Other Accounts Receivable, Net

12 Months Ended

Dec. 31, 2022

Other Accounts Receivable [Abstract]

Other accounts receivable, net

12. Other accounts receivable, net

As of December 31, this caption comprises:

	Total				Current				Non-current
In thousands of soles	2021		2022		2021		2022		2021		2022
Guarantee deposits (a)		139,019		194,885		135,650		110,507		3,369		84,378
Petroleos del Peru S.A.- Petroperu S.A. (b)		106,077		105,073		19,262		15,291		86,815		89,782
Claims to third parties (c)		113,685		88,919		56,069		17,130		57,616		71,789
Advances to suppliers (d)		31,365		53,658		31,365		53,658		-		-
Restricted funds (e)		7,346		52,014		-		44,668		7,346		7,346
VAT credit (f)		41,077		50,172		32,706		39,959		8,371		10,213
Income tax on-account payments (g)		44,072		48,729		44,072		48,729		-		-
Cumbra Peru S.A. - Refineria Talara (h)		125,864		36,266		115,435		36,266		10,429		-
Consorcio Panorama (i)		27,193		21,081		-		-		27,193		21,081
ITAN and other tax receivable		17,285		15,022		17,203		14,001		82		1,021
Accounts receivable from personnel		16,864		2,359		16,864		2,359		-		-
Other minors		18,571		10,747		18,432		10,627		139		120
		688,418		678,925		487,058		393,195		201,360		285,730

The fair value of the other short-term accounts receivable is similar to their carrying amount due to their short-term maturity. The other non-current accounts receivable correspond mainly to claims to third parties and maturities range from two (2) to five (5) years.

Maximum exposure to credit risk at the reporting date is the carrying amount of every class of other accounts receivable.

Find below a description and composition of the main items of the balance of other accounts receivable:

(a) It corresponds to funds held by customers for work contracts mainly of the subsidiary Cumbra Peru S.A. These deposits are retained by customers to ensure the subsidiary’s compliance with its obligations under contracts. The amounts retained will be recovered once the work is completed.

	Total				Current				Non-current
In thousands of soles	2021		2022		2021		2022		2021		2022
Cumbra Peru S.A. - Projects and Consortiums		27,821		113,473		27,821		33,505		-		79,968
Vial y Vives - DSD S.A. - Engineering works and construction		79,126		54,236		79,126		54,236		-		-
Cumbra Peru S.A. - Quellaveco Concentrator Plant		12,133		11,436		12,133		11,436		-		-
Cumbra Peru S.A. - Piura Gas Pipeline Project		8,914		7,187		8,914		2,782		-		4,405
Cumbra Peru S.A. - Toquepala Electromechanics		-		5,817		-		5,817		-		-
Morelco S.A.S. - Engineering works and construction		6,617		2,403		6,617		2,403		-		-
Others		4,408		333		1,039		328		3,369		5
		139,019		194,885		135,650		110,507		3,369		84,378

(b) Corresponds to additional investments directly related to modernization, expansion, adaptation to current regulations and other operating or commercial requirements established in the operating contracts signed between Terminales del Peru and Petroleos del Peru – Petroperu S.A.

The additional investments are accredited based on the inspection report of the contractor, both of the capital invested by the operator and of the compliance with the operational aspects, technical, safety, environmental and social standards and requirements of the project that is the subject of the additional investment. In accordance with the contracts for the operation of the North and Central hydrocarbon supply terminals, these accounts receivable from Petroperu do not generate interest.

(c) As of December 31, 2021 and 2022, corresponds to the following claims to third parties:

	Total				Current				Non-current
In thousands of soles	2021		2022		2021		2022		2021		2022
Superintendencia Nacional de Aduanas y de Administracion Tributaria (SUNAT) (c.1)		30,994		27,968		-		-		30,994		27,968
Ministry of Housing and Fondo Mi Vivienda (c.2)		23,953		26,084		-		-		23,953		26,084
Accounts receivable from joint venture (c.3)		46,360		21,100		46,360		7,915		-		13,185
Others		12,378		13,767		9,709		9,215		2,669		4,552
		113,685		88,919		56,069		17,130		57,616		71,789

(c.1) Superintendencia Nacional de Aduanas y de Administracion Tributaria (SUNAT)

Corresponds to the company’s claim before the Specialized Administrative Court of the Court of Justice of Lima against the Tax Administration for deductions of investment losses. The balance as of December 31, 2022 is S/27.9 million (S/30.9 million as of December 31, 2021). In Management’s opinion and that of legal advisors, this account will be collected in a five-year period, estimated date for the end of the judicial process.

