This intervention occurs with assistance from 31 December 2010 during the period 2000-2006 aid from the Fund, the European Investment Bank totalled €158.9 million, of which €150.3 million were (EIB) and other existing financial instruments. It aims collected to that date. to reduce economic, social and territorial disparities which have arisen particularly in countries and 2007-2013 Programming period regions whose development is lagging behind, and in relation to economic and social restructuring and For the new 2007-2013 programming period, the the aging of the population. The action taken under European Commission has approved a new regulation, the Funds shall incorporate, in national and regional Council Regulation of 11 July 2006 (EC) 1084/2006 on plans, EU priorities towards sustainable development the Cohesion Fund and Regulation (EC) 1083/2006 by strengthening growth, competitiveness and establishing general rules on the Cohesion Fund, the employment, and protecting and improving the European Social Fund and ERDF. quality of the environment.

Economic and financial sustainability is the basis to guarantee the wealth creation that our activity involves Financial and Activity Report 28 / 29

In the rail transport sector, projects that are a a) Cohesion Fund - ERDF continuation of actions initiated during the previous 2000-2006 period on the high-speed lines are With regard to the ERDF-Cohesion Fund EU considered to be priorities, as well as furthering the intervention Operational Programme, aid has been expansion of high-speed network. granted for the Madrid-Levante high-speed line and the León-Asturias line, the following table shows The total aid planned for Adif for is estimated to the eligible cost, aid granted and charges received: stand at €3.529 million, of which at the end of 2010 66% had been requested and 38% granted. €96.9 million have also been charged in advances, not included in this table.

Table 15: Cohesion Fund assistance – ERDF (*)

Accumulated Line Eligible cost Aid granted % Aid Charges Madrid-Levante 907.3 725.83 80.0 725.8 León- Asturias 317.4 253.90 80.0 223.3 Total 1,224.7 979.70 80.0 949.1

(*) Millions of € Sustainability Report | 2010

b) ERDF Regional Programmes procurement developments and updates, among others, with the entry into force of Law 15/2010, In the ERDF Regional Operational Programmes at of 5 July, amending Law 3/2004 of 29 December, 31 December 2010, aid has been granted to Madrid- establishing measures to combat late payments Levante high-speed line amounting to €107.7 million, in commercial transactions, and Law 34/2010 under the Operational Programme of the Comunidad of 5 August, amending Law 30/2007 of 30 Valenciana, for which the European Commission October (LCSP), 31/2007, of 30 October (LCSE) has certified an amount of €5.5 million outstanding and of 29/1998 (LJCA) for its adaptation to EU at 31 December 2010. Also, under other Operational law, regulating resources in contracts as well Programmes in 2010, €150.6 million has been as including a number of improvements in its collected, and in previous years advances amounting content and development. The regulations were to €147.2 million. adapted early enough before the incorporation of regulatory changes into internal legislation caused c) TEN Funds a slowdown in the pace of tenders and awarding of the company's projects. For the 2007-2013 period, aid has been granted for the high-speed lines amounting to €266.7 million of On 29 March 2010, the new contract system in SAP which €66.8 million had been collected at the end of was introduced, which has since been used for all 2010. management-related contract files.

1.6. Contracts With regard to contracting activities, the following tables provide a summary of the year. During the 2010 financial year, internal procedures, specifications and information systems were amended and adapted to new

Table 16: Summary table of tenders

AMOUNT Department No. of cases millions € (excl. VAT) High-speed Network 442 1,774 Conventional Network 2,679 432 Telecommunications and Energy 207 218 Passenger Stations 1,043 95 Others 3,048 291 Total 7,419 2,810 Financial and Activity Report 30 / 31

Table 17: Summary table of awarded contracts

Amount Department No. of cases millions € (excl. VAT) High-speed Network 456 2,988 Conventional Network 2,759 406 Telecommunications and Energy 224 197 Passenger Stations 1,062 78 Others 3,098 264 Total 7,599 3,933

Table 18: Summary table of tenders per procedure

Amount Procedure/ Criteria No. of cases millions € (excl. VAT) % / Amount OPEN 431 1,592 56.6 *Most Profitable Bid (Several Criteria) 339 1,527 54.3 *Price (one criterion) 92 65 2.3 RESTRICTED 176 192 6.8 *Most Profitable Bid (Several Criteria) 48 140 5.0 *Price (one criterion) 128 52 1.8 NEGOTIATED 1,067 771 27.5 *With Advertising 16 331 11.8 *Without Advertising 1,051 440 15.7 ^ Additional 30 211 7.5 ^ Technological link 969 213 7.6 ^ Other causes 52 16 0.6 ^ Minor contracts 4,803 50 1.8 Orders A Framework Agreement 942 207 7.3 Total 7,419 2,812 Sustainability Report | 2010

1.7. Adif Shareholdings Subsidiaries

On 31 December 2010, Adif had direct shareholdings The share capital of the companies with a majority in 57 companies, with the share of over 50% in 4 ADIF shareholding amounts to €35.3 million and of them. Likewise, through subsidiaries, those with equity amounts to €136.3 million. Overall, in 2010, a share exceeding 50%, it has an indirect interest Adif obtained a net turnover of €303.3 million and a in another 7: Inc/Ltd/PLC, foundations, consortia, profit after tax of €20.5 million. etc.., involved in various activity sectors: consulting, industrial processing, construction, trade, etc.. with a The following tables detail these amounts: different object or corporate purpose.

Table 19: Subsidiaries’ Share, Capital and Equity

Share Capital Equity Company (%) (millions €) (millions €) COMFERSA 51.0 5.9 10.5 FIDALIA (EQUIDESA) 100.0 20.4 22.3 INECO 41.4 8.3 90.8 EMFESA 100.0 0.1 2.8 REDALSA 52.0 0.6 10.0 Total 35.3 136.3

Table 20: Subsidiaries’ Income and Results

Net turnover Results Company (millions €) (millions €) COMFERSA 22.0 1.6 FIDALIA (EQUIDESA) 3.3 0.7 INECO 266.6 16.2 EMFESA 3.4 0.7 REDALSA 8.0 1.3 Total 303.3 20.5 Financial and Activity Report 32 / 33

The company Ineco merged by absorption with Tifsa the development and promotion of plots of land on 22 October, 2010. After the merger, Adif owns which are awarded through calls for tender. Adif’s 41.37% of the combined company. shareholdings is 40% and the remaining company shareholders from the private sector manage The companies Ineco and Comfersa stand out with the business, which consists in the acquisition net turnover of €266.6 and €22 million, and profits and construction of all types of properties, of €16.2 and €1.6 million respectively. sales, development, property management and marketing, as well as other additional related Property Companies activities.

Adif’s property holdings are based on the formation The following tables detail the social capital, equity, of corporations with property companies for turnover and result of each of the companies:

Table 21: Participation in Property Companies

Capital Equity Company (millions €) (millions €) AGUILAS RESIDENCIAL 1.8 4.6 BANO REAL (1) 3.7 6.0 CENTRO ESTACIÓN MIRANDA (1) 3.0 2.9 DESAR.INM.CASTLLA LA MANCHA 1.2 1.5 INARENAS 0.9 1.1 MOSAICO 16.8 20.1 RENFAPEX 2000 0.1 0.2 RENFOSUNA 0.3 2.0 RENFURBIS 1.1 4.3 RESIDENCIAL LANGA 0.4 0.4 SOFETRAL 3.5 4.4 TERRALBINA 2.1 9.3 TRICÉFALO 9.0 14.8 VÍAS Y DESARROLLOS URBANOS 9.5 10.6 Total 53.4 82.2 (1) 2009 data Sustainability Report | 2010

Table 22: Property Companies Results and Income

Net turnover Results Company (millions €) (millions €) AGUILAS RESIDENCIAL 1.3 -0.4 BANO REAL (1) 2.8 0.5 CENTRO ESTACIÓN MIRANDA (1) 0.0 0.0 DESAR.INM.CASTILLA LA MANCHA 1.1 -0.1 INARENAS 0.0 0.0 MOSAICO 34.7 3.6 RENFAPEX 2000 0.0 -0.3 RENFOSUNA 5.6 1.6 RENFURBIS 0.0 -0.2 RESIDENCIAL LANGA 0.1 0.0 SOFETRAL 0.0 0.0 TERRALBINA 2.6 0.1 TRICÉFALO 64.6 19.0 VÍAS Y DESARROLLOS URBANOS 17.7 0.2 Total 130.5 24.0 (1) 2009 data Financial and Activity Report 34 / 35

Companies and consortia related to city and , the shareholders of these planning due to railway works companies are regional public entities.

The purpose of these companies and consortia is The following table details our company’s the management of urban development actions shareholdings, share capital, equity and the amount in connection with railway planning in cities of actions at the end of 2010. and other related activities . In addition to Adif

Table 23: Share in Companies and consortia related to city planning due to railway works

Actions Share Capital up to 31-12-2010 Company (%) (millions €) (millions €) ALMERÍA HS 37.5 0.6 0.0 HS 37.5 0.6 78.7 VITORIA HS 50.0 0.6 0.0 BARCELONA SAGRERA HS 37.5 0.6 218.0 CARTAGENA HS 50.0 0.6 0.5 GIJON HS 12.5 0.6 14.9 LEÓN HS 37.5 0.6 73.8 LOGROÑO RAILWAY INTEG. 37.5 0.6 89.0 MURCIA HS 50.0 0.6 1.4 PALENCIA HS 50.0 0.6 0.3 VALENCIA HS 37.5 0.6 338.6 VALLADOLID HS 37.5 0.6 70.4 ZARAGOZA HS 37.5 0.6 811.8 Total 7.8 1,697.4 Sustainability Report | 2010

In these companies, the investment activities Companies related to passenger stations and implemented are important. The investments at freight terminals the end of 2010 are shown in the table above. The purpose of these partnerships is to carry out Moreover, the company has shareholdings in the auxiliary and additional activities of transport companies Barcelona Regional, SA, with a share of activities, such as construction and Vialia facilities 5.9% and Bilbao Ría 2000 SA with 10%. The Share management and intermodal freight terminal capital and total equity on 31 December 2010 was management. Adif’s shareholdings in these €1.5 million for Barcelona Regional, SA. and €1.8 companies vary and the other shareholders are million for Bilbao Ría 2000, S.A. private companies.

