Municipalities spent more than 1.9 billion euro of the revenues from the sale of shares of energy companies Nuon and Essent on investments. This is more than 60 percent of the first 3.2 billion euro paid in municipal bank accounts. Nearly one third of the amount was deposited in bank accounts or invested in bonds.
Spending revenues sale Nuon and Essent shares by municipalities, 2010
Amsterdam and municipalities in Limburg accounted for highest revenues
In 2009, 216 municipalities together received the first 3.2 billion euro for the sale of Nuon and Essent shares; 60 percent of these municipalities received less than 10 million euro, more than 35 percent received anywhere between 10 and 40 million euro. The remaining 5 percent received 40 million euro or more.
Amsterdam received the most substantial amount (over 400 million euro). The municipalities of Den Bosch and Tilburg shared second place with 242 million each. The municipality of Leiden held fourth place with more than 100 million euro. Altogether, 40 municipalities in the province of Limburg received 614 million euro from the sale of Essent shares.
Revenues sale Nuon and Essent shares in million euro broken down by municipality, 2009
Investments in building projects and setbacks
Municipalities participated in various investment projects to the amount of 1.9 billion euro, e.g. school buildings, local government offices or sports centres. In the province of Overijssel, municipal and provincial authorities together invested in a unique project called Investeren met gemeenten, which made it possible to realise a large number of projects earlier than originally planned.
Amsterdam invested in the North/South underground railway line and in land sale projects which were delayed due to the economic recession. Thus, money was saved that would otherwise have been spent on interest payments.
Spending municipal revenues from the sale of shares by province (excluding Utrecht), 2010
Municipalities in Limburg invested most
As a result of the sale of Nuon and Essent shares, municipalities missed out on the annual dividend yield.
Municipalities compensated for this by cutting down on new loans for investments and by paying off existing loans and putting out money. More than half a billion euro was safely deposited in bank accounts, while 0.4 billion euro was invested in bonds and investment funds. With 345 million euro, municipalities in Limburg invested most. They accounted for 85 percent of total investments.