Note 6.- Fixed Assets in Projects (Project Finance)

As indicated in Note 2.4 of these Notes to the Financial Statements, within the Consolidation Perimeter are several companies which engage in the development of integrated products including the design, construction, financing, operation and maintenance of owned projects as well as some concession projects.

This note provides a breakdown of the fixed assets within such projects as well as further relevant and related information upon such assets (excluding non-recourse financing applicable to such projects as disclosed in Note 15 of these Notes to the Financial Statements).

6.1. The following table shows the movements of such intangible assets between 2009 and 2008:
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“Other Movements” amounts generally reflect the transfer of assets in progress, changes in the consolidation perimeter, various reclassifications, exchange rate movements, and the incorporation of the intangible assets of the Information Technologies business segment previously classified as non-current assets held for sale (see Note 14).

The most significant changes during the year are mainly in the ongoing transfer to Fixed Assets in Projects of fixed assets to the assets of the Brazilian companies of Electrical Transmission, ATE V, VI and VII through its commissioning in said exercise (see accounting treatment in Note 2.4), in the exchange rate mainly occurring as a result of the appreciation of the Brazilian Real against the Euro and the incorporation of the intangible assets of the Information Technologies business segment previously classified as non-current assets held for sale that includes intangible assets associated to the acquisition of DTN for an amount of € 160.4 M (see Note 4.3).

The most significant amount of Intangible Assets belongs to the concession projects relating to the activity of high voltage lines mainly in Brazil (see Notes 6.2 and 15.2) as well as the amounts.

On the other hand, Intangible Assets also include the amount invested in the project “Development of High Performance thermoelectric solar technology plants” which on 31st December 2009 totalled € 52 M (for more information on the investment in Development see Note 4.2).

6.2. The table below shows a breakdown of the movement in tangible assets in projects between 2009 and 2008:
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“Other Movements” amounts generally reflect the transfer of assets in progress, changes in the consolidation perimeter, various reclassifications, exchange rate movements, and the incorporation of the intangible assets of the Information Technologies business segment previously classified as non-current assets held for sale (see Note 14).

The most significant changes during 2009 are mainly in the increase in the execution of new projects relating to Solar, Bioenergy and Environmental Services, the transfer of the assets of Brazilian companies of Electrical Transmission, ATE V, VI and VII through its commissioning in said exercise (see accounting treatment in note 2.4), the exchange rate mainly occurring as a result of the appreciation of the Brazilian Real against the Euro and the incorporation of the fixed assets of the Information Technologies business segment previously classified as non-current assets held for sale.

The amount of the interest expenses capitalized in 2009 totaled € 77,990 thousands (€ 32,292

thousand in 2008).