With respect to the urban consortia, Adif has: The attached table details share capital and equity: Canfranc 2000, La Pobla Renfe and Jerez de la Frontera Railway Zone.

Table 24: Share capital and equity in companies related to passenger stations and freight terminals

Share Capital Equity Company (%) (millions €) (millions €) NECSA 40.0 36.3 38.9 NEFSA 40.0 0.3 0.4 EUSKOMODAL 1.2 0.1 0.1 SLISA 40.3 0.9 1.8 TOTAL 37.6 41.2 Financial and Activity Report 36 / 37

During 2010, net combined turnover amounted to €18.4 million. The total income statement calculation yields a loss of €0.2 million. On 30/12/2010 Adif’s shareholdings in the company Áreas Comerciales was sold.

Other shareholdings

Adif is directly involved in other companies such as Príncipe Pío Gestión (5%), and other entities such as the Spanish Railway Foundation. Likewise, through Comfersa, Adif is indirectly a shareholder in five companies, and through Ineco in another five companies. Sustainability Report | 2010 Financial and Activity Report 38 / 39 2 2.1. Audit Report drafted by Adif’s 2010 Annual Delegated Intervention Accounts and Audit Report Sustainability Report | 2010 Financial and Activity Report 40 / 41 Sustainability Report | 2010 Financial and Activity Report 42 / 43 Sustainability Report | 2010 Financial and Activity Report 44 / 45

2.2. Annual accounts for the 2010 financial year Sustainability Report | 2010 Financial and Activity Report 46 / 47 Sustainability Report | 2010 Financial and Activity Report 48 / 49 Sustainability Report | 2010 Financial and Activity Report 50 / 51 Sustainability Report | 2010 Financial and Activity Report 52 / 53 Sustainability Report | 2010 Financial and Activity Report 54 / 55 Sustainability Report | 2010 Financial and Activity Report 56 / 57 Sustainability Report | 2010 Financial and Activity Report 58 / 59 Sustainability Report | 2010 Financial and Activity Report 60 / 61 Sustainability Report | 2010 Financial and Activity Report 62 / 63 Sustainability Report | 2010 Financial and Activity Report 64 / 65 Sustainability Report | 2010 Financial and Activity Report 66 / 67 Sustainability Report | 2010 Financial and Activity Report 68 / 69 Sustainability Report | 2010 Financial and Activity Report 70 / 71 Sustainability Report | 2010 Financial and Activity Report 72 / 73 Sustainability Report | 2010 Financial and Activity Report 74 / 75 Sustainability Report | 2010 Financial and Activity Report 76 / 77 Sustainability Report | 2010 Financial and Activity Report 78 / 79 Sustainability Report | 2010 Financial and Activity Report 80 / 81 Sustainability Report | 2010 Financial and Activity Report 82 / 83 Sustainability Report | 2010 Financial and Activity Report 84 / 85 Sustainability Report | 2010 Financial and Activity Report 86 / 87 Sustainability Report | 2010 Financial and Activity Report 88 / 89 Sustainability Report | 2010 Financial and Activity Report 90 / 91 Sustainability Report | 2010 Financial and Activity Report 92 / 93 Sustainability Report | 2010 Financial and Activity Report 94 / 95 Sustainability Report | 2010 Financial and Activity Report 96 / 97 Sustainability Report | 2010 Financial and Activity Report 98 / 99 Sustainability Report | 2010 Financial and Activity Report 100 / 101 Sustainability Report | 2010 Financial and Activity Report 102 / 103 Sustainability Report | 2010 Financial and Activity Report 104 / 105 Sustainability Report | 2010 Financial and Activity Report 106 / 107 Sustainability Report | 2010 Financial and Activity Report 108 / 109 Sustainability Report | 2010 Financial and Activity Report 110 / 111 Sustainability Report | 2010 Financial and Activity Report 112 / 113 Sustainability Report | 2010 Financial and Activity Report 114 / 115 Sustainability Report | 2010 Financial and Activity Report 116 / 117 Sustainability Report | 2010 Financial and Activity Report 118 / 119 Sustainability Report | 2010 Financial and Activity Report 120 / 121 Sustainability Report | 2010 Financial and Activity Report 122 / 123 Sustainability Report | 2010 Financial and Activity Report 124 / 125 Sustainability Report | 2010 Financial and Activity Report 126 / 127 Sustainability Report | 2010 Financial and Activity Report 128 / 129 Sustainability Report | 2010 Financial and Activity Report 130 / 131 Sustainability Report | 2010 Financial and Activity Report 132 / 133 Sustainability Report | 2010 Financial and Activity Report 134 / 135 Sustainability Report | 2010 Financial and Activity Report 136 / 137 Sustainability Report | 2010 Financial and Activity Report 138 / 139 Sustainability Report | 2010 Financial and Activity Report 140 / 141 Sustainability Report | 2010 Financial and Activity Report 142 / 143 Sustainability Report | 2010 Financial and Activity Report 144 / 145 Sustainability Report | 2010 Financial and Activity Report 146 / 147 Sustainability Report | 2010 Financial and Activity Report 148 / 149 Sustainability Report | 2010 Financial and Activity Report 150 / 151 Sustainability Report | 2010 Financial and Activity Report 152 / 153

Network Statement and and gives details on general infrastructure capacity regulations, periods and criteria allocation procedure that govern allocation of capacity and pricing norms and The purposes of the Railway principles that must be applied Sector Act include facilitating for use of infrastructures and for 3 railway infrastructure access provision of different services to to candidates interested in railway companies. operating a railway service. Key actions The Ministry of Development Setting fees Order dated 7 April, Order to develop FOM 897/2005, regulates The Railway Sector Act the drafting, contents and establishes regulation of fees the railway publication of the Network that accrue in favour of Adif for Statement, as well as the the use of the infrastructure by model government competency railway rail operators. The Act provides capacity allocation process. legal coverage for the economic relationship between Adif and The aforementioned document the taxpayers of those fees, in which Adif describes the rain while binding the essential in infrastructure characteristics elements of regulated charges, and network access conditions distinguishing between was drafted in compliance charges for railway lines that with this order. It also provides are members of the General information on the capacity of Interest Railway Network and each section of the network charges for the use of railway Sustainability Report | 2010

stations and other facilities. The former establishes its service zones managed by Adif will be carried the fee arrangements for access, reserve capacity, out under private law, without this requiring prior circulation and traffic. The second deals with the authorisation from the Ministry of Development. In use of stations by passengers, parking and the use any case, the service provider must have signed the of platforms, crossing gauge changers, the use corresponding agreement or contract with Adif of sidings and services that require authorisation for the use of the public railway domain. Order The provision of additional and complementary FOM/898/2005 of 8 April, as amended by Order services is subject to the payment of fees, which FOM/3852/2007 of 20 December, determines the have the nature of private prices, fares that are amounts due, their impact and accrual and the approved by the MFOM and included in the network payment and settlement system. statement. The provision of auxiliary services is subject to prices freely agreed between the parties. Provision of additional, complementary and auxiliary rail services Railway licenses

There are additional, complementary and auxiliary The Railway Sector Act considers rail transport services, as defined in the Appendix to the Railway a service of general interest and essential to Sector Act, which tends to facilitate the operation the community, which is supplied under free of the railway system. Access/dispatch of trains to/ competition within the terms established by law. For from installations are deemed additional services. a company to enter the rail transport market it must Complementary services include: traction current awarded the necessary license, previously certifying supply, fuel supply, maneuvers in installations, compliance with the requirements under the Act and training/selection maneuvers etc. The provision Regulations. of additional services in the general interest railway network (RFIG} and its rail service will be Up to 31 December 2010, the Ministry of Development conducted by Adif, who is obliged provide these has awarded the following licenses services at the request of the railway companies. for rail freight transport: Renfe Operadora, Comsa The provision of additional services will be carried Rail Transport S.A., Continental Rail S.A., out under private law and may be executed by Rail Services S.A., Activa Rail S.A., Tracción Rail Adif using their own means or through indirect S.A., Eusko Trenbideak-Ferrocarriles Vascos S.A., management i.e. contractors, companies that Logitren Ferroviaria S.A., Arcelormittal Sideral S.A., must have an authorising license granted by the Ferrocarriles del Suroeste S.A. (FESUR), FGC Mobilitat Ministry of Development (MFOM). The additional S.A., Alsa Ferrocarril S.A. and Guinovart Rail S.A. In services Adif offers at any time, through the addition to these, English Welsh & Scottish Railway network statement or equivalent document International Limited (EWSI) is included in the registry must be provided at the request of the railway with a railway company license issued in the United companies and other candidates. The services can Kingdom. Likewise, five companies received the also be directly provided, at the sole risk of Adif, authorisation award for rail infrastructure capacity by companies providing services who avail of the allocation as a non-railway company operator: mandatory authorising documentation granted , Logística y Transporte Ferroviario S.A.; by the Ministry of Development. The provision Conte Rail S.A.; Sicsa Rail Transport S.A. (Formerly of auxiliary services in the RFIG and the areas of Container Rail S.A.) Pecova S.A and Tramesa. Financial and Activity Report 154 / 155

For a company to be a railway operator, in addition seven of the companies with a railway license had to the relevant license it must be awarded the the safety certificate: Renfe Operadora, Comsa Rail safety certificate established in the regulations Transport S.A., Continental Rail S.A., Acciona Rail which certifies a proper safety management Services S.A., Tracción Rail S.A., English Welsh & system and compliance with the regulation on Scottish Railway International Limited (EWSI) and traffic staff and rolling stock, which is only valid Logitren Ferroviaria S.A. for lines requested and granted. At the end of 2010 Sustainability Report | 2010 Financial and Activity Report 156 / 157

