19 Provision for formal expropriations plus sound insulation and resident protection

 

 

 

 

 

(CHF million)

 

2023

 

2022

Provision for formal expropriations as at 1 January

 

226.3

 

244.4

Provision used 1)

 

–1.2

 

–1.0

Release of provision

 

–24.9

 

–17.7

Present value adjustment

 

4.2

 

0.6

Provision for formal expropriations as at 31 December

 

204.4

 

226.3

 

 

 

 

 

Provision for sound insulation and resident protection as at 1 January

 

92.4

 

110.7

Provision used 1)

 

–12.0

 

–11.1

Release of provision

 

–0.5

 

–7.4

Present value adjustment

 

1.7

 

0.2

Provision for sound insulation and resident protection as at 31 December

 

81.6

 

92.4

 

 

 

 

 

Total provision for formal expropriations plus sound insulation and resident protection as at 31 December

 

286.0

 

318.7

of which current

 

19.4

 

45.7

of which non-current

 

266.6

 

273.0

1) The amount paid for formal expropriations only includes effective payments of compensation, and excludes other associated external costs in accordance with the regulations of the Airport Zurich Noise Fund (see note 20, Airport Zurich Noise Fund).

Provision for formal expropriations

As at the reporting date, the estimated costs for formal expropriations remained unchanged at CHF 330.0 million (see Reporting of noise-related costs in the consolidated financial statements), of which CHF 87.8 million had already been paid out at that date. In the consolidated financial statements for the period ended 31 December 2023, a provision was recognised for the outstanding costs at their present value (CHF 204.4 million). The discount rate used to calculate the present value of the nominal payment flows was 2.25% (previous year: 2.10%).  Based on the court proceedings still outstanding, it is now expected that the payments can be completed by the end of 2040 (previously: end of 2030).

Provision for sound insulation and resident protection

As at the reporting date, the estimated costs for sound insulation and resident protection measures remained unchanged at CHF 400.0 million (see Reporting of noise-related costs in the consolidated financial statements), of which CHF 312.4 million had already been paid out at that date. In the consolidated financial statements for the period ended 31 December 2023, a provision was recognised for the outstanding costs at their present value (CHF 81.6 million). The discount rate used to calculate the present value of the nominal payment flows was 2.35% (previous year: 2.10%). It is still expected that the payments can be completed by the end of 2030.