(c.2) Ministry of Housing and Mi Vivienda Fund

Corresponds to a claim in favor of the Corporation, resulting from the termination of the contract called “Ciudad Alameda de Ancon”, signed by VIVA, the Ministry of Housing and Construction and Sanitation and Fondo Mi Vivienda S.A. As of December 31, 2022 the net amount of the claim corresponds to its fair value, which amounts to S/ 26 million (S/23 million as of December 31, 2021) and results from the discount of the gross amount of the claim, to be collected over 11 years, at a rate of 7.99%. The gross amount of the claim amounting to S/ 46.7 million (including the full amount of the services provided by VIVA in the Ancon Project) is part of the amount of the claim filed by VIVA against the Ministry of Housing, Construction and Sanitation for the amount of S/ 116.3 million, which also includes an indemnity for damages (consequential damages and loss of profits). According to Management and legal advisors, it is expected that the amount of the claim will be collected within a maximum period of 11 years.

(c.3) Joint Venture

As of December 31, 2022 the balance corresponds to the attributions of proceeds to Cotinavec Montaje Peru S.A.C. for S/13 million, the balance is in the process of arbitration with an estimated date to be resolution, June 2025 as well as to other accounts receivables for S/7.9 million (S/29 million and S/17.3 million as of December 31, 2021).

(d) As of December 31, 2021 and 2022, corresponds to advance payments to suppliers as following:

In thousands of soles	2021		2022
Cumbra Peru S.A. - Aeropuerto Jorge Chavez		7,992		18,353
Cumbra Peru S.A. - Projects and Consortiums		10,646		15,220
Tren Urbano de Lima S.A. - Alstom Transporte		3,691		3,691
Others		9,036		16,394
		31,365		53,658

(e) As of December 31, 2022, restricted funds correspond to bank certificates under guarantee composed as follows: Cumbra Peru S.A. for S/ 29.9 million – EPC Talara, Cumbra Ingenieria S.A. for S/ 14.7 million, and a restricted fund of Concesionaria La Chira S.A. for S/ 7.3 million. (As of December 31, 2021 a restricted fund of Concesionaria La Chira S.A. for S/ 7.3 million).

(f) As of December 31, 2021 and 2022, correspond to tax credit related to sales tax of the following subsidiaries:

	Total				Current				Non-current
In thousands of soles	2021		2022		2021		2022		2021		2022
Cumbra Peru S.A.		12,737		14,492		12,737		14,492		-		-
Tren Urbano de Lima S.A.		4,266		8,501		4,266		8,501		-		-
Viva Negocio Inmobiliario S.A.C.		6,110		8,077		514		639		5,596		7,438
Unna Transporte S.A.C.		5,333		5,033		5,333		5,033		-		-
Carretera Andina del Sur S.A.C.		1,475		4,313		1,475		4,313		-		-
Unna Energia S.A.		1,911		3,511		1,911		3,511		-		-
Cumbra Ingenieria S.A.		1,947		2,023		1,947		2,023		-		-
AENZA S.A.A.		3,715		879		3,715		879		-		-
Others		3,583		3,343		808		568		2,775		2,775
		41,077		50,172		32,706		39,959		8,371		10,213

(g) As of December 31, 2021 and 2022, corresponds to income tax payment on account and balance in favor of the following subsidiaries:

In thousands of soles	2021		2022
Cumbra Peru S.A.		25,539		23,079
Unna Energia S.A.		932		15,739
Unna Transporte S.A.C.		844		5,119
Cumbra Ingenieria S.A.		4,331		2,754
AENZA S.A.A.		1,129		1,055
Carretera Andina del Sur S.A.C.		370		482
Qualys S.A.		502		156
Tren Urbano de Lima S.A.		9,990		-
Others		435		345
		44,072		48,729

(h) Cumbra Peru S.A. - Talara Refinery

As of December 2022, Cumbra Peru S.A. had a lawsuit pending against Tecnicas Reunidas de Talara S.A.C. (TRT) for approximately US$ 78 million as compensation for damages suffered as a result of various contractual breaches. In turn, Tecnicas Reunidas de Talara S.A.C. filed a counterclaim for approximately US$ 81 million alleging that Cumbra Peru S.A. had breached the subcontract entered into between the two companies. On the other hand, on December 28, 2020, Tecnicas Reunidas de Talara S.A.C. executed two letters of guarantee issued by Banco Santander, the first for US$ 16 million for Fidelity Performance and the second letter of guarantee for US$ 7.7 million for advance payment of work, despite the fact that the obligations guaranteed by the letter of guarantee were being litigated in the process described in this paragraph. At December 31, 2021, the balance of accounts receivable from TRT including executed bond letters amounted to US$ 31.6 million, equivalent to S/ 125.8 million.