4.1. High-Speed network • Basque Country high-speed line As well as the Madrid- high-speed line and the new • Madrid-Extremadura/ high-speed railway access to Portuguese Border high- Toledo, Adif has been assigned speed line 4 construction of the following high-speed lines: • Mediterranean Corridor high-speed line Action by • Madrid-Zaragoza-Barcelona- French Border high-speed • Bobadilla-Granada high- Activity Area line speed line

• Madrid-Segovia-Valladolid/ • Madrid-Galicia high-speed Medina del Campo line line

• Córdoba-Málaga line • Zaragoza- high- speed line • Madrid-Castilla-La Mancha- Comunidad Valenciana- The main projects in 2010 and Región de Murcia line the situation at the end of the financial year are described • León-Asturias, La Robla-Pola below. de Lena section (Pajares New line) high-speed line Sustainability Report | 2010

High-Speed Central Line connection will be commissioned on an interim basis using a tunnel that crosses below Atocha station a) Chamartín Station and in the future via the 4-track underground station, which is one of the priority actions of the The draft of the modernisation and expansion second phase of Atocha, a project currently under project for the station has been completed, which is development. necessary to adapt the installations for the future use of the Atocha-Chamartín tunnel. This project On 24 April 2010, work on the 7.7 km-long involves the expansion of UIC gauge tracks to a tunnel was commenced and the excavation was total of 10 tracks, as well as the extension of the practically completed in December. Its execution lobby, improved accessibility and remodelling of in 9 months is a milestone for this type of project. the UIC gauge service platforms, new passenger In December 2010, the by-pass tunnel has also exit towards the former Paquexpress zone as well been started that will connect the main tunnel as the remodelling and improvement of the access with the new double Atocha-Torrejón de Velasco link to the station. Also, the construction of a track, which will have an exclusive line for Madrid- new footbridge to access the station’s lobby from Valencia service. calle Hiedra should be noted, improving previous access which forced passengers to cross the former Paquexpress facilities. Atocha Station b) Tunnel connecting Atocha-Chamartín On 19 December 2010, simultaneously with the In 2010, the new North-South tunnel has been start-up of the Madrid-Valencia high-speed service, started and almost completed connecting the the expansion of the Atocha complex commenced, North and South-East high-speed networks. This finalising practically the 1st phase of the station. Financial and Activity Report 158 / 159

The key activities within the expansion project c) New Atocha-Torrejón de Velasco were as follows: double track

• Creation of a new arrivals hall and an access The new Atocha-Chamartín UIC gauge tunnel will walkway from the platforms with their associated continue from the south head of Atocha with a new elements (ramps, stairs and lifts) with a moving 34 km double track to link up the Torrejón de Velasco walkway between them. junction with the current Madrid-Valencia line. In 2010, work on the track bed started in the 5 sections that • Expansion of roofs (shelter-style) in the south the project has been divided into, including the by-pass platform area and the new arrivals walkway. connection of the Levante line with the Andalusia The construction of an upper deck area and two line. At the end of 2010, 15% of the total contract had lower deck areas on both sides as an extension of been completed. Throughout 2011 work on the track the existing shelter. bed will be completed practically in its entirety and the projects corresponding to the remaining subsystems • Transformation of 4 tracks (12 to 15) to UIC will be called for tender: track, electrification, safety gauge, installing catenary between tracks to installations and telecommunications, in such a way increase the parking capacity of trains at the that at the end of 2012 the project will be completed. station by 50%.

• Modernisation of platforms raising their height, renewing the floor covering and creating safety tactile lines.

• Improvements in the road system through the functionality of the exchanger (increased parking spaces for buses and general improvements in traffic) and expansion of the taxi area, parking spaces, etc. Sustainability Report | 2010

d) Other actions in an increase in capacity and regularity, not to mention the increased comfort and savings in travel For the telecommunications installations, the time between Madrid and Ourense. The works are GSM-R project and infrastructure for mobile divided into 24 sections totalling 352 km of the new telephone operators in the Atocha-La Sagra and connection. At 31 December 2010, 17 sections of Atocha-Chamartín sections has been drawn up. platform are awarded.

Northwest high-speed line During 2010, the project was drafted for the GSM-R installations and infrastructure for mobile telephone The construction of the Madrid-Galicia high-speed operators between Olmedo and Ourense. line consists of the following: Olmedo-Zamora section, Zamora-Lubián section and Lubián-Ourense b) Ourense- section and Ourense-Santiago corridor. corridor

The progress of the lines during 2010 was as follows: The construction of the high-speed line between Ourense-Santiago, with a length of 87.5 km, a) Olmedo-Zamora-Lubián-Ourense section will represent the socio-economic backbone of the Autonomous Region of Galicia, significantly The construction of the Madrid-Galicia high-speed reducing current journey times, improving rail line, in the section between Olmedo-Zamora- traffic safety through the implementation of the Lubián-Ourense, with a length of 352 km will latest technology in the sector and the removal of increase safety with the installation of a peripheral level crossings along the route. closing, and there will be no level crossings along the entire section of the new high-speed line. The entire track-bed construction work of the Double tracks for the entire route will also result line is underway, divided into nine work sections Financial and Activity Report 160 / 161

and two access sections to Santiago and Ourense. North I High-speed line The Ourense station and link up with the Atlantic corridor has also been planned. The works consist a) Madrid-Segovia-Valladolid mainly of the building of 39 viaducts with a total length of 19.5 km and 31 tunnels with a total Work and necessary testing has continued on the length of 29.5 km, the rest of the platform’s layout Madrid-Tres Cantos section for the operation of the being on land, on both levelled surfaces and on line in ERTMS Level 2, having completed the test embankments. During the 2010 financial year, 37 protocol of the contractor. Subsequently, final work viaducts were completed, representing 95% of the has begun to validate the system (delivery of the total. The two remaining viaducts are currently safety dossier and execution of complementary tests under construction, with a 55% increase in deck and integration by Adif). length and 72% in the piers and buttresses. As for the tunnels, at 31 December 2010, all were b) Venta de Baños-Burgos-Vitoria completed apart from the fillers in the false Burata and Caldelás tunnels. The most important work on the track-bed carried out in 2010 include the start of the work on the With regard to the rest of the subsystems, the Venta de Baños junction subsection track-bed remarkable progress of the construction works (Valladolid-Burgos- and León Palencia-Burgos) and of the Amoeira and Silleda electric substations the 4 subsections between Quintana del Puente should be noted as should the seven associated and Burgos (52.4 km). Excavation work has also autotransformer centres. Over 70% of the project commenced on the Almendro tunnel in the Venta has been executed and the O Irixo track set-up has de Baños – Torquemada junction subsection. been completed. The track set-up project between Valladolid and Venta de Baños is in the preparation stage as well Sustainability Report | 2010

as the projects for the track assembly between d) Other actions: underground railway line Venta de Baños and Vitoria, and the ballast in Logroño stockpiling at Villodrigo. During 2010, actions for the temporary Logroño The signalling, telecommunications and traffic station and its commissioning have been finalised control project for the Valladolid-Venta de Baños- and the work corresponding to Phase I of the Burgos section and the corresponding Norte de underground line continues at a good pace, which Valladolid junction has been completed. is a priority in the integration process of the railway line. The basic project of phase II of the underground c) Vitoria-Bilbao-San Sebastian line has been finished and the construction project of the electric power substation is currently in the Regarding track-beds in 2010, the Arrazua- draft phase. Legutiano subsection II has been completed, while the remaining 12 works are still underway (49.0 North II high-speed line km). Five sections between the Bergara and Elorrio junction (25.4 km) are currently in the draft stage. a) Valladolid - Venta de Baños The most important include: excavation of 9 tunnels in several sections, work on the Urruburu II tunnel in Track-bed works in all subsections of the line are the Eskoriatza-Aramaio section and the Karraskain underway, as well as those corresponding to the tunnel in the Mondragón-Elorrio section, completion project owing to disruptions in the Venta de Baños of 6 viaducts in 4 sections and the commencement station, the latter is due to be completed before the of 11 viaducts in different sections. end of 2011.

The Madrid-Levante high speed line was opened on 18 December 2010 Financial and Activity Report 162 / 163

The non-rail installation projects are being drafted up corresponding to disruptions in the conventional as is the initial phase of the Valladolid station (Campo network 25 kV lines; while the noise protection and Grande), while the track set-up is awaiting technical track set-up projects are completed and pending approval, approval that the noise protection project technical approval. has already received. c) Variante de Pajares b) Venta de Baños – Palencia – León During 2010, track-bed work has been carried out Track-bed work is being implemented in all the for all the subsections of the route. At the same subsections of the route, including the León station time, other draft project have been worked on track-bed, where also the construction of the such as track set-up and remote control power, platforms and a new passenger building has been non-rail installations of the tunnels and additional started, as well as the relevant amendments to the exterior civil works have been concluded. The signalling installations. Also, the adaptation of the construction project for additional interior civil work safety equipment, required due to the arrival of in the Pajares Lote Sur and Lote Norte tunnels is high-speed to the city, is being carried out and work in the call for tender stage and in the first quarter has begun on the base assembly of Villada and the of 2011 projects corresponding to the signalling modification of the Venta de Baños junction. and telecommunications facilities, airline contact, substations, and self-transformer and power remote The track adaptation project for the arrival of control centres are expected to be bid on. high speed in Leon is in the draft stages, as is the installation of exchangers in the city and the project Sustainability Report | 2010

