Okay. Maybe it is time to get some questions then. Let's see if we have any questions.
There is a question in the Q&A section from Mr. Paraskev.
Okay. What is the question?
It's about the investment plan. Do you want me to read it?
Yes, please.
Good evening. EUR 2.8 billion investment program, timetable and financing in total, loans subsidized, et c. Based on the new pricing status and the assumption that the investment program will be implemented according to the timetable, could you provide us with some forecasts? And timetable for the merger with the peripheral companies. Any chance that they, that will be burdened with losses? Could you provide us with some estimates when the merger procedure is completed only for the merger?
Okay. Yes.
There are some others. Do you want me to
Yeah, go ahead. Is that Mr. Paraskev's, those are the three points of the question, the three issues?
No, it's more.
Okay.
The author says customers have gone up by EUR 70 million, I assume. He wants to comment on that. EUR 68 million conventional assets, what are they? And page 54, pending judicial affairs increased to EUR 185 million versus the EUR 158 million. Comment.
Yeah. Okay. I will take the merger question of the 43 smaller utilities, and then Mr. Stamou can take some of the rest of the financials, and I'll make some comments also on the investment. Regarding the merger, as I mentioned earlier, let me tell you what the plan for the merger is. We are in the process of hiring a partner, an accounting firm, to help us understand what assets are there and what the value of these assets are.
So we're going to do evaluation of these companies and of their assets. And of course, there are some of these companies that owe us money. So there are in Eastern Attica especially, we have been supplying water to some of these municipalities, and they owe us money. So as we take hold of their assets, we are going to net out the amounts that they owe us.
Okay? There is going to be a benefit here because we will recover the money that we are owed, and you see that in our financial results. That will take care of that issue. We will have the valuation, and we expect that to happen in about a year from now. The law actually says that we should take over these companies in about a year. I think there may be some flexibility to have our financials straight, maybe to make sense to get control of these companies as of January 1st, 2027. But, 2028, I am sorry. The law says middle to end or third quarter of 2027. We will see if we will do that then or maybe delay it a little bit.
The idea here is that any money that we will pay will probably, this is a discussion that we are having with the regulator right now, will go into our RAB because those are going to be assets that we are going to pay for, and they are going to go to our RAB. If they go to our RAB, they are going to get the weighted average cost of capital. We are going to make money out of that.
Then obviously, any costs that we have to run these companies, those are going to be also costs that we are going to recover through the tariffs. The same thing applies for any depreciations that we have on the assets that are going to be added to the regulatory asset base. De facto, this cannot lead to losses. Okay? De facto, this leads to revenue growth.
The only issue is, when do we invest the money, and when do we get that money back? It is an issue of timing rather than an issue of this creating losses. Actually, I would say it is quite the opposite. This is one reason, because the valuation exercise has not happened yet. This is one reason why it is difficult to complete right now the analysis of the optimal capital structure, because we need to understand and estimate what is the capital that we are going to provide to get access to these assets. Just to make the bridge to the investments, we have an annual investment plan for the following 10 years. We have given the plan, as you know, to the regulator, because the regulator came up with a tariff based on that investment plan, and we need to make every effort to accelerate the plan to ensure that we are compliant with what we told the regulator about two years ago in terms of what that annual plan is. Mr. Stamou, you want to answer the other questions?
Yes. Thank you, Harry. Regarding customers, have gone up EUR 17 million. Yes, no comment. It was expected. This follows the increase in our billing. The important here is the maturity of the receivables. No need to comment anything further on that. It is completely expected. It has not been matured in order to be impaired, so the receivables comes with the increase on revenues.
Regarding EUR 68 million in conventional assets, I think you are referring to the provisions, the cutoff that are linked with the revenues referring from 1st to January to end of June. So again, it is exactly related to the revenues in the respective period. As I saw, there is another additional question, the fifth one, regarding the pending judicial affairs that increased from EUR 185 million to EUR 158 million. Again, this is linked with the progression in some of those cases of our investment plan.
Regarding what needs to be provisioned, explored almost continuously. No further need. That's why we have seen also the respective impact, positive impact, in our results. Of course, it's being followed on a continuous basis in case from that one we see any risk will be provisioned accordingly. So I think there is no anything else that I see here. There are other questions that.
Okay, Mr. Sachinis, there is a question from Mr. Rumantis.
Yeah.
Can you elaborate on the increase of the 10-year investment plan to 2.8?
You are on mute. Harry, you are on mute.
Mr. Stamou, do you have the information to be a little bit more detailed on that?
EUR 2.8 billion, just for avoidance of any misunderstanding, exceeds the 10-year investment plan. In reality, from EUR 2.5 billion that we were referring in prior period, the increase of EUR 300 million is linked primarily with Psyttalia. Because at least that would be at that range and not only. The EUR 2.8 billion is referring to the period even beyond 2035, in order to cover all current investment needs that we have in our hands.
Basically, this is all the known projects that we know about today, and if they finish beyond the 10-year period, that is okay, but these are the projects that we know today. That does not mean that based on how the company evolves and the needs within the Attica area evolve, there may be more projects that we are going to work on. Obviously, with the expansion, we believe that within the next year, we will have a much better understanding of what additional investments need to happen there.
If there is something that I can say here, the investment plan will grow rather than go lower, obviously. The important thing here is to execute on it. We are focusing on executing on it and especially executing on it at the rate that we have told the regulator. It's not going to be easy, but that's where exercises like the PMO services that we want to layer on top of what we are already doing are going to be important for that.