In December 2022, the Company signed an agreement with Tecnicas Reunidas de Talara S.A.C., in order to solve claims of both parties. As a result of this agreement, the Company impaired account receivables rights for US$ 29.6 million equivalent to S/113 million (Note 12-j.1). Also, the Company would receive payments for outstanding invoices for an amount of US$10.3 million (equivalent to S/36.2 million) before January 31, 2023. As of the closing date of this report, the Company has collected the full amount agreed.

(i) As of December 31, 2021 and 2022, corresponds to the settlement agreement of the Consorcio Panorama signed by Viva Negocio Inmobiliario S.A.C. and Inversiones Maje S.A.C. on December 14, 2018. This balance includes the return of contributions and profit totaling US$ 6.8 million (equivalent to S/ 26 million), obtained based on future sales of the properties held in the Project, which has an estimated collection date of August 2025.

The movement of impairment of other accounts receivable in 2020, 2021 and 2022 was as follows:

In thousands of soles	Tax credit			Guaranties Retention			Claims to third parties			Total
At January 1, 2020		-			165			(30,863	)		(30,698	)
Impairment of Unna Transporte S.A.C.		(6,222	)		(12,511	)		(62,456	)		(81,189	)
Write-off		-			12,530			(325	)		12,205
Exchange difference		-			-			(2,188	)		(2,188	)
Translations adjustments		-			(184	)		4			(180	)
At December 31, 2020		(6,222	)		-			(95,828	)		(102,050	)
At January 1, 2021		(6,222	)		-			(95,828	)		(102,050	)
Additions		-			-			(21,178	)		(21,178	)
Write-off		-			-			986			986
Exchange difference		-			-			(2,400	)		(2,400	)
Translations adjustments		-			-			(4,927	)		(4,927	)
At December 31, 2021		(6,222	)		-			(123,347	)		(129,569	)
At January 1, 2022		(6,222	)		-			(123,347	)		(129,569	)
Additions		-			-			(127,348	)		(127,348	)
Write-off		-			-			113,037			113,037
Exchange difference		-			-			2,646			2,646
Translations adjustments		-			-			603			603
At December 31, 2022		(6,222	)		-			(134,409	)		(140,631	)

As of December 31, 2022 the additions correspond to: a) Cumbra Peru S.A. for S/ 115.6 million (Tecnicas Reunidas Talara S.A. S/113 million, Consorcio Chavimochic for S/1.9 million and Morelco S. A.S. for S/0.7 million); b) AENZA S.A.A. for S/3.1 million from Mota Engil; and c) Cumbra Ingenieria S.A. for S/ 0.6 million from Consorcio Supervisor Red Vial 4 (Note 25.iii); and d) additions in the subsidiary Viva Negocio Inmobiliario S.A.C. recorded in Other Expenses for S/8.1 million from Consorcio Panorama (Note 27.C).

As of December 31, 2021 the additions correspond to: a) Cumbra Peru S.A. for S/ 1 million (Morelco S.A.S. for S/0.6 million, Construyendo Pais S.A. for S/0.5 million); b) Unna Transportes S.A.C. for S/0.2 million from Obras de Ingenieria S.A. (Note 25.iii). Also, additions in Aenza S.A.A. recorded in other expenses for S/ 19.9 million coming from Adexus S.A. (Note 27.C).

As of December 31, 2020, the additions correspond to estimates affecting Cost of sales for S/12.3 million corresponding to: a) Unna Transporte S.A.C. for S/11.4 million from Obras de Ingenieria S.A. b) Cumbra Peru S/0.9 million (Note 25.iii). Also, estimates recorded in other expenses for S/68.8 million corresponding to a) Concesionaria Via Expresa Sur S.A. for S/ 55.8 million from the Metropolitan Municipality of Lima for S/49.6 and unused tax credit for S/6.2 million. b) Cam Holding S.P.A. for S/12.5 million for the guarantee of the sale of Cam Chile S.P.A. c) Other minors for S/0.5 million (Note 27.C).