Northwest High-speed line (3.5 km) are now in service. Track-beds, tracks, electrification, substations, safety and a) Madrid-Zaragoza-Barcelona telecommunications installations have all been completed. The line has operated normally during 2010, improving expectations regarding reliability, These actions have helped fulfil two important availability and punctuality. Work and tests milestones, reflected during the start-up in necessary for the operation of the line in ERTMS December 2010: Level 2 have continued, having completed the test protocol of the contractor. Final work to validate the • First international connections for passengers system is underway (delivery of the safety dossier in UIC gauge. and additional testing and integration by Adif). •  / Morrot-French border With regard to conventional gauge lines due to freight corridor. the construction of high-speed infrastructure, the construction project has been drafted and the work Of the 14 sections that are to be finalised by of adapting the safety installations has been carried 2012, the most important are: out by suppressing gauge changers at Lleida and Puigverd de Lleida. • Barcelona urban tunnel, excavation of which began in March 2010 and whose work is going b) Barcelona-Figueres ahead as planned. This tunnel will run from Sants station to the future Sagrera station. The sections between Mollet junction and Girona Mercancías (70.2 km) and the section between • The two sections into which the railway area Figueres-Vilafant and the TP Ferro connection between La Sagrera and Nudo de la Trinidad Financial and Activity Report 164 / 165

have been divided, and which includes In 2010, the track assembly works at Sant Feliu refurbishment of the entire Sagrera-Sant de Buixalleu and the Figueres- International Andrés Condall area. The progress of these section were completed, which, together with works, initiated in the summer of 2010, frees the commissioning of the three-track section the space that the future intermodal station between Girona and Vilamalla made the UIC gauge of La Sagrera will take up. connection possible between Spanish and French networks. • The Nudo de la Trinidad-Montcada section, which includes the tunnel that exits Barcelona In terms of traffic control facilities, the construction metropolitan area, it is due to be completed and commissioning of the facilities of the Mollet during the second half of 2011. Junction-Girona Junction and Figueres link with the international section, including technical buildings • Girona tunnels and underground station, and booths, signalling, centralised traffic control, which will remodel the city’s railway network backup detection systems, falling objects detection throughout 7 km. Excavation of the Girona I and power supply systems in the Mollet, Llinars, tunnel (the first of two tunnels included in the Riells, Vilobí D'Onyar and Figueres junction interlocks. project) was implemented during 2010. In this last interlock, the ERTMS N1 system has also been put in place. The most important contracts awarded in 2010 include the future La Sagrera intermodal railway c) Puerto de Barcelona / Morrot-French station accesses and structure and track assembly border provisional exploitation of the Mollet-La Roca, Riudellots-Girona and Girona- Figueres sections. As well as actions corresponding to the abovementioned high-speed line the following actions on the conventional network have Sustainability Report | 2010

been completed, which are necessary for the and rural villages in Sierra de Abdalajis, municipality commissioning of the corridor in December 2010: of Alora, Antequera and Valle de Abdalajís and actions to protect slopes and improve infrastructure. • Implementation of a new UIC gauge access in the Can Tunis terminal, installation of the third track In 2010, works on the Villanueva de Cordoba and electrification of freight branch line station project and additional installations has been commenced. • Renovation and installation of third track in the Girona-Vilamalla section. Completed construction work and projects include: refurbishment of the urbanisation and various • Commissioning of the conventional rail actions in the Puente Genil station building on the diversion and implementation of the third track Cordoba-Malaga high-speed line, work received on in the artificial Montmeló tunnel. 3 December 2010, and expansion of the Cercanías tunnel section and urbanisation in calle Cuarteles, • Construction and commissioning of traffic work received on 21 December 2010. control installations across the mixed gauge Castellbisbal-Can Tunis branch line. b) Antequera-Granada

South high-speed line Contracts awarded, pending expropriation, for the Bobadilla junction Phase II, totalling 6 km. Works a) Córdoba-Málaga in the following sections are underway: Bobadilla junction phase I, Antequera-Peña de los Enamorados, The following works are underway: stabilisation Peña de los Enamorados-Archidona Archidona- project of clearing 4, section 5, Puente Genil-Herrera; Arroyo de la Negra, Arroyo de la Negra-Arroyo de straightening of section in los Prados halt, drinking la Vinuela, Arroyo de la Viñuela-Quejigares, Tocón- water supply and irrigation project at different points Valderrubio and Pinos Puente-Granada. The works Financial and Activity Report 166 / 167

under construction total 64.9 km. The Bobadilla- c) Madrid-Extremadura Antequera junction section has been invited to tender and is expected to be awarded in the first Talayuela-Cáceres section quarter of 2011, totalling 10.5 km. Works in the following sections are underway: The platform on the Valderrubio-Pinos Puente Grimaldo-Casas de Millán, Casas de Millan- section was completed, work received on 4 August Cañaveral, Garrovillas-Casar de Cáceres and Casar 2010. de Cáceres-Cáceres. Contracts were awarded, pending expropiations for the Alcántara-Garrovillas Sustainability Report | 2010

reservoir section, totalling 33.8 km. The following e) Other actions subsections have been invited to tender: Talayuela- Arroyo de Santa María, Navalmoral de la Mata- With regard to signalling, in order to put the ERTMS Casatejada and Cañaveral-Embalse de Alcántara. Level 2 into service, internal testing works were The works under construction total 25.6 km, which completed and the scenarios for additional evidence are expected to be awarded, in the first quarter of of train-track validation were developed. The 2011. additional tests start on 9 February 2011.

Cáceres-Badajoz section Madrid-Levante high-speed line

Works began on the Merida-Badajoz section, Montijo- a) Madrid-Cuenca-Valencia/Albacete Badajoz subsections and Montijo-Badajoz and Cáceres-Mérida section, Cáceres-Aldea del Cano and On 19 December, the railway connection, totalling Aldea del Cano-Mérida subsections. The works under 438 km, was put into commercial operation, construction total 76.7 km. reducing travel time from Madrid-Valencia (391 km) by approximately 1 hour and 50 minutes and 30 d) Murcia-Almería minutes for the Madrid-Albacete journey.

Work in progress in the following subsections: With regard to tracks and supplies, the entire track Alhama-Totana, Totana-Lorca, Sorbas-Barranco de was perfectly level and the construction of the los Gafarillos, Barranco de los Gafarillos-Los Arejos, Villarrubia de Santiago, Gabaldón, Requena and Vera-Los Gallardos and Los Gallardos-Sorbas. The Albacete track-beds was completed, along with the works under construction total 42 km. track set-up between Torrejón de Velasco-Cuenca- Albacete/Valencia including gauge changers at Albacete and Valencia. Financial and Activity Report 168 / 169

With regard to traffic control installations, the During 2010, the construction of the following five construction and commissioning of the Torrejón high speed stations was concluded: extension of de Velasco-Motilla del Palancar-Valencia-Albacete Atocha railway complex, Cuenca Fernando Zóbel, Motilla del Palancar sections was finished, including Requena-Utiel, Valencia Joaquín Sorolla and Albacete technical buildings and booths, signalling, ERTMS N1, Los Llanos. centralised traffic control systems, backup detection systems, falling objects detection and power supply b) Albacete-Alicante/Murcia systems in all junction interlocks. During 2010, track-bed works on the Albacete- The construction and commissioning of the changes La Encina route corresponding to the sections: in security and communications installations have Albacete-Alpera New Line phase I and II, Albacete- been completed on the conventional gauge lines Variante de Alpera phase III and La Encina junction owing to the Madrid-Levante high-speed line work, phase III are all continuing according to plan. All of in Albacete and Valencia and specific actions on the this route’s platform works are underway. On the La Aranjuez-Cuenca-Valencia line. Encina-Alicante route, all the platform works were Sustainability Report | 2010

completed in 2010, except for access to Alicante route between Albacete and the Alpera New Line phase II northern section that will be awarded in have been executed and the projects to change the January 2011. In 2010, platform works continued on gauge between Albacete and Almansa have been six of the nine sections that make up the Alicante drafted. Also, set-up of the line between Almansa (Monforte del Cid)-Murcia railway link: Monforte and Caudete is in the draft stage. del Cid-Aspe, El Carrús-, Elche-Crevillente, Crevillente-San Isidro, Orihuela-Colada de la Buena c) La Encina-Xátiva-Valencia junction Vida and Colada de la Buena Vida-Murcia and another two were commenced (Aspe-Carrús and San In 2010, the platform, track and facility works Isidro-Orihuela). The ninth section "access to Murcia" continued on the new conventional network route was already built. for the Encina-Mogente junction and Mogente- Alcudia de Crespin’s sections adhering to the Regarding track set-up and facilities, in 2010, established schedule and the track set-up works and the track and catenary set-up relating to La its corresponding equipment (detours and expansion Encina (Caudete)-Alicante were drafted. In 2010, devices) in the Xativa-Valencia (Almussafes) route. construction of the Monforte del Cid assembly base was finalised. Set-up of the line from La Encina The following tables summarise progress on the to Alicante and Murcia will be regulated from this high-speed network at the end of 2010: base. The replacements works for the conventional Financial and Activity Report 170 / 171

Table 25: Summary of the degree of implementation of high-speed network in 2010

Length Length In service (km) Commissioned (km) Madrid-Seville 477 Barcelona-French Border 131 Madrid-Barcelona Sants 667 Madrid-Badajoz-Portuguese 258 Córdoba-Málaga 155 Border Zaragoza- 79 Andalusia Transversal Axis: 126 Madrid-Valladolid 201 Antequera-Granada

Madrid-Toledo 21 Mediterranean Axis: Castellón- Madrid-Valencia/Albacete 438 Valencia-Xátiva-Alicante-Murcia- 701 Los Gavilanes Connection 6 Almería Total 2,044 Bilbao-Vitoria-San Sebastián 177 Madrid-Galicia 459 Valladolid-Burgos-Vitoria 235 Venta de Baños-Palencia-León- 279 Asturias Others 85 Total 2,451 Sustainability Report | 2010