Okay. There are some questions from Mr. Jonathan Day. The first one is, please can you shed some light on the headwinds related to investment in the first half, and what is changing to support execution in the second half of the year? Can you talk about the opportunities and challenges of moving into irrigation agriculture as part of the expansion? How much of your bad debts are represented by municipalities you expect to integrate? That's from Mr. Day.
What was the last one, please?
How much of your bad debts are represented by the municipalities you expect to integrate?
Yeah. Obviously, the bad debts, we don't know what is there at the municipalities, but we're not going to be paying for the bad debts. We don't see that any bad debts are going to actually have a negative impact on these transactions. Irrigation and agriculture, this is indeed an interesting area. I will tell you what my view and my plan is. I want this to be a model solution for agriculture in Greece.
I think it is going to be the first time that a company with the know-how of EYDAP, in terms of providing water, comes to play. We have already had discussions with European players and other significant players in agriculture and irrigation around the world, and we're continuing to do that. We're going to be hiring ahead of our irrigation services and reuse services.
We're going to work together with the other stakeholders, and it is important to work together with the people who use these resources. In Greece, about 80% of the water goes to agriculture and only 20% goes to potable water. Actually, a lot of the water that is destined for Athens already goes to agriculture. We have an incentive there to figure out how to be more efficient in how irrigation happens.
We're putting a plan together. The key thing is going to be what are the tariffs going to be for agriculture. Agriculture, water use, and water rates are also within the domain of the regulator. This is a discussion with the regulator about the overall costs, the overall allowed revenue that they have for those areas, how that revenue is going to be recovered through tariffs to whom.
This is a discussion and an analysis that we have to go through with the regulator. The fact is that we are somehow going to get through the tariffs, going to cover our allowed revenue, but details are yet to be finalized. Through the projects, there have been some projects that have been late for a variety of reasons, because of construct delays and so on. Some of these contractors have actually start accelerating these projects. We're trying to see how we can push further to ensure that we are as close as possible to what we had told the regulator by the end of the year. That's it. Also now, the thing is our internal process on how.
Mr. Sachinis, can you hear us?
We. Hello? Hello?
[Non-English content]
Okay. Can you hear me?
Yes. Okay, I don't know why [Non-English content]
Can you hear me now?
[Non-English content]
Okay. If Mr. Stamou can continue, he will
Mr. Stamou, do you want to continue?
Yes
Until.
Yeah, okay.
Mr. Sachinis get in the
Okay. Which question needs to be replied, Elena? Should we go to the next one or?
Yes, there is a question from Mr. Lemet.
Okay. How quickly we expect the annual investment run rate to ramp up from here? Yes, not we expect, we are working on that, to be more specific, to ramp up from this stage. We are at 75% on average project execution and investment plan execution. On project plans, we are currently 81% compared to 86%, maybe more last year. But in the first semester, we faced some delays due to archeological services, due to some contracts delays that we know, we have in our hands, that those ones have been already signed and will be accelerated.
Especially, just to give you an indication, in some functions, like water services, we are beyond 140% of execution, meaning that there are specific fields that we need to focus. We are already working on that, and we strongly believe that the execution will accelerate in the second semester. Bottlenecks, if we see any bottlenecks, the answer is definitely yes. When you have such, especially this year as well, that our investment needs to be accelerated and is significantly higher compared to the prior year, always there are bottlenecks.
But all the company is working in the direction to overcome promptly whenever problem exists. Of course, this is not always the case, but we are trying to coordinate the things, especially with external third parties, in order all the projects to have the minimum delays in case happen. Regarding the update on dividend distribution, this is a good question. We reflect the share price increase from the respective period last year up to today, 85%. So even through the share price, we try to provide value to the shareholders. At the same time, of course, we are exploring the optimal capital structure.
We are running internal exercises, what the capital structure needs to be, taking into consideration also the dividend distribution. Because at the same time, we are working in order to implement and deliver the investment plan, to create value through the share price, and at the same time to deliver even increased value through dividend distribution. We are not in a position to say what the amount will be or what the level will be, but in any case, I want to assure you that we are exploring all the possible ways in order to increase value for our shareholders, including that one.
Okay. Mr. Sachinis, do you want to intervene?
No. Let's go ahead with the other questions.
Okay. Mr. Stamou, there is another question from Mr. Paraskev about RAB. Do you see it?
Yes, I see it. I read it. RAB equals to fixed assets minus subsidies, minus loans, correct? In reality, RAB includes fixed assets without any subsidies. Any potential loans affects the expected return through the weighted average cost of capital, but in reality, it needs to change drastically in order to affect significantly what we expect as a return. RAB is, yes, is fixed assets minus subsidies.
Okay, there is another question from Mr. Chatzidakis. Do you have an estimate of the size of assets that potentially will be acquired from EYDAP? Any estimate of how this is going to affect the size of RAB?
A good question, and to figure those who have presented and included also in the presentation that this is also a matter of attention from our side. The answer is we do not have an estimate up to now, and based on the plan, we should not at this timeframe. What we know is that 43 operators will be consolidated to EYDAP with the potentiality that will be increased by even more. Now we have until end of July, based on the timeframe, to consolidate all those ones. So, the size of the assets that will be incorporated and consolidated from EYDAP, I think will be available to us in the next timeframe, and definitely not earlier by the end of the year.
Okay. Do you have any other questions? You can press the hand, raise your hand. Okay, I think.
I think there are Do you hear an echo? I think there are no other questions. Hello? If there are no other questions, I want to thank you for joining us today for these results, and we will see you again in about six months from now, maybe a little bit earlier, actually. Thank you very much for your attention and all your very useful questions.
Thank you.
Thank you.