4.2. Conventional network a total of 7,446 km of tracks have been treated, which represents 90.6 million m² of treatment The role of the Executive Conventional Network on both sides of the railway line and an average Department is maintenance and construction of width of 6.08 m on each side of the track , which the government-owned conventional railway represents the treatment of 63% of the conventional infrastructure managed by Adif, based on the 2007- network. In November, the Batefuegos de Oro Award 2010 Contract-Programme between the Spanish 2010 was awarded in Madrid by the Asociación Government and Adif. The objective is to manage para la Promoción de Actividades Socioculturales these infrastructures in an efficient and sustainable (Association for the Promotion of Socio-Cultural way, both economically and environmentally, Activities (APAS). This year, the main prize went to guaranteeing our customers maximum security, Adif for their work in recent years in fire prevention. reliability and their availability. In the area of telecommunications, service The following activities stand out: auscultation work contracts for landlines and mobile phones were was carried out on more than 38,000 km, 16,000 awarded to Telefónica and Vodafone respectively, km of track geometry and 22,000 km of ultrasonic with savings exceeding 50% thanks to remodelling inspections, 27 tunnel inspections and another 450 these services to make them more robust and tunnel inspections and in the last case, 21 load tests; versatile, allowing Adif to improve the use of embankments and trenches inspections covering its communications network. The installation of 50,118m², 8296 km of geometric auscultation ground-train radio-communication on the Vic- of catenary, quality control of the 25 quarries Ripoll-Puigcerda route has been completed. This supplying ballast, by performing 310 tests in 2010, is necessary to establish a secure and reliable regeneration of 415 junctions, as well as welding communication between the operator and the work to the electric arc for the proper placement command post, and to enable the remote control of and alignment of the track, and 537 km of track this section from the Barcelona Terminal command grinding and 24,394 km of track weeding with train post, where 54 permanent positions have been herbicide. In terms of weeding and fire prevention, installed. Financial and Activity Report 172 / 173

In the area of rail safety, 91 level crossings were infrastructure from flooding on the Chinchilla- removed and the installation of the GSM-R system in Cartagena line and the consolidation of trenches Bilbao and Santander Cercanías was completed. This in Moixent and Oropesa also stand out. system provides coverage to 80 km in Santander and 85 km in Bilbao. • Within the Southern delegation, the renewal of tracks and junctions between Zafra and Fregenal Regarding traffic safety, the accident rate de la Sierra should be noted, as should the (frequency of accidents attributable to conventional completion of the refurbishment of the Bobadilla network/million kilometres travelled) stood at 0.06 Algeciras line, Ronda Cortes and Cortes San Pablo compared to 0.09 in 2009 in train accidents, and 0 sections. 19, compared to 0.21 obtained in 2009 in maneuver accidents. The Zero Accident Rate Plan involved • Regarding the North Delegation the airline providing 53,316 hours of training to the company, contact between Olite-Tafalla and the Puente 41.32% higher than the target for this year. 57,230 de San Miguel - Las Fraguas route is being hours of training were also given in other aspects rehabilitated. related to traffic safety, exceeding by 3.07% the goals due to the need to increase skills and retrain • In the Northeast Delegation and throughout managers. 2010, the installation of a central emergency position in the Barcelona CTC, and the From a territorial point of view, the following actions installation of the third track representing in the respective delegations stand out: the first commissioning of the double track technology and with high density traffic, a • In the Central Delegation, the following work milestone, which we have been waiting on for has commenced: the complete refurbishment many years, allowing international freight traffic of the northern head of the Chamartín station, without the need to change corridors from the improving the reliability of the catenary by port of Barcelona to the rest of Europe. replacing the contact wire on the Espinosa- Matillas /Madrid-Barcelona route and the Other activities include, in terms of participation completion of the construction of underpasses at systems, the submission of 24 papers to the Zarzalejo and Las Navas del Marqués stations. 5th Contest for innovation and excellence in management, 13 of them reached the final out of a • In the Northwest Delegation, the opening of total of 20 finalists in the competition. the new León Power Remote Control Project and renewal of the track of the Caminreal – Finally and in conclusion, the following highlights Ferreruela route stand out. the efforts made during 2010 to bring together two key aspects of management: action against • East Delegation, the automatic pooled blocking unforeseen events, owing to the severe flooding system (BAB) on the Aranjuez-Alcázar de San in Andalusia during the winter and summer of Juan route is brought into service, replacing the 2010, and the efficiency in terms of the budget catenary contact wire on the routes: Aranjuez- adjustment due to the economic crisis which Seseña (track I), Nules-Villarreal (tracks I and resulted in Adif reducing its budget halfway II) and Alfafar-Catarroja; the protection of through the year. Sustainability Report | 2010

4.3. Traffic through the implementation of alternative transport plans, planning extraordinary works Traffic function and maintenance intervals, the transmission of information to railway companies and other The traffic activity's mission of managing rail stakeholders, the establishment of internal and traffic on the network that Adif manages in a safe external operational partnerships, etc. always and sustainable manner. For the fulfilment of this quantifying and valuing the service levels mission, Traffic manages two operational processes achieved. In 2010, the traffic of 1,802,609 that constitute the core of its activity: trains was managed.

• Capacity allocation to railway companies Station management and candidates. All railway services on the network are planned, with criteria for optimal Another Traffic operational process involves use, development and maintenance thereof, management of 591 Adif stations, where while meeting the needs of rail operators and passenger trains stop, ensuring the provision of providing non-discriminatory treatment. In services catalogue and accessibility conditions 2010, capacity was allocated 1,732,641 trains. adequate for the station’s business activity, for which a comprehensive management model • Train Traffic Management. Railway of these facilities is defined. In 2010, more management and traffic control services are than 8,000,000 passengers travelled to/from provided 24 hours a day, 365 days a year in a these stations. The Modernisation Plan is being multi-operator environment with the aim of developed on the managed stations. It has achieving tighter adjustment and compliance enabled the planning and commissioning of of the pre-established daily transport plan several refurbishment works, actions for the while ensuring at all times the safe traffic maximum use of renewable energy and water of trains. This involves activities such as and electricity saving measures, all with a controlling access to regulated tracks, the twofold focus for improvement: accessibility and efficient management of contingency plans sustainability. Financial and Activity Report 174 / 175

Managed Traffic network). In relation to 2009 (90 incident/day), there has been an overall increase in the average In 2010, we managed 186.7 million km-train, number of incidents per day of 27.8%, which by ensuring the levels of service quality and traffic network represents an increase of 187% (from 8 safety to which we committed in our goals in the to 23) in high speed and 12% (from 82 to 92) in Contract-Programme. Regarding distribution by the conventional network. type of network, 37.5 million km-train (20.1% of total) were managed on the high-speed network • Accidents. The most significant was because of the representing a 0.52% increase over the previous scope and collision of two freight trains resulting in year and 149.2 million km-train (79.9% of total) one fatality and which caused interruptions in rail were managed on the conventional network traffic between Arévalo and Ataquines between 26 representing a decrease of 1.07% over the previous and 28 March. An alternative transport plan was year. The following should be highlighted: established that included the transhipment and diversion of 52 long-distance, medium distance and • A decrease of 0.76% over the previous year’s freight trains. figure, mainly due to reduced passenger traffic of Renfe Operadora in the conventional network, • Industrial Conflict. During 2010, several work dropping to 121.6 million km-train (a reduction of stoppages were called which had an irregular 1.95%) impact on traffic.

• The group of private freight railway companies • Fires. Regarding the "2010 Fire Prevention Plan (Acciona, Continental, Comsa, Drive Rail, EWS on Tracks and Proximities" there have been, and Logitrén), has generated traffic of 2.1 million considering all types, a total of 540 fires compared km-train (1.12% of total) doubling the traffic to 610 in 2009, an 11.5% reduction. In the over the previous year. month of September, the forest fire affecting the Xátiva–Ontinyet–Alcoy line and which led to the Management scenario suspension of the service between Ontinyent and Alcoy stands out. An alternative transportation 89% of total traffic on the network was managed plan for medium-distance trains was established. by CTC (centralized traffic control) using automatic locking systems (BA, BLA, BCA, BSL). Only 3.8% of • Speed limitations. The average amount of speed the traffic was run under telephone locking. Traffic limitations that affected traffic daily in 2010, was management in 2010 was conditioned by: 612 (3% more than in 2009) with an average impact on 1,024 km of lines. The impact on the • Meteorology. Traffic was strongly affected by train journey time was 766 minutes per day (an snowstorms, rain and wind in January, February, increase of 4% on the previous year). March, June and December both in the high- speed and the conventional network. Important milestones in 2010

• Incidents. An average of 90 incidents/day • Development of the capacity planning studies affecting traffic were managed per day (92 on of the Madrid-Levante high-speed line which conventional network and 8 on high-speed started up in December. The studies highlight the Sustainability Report | 2010

rearrangement of train parking in Atocha station Development and improvement in Madrid to ensure services with a minimum in the managed network frequency of one hour and the organisation of the new Valencia Joaquín Sorolla station. In high-speed operations the implementation of the Madrid-Levante line stands out as does the • Definition of passenger services and freight UIC gauge link between Barcelona-Figueres and traffic operating models across the Barcelona- Perpignan through the TP Ferro border connection. Figueras-Perpignan high-speed line, which also In the conventional network, the following should came into service in December, combining the be noted: the increase of 166 km of centralised traffic circulation of trains on UIC-gauge and mixed control (CTC), the decline of 50 km of telephone gauge sections (Iberian - UIC). locking, and a 71 km increase in automatic locking and line pooling for 127 km. • Studies to undertake the transfer process of the capacity linked to providing Rodalies Barcelona Improvements in the managed network include: services to the Generalitat de Cataluña, under in March, the conclusion of the comprehensive the agreement signed between the Ministry of refurbishment of the Malaga Centro Alameda Development, the Generalitat and Adif dated 18 station, bringing into service the entire length of February 2010. the Malaga urban railway tunnel. Between March and June, the interruption of traffic between Arc de • 2010-2015 Traffic Strategic Plan Development Triomf and Sant Andreu Arenal to accommodate supported by a new map of processes and a the construction of the new Cercanías Sagrera- scorecard of operational, strategic and support Meridiana station. In April, the completion of indicators. the comprehensive improvement works on the Ronda-Algeciras line and resumption of rail traffic • Design and implementation of new IT solutions, between Algeciras and Bobadilla. Between April such as the CMH24BI platform (Business and August, traffic interruption in the Madrid Intelligence Dashboard for H24) or the integration Chamartín-Fuencarral-O'Donnell section for the of existing systems on the new ICECOF platform. execution of the work of the future rail access to Terminal 4 at Barajas Airport. Since June, owing to • The multidisciplinary committee’s work has works between the Xátiva and Moixent stations, continued on the common sectioning project, an alternative transport plan by road is being including launching the first phase of the IT put in place which affects the Cercanías line C2 repository. in Valencia. Finally, in July, the commissioning of the first of two tunnels planned for the town of • Implementation of measures to promote freight Montmeló, this is an underground project intended transport by rail has had a twofold focus, firstly, for both conventional gauge line and the Figueres a 6% increase in the average length of freight high-speed line as it passes through the town. trains compared to 2008, and secondly, the kilometres of line of the conventional network that allows the increase in basic lengths of trains, reaching 6469 km by the end of 2010. Financial and Activity Report 176 / 177

New services offered. The greater demand for these criteria meant that, with the exception of the high-speed In June, the new private rail freight company Madrid-Seville corridor and the medium-distance Logitrén started business activity between Valencia in high-speed of the Madrid-Barcelona line, will not Fuente San Luis and Zaragoza Plaza. achieve their intended goals if all objectives were less than 1% of the desired value. Regarding Adif’s Besides the new passenger services on the Madrid/ lack of punctuality in the conventional network Levante line, December also saw the first passenger according to criteria established in the 2007/2010 service between Barcelona-Paris using the high- Adif-State Contract-Programme, medium-distance speed line between Figueras Vilafant and Perpignan trains did not reach their punctuality target. On the through TP Ferro infrastructure. This service is other hand, justified by the execution of works, the temporarily being operated with a changeover at the following objectives were not achieved: new Figueres Vilafant station until the Barcelona- French border high-speed section is fully opened, • Commuter trains, due to the impact of the planned for late 2012. In December, the first freight construction of the Barcelona-TP Ferro service between Barcelona Morrot and Lyon in UIC connection in Barcelona. gauge was put into service via mixed gauge sections and UIC gauge sections. Thus, freight trains on this • Alaris, affected by the construction of the connection need not change gauge and can reach up Levante high-speed line. to 750 m in length. All other products and services exceeded the Quality of Service challenges expected in 2010 in its objectives.

EAs for levels of service quality achieved, the Finally, in relation to the integrated management implementation of new punctuality criteria system and excellence practices, the Club of (lateness due to Adif) in high-speed stand out, Excellence in Management, licensor and developer which are calculated over the total services of the EFQM Model in Spain, recognised in its "Evento Sustainability Report | 2010

Sello 1.000+” held in the month of September, to meet passenger’s needs. They are also fully as Adif Traffic as the only organisation that has equipped for people with reduced mobility. maintained a seal of excellence since 2000 and has progressively improved its level of recognition During the month of December the new Figueres- over the last ten years. Furthermore, in November Vilafant station installations were put in place, which through the EFQM assessment conducted in Adif, it will provide service to international gauge passenger was confirmed that Traffic maintained its gold seal of traffic from the French border to the north and business excellence 500 + in the EFQM. conventional gauge from Barcelona and Girona to the south. It is also built with environmental and 4.4. Passenger Stations sustainability criteria and is totally accessible for people with reduced mobility. During 2010, activities focused on completing all the actions that, in terms of stations, permitted the arrival In terms of commuter stations, on 10 September of high-speed to Valencia. In this sense, the Madrid the new airport and Guadalhorce stations became Puerta de Atocha station has been redesigned by operational, encouraging connections between rail extending the railway complex in order to increase and air services in the city of Malaga. its capacity to respond to the significant increase in passengers from the new line. In terms of marketing, it is worth mentioning the tender for the construction and operation of the Also in November the installations of the new Vialia centre in the Vigo station, created for this high speed station “Vialia estación de Albacete Los purpose by a company owned by Adif. This centre Llanos” were opened, built under the Vialia concept will have a floor area of 122,548 m2, of which which combines railway operation services with 42,000 will be used for commercial purposes. other tertiary and commercial uses, turning them into, a focus of socio-economic revitalisation for the On 29 November, an agreement was signed between city and its environment. Finally, the new stations ADIF and Comfersa for the assignment of the Cuenca Fernando Zobel, Requena Utiel and Valencia exploitation of a total of 41 car parks at railway Joaquín Sorolla have been designed with criteria stations to the latter. focusing on sustainability, energy efficiency and environmental respect, with services including ticket In line with the Adif’s social responsibility policy, sales, information, boarding and all those necessary dated 17 May an agreement was signed with the Financial and Activity Report 178 / 179

CNSE Foundation for the removal of communication Programme, the refurbishment of the Commuter barriers, the implementation of the "Dialogue" stations Elche Carrús, La Laguna (Madrid) and service for accessibility to information and Málaga Centro Alameda has been carried out. communication in railway environments for people The new El Cáñamo station in the Commuter with hearing disabilities. This service has been nucleus in Seville is currently in advanced stages awarded at the first edition of the awards given of execution. Also within the plan to improve the by the Fundación Corresponsables. In turn, the commuter network in Catalonia, actions are being Atendo service has been enhanced and improved to carried out for the screeding and remodelling provide assistance to passengers with disabilities of platforms, aimed largely at improving the and reduced mobility, carried out in collaboration accessibility of facilities and their suitability to the with Renfe Operadora. This, together with the work needs of railway operations. carried out on accessibility at the Atocha railway complex, has meant that in the first Spanish edition 4.5. Logistics Services of Telefónica Ability Awards, Adif was chosen from 48 finalists with the Company Ability rating, In 2010, the "GIMA" tool has been implemented rewarding the management for making railway based on an IT application for the control of all services accessible to all citizens. auxiliary facilities (cranes, shunting and other locomotives) of which Logistics Services Within the 2009-2014 Adif Master Plan for Energy provides for the provision of services in all logistics Saving and Efficiency, various actions have been facilities. This system optimises the overall use implemented, such as solar lighting in the Villarreal of these resources, unifying the criteria and (Castellón) car park, improved outdoor lighting maintenance programmes and gaining control of system in El Puig (Valencia) and improving the air- costs associated with each resource. conditioning in Seville Plaza de Armas and Cordoba. In March 2010, the "Operating Procedure for space In terms of quality, the quality certification has allocation and use of facilities and resources by been extended to Vilagarcia de Arousa, Ponferrada railway companies and holders of rolling stock, for and Zamora stations, and in terms of environmental the self-provision of complementary and auxiliary management, the appropriate certification in services in the general interest rail network (REFIG) Madrid Chamartín, Zamora and Ponferrada stations and in the service areas managed by Adif” was has been obtained. With these new certifications, published. With this procedure, 29 facilities are the number of stations certified in quality has initially made available to railway companies that reached 32, while in environmental management it can be managed under self-provision and can be has reached 25. expanded to 55 facilities from January 2011.

In the chapter on actions to improve the network Within the Extraordinary Infrastructure Plan (EIP) stations, work includes refurbishment of the of the Ministry of Development of public-private Algeciras station, improved parking in Cordoba, partnership, in October 2010, the selection of expansion of 172 parking spaces at the Segovia partner/s was invited to tender, together with ADIF, Guiomar station and improved access to the they will form a company with the aim of designing, Ciudad Real station, among others. Among the building and managing the operation of the Aranjuez investments financed by the 2007-2010 Contract- logistics centre, on land ground ceded by Adif. Sustainability Report | 2010

As participation in the Strategic Plan for the promotion 4.6. Assets and City Planning of freight , this year agreements have been signed with APPA (Andalusia Public Ports Regarding the development of high-speed railway Agency), with ANL (Navarra Logistics Agency) and networks and their urban integration, framework CyLoG (from the Region of Castilla y León), in order to agreements have been signed for new projects study the logistical feasibility and cost of the logistics in the cities of Almería, Santander/Camargo and centres that are part of "nodal infrastructure map." Victoria, two companies have been established in Almería and Vitoria. The pre-existing framework The facilities of the Barcelona railway complex agreements have also been developed in the (Morrot, Can Tunis Puerto) have also been adapted cities of Palencia, Murcia and Cartagena, for the to receive, dispatch and deal with mixed-gauge financing and preparation of studies and projects. trains (UIC and Iberian). Its commercial operation Regarding projects in other cities with companies, commenced on 22 December 2010 with UIC-gauge the necessary planning tools have been approved traffic between Barcelona and Lyon, Barcelona and once and for all in: Leon and San Andrés del Milan, without the need to change at the border. Rabanedo (Regional Territorial Plan), Valladolid (PGOU amendment), Murcia (Special Plan), To accommodate trains up to 750 metres, in 2010, Barcelona (other management planning), planning projects for the extension of tracks to 750 meters affecting railway land in the pipeline in Cartagena have been executed in the Valencia Fuente San Luis, (PGMO amendment) and Murcia (Urban Planning Córdoba and Júndiz logistics centres. Project).

During this year, different investments have been Regarding land management, two plots were undertaken to improve installations at Zaragoza transferred in Portillo (Zaragoza). Some 15,937 Plaza, El Salobral Madrid Abroñigal, Córdoba, Can m² of land has been transferred to the company Tunis, Júndiz, Bilbao, Mercancías and Zaragoza Alta Velocidad 2002, S.A in Zaragoza- Constantí. Delicias. In Madrid, the final draft of the Recoletos Prado Special Plan is now public information which

In May, the “Dialoga”service was launched promoting the accessibility of information and communication in railway environments for people with hearing impairments Financial and Activity Report 180 / 181

reveals each and every one of the claims made at As a result of the urban management of railway the time by Adif. Declarations were also drawn up land included in the various plans, the change for the document Interior Reform Partial Plan for of use of the land totalling 929,997 m² has been the APR 08.03 "Prolongation of La Castellana". achieved, yielding a total of 664,547 square feet of roof for profitable uses. Regarding the agreements reached with other administrations, railway and city planning Furthermore, and in the activity of managing the agreements were signed in Algeciras, Camarles, Adif’s real estate inventory, the process of preparing Navarra, Huelva, Lugo, Málaga, Montmeló (adenda), the inventory of the new Madrid-Barcelona-French Puerto Real, Donostia-San Sebastián, Segovia, border, Madrid-Valladolid and Cordoba-Malaga Seva, Toledo and Venta de Baños. Also, Adif has high-speed lines has continued. The information been involved in the negotiation of city planning relating to buildings in 37 railway sites of the agreements in the cities of Alicante, Albaida, Autonomous Regions has also been incorporated Casariche, Cuenca, Gandía, Irún, Manuel, Molina de into the inventory e.g. Basque Country, Madrid, Segura, Orihuela, Ourense, Jaén and Sagunto. Castilla-La Mancha, Castilla y Leon, Aragon, Catalonia, Andalusia and Murcia. In regard to the Regarding city planning management, we have annual maintenance programme, a total of 520 been involved in the general planning review and units of inventory have been updated, of which 324 modification processes as well as in development correspond to the railway sites located in cities. planning, for municipalities through which the railway networks run, making proposals, In relation to files establishing the building limit suggestions and statements where appropriate, line in urban areas, whose powers were the subject in order to obtain the proper category for the of delegation in favour of the Chairman of Adif by land managed by Adif, both from the standpoint FOM Order 2893/2005 of 14 September, in 2010, 44 of its suitability for correct rail operation, and reduction requests have been received that have its integration in the urban environment, all in led to the investigation of many other records, with accordance with social and economic sustainability which the administrative files requesting a reduction criteria. In terms of public information planning in the building limit line in 2010 has risen to 198, documents, reports have been drawn up and of which 54 have been solved in that year: the suggestions have been made for the General Plans reduction requested in 44 cases was authorised, 3 or amendments thereto, the most representative were declared inadmissible, 3 were rejected March, are those corresponding to the municipalities of in 1 case was the withdrawal of the interested party Alicante, Cádiz, Cartagena, Coruña, Gijón, Jaén, was accepted and the expiration of the forfeiture Pontevedra, Santander, Coslada (Madrid), San proceedings was declared in 3 cases. Fernando (Cádiz), as well as development planning in Madrid (APR. 08.03 "Extension of la Castellana"), Similarly, in relation to requests for reversal of land Montmeló and El Prat de Llobregat (Barcelona). expropriated in its day, the processing and resolution There have also been reports and suggestions is the responsibility of the Ministry of Development, made to supramunicipal plans such as the Galicia and in which Adif must issue the mandatory Regional Planning Guidelines (DOT) of Galicia reports established in the Act 30/1992, on the Legal and the Castilla-La Mancha Regional Planning Regime of Public Administrations and the Common Guidelines (POT). Administrative Procedure, in 2010 the administrative Sustainability Report | 2010

proceedings in which Adif has intervened and into the Tigris application, 279 inventory sites were informed the specified Ministry have amounted to entered with corresponding plots and associated 247, of which 61 reports have been positive and 21 attributes. negative, having concluded the timely delivery of the reversed asset in 9 proceedings with the signing. The Department of Planning and Administrative Actions in 2010 has used as a reference, in addition Also in the land registration regularisation process to economic activities for the production of land included in the Adif real estate inventory, in 2010, or uses, the reversal of 519,188.26 m² of land and 21 administrative domain certifications have been 21,773 m² of urban exploitation. prepared for submission in the relevant property records, obtaining the inmatriculation or the In 2010, Asset management has used as a benchmark registration of plots and farms referred to in such the reversal of 129 properties from the public certifications. domain railway with a total area of 920,419 m² for patrimonial appropriation. We comply with 150 With regard to developments in the Tigris application compensation boards with an area of 5,688,526 m². environment mention should be made to the incorporation processes of land resulting from New for this year, the sale of property by public expropriations as a result of the construction agencies requires prior notification to the General of new high-speed lines, the incorporation of Directorate of State Assets and must be drawn information relating to the inventory of buildings, up prior to the adoption of commitments with as well as information documents the physical third parties. This Directorate shall proceed with location, photographs, etc. The treatment of certain its analysis, in order to determine the suitability urban features such as linking physical files, the of the incorporation of the good to the Spanish government’s management of procedures and Government assets. After two months without registration of the filed land legislation also stand having been received notification from the out. In the spatial database, associated with the Directorate General in this regard, the agency may Geographic Information System (GIS) integrated proceed with the proposed sale, which once signed, Financial and Activity Report 182 / 183

will be notified for the purpose of recording in In the Greenways section, throughout 2010, work the General Inventory of Assets and Rights of the was carried out to develop new agreements. Three State. In order to comply with Article 100 of Royal of them were finally signed in 2011: Eresma in its Decree 1373/2009 of 28 August, which approves two sections, municipality of Segovia, 5.1 km and the General Regulation of Law 33/2003, of 3 the rest to the town of Olmedo, with 52.2 km and November, of the Assets of Public Administrations, the Senda del Litoral, 0.3 km and, in 2011, they will summarised in the preceding paragraph, join the national network of greenways. particularly with regard to compliance within 2 months, we have proceeded to notify the General In another order, all the Assets and Planning Directorate of State Assets of all Adif assets. todos processes certified by quality systems (ISO los bienes Patrimoniales de Adif. 9001:2008) have been renewed by AENOR, all necessary arrangements have been made for the Regarding leases, in 2010, 758 files were adequacy of the documentation of the quality processed, of which 536 agreements were signed. management system for its Certadif adaptation. Among the new agreements, the 7 contracts of social interest signed by Adif stand out. The 4.7. Telecommunications and Energy company’s contribution to the different social uses of these leases is quantified as the difference In 2010, in terms of quality management between the contractually agreed rent and market and the environment, the Department of rent of the leased premises, which has been Telecommunications and Energy has achieved the reduced in response to the social interest thereof. following milestones: Among these and incorporated in the CSR section, are the 3 transfers of leased property to public • Extension of the ISO 9001/2000 certification administrations, such as the school - Villacañas that it has had since 2008 for two specific workshop, the Monforte de Lemos centre of processes to all processes in the areas of entrepreneurship and the centre for social and Telecommunications and Energy, thus achieving sporting uses at the Cretas station. the ISO 9001/2008 certification.

Management of the almost 6,000 houses, according • Also, in October 2010, 338 points were obtained to the 2008-2011 Strategic Plan was completed in the EFQM assessment, increasing the score with fulfilment of the planned milestones. 32 obtained in May 2008 by 52 points. demolishments and 199 physical and legal cleanings that enabled them to be included in the cadastre and • In the area of health and safety the certification property registration. has been achieved according to standard OHSAS 18000 in December 2010. Moreover, the asset management plan for the physical clean up and legalisation of the closed Energy lines or abandoned construction, in this year, have recorded an inventory of 1,034 km, 559 km of In the area of energy services, the main actions were lines being cadastered, inventoried and registered aimed at an improvement in purchase management carrying out the formalities for their incorporation processes and the streamlining of infrastructure into the property registration. management, both electric energy and fuel. Sustainability Report | 2010

Regarding electric energy management the most Regarding fuel, the most important actions in 2010 relevant aspects were: have been:

• Market. In the first quarter of 2010, the tender • Construction of new fuel installations, by for the power telemetry of 2012 was initiated, replacing old installations, in: Cartagena, Seville 17 of the 20 lots were awarded at the end of the and La Coruña. year. Anticipating the contract, this puts us in the position to take advantage of favourable prices in • Dismantling of the installations at: Cartagena, the OMIP or futures market. Seville and La Coruña.

• Telemetry. During 2010 progress was made in • Installation of remote control equipment in the the remote management of measuring electricity Ourense facilities, in the testing phase. consumption, reaching the following figures: • Agreement for the provision of "comprehensive - 676 traction substations and transformer fuelling service in Adif facilities" with the centres. Logistics Services Department.

- 920 telemetered meters (PdM). • Invitation, award and implementation of the procedure for scanning the accompanying - Average 97% validation of measured data documents. curves at the discretion of utility companies. Telecommunications • Invoicing. The modes and metrics of traction electricity invoicing have been defined for the In 2010, the main activities in the area of general tariff framework. Telecommunications have been aimed at increasing customer loyalty by adapting our policies to their • Participation in CENELEC working groups business needs and technical quality. In this context, for the development of standard EN50463 the most relevant actions were as follows: for the establishment of the data model and communications protocol for measuring energy • Establishment of a new trade policy designed and invoicing railway operators. to respond dynamically to the evolution of the optical fibre market by adjusting our price Financial and Activity Report 184 / 185

structure and the establishment of a discount This management system, which is certified system for volume of business. according to standard UNE EN 166002 and ISO 9001:2008, has focused the research activity, • Signing, under the new previously mentioned preferentially but not exclusively, on the following trade policy, of the corresponding contracts with strategies: BT. • Increase energy and environmental efficiency. • Creation of a new cable product consisting of 2 optical fibres to enhance the mentioned product. • Increase the performance of the rail system (speed, axle load, capacity of infrastructure, etc.). • Approval of the Main Network Renewal Plan, which is aimed at adapting our optical • RAMS and cost: Improve the efficiency of the fibre network to the new technical quality system (reliability, availability, maintenance and requirements of our customers. safety) and reduce the cost of the life cycle of railway assets. • Completion of the coordination actions for the commissioning of mobile telephony service Among the major technological developments in on the Madrid-Albacete and Madrid-Valencia which progress has been made the following stand high-speed line for the availability of the service out: before the opening of the line. • ERTMS. Adif ranks as Europe's leader in terms • Installation of a second main cable between of interoperability with the greatest number Moreda and Granada measuring approximately of kilometres of lines with ERTMS in service, 70 km. successfully integrating various technologies.

• Transfer of the Burgos telecommunications park to the new location in the Villafría station. • Management platform and Da Vinci control. System that is an evolution in the 4.8. R+D+I activities multidisciplinary integration of the railway environment, focused on process, system R&D and user management, bringing together the previously independent subsystems of In the framework of continuous improvement in signalling, electrification and communications, Adif and in line with the objective of developing among others, which are centralised national railway technology, the R&D&i Plan in a platform that enables their remote defines activities aimed at boosting management, communication and monitoring. This system defining processes, identifying lines of research, has been exported to several countries. the protection and exploitation of results, monitoring and technology transfer and, in • Eolo Project. Advanced measuring and wind general, encouraging participation, increasing protection system to increase safety in rail presence in national and European R&D&i support systems with ERTMS. programmes. Sustainability Report | 2010

• Séneca laboratory train. Auscultation train of for the development of typical Adif national and the infrastructure that provides the information international projects in cooperation with or aimed at needed to maintain and increase security, third parties. reliability and quality thereof. The CTF claims to be a global centre of excellence in • Innovative Project for Railway Interoperability railway innovation, through the future construction called "Unichanger." This project aims to of a railway test and experimentation ring, which define a common standard in infrastructure will be a reference on a European and global level. It for the implementation of a unified and will also serve as a complementary installation will homogeneous gauge changer at a European complement to the centre itself and will respond level, promoting interoperability and improving to demand in the manufacturing sector of rolling the competitiveness of freight transport. stock, offering an advanced facility for conducting certification and approval processes of innovation A new centre for technological innovation is being in railway dynamics, traction and braking of new set up, designed as a multidisciplinary space of generations of trains, telecommunications, ERTMS open innovation, and with the ongoing presence development and signalling systems, multipurpose of research groups and cutting-edge technology catenary, track infrastructure and new technologies companies. Located in the Technological Park of in renewable energy and energy efficiency. Andalusia in Campanillas, Málaga, the Railway Technologies Centre (CTF) the first phase will include The dissemination and transfer of the CTF activities two specialist laboratories, one dedicated to GSM-R will be complemented with the coordination of the and RBC-Tren communication technologies and the different railway infrastructures in Spain dedicated development of ERTMS 2 engineering data and the to R&D&i centres such as the Rail Dynamics second, information and communication technology Laboratory, Centre for Testing and Validation, (ICT) laboratory, dedicated to intelligent transport Energy Systems Laboratory, the Institute of Applied systems and the evolution of the Da Vinci system. Magnetism, the Centre for Validation of Railway In addition, the centre will establish specialised Technologies, the Via de Valladolid Technology departments for training and monitoring technology Centre, and finally, the Adif laboratory trains. Financial and Activity Report 186 / 187

Energy Efficiency technical measures and renewable energy facilities that affect 107 installations (68 stations, 24 In line with the consideration of energy efficiency logistics facilities, 15 offices or other facilities). as one of the priority areas of R&D&i of ADIF, the Actions that together with the management company’s commitment in this area was materialised measures (rational use of air conditioning and in 2008 in the creation of the role of energy lighting, turning computers and peripherals off, efficiency within the Operational Infrastructure etc.) have an impact on energy savings, resulting

Department. in cost savings and have helped to reduce CO2 emissions released into the atmosphere. This project, covering the key initiatives for the development of the Strategic Plan is implemented, Different activities have also been developed, which first of all, with the preparation of the Adif 2009- include communication actions in different forums 2014 Master Plan for Energy Saving and Efficiency, transferring Adif’s contribution to sustainable focusing on three main areas: management development, the coordination of the energy measures, technical measures and implementation of efficiency project in 330 Spanish Government power generation systems from renewable sources. buildings and the development of the procedure The plan was approved by the Steering Committee for the implementation renewable source power in March 2009 and above and beyond taking generation systems approved by the Steering into consideration the regulations of application Committee in March 2010. corresponding to the different administrations, it establishes quality objectives, identifies key action 4.9. Safety lines to achieve them, details a range of measures of reference and quantifies the expected results for Safety in all its aspects is the cornerstone of Adif each year of its period of validity. policies, plans and actions. The management and results in this field are included in Volume 4 of the The Master Plan is specified in annual Sustainability Report: Social Report. For further implementation plans that between 2009 and information, the Safety report is available at www. 2010 have resulted in 138 saving-energy efficiency adif.es Sustainability Report | 2010

4.10. Quality which the different activity areas manage their processes independently and the other top-down Sistemas de gestión de calidad approach, in which the transversal processes and their interactions are analysed by the corporate Carrying on with the ongoing improvement bodies, enabling an integral and unitary view of the process, in 2010 Adif’s Strategic Plan for Quality and company. the Environment (PECYMA) was updated in review IV, updating the goals and indicators for monitoring With regard to the aforementioned bottom-up the defined strategic guidelines and progress in all approach, we must highlight the existence of 31 of the company’s activity areas. quality management certificates according to the ISO 9001 standard, and another 14 environmental Adif with the aim of combining its management management systems according to the ISO 14001. systems has taken the ISO 9001 standards as a The Department of Quality and Environment reference and is driving forward two simultaneous also promoted the bottom-up approach, which in processes. One with a bottom up approach, in 2010 is covered in the Certadif Project. Adif has Financial and Activity Report 188 / 189

obtained the global certification for its quality improvement. Under the comprehensive approach, management system according to the UNE-EN- Adif in 2010 has opted for the development of a ISO 9001:2008 standard, covering the following structured management report under the EFQM key processes in its scope: the construction criteria, which has undergone an evaluation and maintenance of the platform, tracks and process by a certified entity. installations, infrastructure capacity and rail traffic management, the operation of passenger With regard to the participation of persons in stations and logistics installations and the the ongoing improvement, the Adif’s "We Share marketing of the telecommunication network. All Talent” participation plan was drafted with the strategic and support activities have been certified aim of developing actions to increase participation that make up the Adif process map. in Adif, improving the quality of the works presented. 59 projects were submitted to the 5th The ongoing improvement attitude and the participation for innovation and excellence in need to have a reference model on which to management contest. systematically perform management assessments to detect strengths, areas for improvement and On 23 February, Adif’s 4th Quality and action plans, suggested the need to implement a Environment Convention was held in Cordoba, management system based on the EFQM model with the slogan "The Value of Good Management" of excellence. Throughout the duration of the with the assistance of over 500 professionals Adif Strategic Plan, focus has been placed on the across all levels of the company. implementation of the EFQM model with two approaches: disintegrated or by activity areas Quality in works and comprehensive. Under the disintegrated approach, most of the activity areas (16) have In compliance with the specifications of technical implemented the EFQM model through the requirements for construction contracts for railway self-assessment processes validated by EFQM infrastructures, contractors and technical assistance license holders, from which action plans have workforce (ACO) have a Quality Plan (PC) of the works, been issued as a consequence of the identified which is validated by the project supervisor and sent areas for improvement in a process of continuous to the Department of Quality, Safety and Supervision Sustainability Report | 2010

for its review and approval. Its compliance is controlled • Other tasks performed in the field of quality of subsequently during the compliance audits for the works have been: Quality Plan, resulting in the corresponding reports being issued. - Contrast tests, at the request of project management. Other key process in the field of quality of the construction of platform works for high-speed lines - Management of nonconformities, checking their are: resolution prior to the reception of the works.

• Technical audits for installations and suppliers - Quality audit reports of subsection. (laboratories, concrete plants, prefabricated plants, backup suppliers, etc.). - Inventory of all the works according to how they have been built, and database of quality • Technical work audits during which documentation, to integrate both into the topographical checks are carried out, Adif GIS, which forms part of the inventory of adaptation to the project and verification company’s assets. to adapt to the specific procedures for implementing and monitoring the platform - Preparation of specific reports: viaducts, works. embankments, drilling tunnels with borer. Financial and Activity Report 190 / 191 Sustainability Report | 2010

Appendices

Appendix 1: Index of Tables in this volume

Number Name Page 1 2010 Profit and Loss Account 14 2 Investments in lines and works 16 3 Investments in 2009 according to nature 16 4 Project implementation rate 17 5 Distribution of investment by railway corridors 18 6 Distribution of investment by type of network 18 7 Contract-Programme execution Summary 19 8 Contract-programme assigned investment 2007/2010 20 9 Service delivery indicators 22 10 Investments covered in Contract-Programme 23 11 Investments in conventional network breakdown by nature 24 12 Financial Aid from the Cohesion Fund 26 13 ERDF aid 27 14 ERDF funding for the construction of High speed lines 27 15 Cohesion Fund assistance – ERDF 29 16 Summary table of tenders 30 17 Summary table of awarded contracts 31 18 Summary table of tenders per procedure 31 19 Subsidiaries’ Share, Capital and Equity 32 20 Subsidiaries’ Income and Results 32 21 Participation in Property Companies 33 22 Property Companies Results and Income 34 Share in Companies and consortia related to city planning 23 35 due to railway works Share capital and equity in companies related to passenger stations 24 36 and freight terminals 25 Summary of the degree of implementation of high-speed network in 2010 171 Financial and Activity Report 192 / 193

Appendix II Index of graphs in this volume

Graphic Name Page 1 Audit Report drafted by Adif’s Delegated Intervention 39 2 Annual accounts for the 2010 financial year 45 Edited Adif Design, layout and printing Global Diseña

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